Tag Archives: Texas

Oil markets roiled as Harvey hits U.S. petroleum industry

An oil tank damaged by Hurricane Harvey is seen near Seadrift, Texas, August 26, 2017

By Ahmad Ghaddar

LONDON (Reuters) – Oil markets were roiled on Monday after Tropical Storm Harvey wreaked havoc along the U.S. Gulf Coast over the weekend, crippling Houston and its port, and knocking out several refineries as well as some crude production.

U.S. gasoline prices hit two-year highs as massive floods caused by the storm forced refineries in the area to close. In turn, U.S. crude futures fell as the refinery shutdowns could reduce demand for American crude.

Brent futures steadied as pipeline blockades in Libya slashed the OPEC state’s output by nearly 400,000 barrels per day .

Harvey is the most powerful hurricane to hit Texas in more than 50 years, killing at least two people, causing large-scale flooding, and forcing the closure of Houston port as well as several refineries.

The U.S. National Hurricane Center said Harvey was moving away from the coast but was expected to linger close to the shore through Tuesday. It said floods would spread from Texas eastward to Louisiana.

Texas is home to 5.6 million bpd of refining capacity, and Louisiana has 3.3 million bpd. Over 2 million bpd of refining capacity was estimated to be offline as a result of the storm.

Spot prices for U.S. gasoline futures surged 7 percent to a peak of $1.7799 per gallon, the highest level since late July 2015, before easing to $1.7341 by 1341 GMT.

U.S. traders were seeking oil product cargoes from North Asia, several refining and shipping sources told Reuters, with transatlantic exports of motor fuel out of Europe expected to surge.

“Global refining margins are going to stay very strong,” said Olivier Jakob, managing director of Petromatrix.

“If (U.S.) refineries shut down for more than a week, Asia will need to run at a higher level, because there’s no spare capacity in Europe.”

About 22 percent, or 379,000 bpd, of Gulf production was idled due to the storm as of Sunday afternoon, the U.S. Bureau of Safety and Environmental Enforcement said.

There might also be around 300,000 bpd of onshore U.S. production shut in, trading sources said.

Brent crude futures were up 2 cents at $52.43 per barrel. U.S. West Texas Intermediate  crude futures  were down 50 cents at $47.37.

The price moves pushed the WTI discount versus Brent to as much as $5.24 per barrel, the widest in two years.

 

 

(Additional reporting by Henning Gloystein in Singapore; Editing by Dale Hudson and Edmund Blair)

 

Houston crippled by catastrophic flooding with more rain on the way

Flooded downtown is seen from a high rise along Buffalo Bayou after Hurricane Harvey inundated the Texas Gulf coast with rain causing widespread flooding, in Houston, Texas, U.S. August 27, 2017 in this picture obtained from social media.

By Gary McWilliams and Ruthy Munoz

HOUSTON (Reuters) – Houston is facing worsening historic flooding in the coming days as Tropical Storm Harvey dumps more rain on the city, swelling rivers to record levels and forcing federal engineers on Monday to release water from area reservoirs in hopes of controlling the rushing currents.

Harvey, the most powerful hurricane to strike Texas in more than 50 years, first hit land late on Friday and has killed at least two people. It has since lingered around Texas’ Gulf Coast, where it is forecast to remain for several more days, drenching parts of the region with a year’s worth of rain in the span of a week.

Schools, airports and office buildings in the nation’s fourth largest city were ordered shut on Monday as scores of roads turned into rivers and chest-high water filled neighborhoods in the low-lying city that is home to about 2.3 million people. The area’s vital petrochemcial industry also was crippled.

Torrential rain also hit areas more than 150 miles (240 km) away, swelling rivers upstream and causing a surge that was heading toward the Houston area, where numerous rivers and streams already have been breached.

More flooding is expected as water levels continue to rise, putting more residents at risk. More than 30,000 people are expected to be placed temporarily in shelters, FEMA Administrator Brock Long said at a news conference on Monday. The National Weather Service said the worst of floods are expected Wednesday and Thursday, although there is still uncertainty over the storm’s path.

 

RESERVOIR RELEASES

The U.S. Army Corps of Engineers said Monday that it was releasing water from two nearby reservoirs into Buffalo Bayou, the primary body of water running through Houston.

“If we don’t begin releasing now, the volume of uncontrolled water around the dams will be higher and have a greater impact on the surrounding communities,” said Colonel Lars Zetterstrom, Galveston district commander of the Corps.

The Harris County Flood Control District said it expected the release to start flooding homes around the Addicks and Barker reservoirs on Monday morning.

Authorities ordered more than 50,000 people to leave parts of Fort Bend County, about 35 miles (55 km) southwest of Houston, as the Brazos River was set to crest at a record high of 59 feet (18 m) this week, 14 feet above its flood stage.

Brazos County Judge Robert Hebert told reporters the forecast crest represented a high not seen in at least 800 years.

“What we’re seeing is the most devastating flood event in Houston’s recorded history,” said Steve Bowen, chief meteorologist at reinsurance company Aon Benfield.

