The Applied Knowledge Team at Breakthrough®Fuel is tracking events around the world and here at home that can impact transportation fuel costs. As always, our latest Breakthrough®Advisor publication will take a closer look at the energy market and help your organization stay informed.
If you’re a current client, watch for the Advisor to hit your email soon. Here’s what’s coming up in the September edition.
This month’s edition of the Breakthrough®Advisor focuses on how Hurricane Harvey is affecting the energy market. Our Applied Knowledge team is compiling special features, analyzing the storm’s impact so far, and forecasting what the future may hold.
Of course, this natural disaster has disrupted many lives and left thousands in need of assistance. We encourage you to consider making a donation to support relief and recovery efforts.
Trustworthy local and national organizations providing help to hurricane victims include:
- American Red Cross
- Hurricane Harvey Relief Fund (administered by the Greater Houston Community Foundation)
- Houston Food Bank
- Food Bank of Corpus Christi
- United Way of Greater Houston
The Immediate Impact of Hurricane Harvey
Some refineries shut down ahead of Hurricane Harvey’s landfall while others were forced to go offline as the storm’s path continued to bring heavy rain and flooding along the Gulf Coast. Not only is hard-hit Houston the nation’s fourth-largest city, it’s also home to several major refineries.
“Houston is a key area because it is one of our main energy hubs, not just because of its refineries but also because it imports and exports of crude oil and refined products,” explains Brett Wetzel, Senior Manager of Applied Knowledge.
Eventually, the lack of production from refineries in the region impacted operations on major refined products pipeline, like the Colonial and Explorer lines. The September Breakthrough®Advisor will examine how much U.S. refining capacity came offline, the effect on product distribution, and how the market has responded to it all.
What the Aftermath Means for Long-Term U.S. Refining Capacity
We’re closely monitoring how the effects of Hurricane Harvey may continue disrupting the market. Could it be a matter of weeks before refineries can safely go back online, or could it last much longer? This edition of the Advisor will explore different scenarios. Wetzel points out that it’s not crude oil seeing increased demand.
“As the flood risk of Harvey has caused oil refineries to reduce run rates or shut down entirely, a situation has arisen where the demand for oil is reduced by the inability to process crude as effectively,” he explains. “At the same time, however, the supply of refined product outputs from refineries are substantially reduced.”
Yet another interesting aspect of the situation on the Gulf Coast is how oversupply in the U.S. market and the nation’s substantial oil reserves could affect the market’s reaction.
As always, the Applied Knowledge Team will report on energy trends from the entire month of August as well as Hurricane Harvey’s impact at the end of the month.
The Breakthrough®Advisor is an exclusive resource for current clients. Those interested in previewing how we keep clients informed can access a recent sample using the form at the bottom of this page. Visit our Knowledge Center to learn more, or enter your email below to receive three editions of the Advisor Brief.
You can also find further information on the impact of Hurricane Harvey in Advisor Pulse updates on our blog.