As the remnants of Hurricane Harvey continue to linger over the gulf coast, the effects on the oil and gas industry are beginning to set in.
Reginans will pay more at the pumps as many refineries down south are shut-down leaving many companies in western Canada nowhere to ship their crude.
Dan McTeague, a Senior Petroleum Analyst with Gasbuddy.com says while it’s hard to say if this will leave effects similar to Hurricane Katrina 12 years ago, this year is devastating in its own way.
“This is the third most-conducive year on record since 1950 for hurricanes,” McTeague said. “And the likelihood of a hit after nearly a decade of nothing happening was mathematically long overdue.”
McTeague says oil sent down to be refined may not have a market for awhile.
“It’s likely there is no one at the other end to pick up that product,” McTeague said. “So it will be several weeks of disruption. It will mean, obviously, oil will not have a place to go. Of course, we don’t have spare barrels of gasoline we can send down there. So for the next several weeks, the word is disruption and it will mean higher prices at the pumps for all Canadians.”
McTeague says currently officials are a long way of from knowing the long-lasting and permanent effects of Hurricane Harvey.