Tropical Storm Harvey Cripples US Energy Sector

UNITED NEWS INTERNATIONAL (UNI) — Tropical Storm Harvey made landfall, dropping more than two feet of rain in Houston on Friday, Aug. 25.

The Category 4 hurricane weakened to a tropical storm by Saturday afternoon, but not before wreaking havoc.

The National Hurricane Center expects more than 30,000 people would be forced to abandon their flooded homes and U.S. officials say even more rain is expected in the coming days.

Wall Street is also now assessing the impact of the damage on the U.S. economy, and especially on the energy sector since the critical refineries are located along the Texas Gulf Coast.

This area is home to nearly one-third of the nation’s capacity to turn oil into gas, diesel and other products.

Bloomberg reports that Harvey has knocked out a quarter of oil and natural gas production from the region, which means prices could rise. U.S. gasoline futures jumped to two-year highs on Monday.