Fuel supply disruption promises higher gas prices in the coming days as area retailers contend with the disaster.
Many convenience retailers in southeast Texas have shuttered store operations in around the city of Houston as local communities are besieged by cresting floodwaters leftover from Hurricane Harvey.
The nation’s fourth-largest city remained mostly paralyzed by one of the largest downpours in U.S. history. And there was no relief in sight as there is a call for more rain after the storm that spun into the Texas Gulf Coast as a Category 4 hurricane, dumping more than two feet of water on Houston.
The Houston area covers about 10,000 square miles, crisscrossed by some 1,700 miles of channels and creeks and that drain into the Gulf of Mexico.
FUEL DISRUPTION
The torrential rain has severely impacted many refinery operations in the area with rain continuing to pummel the Houston region; U.S. motorists are likely to experience an increase of up to 25 cents per gallon in some areas, according to some experts. However, the overall impact of the adverse weather will be felt for days to come.
About 25% of the U.S. fuel-making capacity now is out of commission with damage assessments expected in the coming days, according to the Texas Food & Fuel Association. Assessments can take 24-48 hours or longer depending on the severity of damages. In many cases, repairs to refineries and terminals will require assistance from companies from outside of Texas, and in some instances, equipment must be outsourced from outside of the U.S.
While some oil refineries in Corpus Christi are not in operation, others are back up and running, according to the association. In addition, fuel terminals are beginning to reopen with limited product; however, the refueling process is slow with some trucks waiting more than four hours to refuel.
Adding to the delay in distribution is the fact that some companies cannot access their fuel bobtails and transporters due to flooding in the Houston area.
As far as the impact on regional retailers, the situation is dire in some cases.
“We are hearing from some members that their sites are eight feet under water,” said Jesus Azanza, the association’s director of communications. “In other cases, their stores are OK, but are inaccessible due to flooding around the area.”
Some companies are still assessing the situation while working with local emergencies to help those in need.
“Our thoughts are with those affected by Hurricane Harvey. We are working closely with the American Red Cross to assist areas affected by the storm,” stated 7-Eleven Inc. in a news release sent today.