Friday—September 8
See below for the latest information on Harvey’s energy sector impact.
Energy Capacity
According to the Department of Energy, close to 1.4 million bpd of refining capacity is estimated to still be offline as a result of the storm.
Outages
According the Department of Energy and Electricity Subsector Coordinating Council, approximately 4,000 customers are without power in Texas and Louisiana. CenterPoint, which serves most of the Houston metro area, hopes to have full restoration by today.
For more information on the restoration process, please see this step-by-step guide from Edison Electric Institute.
Industry
Plants run by Exxon, Phillips 66 and Valero Energy have begun to reopen. The restart process is a meticulous endeavor that will require the entire supply chain to coordinate.
The Environmental Protection Agency will be working with Texas Commission on Environmental Quality to determine where the Agency can best assist Texas in contacting industrial sources along the coast, most of which underwent organized shutdown of their operations in advance of the storm. The Agency will initiate contact with sources located within the storm area to determine status and plans to resume operations, and will closely monitor startup activities.
Many Houston CEOs have been active in the rebuilding process as their employees begin to address the damage.
Market
US gas prices calm as much of the industry begins the recovery process.
Tuesday—September 5
See below for the latest information on Harvey’s energy sector impact. The weekend gave the region a chance to begin the recovery process. Outages fell and a portion of the Gulf's refining capacity came back online.
Energy Capacity
According to the Department of Energy, close to 1.7 million bpd of refining capacity is estimated to still be offline as a result of the storm.
Eight refineries began the restart process over the weekend. The process could take several days or weeks as crew do a full inspection of the facilities.
The Department of Energy has released 3.5 million barrels from the strategic reserves to account for the drop in production. Our economy will continue to rely on our commercial reserves which can sustain at least 30 additional days of demand according to the U.S. Energy Information Administration.
Outages
According the Department of Energy and Electricity Subsector Coordinating Council, approximately 64,308 customers are without power in Texas and Louisiana. The Agency has set Friday, September 8, as a tentative Estimated Times of Restoration.
For more information on the restoration process, please see this step-by-step guide from Edison Electric Institute.
Industry
Plants run by Exxon, Phillips 66 and Valero Energy have begun to reopen.
The Environmental Protection Agency will be working with Texas Commission on Environmental Quality to determine where the Agency can best assist Texas in contacting industrial sources along the coast, most of which underwent organized shutdown of their operations in advance of the storm. The Agency will initiate contact with sources located within the storm area to determine status and plans to resume operations, and will closely monitor startup activities.
Market
Retail gasoline prices rose more than 17.5 cents since Aug. 23, despite various reserves being implemented.
Friday
See below for the latest information on Harvey’s energy sector impact. Daily updates will resume on Tuesday, September 5.
Energy Capacity
According to the Department of Energy, close to 3 million bpd of refining capacity is estimated to still be offline as a result of the storm.
The agency continues to estimate that roughly 13% of oil production and 17% of natural gas production in the Gulf remains shut down.
As of yesterday, the Department of Energy has released 500,000 barrels from the strategic reserves to account for the drop in production. Our economy will continue to rely on our commercial reserves which can sustain at least 30 additional days of demand according to the U.S. Energy Information Administration.
Outages
According the Department of Energy and Electricity Subsector Coordinating Council, approximately 170,000 customers are without power in Texas and Louisiana. At this time, there is no estimate for when power will fully return. According to Data Fusion Solutions, the counties with the most power outages are:
- Orange: 27,704 — up from 26,516 outages Thursday
- Harris: 22,229 — down from 44,416 Thursday and 88,237 Wednesday
- Aransas: 19,016 — about the same as Thursday
- Nueces: 15,205 — down from 26,787 Thursday and 35,489 Wednesday
- Tyler: 12,367 — a new entry in the top 5 outage areas in Texas
For more information on the restoration process, please see this step-by-step guide from Edison Electric Institute.
Industry
Plants run by Exxon, Citgo, Petrobras, Flint Hills, Magellan, Buckeye, Shell, Phillips 66 and Valero Energy were shut down. These refineries have a combined refining capacity of 2,361,149 barrels per day, equal to 24.4% of total Gulf Coast refining capacity and 12.8% of total U.S. refining capacity.
The Environmental Protection Agency will be working with Texas Commission on Environmental Quality to determine where the Agency can best assist Texas in contacting industrial sources along the coast, most of which underwent organized shutdown of their operations in advance of the storm. The Agency will initiate contact with sources located within the storm area to determine status and plans to resume operations, and will closely monitor startup activities.
Global
According to the Center for Strategic International Studies, purchasers of U.S. crude and refined product exports are on the market for alternatives as the Gulf recovers from Harvey’s impact. Asia's buyers of American LPG, for example, are already feeling the effects of Harvey across the Pacific.
