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US Oil Production Near Record High But Harvey Looms

01 September 2017

That gives the country a cushion when dealing with a disaster like Harvey.

Husky owns one refinery and partners with BP in another in OH, while Cenovus owns a 50 per cent stake in Phillips 66 refineries in IL and northern Texas.

"We have the most gelatinous belly of crude oil that we've come into Labor Day with in a long, long time".

The Energy Department "will continue to provide assistance as deemed necessary, and will continue to review incoming requests for SPR crude oil", spokeswoman Jess Szymanski said.

The nation has huge stockpiles of gasoline and oil.

The storm caused the closure of many oil platforms in the Gulf, and about a fifth of the region's oil output remained shut down, according to USA authorities.

United States second-quarter growth revised to 3 percent in momentum boost
Some are now saying that the devastation from Hurricane Harvey could shave about a half-percentage point off growth this quarter. GDP has averaged annual growth rates of just 2.2 percent in this recovery, which is now the third longest in US history.

The difference now is that soaring oil production in North Dakota and West Texas has made the USA less reliant on oil rigs in the Gulf, which are vulnerable to hurricanes. At least 4.4 million barrels per day (bpd) of refining capacity was offline, or nearly a quarter of total US capacity, based on company reports and Reuters estimates.

The Northeast Gasoline Supply Reserve, set up after Hurricane Sandy caused fuel supply disruptions in 2012, holds 1 million barrels of motor fuel at three sites in New York Harbor, the Boston area, and Maine.

"With sharply rising flows from Europe to the U.S. Gulf, we're also seeing a massive spike in crack spreads", Carsten Fritsch, an analyst at Commerzbank AG, told Bloomberg in an interview.

Normally, that would spark fears of a supply crunch and lift the price of oil. FGE Energy estimates that Harvey interrupted the production of about 380,000 barrels per day in the Gulf and 400,000 barrels inland.

If anything, the oil industry is grappling with too much supply because of shale.

The result will be higher prices, but it should be just a one- or two-week problem, Joswick said.

Residents south of Houston urged to 'GET OUT NOW!!' after levee breach
The driver got out and urged the children to escape through the back door, Ms Saldivar said, but they could not. Meanwhile, the tropical storm appeared to be gathering strength once again on the Gulf coast.

Now, those high oil inventories are providing a helpful cushion in the aftermath of Harvey.

U.S. crude inventories fell 5.78 million barrels last week, it said on Tuesday.

Prices also rallied in the oil products markets, with USA gasoline futures hitting a two-year high above $2 a gallon, buoyed by fears of a fuel shortage just days ahead of the Labor Day weekend that typically brings a surge in driving.

Restarts after a storm are especially unsafe times for refiners, though the Corpus Christi area received much less rain than the Houston metro area.

US gasoline prices surged anew in morning trade after the Colonial Pipeline Co, which operates the biggest USA fuel transport system, said it would shut its main lines to the Northeast amid outages at pumping points and lack of supply from refiners.

SC relief workers head to Houston
Apple users in the USA can also donate to the American Red Cross through the company's iTunes and app stores. Volunteer William Cleveland knows first hand what it's like helping families who've lost everything.

US Oil Production Near Record High But Harvey Looms