Harvey forces major Texas refineries to shut down, raising concerns about gas price hikes
Jeff Mosier, Energy and Environment Writer
Flooding caused by Harvey has forced some of the largest refineries in the country to shut down, putting more than a tenth of the nation's refining capacity out of commission temporarily and raising concerns about gas price spikes.
"In terms of prices, it's obviously going to be a lot worse than what we were telling people on Friday," said, Patrick DeHaan, senior petroleum analyst for GasBuddy.com, referring to the slight price increase on Friday before the Category 4 hurricane made landfall on the Texas coast.
On Sunday, major Houston-area oil and gas refineries owned by Exxon Mobil, Shell, Phillips 66 and Petrobras closed due to flooding. Parts of Houston are expected to get as much as 50 inches of rain as Harvey hovers along the coast.
DeHaan expects gas prices to go up by 15 to 25 cents along the coast. It could be higher if more refineries close in response to flooding at gasoline storage facilities or service stations. Outside the region, DeHaan expects gasoline prices to go up by 5 to 15 cents. There's a "huge danger that the numbers could change in a moment's notice," he said.
James L. Williams of WTRG Economics said these major shutdowns are "enough to move markets."
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https://www.dallasnews.com/news/weather/2017/08/27/harvey-forces-major-texas-refineries-shut-raising-concerns-gas-price-hikes