25 oil tankers carrying approximately 17 million barrels of imported crude oil are unable to offload due to port closures. Their halt can be seen viscerally in this map.
Finally, roughly 40 European tankers have been diverted from their original destinations for other US ports to augment domestic supply.
Market
According to recent reports, and ahead of a holiday weekend, gas prices have already seen spikes despite tapping into the oil strategic reserve.
Thursday
As Harvey’s impact continues to be seen in Houston, South East Texas, and Louisiana, see below for GEI's energy sector update.
Energy Capacity
According to the Department of Energy, close to 3 million bpd of refining capacity is estimated to still be offline as a result of the storm.
The agency continues to estimate that roughly 19% of oil production and 19% of natural gas production in the Gulf remains shut down.
As of today, the Department of Energy has released 500,000 barrels from the strategic reserves to account for the drop in production. Our economy will continue to rely on our commercial reserves which can sustain at least 30 additional days of demand according to the U.S. Energy Information Administration.
Outages
According the Department of Energy and Electricity Subsector Coordinating Council, approximately 218,000 customers were without power in Texas and Louisiana. At this time, there is no estimate for when power will return. According to Data Fusion Solutions, the counties with the most power outages are:
- Harris: 44,416 — down from 88,237 Wednesday
- Nueces: 35,489 — down from 49,193 Wednesday
- Orange: 26,516 — a new entry to the top 5 Texas counties with outages
- Aransas: 19,023 — about the same as Wednesday
- Jefferson: 17,821 — down a bit from 17,821 yesterday
For more information on the restoration process, please see this step-by-step guide from Edison Electric Institute.
Industry
Plants run by Exxon, Citgo, Petrobras, Flint Hills, Magellan, Buckeye, Shell, Phillips 66 and Valero Energy were shut down. These refineries have a combined refining capacity of 2,361,149 barrels per day, equal to 24.4% of total Gulf Coast refining capacity and 12.8% of total U.S. refining capacity. Exxon Mobil and Motiva had been mulling whether to shut their refineries in Beaumont and Port Arthur, respectively.
The Environmental Protection Agency will be working with Texas Commission on Environmental Quality to determine where the Agency can best assist Texas in contacting industrial sources along the coast, most of which underwent organized shutdown of their operations in advance of the storm. The Agency will initiate contact with sources located within the storm area to determine status and plans to resume operations, and will closely monitor startup activities.
Global
According to the Center for Strategic International Studies, purchasers of U.S. crude and refined product exports are on the market for alternatives as the Gulf recovers from Harvey’s impact. Asia's buyers of American LPG, for example, are already feeling the effects of Harvey across the Pacific.
25 oil tankers carrying approximately 17 million barrels of imported crude oil are unable to offload due to port closures. Their halt can be seen viscerally in this map.
Finally, roughly 40 European tankers have been diverted from their original destinations for other US ports to augment domestic supply.
Wednesday
As Harvey’s impact continues to be seen in Houston, South East Texas, and Louisiana, see below for GEI's energy sector update.
Energy Capacity
According to the Department of Energy, closer to 3.6 million bpd of refining capacity is estimated to be offline as a result of the storm--an increase from yesterday’s reports.
The agency continues to estimate that roughly 19% of oil production and 20% of natural gas production in the Gulf remains shut down.
To account for the drop in production, our economy will continue to rely on our strategic reserves which contain enough gasoline to cover 23.7 days of demand according to the U.S. Energy Information Administration.
Outages
According the Department of Energy and Electricity Subsector Coordinating Council, approximately 287,000 customers were without power in Texas and Louisiana. At this time, there is no estimate for when power will return. Additionally Louisiana is experiencing over 11,000 outages as the storm continues North. According to Data Fusion Solutions, the counties with the most power outages are:
- Harris: 88,237 — about the same as Tuesday
- Nueces: 35,489 — down from 49,193 Tuesday
- Aransas: 19,023 — about the same as Tuesday
- Jefferson: 17,821 — a new entry to the top 5 Texas counties with outages
- San Patricio: 16,858 — down from 18,897 Tuesday
For more information on the restoration process, please see this step-by-step guide from Edison Electric Institute.
Industry
Plants run by Exxon, Citgo, Petrobras, Flint Hills, Magellan, Buckeye, Shell, Phillips 66 and Valero Energy were shut down. These refineries have a combined refining capacity of 2,361,149 barrels per day, equal to 24.4% of total Gulf Coast refining capacity and 12.8% of total U.S. refining capacity. Exxon Mobil and Motiva had been mulling whether to shut their refineries in Beaumont and Port Arthur, respectively.