Harvey is expected to produce an additional 15 to 25 inches (38 to 63 cm) of rain through Friday in the upper Texas coast and into southwestern Louisiana, the National Hurricane Center said.

By the end of the week in some Texas coastal areas the total precipitation could reach 50 inches (127 cm), which is the average rainfall for an entire year, forecasters said. Nearly 24 inches fell in 24 hours in Baytown, a city with major refineries about 30 miles east of Houston, the weather service said early on Monday.

Dallas, 240 miles (386 km) north of Houston, will set up a “mega shelter” at its convention center to house 5,000 evacuees, the city said in a statement.

 

TRUMP VISIT

U.S. President Donald Trump plans to go to Texas on Tuesday to survey the storm damage, a White House spokeswoman said on Sunday. On Monday he approved an emergency declaration for Louisiana.

Trump, facing the first big U.S. natural disaster since he took office in January, had signed a disaster proclamation for Texas on Friday, triggering federal relief efforts. Texas Governor Greg Abbott said on Sunday he planned to add 1,000 more National Guard personnel to the flood battle.

Almost half of the U.S. refining capacity is in the Gulf region. Shutdowns extended across the coast, including Exxon Mobil’s Baytown refinery. More than 2.3 million barrels of capacity were offline as of Monday morning, representing 13 percent of daily U.S. production.

Gasoline futures rose more than 4 percent to two-year highs on Monday morning. The outages will limit the availability of U.S. gasoline and other refined products for global consumers and push prices higher, analysts said.

The center of Harvey was 90 miles (148 km) southwest of Houston on Monday morning and forecast to arc slowly toward the city through Wednesday.

Thousands of people were rescued on Sunday by Harris County Sheriff’s Office, U.S. Coast Guard and Houston police as residents brought boats to staging centers and helicopters were deployed to save others stranded.

Federal authorities predicted it would take years to repair the damage from Harvey. The expected rain conjured memories of Tropical Storm Allison, which lingered for days over South Texas in 2001, flooding 70,000 homes and causing $9 billion in damage.

Damages are not likely to be as extensive as Katrina in 2005, which killed 1,800 people in and around New Orleans, or Sandy, which hit New York in 2012, said a spokeswoman for Hannover Re, one of the world’s largest reinsurers. Those caused $80 billion and $36 billion in insured losses, respectively.

All Houston port facilities will be closed on Monday because of the weather threat, a port spokeswoman said.

More than 247,000 customers in the Houston area were without power on Monday morning, utilities CenterPoint Energy, AEP Texas and TNMP said. CenterPoint warned, though, it could not update its figures due to limited access caused by flooding.

Jose Rengel, 47, a construction worker who lives in Galveston, helped rescue efforts in Dickinson, southeast of Houston, where he saw water cresting the tops of cars.

“I am blessed that not much has happened to me but these people lost everything,” he said.

“And it keeps raining. The water has nowhere to go.”

 

(Additional reporting by Brian Thevenot in Rockport, Kevin Drawbaugh, Valerie Volcovici and Jeff Mason in Washington, DC, Chris Michaud and Dion Rabouin in New York, Erwin Seba, Marianna Parraga, Nick Oxford and Ernest Scheyder in Houston; Writing by Jon Herskovitz and David Gaffen; Editing by Lisa Von Ahn and Bill Trott)

 

Flood threat rises as Harvey dumps torrential rains on Texas

A storm chaser films himself on a camera phone as Hurricane Harvey approaches, on the boardwalk in Corpus Christi, Texas. REUTERS/Adrees Latif

By Brian Thevenot

ROCKPORT, Texas (Reuters) – The most powerful hurricane to hit the U.S. state of Texas in more than 50 years moved slowly inland on Saturday, dumping torrential rain expected to cause catastrophic flooding after battering the coast with 130 miles per hour (209 km per hour) winds.

Texas utility companies said just under a quarter of a million customers were without power. Wind and rain continued to lash the coast as residents began to assess the damage.

Harvey is the strongest storm to hit Texas, the center of the U.S. oil and gas industry, since 1961.

The seaside town of Rockport, 30 miles (48 km) north of the city of Corpus Christi, was hit hard.

Several homes had collapsed, and many more buildings suffered damage. Roofs had been ripped off some, and windows blown in.

The streets were flooded and strewn with power lines and debris. At a recreational vehicle sales lot, a dozen vehicles were flipped over and one had been blown into the middle of the street outside.

“It was terrible,” resident Joel Valdez, 57, told Reuters. The storm ripped part of the roof from his trailer home at around 4 a.m., he said. “I could feel the whole house move.”

Valdez said he stayed through the storm to look after his animals.

“I have these miniature donkeys and I don’t know where they are,” he said, as he sat in a Jeep with windows smashed by the storm.

Resident Frank Cook, 56, also stayed through the storm.

“If you have something left of your house, you’re lucky,” he said, surveying the damage from his vehicle.

Before the storm hit, Rockport’s mayor told anyone staying behind to write their names on their arms for identification purposes in case of death or injury.

