- Houston: 45.28 inches
- Portland: 44 inches
- Seattle: 37 inches
Harvey: 50+ inchesUpdates
September 2, 2017: gasoline availability continues to improve in north Texas.
August 31, 2017: Colonial pipeline shut down due to Hurricane Harvey.
August 30, 2017: US crude oil inventories dropped significantly.
August 30, 2017: WTI continues to fall: prolonged shutdowns from Harvey could strand shale output -- Bloomberg.
A few more days isn’t a problem, according to Libby Toudouze, a partner at Cushing Asset Management LP. But if the Gulf Coast closures continue into and past next week, it could spur a ripple effect across the industry.
Marathon Petroleum Corp.’s Galveston Bay refinery in Texas City, with a capacity of 451,000 barrels a day, may be forced to halt production within several days because it is running out of crude, a person familiar with operations said on Monday. Its oil comes via Magellan Midstream Partners LP, which suspended use of its pipeline in the area on Sunday.Later, 9:45 p.m. Central Time: the "Houston" story is incredible; 52+ inches of rain; category 4 hurricane; and get this: right now, on the news:
- nine dead due to the storm (of course, more bodies will be found) but nine dead at this point in a metropolitan area of 5 million? truly incredible
- looting? none to speak of; and Houston is not fooling around; life sentences for "burglars" during a "crisis"; minimum prison sentences a given
- dislocated, living in shelters? 12,000. Compare to Katrina
- no significant damage to refineries is being reported
- an absolutely incredible story
- Hurricane Harvey "tests" US shale -- WSJ -- August 29, 2017 (earlier today)
- hurricanes Katrina, Rita, and Harvey tell US shale's story -- Bloomberg -- August 28, 2017
- tropical storm Harvey continues to dump water on Houston, WTI at $46.72 -- August 28, 2017
- how will Hurricane Harvey effect US crude oil supplies? -- August 28, 2017
- somewhat related, Venezuela -- August 28, 2017
- after Hurricane Harvey, WTI flat to slightly down -- August 28, 2017
Harvey sends gasoline prices climbing, deepens Venezuela's suffering -- Washington Post -- August 29, 2017. This story has so many story lines, one could blog any number of posts -- but succinctly:
- we're not in Kansas any more: folks thinking the oil sector is where it was when Katrina struck have been under the Geico Rock for the past five years
- the Bakken shale revolution changed everything
- the US SPR is no longer needed: we have the Permian, the Eagle Ford, the Bakken, the Marcellus, and the Utica -- just to start, and much more after that
- gasoline prices climbing -- give me a break: 10 - 15 cents/gallon, tops. Compare this to what an OPEC embargo would mean -- $1.00 to $1.50/gallon to begin, then rationing and maybe worse
- Venezuela suffering: oh, give me a break. Venezuela has more problems than a few VLCC's in queue off the LOOP
- Homes hit worse by Hurricane Harvey may not have electricity for months
- lower utility bills for the homeowners, Bloomberg might have added
- solar panels would not have helped
- Jim Polson, the writer, should have a blog
- actually the NY Times got it wrong: it's a national vulnerability
- the only reason the oil industry's infrastructure is located along the coast(s) of Texas and Louisiana is because no other states are willing to help out
California: some talking head on CNBC earlier today said that gas prices would go up across the US. First, as mentioned above, gasoline prices might go up 5 - 15 cents/gallon, but nothing compared to what an OPEC embargo of the 1980s would have done. But this is even more interesting: the hurricane in Texas should have no effect on gasoline prices in California. California is an island; the state doesn't get oil from Texas and the state formulates its own gasoline at in-state refineries. If the price of gasoline rises in California, someone is taking advantage of the situation.
Another Country Singer
If there was ever any doubt that Linda Ronstadt was a country singer, those doubts are erased in this music video. The pedal steel gee-tar is heavily featured throughout the concert.
Tomorrow morning I could be tied up. I don't want any cheating on the poll -- in which we asked whether US crude oil supplies would increase/decrease. Survey shows:
- yes, there will be a drawdown; the number will come in under 463.2 million bbls of crude oil: 52%
- no, there will not be a drawdown; the number will be greater than 463.2 million bbls: 48%
August 30, 2017: the drawdown was huge.