More production down as Harvey nears Texas coast

Lloyd Doyle
August 28, 2017

Monster storm Harvey slammed into a key United States oil-producing region disrupting output amid the devastation, but crude stocks are high enough that the impact on the industry should be short-lived, experts said Monday.

About 26 percent of Gulf natural gas production is offline, or about 828 million cubic feet (23.4 million cubic meters) per day, BSEE said.

The area now affected accounts for almost one-third of the nation's capacity to turn oil into gas, diesel and other products. Peak flooding is not expected until Wednesday or Thursday, jeopardizing the reopening of refineries. The company did not immediately respond to requests for comment Monday on the impact of this closure on its output. Therefore, it may actually be days before traders learn the storm's full impact on oil and gas infrastructure. "Nonetheless, data available so far point to sizably larger refining than production disruptions". With the refineries shutdown, gasoline can not be produced so there will be a shortage.

Gasoline prices are set to rise in Canada as tropical storm Harvey churns through the oil refinery district of Texas but the cost to consumers will likely be restricted to a few pennies per litre. Whether that stability will continue depends on how quickly refineries are able to resume normal production.

The bureau says facilities will be inspected after the storm passes.

GasBuddy senior petroleum analyst Dan McTeague says it now seems unlikely that Canadian gasoline prices will jump by 12 cents per litre as they did in 2008 after Ike was the last hurricane to roar ashore in Texas.

Other reports by Iphone Fresh

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