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1 1 (August 31, 2017)

handle is hein.crs/govciuv0001 and id is 1 raw text is: I Cong ressina l Rese rch Sevice Hurricane Harvey and the Oil Industry August 31, 2017 Hurricane Harvey has had a significant impact on oil industry infrastructure, and, therefore, the ability of the industry to supply petroleum products to the national and world markets at stable prices. All stages of the oil/petroleum product distribution chain, including production fields, refineries, pipelines, and harbors and ship terminals, have been affected. Over the next several days, damage assessments will continue and estimates of when normal operations will commence will become available. Hurricane Harvey has demonstrated the interconnectedness of the industry and how the shut-down of one, or more, parts of the production process can have effects that ripple through the chain. Oil Production Both onshore and offshore oil production were affected by Hurricane Harvey. Because of the physical proximity of the Eagle Ford oil fields to the hurricane's path it has been estimated that by August 26, 2017, Eagle Ford output, which pre-storm was 870,000 barrels per day (b/d), was reduced by 300,000 to 500,000 b/d. On August 31, 2017, it was estimated that 236,115 b/d of offshore production in the Gulf of Mexico had been curtailed, out of a total pre-storm production of 1,750,000 b/d. In addition, 94 out of 737 manned platforms and 5 out of 31 manned rigs remained evacuated. These output reductions potentially affect the ability of domestic refineries to access crude oil supplies, as well as international markets that might wish to purchase Eagle Ford light-sweet oil. However, for U.S. refiners the production cuts will not have an immediate impact due to refinery closures. Refineries While the onshore and offshore oil production cuts are problematic for the industry, they are consistent with the disruption to Gulf Coast refineries. As of August 31, 2017, it was reported that 10 refineries in the region were shut down. This total represents about 31.7% of Gulf Coast capacity and 16.6% of total U.S. refining capacity. Six of these refineries are in the process of restarting, which might take days or weeks pending final damage assessments. The refineries that are known to be restarting have a capacity of 1,269,720 b/d, or about 13.1 % of total Gulf Coast refining capacity. While these cuts in available refining capacity will have an effect on Gulf Coast gasoline and other local petroleum product markets, the effects are likely to be far more widespread. The Mid-Atlantic, Northeast, and Midwestern gasoline and other petroleum product markets are all net consumers of Gulf Coast production. As a result of this dependence, it is expected that gasoline, diesel fuel, and other products will increase in price in those markets. CRS INSIGHT Prepared for Members and Cornnittees o4 Congress ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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