Harvey could have deep economic impact
Massive flooding caused by Harvey along Texas' refinery-rich coast could have long-standing and far-reaching consequences for the state's oil and gas industry and the larger U.S. economy.
Key oil and gas facilities along the Texas Gulf Coast have temporarily shut down, and flooding in the Houston and Beaumont areas could seriously pinch gasoline supplies. Companies operating in the Gulf of Mexico have evacuated drilling platforms and rigs, crimping the flow of oil and gas.
Experts believe gasoline prices could increase as much as 25 cents a gallon.
Here's what is known:
[naviga:h3]REFINERIES[/naviga:h3]
Nearly a third of U.S. refining capacity sits in low-lying areas along the coast from Corpus Christi, Texas, to Lake Charles, Louisiana. Beyond the shutdown of refineries at risk of a direct strike from high winds, there's the threat of flooding and potential power outages for gasoline supplies.
Refinery outages continued to spread Sunday, with about 2.2 million barrels per day of refining capacity down or being brought down, according to analysts at S & P Global.
[naviga:h3]OIL AND GAS[/naviga:h3]
Companies have evacuated workers from oil platforms in the Gulf of Mexico. The U.S. Bureau of Safety and Environmental Enforcement said workers had been removed from 105 of the 737 manned platforms used to pump oil and gas from beneath the Gulf.
The agency estimated that platforms accounting for about 22 percent of oil production and 26 percent of natural gas output in the Gulf had been shut down.
[naviga:h3]SHIPPING[/naviga:h3]
The shipping industry also is expected to be disrupted by the worst hurricane to hit the Texas coast in more than 50 years. Shipping terminals along the Texas coast shut down as the storm approached. Port operations in Corpus Christi and Galveston closed, and the port of Houston said container terminals and general cargo facilities closed around midday Friday.
Rates increased for carrying freight between the Gulf and the U.S. East Coast.
[naviga:h3]TRAVEL[/naviga:h3]
More than 1,400 flight cancellations were reported for Monday, according to FlightAware.
Houston's two airports were closed to all flights except those connected to relief efforts. Houston Bush Intercontinental. Houston International Airport was scheduled to remain closed until Wednesday morning.
Airlines were offering customers the chance to reschedule trips that would take them to Houston, San Antonio or Austin from Friday through the weekend.