A high school, hotel, senior housing complex and other buildings suffered structural damage, according to emergency officials and local media. Some were being used as shelters.

The coastal city of Port Lavaca, farther north on the coast, had no power and some streets were flooded.

“There is so much tree damage and debris that the cost of cleanup will be enormous,” Mayor Jack Whitlow told Reuters, after touring the city earlier Saturday.

The hurricane came ashore near Port Lavaca late on Friday with maximum winds of 130 mph (209 km/h). That made it a Category 4 storm on the Saffir-Simpson scale, the second-highest category and the most powerful storm in over a decade to hit the mainland United States.

The streets of Corpus Christi, which has around 320,000 residents, were deserted early on Saturday, with billboards twisted and strong winds still blowing.

City authorities asked residents to reduce use of toilets and faucets because power outages left waste water plants unable to treat sewage.

The city also asked residents to boil water before consumption.

A drill ship broke free of its mooring overnight and rammed into some tugs in the port of Corpus Christi, port executive Sean Strawbridge said. The crews on the tugs were safe, he added.

The city was under voluntary evacuation ahead of the storm.

Children sleep in a hotel lobby waiting out Hurricane Harvey in Victoria, Texas, August 26, 2017. REUTERS/Rick Wilking

Children sleep in a hotel lobby waiting out Hurricane Harvey in Victoria, Texas, August 26, 2017. REUTERS/Rick Wilking

HEADING INLAND, STORM WEAKENS

The storm weakened to Category 1 early on Saturday and was expected to be downgraded to a tropical storm later in the day, the U.S. National Hurricane Center said. Harvey was about 150 miles (241 km) west-southwest of Houston, moving at about 2 mph (4 km/h), the center said in a morning update.

Harvey was expected to linger for days over Texas and bring as much as 40 inches (101.6 cm) of rain to some parts of the state.

The latest forecast storm track has Harvey looping back toward the Gulf of Mexico coast before meandering north again on Tuesday. (http://tmsnrt.rs/2g9jZ0W)

Nearly 10 inches (25 cm) of rain had already fallen in a few areas in southeastern Texas, the center said. Flash floods have already hit some areas, the National Weather Service said.

As many as 6 million people were believed to be in Harvey’s path, as is the heart of America’s oil-refining operations. The storm’s impact on refineries has already pushed up gasoline prices. The U.S. Environmental Protection Agency eased rules on gasoline specifications late on Friday to reduce shortages.

U.S. President Donald Trump, facing the first big natural disaster of his term, said on Twitter he signed a disaster proclamation that “unleashes the full force of government help” shortly before Harvey made landfall.

“You are doing a great job – the world is watching,” Trump said on Saturday in a tweet referring to the Federal Emergency Management Agency (FEMA), which coordinates the response to major disasters.

Utilities American Electric Power Company Inc and CenterPoint Energy Inc reported a combined total of around 237,000 customers without power.

While thousands fled the expected devastating flooding and destruction, many residents stayed put in imperiled towns and stocked up on food, fuel and sandbags.

Stewart Adams, of San Marcos, Texas, plays in the winds from Hurricane Harvey in Corpus Christi, Texas, U.S. August 25, 2017. REUTERS/Adrees Latif

Stewart Adams, of San Marcos, Texas, plays in the winds from Hurricane Harvey in Corpus Christi, Texas, U.S. August 25, 2017. REUTERS/Adrees Latif

HOUSTON PREPARES FOR FLOODS

The size and strength dredged up memories of Katrina, the 2005 hurricane that made a direct hit on New Orleans as a Category 3 storm, causing levees and flood walls to fail in dozens of places. About 1,800 died in the disaster made worse by a slow government emergency response.

Texas and Louisiana declared states of disaster before Harvey hit, authorizing the use of state resources to prepare.

Residents of Houston, the nation’s fourth most populous city, were awakened early on Saturday by automatic cell phone warnings of flash floods.

The city warned of flooding from close to 20 inches (60 cm) of rain over several days.

A collapsed overhead gantry lies across Interstate 37, blocking the highway due to damage caused by Hurricane Harvey in Corpus Christie, Texas, U.S., August 26, 2017. REUTERS/Mohammad Khursheed?

A collapsed overhead gantry lies across Interstate 37, blocking the highway due to damage caused by Hurricane Harvey in Corpus Christie, Texas, U.S., August 26, 2017. REUTERS/Mohammad Khursheed?

GASOLINE PRICES SPIKE

U.S. gasoline prices spiked as the storm shut down several refineries and 22 percent of Gulf of Mexico oil production, according to the U.S. government. Many fuel stations ran out of gasoline before the storm hit.

More than 45 percent of the country’s refining capacity is along the U.S. Gulf Coast, and nearly a fifth of the nation’s crude is produced offshore.

Ports from Corpus Christi to Texas City, Texas, were closed to incoming vessels and Royal Dutch Shell Plc, Anadarko Petroleum Corp, Exxon Mobil Corp and others have evacuated staff from offshore oil and gas platforms.

