As Tropical Storm Harvey continues to pummel the Texas Gulf Coast, 22 percent of the state’s oil refineries are completely shut down. Once progressives heard the news, it didn’t take long before they started mocking the devastating effects the storm had on the state and oil industry.
The Young Turks, hardly worth a mention, quickly attributed the storm to -- you guessed it -- climate change. They then went on to bash Houston oil companies, including ExxonMobil, suffering from the storm.
Cenk Uygur went as far as to start a petition calling for all federal funds to be withheld from major oil companies once the damage is assessed. “No federal or local assistance should be given to oil companies to recover from Hurricane Harvey,” because “they created this mess,” said Uygur.
Experts are urging consumers to brace for a sharp increase in the price of crude oil due to flooding and damage that forced several refineries to shut down.
Royal Dutch Shell shut down its Deer Park Refinery which produces up to 340,000 barrels per day. ExxonMobil, located in Baytown, Texas, also shut down its plant which produces up to 560,000 b/d. Petrobras, located in Pasadena, Texas, shut down its refinery which produces up to 110,000 b/d.
According to CNBC, other refineries aren’t too far behind.
“Traders and oil industry news services also say that the Phillips 66 Sweeny Texas Refinery (260,000 b/d) is shutting down, and that output at Marathon's Galveston Bay refinery (460,000 b/d) and the Access Industries plant in Houston (260,000 b/d) are slowed because of the closed ship channel. The Magellan pipeline company has announced it’s shutting down its crude oil and refined product pipeline in Houston, which means remaining refineries there might be shutting down as well. Refineries in Corpus Christi owned by Flint Hills, Valero, and Citgo, totaling more than 700,000 barrels per day, had also been slated for controlled shutdowns according to an Oil Express news alert.”
CNBC also reported that even if the damage is controlled, it would be nearly impossible for thousands of workers to return to work safely.