The Environmental Protection Agency will be working with Texas Commission on Environmental Quality to determine where the Agency can best assist Texas in contacting industrial sources along the coast, most of which underwent organized shutdown of their operations in advance of the storm. The Agency will initiate contact with sources located within the storm area to determine status and plans to resume operations, and will closely monitor startup activities.
Global
According to the Center for Strategic International Studies, purchasers of U.S. crude and refined product exports are on the market for alternatives as the Gulf recovers from Harvey’s impact.
Moreover, 22 oil tankers carrying approximately 15.3 million barrels of imported crude oil are unable to offload due to port closures.
Tuesday
As Harvey continues to batter Houston, South East Texas, and now Louisiana, see below for GEI's energy sector update.
Energy Capacity
According to the Department of Energy, over 2.4 million bpd of refining capacity was estimated to be offline as a result of the storm--an increase from this weekend's reports.
The agency also estimated Monday that 19% of oil production 18% of natural gas production in the Gulf has been shut down.
To account for the drop in production, our economy will continue to rely on our commercial reserves which can sustain at least 30 additional days of demand according to the U.S. Energy Information Administration.
Outages
According the Department of Energy and Electricity Subsector Coordinating Council, approximately 270,000 customers were without power in Texas and Louisiana. At this time, there is no estimate for when power will return. According to Data Fusion Solutions, the counties with the most power outages are:
- Harris: 88,592 — up from 76,498 Monday
- Nueces: 49193 — down from 63,875 Monday
- Aransas: 19,024 — about the same as Monday
- San Patricio: 18,897 — down from 23,089 Monday
- Victoria: 16,303 — down from 17,253 Monday
Industry
Plants run by Exxon, Citgo, Petrobras, Flint Hills, Magellan, Buckeye, Shell, Phillips 66 and Valero Energy were shut down. These refineries have a combined refining capacity of 2,361,149 barrels per day, equal to 24.4% of total Gulf Coast refining capacity and 12.8% of total U.S. refining capacity. Exxon Mobil and Motiva had been mulling whether to shut their refineries in Beaumont and Port Arthur, respectively.
The Environmental Protection Agency will be working with Texas Commission on Environmental Quality to determine where the Agency can best assist Texas in contacting industrial sources along the coast, most of which underwent organized shutdown of their operations in advance of the storm. The Agency will initiate contact with sources located within the storm area to determine status and plans to resume operations, and will closely monitor startup activities.
Monday
Over the past few days, Americans from across the country watched with collective concern as Houston and much of Southeast Texas have been hammered by days of extreme weather. Making landfall as a hurricane late Friday night into early Saturday morning, the now Tropical Storm Harvey caused historic flooding across virtually all of the Houston metropolitan area and displaced tens of thousands of Americans.
While the safety and security of those in the storm’s path is always paramount, Houston and the Gulf Coast represent vital areas to our country’s energy sector. In fact, if Houston were on its own country, it would represent the 25th largest economy in the world. In the days leading up to the storm, the energy industry took measures to protect supplies and facilities, but the impact is still significant.
Our President and CEO, Karen Harbert, has firsthand experience dealing with the impacts of a major hurricane. During her tenure as Assistant Secretary for Policy and International at the Department of Energy, she worked on the agency’s response to Hurricane’s Katrina and Rita. Karen discussed the current situation and the tools available to our nation to recover during an appearance on Fox Business Channel’s Cavuto Coast to Coast earlier today.
To help understand the impacts of the storm, we’re gathering information and be providing updates throughout the week.
Energy Capacity
According to the Department of Interior, roughly 22% of the oil produced in the Gulf was shut down as of Sunday. This equates to over 2.2 million barrels per day of refining capacity which is now estimated to be offline as a result of the storm. The U.S. has 23.7 days of strategic petroleum reserves available to help cover this disruption in production.
The agency also estimated Sunday that about 26% of natural gas production in the Gulf has been shut down. However, unlike a decade ago, the U.S. has become a world leader in natural gas production, and is much less dependent on the Gulf for natural gas.
Outages
According the Electricity Subsector Coordinating Council, approximately 311,000 customers were without power in Texas and Louisiana. At this time, there is no estimate for when power will return.
Industry
Plants run by Exxon, Citgo, Petrobras, Flint Hills, Magellan, Buckeye, Shell, Phillips 66 and Valero Energy were shut down.
The Environmental Protection Agency will be working with Texas Commission on Environmental Quality to determine where the Agency can best assist Texas in contacting industrial sources along the coast, most of which underwent organized shutdown of their operations in advance of the storm. The Agency will initiate contact with sources located within the storm area to determine status and plans to resume operations, and will closely monitor startup activities.