Gasoline Prices Will Go Up From Hurricane Harvey Flooding

Flooding is shutting down 12% of refinery production in Texas and possibly more.

Read the whole article here at Economic Policy Journal. Here’s a snippet:

ExxonMobil Corp said it took the decision to shut the nation’s second-largest refinery on Sunday because of flooding at the Baytown, Texas, petrochemical complex where it is located, BNN reports.

The 560,500 barrel per day (bpd) Baytown refinery reduced production on Saturday and several units were out of production by early Sunday, said energy industry intelligence service Genscape as Tropical Storm Harvey flooded the Houston area.

Royal Dutch Shell PLC confirmed it stopped making fuel at its 325,000-barrel-a-day plant in Deer Park, Texas, and Brazil’s state-controlled oil company, Petróleo Brasileiro SA, shut down its Pasadena plant near Houston that can process up to 110,000 barrels of oil a day, reports The Wall Street Journal.

It appears that approximately 12% of US production is down.

Harvey has also shut down several big offshore oil and gas platforms in the Gulf of Mexico, with roughly 22% of offshore oil production now stopped.

It could get worse.

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