Disruptions to fuel supply drove benchmark gasoline prices to their highest level in four months.

The U.S. government said it would make emergency stockpiles of crude available if needed to plug disruptions. It has regularly used them to dampen the impact of previous storms on energy supplies.

For a graphic on Hurricanes in the North Atlantic, click tmsnrt.rs/2gcckz5

(Additional reporting by Jessica Resnick-Ault in New York, Liz Hampton, Ernest Scheyder and Gary McWilliams in Houston; Writing by Brendan O’Brien and Simon Webb; Editing by Helen Popper and Matthew Lewis)

Hurricane Harvey weakens after battering Texas coast

Hurricane Harvey weakens after battering Texas coast

By Brian Thevenot

CORPUS CHRISTI, Texas (Reuters) – The most powerful hurricane to hit the U.S. state of Texas in more than 50 years moved slowly inland on Saturday, dumping torrential rain expected to cause catastrophic flooding after battering the coast with 130 miles per hour winds.

Texas utility companies said nearly a quarter of a million customers were without power. Residents and emergency respondents were still sheltering from the storm early on Saturday, making it difficult to gauge the full extent of the damage.

Harvey is the strongest storm to hit Texas, the center of the U.S. oil and gas industry, since 1961.

For a graphic on Hurricanes in the North Atlantic, click http://tmsnrt.rs/2gcckz5

The town of Rockport, 30 miles (48 km) north of the city of Corpus Christi, appeared to be one of the hardest hit. Ahead of the storm’s arrival, the city’s mayor told anyone staying behind to write their names on their arms for identification purposes in case of death or injury.

“Right now we’re still hunkered down and can’t go anywhere,” Steve Sims, the volunteer fire chief in Rockport, said early on Saturday.

“We’ve heard rumors of 1,000 different things, we can’t confirm anything because we haven’t seen anything. We know we’ve got a lot of problems, but we don’t know what yet.”

A high school, hotel, senior housing complex and other buildings suffered structural damage, according to emergency officials and local media. Some were being used as shelters.

Sims said power, internet and most cell phone service was out in the town of 10,000 where about two-thirds of residents evacuated. Most of the senior citizens and nursing homes were among the first to be evacuated, he said.

The hurricane came ashore northeast of the city of Corpus Christi late on Friday with maximum winds of 130 miles per hour (209 km per hour). That made it a Category 4 storm on the Saffir-Simpson scale, the second-highest category and the most powerful storm in over a decade to hit the mainland United States.

The streets of Corpus Christi, which has around 320,000 residents, were deserted early on Saturday, with billboards twisted and damaged and strong winds still blowing.

City authorities asked residents to reduce use of toilets and faucets on Saturday because power outages left waste water plants unable to treat sewage.

The city also asked residents to boil water before consumption.

A drill ship broke free of its mooring overnight and rammed into some tugs in the port of Corpus Christi, port executive Sean Strawbridge said. The crews on the tugs were safe, he added.

The city was under voluntary evacuation ahead of the storm.

HEADING INLAND, STORM WEAKENS

The storm weakened to Category 1 early on Saturday and was expected to be downgraded to a tropical storm later in the day, the U.S. National Hurricane Center said. Harvey was about 125 miles (201 km) southwest of Houston, moving at about six mph (10 km per hour), the center said.

Harvey was expected to linger for days over Texas and bring as much as 40 inches (101.6 cm) of rain to some parts of the state.

The latest forecast storm track has Harvey making a loop, heading back toward the Gulf of Mexico coast, and then turning north again on Tuesday. (http://tmsnrt.rs/2g9jZ0W)

Nearly 10 inches of rain had already fallen in a few areas in southeastern Texas, the center said. Flash floods have already hit some areas, the National Weather Service said.

As many as 6 million people were believed to be in Harvey’s path, as is the heart of America’s oil-refining operations. The storm’s impact on refineries has already pushed up gasoline prices. The U.S. Environmental Protection Agency eased rules on gasoline specifications late on Friday to reduce shortages.

U.S. President Donald Trump, facing the first big natural disaster of his term, said on Twitter he signed a disaster proclamation which “unleashes the full force of government help” shortly before Harvey made landfall.

“You are doing a great job – the world is watching” Trump said on Saturday in a tweet referring to the Federal Emergency Management Agency (FEMA), which coordinates the response to major disasters.

One Corpus Christi resident, Donna McClure, said on Twitter before the storm made landfall: “In the dark, internet out, ham radio not working. Is anybody out there? Alone trying not to be scared.”

Utilities American Electric Power and CenterPoint Energy reported a combined total of more than 240,000 customers without power.

While thousands fled the expected devastating flooding and destruction, many residents stayed put in imperiled towns and stocked up on food, fuel and sandbags.

HOUSTON PREPARES FOR FLOODS

Harvey was the first major hurricane of Category 3 or more to hit the mainland United States since Hurricane Wilma struck Florida in 2005.

