• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 3 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 7 hours OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil
  • 1 hour Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 9 hours Iranian Sanctions - What Are The Facts?
  • 10 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 4 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 3 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 10 mins COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 2 hours EU to Splash Billions on Battery Factories
  • 7 hours China Thirsty for Canadian Crude
  • 10 hours Superhumans
  • 6 hours Who's Ready For The Next Contest?
Indicators To Watch As Oil Stocks Flop

Indicators To Watch As Oil Stocks Flop

Stock markets derailed on Wednesday,…

Stock Market Chaos Sparks Oil Selloff

Stock Market Chaos Sparks Oil Selloff

Global markets took a beating…

Hurricane Harvey Impact On Gulf Coast Refiners Similar To Katrina

Corpus

Refinery runs in the Gulf Coast returning to the levels seen before Hurricane Harvey made landfall in Houston on August 25, but the scale and duration of refinery operations curtailment has been similar to the disruptions in the wake of Hurricanes Katrina in 2005 and Gustav and Ike in 2008, the EIA said on Thursday.

A little more than half of all U.S. refinery capacity is located in the Gulf Coast region, while Texas alone accounts for 31 percent of all U.S. refinery capacity, according to EIA data from January 2017.    

For the week that ended on October 20, Gulf Coast refinery runs averaged 8.8 million bpd, which was around 324,000 bpd higher than the previous five-year range for mid-October, EIA said.

Before Hurricane Harvey hit Texas and Louisiana, refinery runs in the Gulf Coast had been running higher than the five-year average for most of this year.

At the end of May and early June, refinery runs in the whole of the U.S. were running at record rates, with a record high 17.7 million bpd for the week that ended on May 26.

“Weekly U.S. refinery runs have exceeded 17 million b/d only 24 times since EIA began publishing the data series in 1990, and all of those instances have occurred since July 2015,” EIA said in June.

During and after Hurricane Harvey, many refineries in the Gulf Coast either reduced runs or temporarily shut down. In the first week following the landfall, gross inputs to Gulf Coast refineries dropped by 3.2 million bpd, or by 34 percent, compared to the prior week. On the second week after Harvey made landfall, Gulf Coast refinery runs declined by another 263,000 bpd to 5.9 million bpd—the lowest weekly value since Hurricanes Gustav and Ike disrupted refinery operations in September 2008, according to EIA data.

Related: Canada’s Oil Output To Grow For Decades To Come

Gulf Coast refineries were increasing runs in late September and early October, before Hurricane Nate caused disruptions again in the week that ended on October 13.

“Overall, the magnitude and duration of Hurricane Harvey’s impact on Gulf Coast refinery runs has been similar to what happened following Hurricanes Katrina in 2005 and Gustav and Ike in 2008,” the EIA concluded.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News