In a story Aug. 28 about the effect of Tropical Storm Harvey on the economy, The Associated Press reported erroneously that U.S. daily refining capacity is 18 billion barrels per day. It is 18 million barrels per day.
A corrected version of the story is below:
Harvey slams region’s economy, with damages in the billions
Hurricane Harvey slams region’s economy, with flood damage likely to reach into the tens of billions
By DAVID KOENIG
AP Business Writer
DALLAS (AP) — Flood damage from Harvey is likely to reach into the tens of billions and the storm is expected to cause the region’s economy to shrink, at least in the near term.
Harvey is soaking refineries along the Gulf Coast, leading to higher prices at the pump. Gasoline futures rose nearly 3 percent Monday.
The storm could also put a kink in the shipment of consumer goods.
Harvey, which hit the coast as a Category 4 hurricane, will likely affect the South Texas economy for months. Mark Zandi, chief economist at Moody’s Analytics, predicted that the region’s economic output will be cut about 1 percent, or $7 billion to $8 billion. It will recover, he said, helped by money from insurance payments and government aid to rebuild.
Here’s a look at the effects on key industries:
— REFINING: Prices are expected to spike over the next week or more as about 10 refineries representing more than 15 percent of the nation’s refining capacity are shut down.
Nearly 3 million barrels of the 18 million U.S. daily refining capacity has been knocked out, according to Goldman Sachs. Most of the shut-downs have been precautionary, with only a few reports of minor flooding.
But the slow-moving nature of the storm means it could cause shutdowns to linger and leave more-lasting damage, said Goldman Sachs analyst Damien Courvalin. Another 850,000 barrels per day of capacity remains under threat, he said.
Exxon Mobil closed its huge Baytown refinery, which lies along the Houston Ship Channel, 25 miles east of the city. The plant can handle up to 584,000 barrels of oil per day. It turns that into gasoline and chemicals used in everything from shrink wrap to car tires.
Gas stations in Houston are running dry. Rick Joswick, an analyst with S&P Global Platts’ PIRA Energy, said it remains to be seen whether…