Gas prices could spike amidst Hurricane Harvey devastation

Gas prices could spike amidst Hurricane Harvey devastation

Gas prices could spike amidst Hurricane Harvey devastation

One of the results of the shale-derived boom in US oil and gas production, coupled with a broad leveling-off in domestic energy consumption, is the country's re-emergence as a source of energy exports.

Overnight, Montreal gas prices went up 10 cents to $1.26.9/litre of gas, reports CBC. "But, there is no way to say with absolute surety how much they will jump". If the refineries take more than a few days to come back online, motorists in the Carolinas and other regions across the country could see increases at the gas pumps.

"Who knows what is going to take place", said Rud. "Refiners not affected by Harvey are probably turning out supplies as best they can. So, it's a waiting game right now". Wholesale prices of gasoline have risen as much as 5 percent in futures, the highest since July 2015.

The off-shore wells from which the refineries receive crude oil also produce natural gas; however, the impact upon natural gas prices will not be as great as in 2005 and 2008, the year of other catastrophic storms, he said.

"The recent, rare eclipse event casts some uncertainty on Labor Day travel projections", Conde said.

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Calgary-based pipeline company Enbridge, which bought Houston-headquartered Spectra Energy this year, said it closed its Houston offices and removed all but essential staff from its natural gas gathering and processing facilities in the Gulf of Mexico.

Motorists throughout the USA should expect gasoline prices to jump, while consumers driving in Texas, Louisiana and neighboring states will see the largest increase in the coming days and weeks.

"But that was before the Marcellus Shale and the Utica Shale", Burd said.

About a quarter of all the refineries in Texas are knocked offline, including the largest refinery in America. "California oil won't likely be redirected to the Gulf Coast or the East Coast to backfill supply issues". Conde said prices have risen 23 cents since the first of the month. Emergency crews have made 3,000 water rescues since Harvey arrived late Friday, and government officials have warned that flooding could become worse as more rainfall hits the region. DeHaan said drivers can expect those prices to continue to tick upward the longer the refineries are out of service.

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