How Will Harvey Impact Your Gas Prices?

america
August 30, 2017Aug 30, 2017

Hurricane Harvey has had devastating consequences on Southeast Texas, dropping a record-making 51 inches of rain on the region. It also impacted a staggering 13 million people, reported CNN. If you live in the area or have friends or loved ones who live there, then you've been at least emotionally touched by the storm. It's brought the best out in people—from the CNN reporter who stopped to rescue a family to Sandra's Bullock's incredibly generosity.

However, even if you have no connection to the Southern state, the impact of Harvey is about to touch you through your pocketbook. Early Wednesday, the largest oil refinery in the United States, Motiva, announced their shut down in response to Hurricane Harvey. The man reason for the closure was the catastrophic flooding caused by the storm.

Motiva's announcement means their Port Arthur refinery will be closed until further notice. The reason they gave was that it was "in response to increasing local flood conditions."

The company had been decreasing production at the plant for days—running at 40% capacity late Tuesday. They said the plant won't open until flood waters recede.

Tropical storm Harvey made a second landfall on Wednesday near the Louisiana-Texas border, which is where Port Arthur is located. According to the city's mayor, Derrick Freeman, the "whole city is underwater right now."

Motiva isn't the first company to close their oil refineries in Texas. The decision follows a similar one by ExxonMobil (XOM), who shut down their oil refineries in Baytown, Texas on Sunday. Another 12 refineries are offline, which means a significant portion of the U.S.'s capacity to refine oil is down. 

"The reduced capacity means significantly smaller amounts of oil can be turned into gasoline and other products like jet fuel. Analysts predict drivers will see higher gasoline prices due to restrictions on supply," explains CNN. 

Have you seen any changes in gas prices in your area yet? Let us known the comments. Also, don't miss our latest trending story: Here’s What Texans Chanted When Trump Took the Mic.

Next: Here’s What Texans Chanted When Trump Took the MicAug 29, 2017