Its size and strength also dredged up memories of Katrina, the 2005 hurricane that made a direct hit on New Orleans as a Category 3 storm, causing levees and flood walls to fail in dozens of places. About 1,800 died in the disaster made worse by a slow government emergency response.

Texas and Louisiana declared states of disaster before Harvey hit, authorizing the use of state resources to prepare.

Residents of Houston, the nation’s fourth most populous city, were woken with automatic flash flood warnings to their cell phones early on Saturday.

The city warned residents of flooding from close to 20 inches (60 cm) of rain over several days.

GASOLINE PRICES SPIKE

Gasoline stations on the south Texas coast were running out of fuel as residents fled the region. U.S. gasoline prices spiked as the storm shut down several refineries and 22 percent of Gulf of Mexico oil production, according to the U.S. government.

More than 45 percent of the country’s refining capacity is along the U.S. Gulf Coast, and nearly a fifth of the nation’s crude oil is produced offshore.

Ports from Corpus Christi to Texas City, Texas, were closed to incoming vessels and Royal Dutch Shell Plc, Anadarko Petroleum Corp, Exxon Mobil Corp and others have evacuated staff from offshore oil and gas platforms.

Concern that Harvey could cause shortages in fuel supply drove benchmark gasoline prices to their highest level in four months. Profit margins for making gasoline hit their strongest levels in five years for this time of year.

The U.S. government said it would make emergency stockpiles of crude available if needed to plug disruptions. It has regularly used them to dampen the impact of previous storms on energy supplies.

(Reporting by Brian Thevenot; Additional reporting by Jessica Resnick-Ault in New York and Liz Hampton and Ernest Scheyder in Texas; Writing by Brendan O’Brien and Simon Webb; Editing by Helen Popper and Matthew Lewis)

Residents flee Texas coast ahead of Hurricane Harvey landfall

By Brian Thevenot

CORPUS CHRISTI, Texas (Reuters) – Businesses closed and lines of cars streamed out of coastal Texas as officials called for residents to evacuate ahead of Hurricane Harvey, expected to arrive about midnight as the most powerful storm to hit the U.S. mainland in more than a decade.

The hurricane is forecast to slam first near Corpus Christi, Texas, drop flooding rains along the central Texas coast and potentially loop back over the Gulf of Mexico before hitting Houston, some tracking models showed.

“My urgent message to my fellow Texans is that if you live in a region where evacuation has been ordered, you need to heed that advice and get out of harm’s way while you can,” Texas Gov. Greg Abbott said in a televised address.

The storm has so far shutdown 22 percent, or 377,000 barrels per day (bpd) of Gulf of Mexico oil production, the U.S. reported Friday afternoon, and halted 4.4 percent of U.S. refinery output. Some inland shale oil producers ceased operations as a precaution against expected flooding.

Gas stations and grocery stores in the region were packed as residents readied their cars and pantries for any shortages following the storm. Coldplay, the British rock band, canceled a Friday concert in Houston, telling fans it didn’t want to risk anyone’s safety.

At a Willis, Texas, station, about 50 miles (77 km) north of Houston, Corey Martinez, 40, was heading to Dallas from his Corpus Christi home.

“It has been pretty stressful. We’re just trying to get ahead of the storm,” he said. “We’ve never been through a hurricane before.”

Harvey became a Category 3 hurricane on Friday, the National Hurricane Center said, the third most powerful on the Saffir-Simpson scale with winds of 111-129 mile per hour (178-208 km/h) that can uproot trees, damage homes and disrupt utilities for days. That would make it the first major hurricane to hit the mainland United States since Hurricane Wilma struck Florida in 2005.

The storm was about 85 miles (140 km) off Corpus Christi and packing winds of 110 mph in early afternoon on Friday, the NHC said. It projected windspeeds could reach 120 mph just before landfall.

The NHC’s latest tracking model shows the storm sitting southwest of Houston for more than a day, giving the nation’s fourth most populous city a double dose of rain and wind.

“Now is the time to urgently hide from the wind. Failure to adequately shelter may result in serious injury, loss of life, or immense human suffering,” the National Weather Service said.

Up to 35 inches (97 cm) of rain are expected over parts of Texas, and sea levels may surge as high as 12 feet (3.7 meters). Louisiana could get 10 to 15 inches of rain. Flood warnings are in effect for Louisiana and northern Mexico.

“Life-threatening and devastating flooding expected near the coast due to heavy rainfall and storm surge,” the NHC said.

The storm’s approach triggered evacuations in south Texas communities and central coast residents were voluntarily leaving the area. Cities canceled classes on Friday and Monday at dozens of schools along the south Texas coast, home to 5.8 million people from Corpus Christi to Galveston.

David Ramirez left his home in Corpus Christi early on Friday to wait out the storm in San Antonio, Texas.

“With the level of storm surge they’re talking about, there isn’t a lot I could do to protect my house,” he said in an interview while awaiting directions to an emergency shelter.

Harvey also forced the cancellation or delay of at least 40 flights in and out of major airports in Texas on Friday, according to Flightaware.com, which tracks airline traffic.

