EIA reports Hurricane Harvey aftereffects cause nationwide increase in gasoline prices, supply disruptions

Published on September 14, 2017 by Alex Murtha


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Hurricane Harvey caused substantial disruptions to crude oil and petroleum product supply chains and increased petroleum product prices, according to a recently published report from the U.S. Energy Information Administration (EIA).

Gross inputs to refineries in the U.S. Gulf Coast region fell by 3.2 million barrels per day, or 34 percent of normal operation, which represented the largest drop in production since Hurricane Gustav and Hurricane Ike in 2008.

More than half of all U.S. based-refinery production is located along the Gulf Coast. Based on recent EIA data, 31 percent of that capacity comes from the area in Texas where the hurricane made landfall.

Additionally, approximately 50 percent of total U.S. working crude oil storage capacity and more than 40 percent of working storage capacity for both motor gasoline and diesel fuel is located in the gulf region.

EIA said that as supplies were disrupted, the East Coast drew down inventories of motor gasoline, falling by 2.2 million barrels, or 3.5 percent, compared to the previous week. An overwhelming majority of the drawdown reportedly came from the lower Atlantic region, stretching from Virginia to Florida.

Effects of the storm also caused a notable rise in gasoline prices, increasing by an average of 28 cents per gallon to a total of $2.68 per gallon on Sept. 4. The Gulf Coast, however, saw an even larger rise in prices, going from $2.43 per gallon on Aug. 28 to $2.56 per gallon less than a week later.