U.S. Gulf Coast refineries and fuel distribution terminals started to reopen on Saturday, a week after Tropical Storm Harvey knocked out nearly 25 per cent of the nation’s refining capacity and sent gasoline prices spiking.
While much of the region’s refining infrastructure still remained offline from Harvey, which made landfall as a Category 4 hurricane last week, the restarts were a first step in alleviating concerns about U.S. fuel supplies.
Exxon Mobil Corp said on Saturday it was restarting its 560,500 barrel per day (bpd) facility in Baytown, Texas, America’s second-biggest oil refinery, after it was inundated by flooding.
Phillips 66, meanwhile, said it was preparing to resume operations at its storm-hit 247,000 bpd refinery in Beaumont, Texas.
The announcements come after Citgo Petroleum Corp said on Friday it would restart its 157,500 bpd refinery in Corpus Christi, Texas.
U.S retail gasoline prices have risen more than 17.5 cents since Aug. 23, before the storm began, amid worries the storm would trigger supply shortages.
Pump prices were at $2.59 US a gallon on Saturday, according to motorists advocacy group AAA, up three per cent from Friday and 16.7 per cent higher on average than a year ago.
Gas prices in Canada have also spiked in the wake of the damage caused by Harvey. Many drivers faced double-digit price increases across the country during the Labour Day weekend.
In another positive sign for the oil industry, Occidental Petroleum Corp said it had reopened its Ingleside, Texas, crude export facility, near where Hurricane Harvey first made landfall last week. The facility is a key export hub for Permian Basin oil producers.
The Port of Corpus Christi, a major energy industry shipping hub, was partially open and hoped to resume normal operations next week, officials said.
But much energy infrastructure remained off line, including the largest U.S. refinery, the 603,000 bpd facility in Port Arthur, Texas, owned by Motiva Enterprises LLC. Motiva has warned customers to prepare for fuel shortages, said a source at convenience store and gas station chain Circle K.
In some Texas cities, including Dallas, there were long lines at gas stations on Friday.
Nearly half of U.S. refining capacity is in the Gulf Coast region, an area with proximity to plentiful crude supplies from Texas oil fields and also Mexican and Venezuelan oil imports. Most major Texas ports remained closed to large vessels, limiting…