Louisiana and Texas declared states of disaster, authorizing the use of state resources to prepare. President Donald Trump has been briefed and is ready to provide resources if needed, the White House said on Thursday.

The port of Houston, the nation’s busiest petrochemical port, closed its terminals at noon, and earlier halted inbound and outbound ship traffic on Friday. The city of Houston warned residents of flooding from close to 20 inches of rain over several days.

GASOLINE PRICES SPIKE

More than 45 percent of the country’s refining capacity is along the U.S. Gulf Coast, and nearly a fifth of the nation’s crude oil is produced offshore. Ports from Corpus Christi to Texas City, Texas, were closed to incoming vessels.

The U.S. government said 9.6 percent of crude output capacity was shut and 14.6 percent of natural gas production was halted.

Three refineries in Corpus Christi and one farther inland at Three Rivers were shutting down ahead of the storm. Two others reduced output as ports were closed.

Concern that Harvey could cause shortages in fuel supply drove benchmark gasoline prices to their highest in four months, before profit trading pulled back prices. Meanwhile, U.S. gasoline margins hit their strongest levels in 5 years for this time of year earlier in the day.

Prices for gasoline in spot physical markets on the Gulf Coast rose to a near three-year high.

The U.S. government has emergency stockpiles of crude available to plug disruptions, and has regularly used them to dampen the impact on energy supplies of previous storms.

The stockpiles in the Strategic Petroleum Reserve were last used in 2012, after Tropical Storm Isaac shut down 95 percent of oil output in the Gulf and hit Louisiana. The government has not yet said if it plans to use the reserve after Harvey.

Houston-based energy bank Tudor Pickering Holt & Co said in a note not to expect significant or lasting production impacts from Harvey. But it said it would impact some production and disrupt refinery runs, imports and exports, “which will show up in the weekly inventory numbers for the next few weeks.”

Royal Dutch Shell Plc, Anadarko Petroleum Corp and Exxon Mobil Corp have evacuated staff from offshore oil and gas platforms in the storm’s path.

The potential for flooding at shale oil fields in south Texas that produce more than one million barrels of oil a day led several producers to curb operations. EOG Resources Inc said shut some production in the Eagle Ford shale region. Noble Energy Inc and Statoil ASA also said they were evacuating some staff from production facilities.

Union Pacific Corp, the No. 1 U.S. railroad, said it was moving rail cars in yards prone to flooding to high elevations and will curtail trains operating through areas likely to be hit by excessive winds and rain that will impact operations.

Union Pacific said changes could include locations from Brownsville near the border with Mexico north to Beaumont, Texas.

(Reporting by Brendan O’Brien in Milwaukee and Brian Thevenot in Corpus Christi; Editing Meredith Mazzilli and Andrew Hay)

Hurricane Harvey strengthens, threatens U.S. with most powerful storm in 12 years

Hurricane Harvey strengthens, threatens U.S. with most powerful storm in 12 years

GALVESTON, Texas (Reuters) – Hurricane Harvey intensified early on Friday into potentially the biggest hurricane to hit the U.S. mainland in more than a decade, as authorities warned locals to shelter from what could be life-threatening winds and floods.

Harvey is set to make landfall late Friday or early Saturday on the central Texas coast where Corpus Christi and Houston are home to some of the biggest U.S. refineries. Oil and gas operations have already been affected and gasoline prices have spiked.

“Now is the time to urgently hide from the wind. Failure to adequately shelter may result in serious injury, loss of life, or immense human suffering,” the National Weather Service said.

Harvey grew into a category 2 storm with winds of 105 mph (169 kph) as it moved northwest about 185 miles (295 km) off Port O’Connor, Texas, the National Hurricane Center said.

Up to 35 inches (97 cm) of rain are expected over parts of Texas, with winds up to 125 mph, and sea levels may surge as high as 12 feet (3.7 meters). Louisiana could get 10 to 15 inches of rain. Flood warnings are in effect for Louisiana and northern Mexico.

“Life-threatening and devastating flooding expected near the coast due to heavy rainfall and storm surge,” the hurricane center said.

The storm’s approach triggered evacuations and forced the cancellation of classes on Friday at dozens of schools along the south Texas coast, home to 5.8 million people from Corpus Christi to Galveston.

It also forced the cancellation or delay of at least 40 flights in and out of major airports in Texas on Friday, according to Flightaware.com, a site that tracks airline traffic.

Louisiana and Texas declared states of disaster, authorizing the use of state resources to prepare for the storm. President Donald Trump has been briefed and is ready to provide resources if needed, the White House said on Thursday.

Harvey is forecast to come ashore as a Category 3 hurricane, the National Hurricane Center said, the third most powerful on the Saffir-Simpson scale. That would make it the first major hurricane to hit the mainland United States since Hurricane Wilma struck Florida in 2005.

The NHC expects Harvey to move slowly over Texas and linger over the state for days. Houston, the nation’s fourth most populous city, warned residents of flooding from close to 20 inches of rain over several days.

