Officials: Harvey to cause gas price jumpPosted: Updated:
Massive flooding caused by Harvey along Texas' refinery-rich coast could have long-standing and far-reaching consequences for the state's oil and gas industry and the larger U.S. economy.
Key oil and gas facilities along the Texas Gulf Coast have temporarily shut down, and flooding in the area could seriously pinch gasoline supplies. Experts believe gasoline prices could increase as much as 25 cents a gallon.
The storm shut down the largest oil refinery in the nation on Wednesday. The Motiva refinery in Port Arthur, Texas, sits along the Louisiana-Texas border right near where the storm made its second landfall yesterday. Officials say the refinery won't be able to open until the waters recede.
The nation's second largest oil refinery, owned by Exxon-Mobil, also had to shut down its facility.
Colonial Pipeline says it plans to shut down a key line that supplies gasoline to the South due to storm-related refinery shutdowns and Harvey's effect on its facilities west of Lake Charles, Louisiana. The pipeline provides nearly 40 percent of the South's gasoline.
The region accounts for about 3 percent of the U.S. economy and is a crucial export market for oil and chemicals.
AP wires were used in this report