The last time you hit the pump, you may have noticed an increase in the price of gas, and for those of us that are encouraged to pay for our gas, this price increase can be quite alarming.
The devastating, tragedy of Hurricane Harvey that hit the city of Houston from August 25th to September 3rd. Although the storm has left Houston in ruins, its effect is not just being felt in Northeast Texas. Due to the epic flooding that Hurricane Harvey has caused, there has been a delay in repopulating the facilities producing oil, inhibiting the return to service of the affected refineries for weeks to come. In result, crude-oil prices are already down significantly on the sudden loss in demand from the region's refiners, and the price of gasoline is rising steadily. Thus, causing a shortage of gas in the Southern states especially.
Texas and the rest of the Southeast states are certainly most vulnerable as these states are primarily served by Gulf Coast refineries. The rest of the country has a large enough supply where the price will not increase as dramatically.
As for now, pipelines carrying refined products across the South to the North continue to operate but as it still continues to rain historic amounts in Houston it is very possible these pipelines could fail, and this worst case scenario could become a reality. If this were to happen you could see gas prices skyrocket and are “expected to accelerate” even more, to possibly over a 2 dollar increase.
Overall, gas is becoming more and more scarce especially in the Southeastern region of the United States. Catastrophic increases on gas prices could be on the horizon as Hurricane Harvey is leaving more than just physical damage. Be aware and prepared for the price increase as it may be necessary to find alternate means of transportation.
CBS/AP. “Death Toll Bumps up to at Least 63 amid Hurricane Harvey Recovery.” CBS News, CBS Interactive, Apr. 2017, www.cbsnews.com/news/hurricane-harvey-death-toll-flood-houston-recovery-harris-county/.
Domm, Patti. “Gasoline Prices Jump to 2-Year High, with More Increases for Drivers over Labor Day Weekend.” CNBC, CNBC, Jan. 2017, www.cnbc.com/2017/09/01/gas-prices-skyrocket-with-more-gains-expected-for-labor-day-weekend.html.
“Hurricane Harvey Causes Gas Prices to Skyrocket Across U.S.” Time, Time, time.com/4925539/hurricane-harvey-gas-price-increase/.
Kilduff, John. “Op-Ed: Gas Prices Could Rise by $1 per Gallon or More in the Wake of Harvey.” CNBC, CNBC, 2017, www.cnbc.com/2017/08/28/gas-prices-could-rise-by-1-per-gallon-or-more-in-the-wake-of-harvey-commentary.html.