GASOLINE PRICES SPIKE

More than 45 percent of the country’s refining capacity is along the Gulf Coast, and nearly a fifth of the nation’s crude oil is produced offshore. Ports from Corpus Christi to Texas City, Texas, were closed to incoming vessels.

The government said 9.6 percent of crude output capacity was shut and 14.6 percent of natural gas production was halted.

Three refineries in Corpus Christi and one farther inland at Three Rivers were shutting down ahead of the storm. Concern that Harvey could cause shortages in fuel supply drove benchmark gasoline prices to a three-week high.

One other refinery reduced output and others were considering shutting.

Prices for gasoline in spot physical markets on the Gulf Coast rose even more, hitting a one-year high.

Profit margins for refineries producing gasoline rose by more than 12 percent on Thursday, on course for their biggest daily percentage gain in six months, according to Reuters data.

Royal Dutch Shell Plc, Anadarko Petroleum Corp and Exxon Mobil Corp have evacuated staff from offshore oil and gas platforms in the storm’s path.

The storm could also bring flooding to shale oil fields in southern Texas that produce more than one million barrels of oil a day.

EOG Resources Inc said it had curtailed drilling and shut some production in the Eagle Ford shale region. Noble Energy Inc and Statoil ASA also said they were evacuating some staff from production facilities.

(Reporting by Brendan O’Brien in Milwaukee; Editing by Robin Pomeroy)

U.S. gasoline prices rise, refineries shut as Texas braces for hurricane

Tropical Storm Harvey is seen approaching the Texas Gulf Coast,. NOAA/via Reuters

By Jim Forsyth

SAN ANTONIO (Reuters) – U.S. gasoline prices surged to a three-week high on Thursday as Hurricane Harvey moved across the Gulf of Mexico and threatened to slam oil refineries in Texas when it comes ashore this weekend.

The U.S. National Hurricane Center (NHC) upgraded Harvey to a hurricane from a tropical storm on Thursday afternoon, and said it would strengthen into a Category 3 hurricane before hitting the Texas coast late on Friday or early on Saturday.

The storm is now expected hit the central Texas coast with a combination of winds of 115 miles (185 km) per hour and heavy rains, said John Tharp, a forecaster with Weather Decision Technologies in Norman, Oklahoma.

“With this system’s intensity and slow motion, it is the worst of both worlds,” he said referring to the expected winds and rains. “There will be major impacts along the coast and inland with periods of prolonged rain.”

Harvey will cause a storm surge that will flood parts of the Texas coast as it makes landfall and linger for days over the state, dumping up to 30 inches (76.2 cm) of rain on some areas, the NHC said in an advisory on Thursday.

The mayor of Texas coastal city Corpus Christi warned on Wednesday that flooding was his biggest concern.

“I hope people will listen to forecasters when they say ‘beware of flash floods,'” Joe McComb said. “Flash floods can come quickly, and they can be deadly.”

The city, a major oil refining center, has not issued any evacuation orders, he told reporters at a news conference, but its emergency operations center has been activated.

Harvey has already disrupted U.S. oil supplies.

Energy companies including Royal Dutch Shell <RDSa.L>, Anadarko Petroleum <APC.N> and Exxon Mobil <XOM.N> have evacuated staff from offshore oil and gas platforms in the storm’s path.

Two oil refineries Corpus Christi were shutting down ahead of the storm, and concern that Harvey could cause shortages in fuel supply drove benchmark gasoline prices <RBc1> to a three-week high.

Prices for gasoline in spot physical markets on the Gulf Coast rose even more, hitting a one-year high.

Profit margins for refineries producing gasoline rose by over 12 percent on Thursday, putting margins on course for their biggest daily percentage gain in six months, according to Reuters data.

The two refineries that have shut have combined capacity to refine more than 450,000 barrels per day of crude.

The NHC expects the storm to come ashore along the central Texas coast, an area that includes Corpus Christi and Houston, home to some of the biggest refineries in the country.

More than 45 percent of the country’s refining capacity is along the U.S. Gulf Coast, and nearly a fifth of the nation’s crude oil is produced offshore in the region.

The storm could also bring flooding to inland shale oil fields in Texas that pump millions of barrels per day of crude.

Texas Governor Greg Abbott declared a state of disaster on Wednesday for 30 counties, authorizing the use of state resources to prepare for the storm.

Coastal cities and counties distributed sandbags to residents as some businesses boarded up windows, and residents flocked to grocery stores to stock up on supplies, local media reported.

Texas A&M University-Corpus Christi issued a mandatory evacuation to all students who live on campus and canceled events.

 

(Additional reporting by Jarrett Renshaw and Devika Krishna Kumar in NEW YORK, Erwin Seba and Ernest Scheyder in HOUSTON, Brendan O’Brien in Milwaukee; Writing by Simon Webb; Editing by Meredith Mazzilli)

 

NHC says Harvey quickly strengthening, to be a major hurricane

Tropical Storm Harvey is seen approaching the Texas Gulf Coast,. NOAA/via Reuters

(Reuters) – Tropical storm Harvey is gaining strength and is expected to be a major hurricane when it approaches the middle Texas coast, the U.S. National Hurricane Center said in its latest update on Thursday.

“Harvey will approach the middle Texas coast on Friday and make landfall Friday night or early Saturday, and then stall near the middle Texas coast through the weekend,” the NHC said.

The system is located 365 miles (590 kilometers) southeast of Corpus Christi, Texas, and packing maximum sustained winds of 65 miles per hour (100 km/h), the Miami-based weather forecaster said.

(Reporting by Karen Rodrigues and Eileen Soreng in Bengaluru)

U.S. judge throws out Texas voter ID law supported by Trump

FILE PHOTO: A ballot is placed into a locked ballot box by a poll worker as people line-up to vote early at the San Diego County Elections Office in San Diego, California, U.S., November 7, 2016. REUTERS/Mike Blake/File Photo

By Bernie Woodall

(Reuters) – A federal court judge on Wednesday threw out a Texas voter identification law that was supported by the Trump administration, but the state’s attorney general said his office would appeal the ruling.

The judge’s ruling said changes to the law passed earlier this year by the state’s Republican-controlled legislature that were meant to be less discriminatory than an earlier one did not accomplish that.

U.S. District Judge Nelva Gonzales Ramos of the Southern District of Texas said the state did not allow enough types of photo IDs for voters, “even though the (5th U.S. Circuit Court of Appeals) was clearly critical of Texas having the most restrictive list in the country.”

President Donald Trump campaigned on cutting voter fraud, picking up a theme of fellow Republicans across the country. Critics have said the Texas law and similar statutes enacted in other Republican-governed states are an effort to suppress voting, including among blacks and Hispanics who tend to favor Democrats.

Trump has made unsubstantiated allegations that millions of people voted illegally for his Democratic rival, Hillary Clinton, in last November’s election, in which Clinton won the popular vote but lost the decisive Electoral College count.

“Today’s ruling is outrageous,” Texas Attorney General Ken Paxton said in a statement.

Paxton, a Republican, added that changes to the law passed by the legislature included all those asked for by the 5th Circuit.

The Justice Department filed a brief last month asking the court to halt action against the Texas voter ID law, saying the state’s new law fixed discriminatory issues of the state’s 2011 voter ID law.

Texas Democrats welcomed Ramos’ ruling.

“Jim Crow-era tactics have kept Texas Republicans in power,” said state Democratic Party Chairman Gilberto Hinojosa. “From discriminatory gerrymandering to discriminatory voter ID laws, it has become entirely clear that Texas Republicans are rigging our election system.”

Ramos wrote in a 27-page ruling that voters with little education, or simply a lack of confidence, may forfeit their legitimate right to vote because of fear of being charged with perjury.

She said Texas was overreaching by “threatening severe penalties for perjury,” and noted that the state’s “history of voter intimidation” led her not to accept the new voter ID law as a solution for the “purposeful discrimination” in the one it attempted to improve upon.

(Reporting by Bernie Woodall in Fort Lauderdale, Fla.; Editing by James Dalgleish and Peter Cooney)

Tropical storm Harvey heads for Texas, may become hurricane

Tropical storm Harvey heads for Texas, may become hurricane

(Reuters) – The Texas Gulf Coast was getting ready for the tropical storm Harvey to make landfall by Friday, bringing with it strong winds, heavy flooding and torrential rains.

Hurricane, tropical storm and storm surge watches were in effect for counties on the eastern coast of Texas as the storm moved across the Gulf of Mexico, where it may strengthen into a hurricane.

Winds up to 75 mph (120 kmh) and 15 inches of rain (40 cm) were forecast, according to the National Weather Service.

“Now is the time to check your emergency plan and take necessary actions to secure your home or business. Deliberate efforts should be under way to protect life and property,” the weather service said in an statement early on Thursday.

By early Thursday, Harvey was about 370 miles (600 km) southeast of Port Mansfield, Texas, with maximum sustained winds of 45 mph, the U.S. National Hurricane Center said.

The storm may strengthen into a hurricane by the time it makes landfall near Corpus Christi on Friday, the National Weather Service said.

Governor Greg Abbott declared a state of disaster on Wednesday for 30 counties, authorizing the use of state resources to prepare for the storm. Harvey “poses a threat of imminent disaster, including severe flooding, storm surge and damaging winds”, Abbott’s statement said.

Cities and counties along the state’s coastal region distributed sandbags to residents as some businesses boarded up windows. Coastal residents flocked to grocery stores to stock up on water and other supplies, local media reported.

Texas A&M University-Corpus Christi issued a mandatory evacuation to all students who live on campus and canceled events.

Royal Dutch Shell, Anadarko Petroleum and Exxon Mobil announced on Wednesday they were curbing some oil and gas output at facilities in the Gulf of Mexico ahead of the storm.

(Reporting by Brendan O’Brien in Milwaukee; Editing by Alison Williams)