With damages in billions, Harvey slams region’s economy

Associated Press

DALLAS

Flood damage from Harvey is likely to reach into the tens of billions, and the storm is expected to cause the region’s economy to shrink, at least in the near term.

Harvey is soaking refineries along the Gulf Coast, leading to higher prices at the pump. Gasoline futures were up nearly 4 percent Monday afternoon after rising 7 percent in premarket trading.

The storm could also put a kink in the shipment of consumer goods.

Here’s a look at the effects on key industries:

Refining: Prices are expected to spike over the next week or more as about 10 refineries representing more than 15 percent of the nation’s refining capacity are shut down.

Oil and gas: Oil companies have removed workers from about 100 platforms in the Gulf of Mexico since late last week. About 19 percent of oil production in the Gulf has been stopped, but that is down from nearly 25 percent Saturday, according to the U.S. Bureau of Safety and Environmental Enforcement. The Gulf accounts for about one-fifth of U.S. oil production..

Shipping: All major ports in the Houston and Corpus Christi areas remained closed Monday and might not open for several days until the week. That would affect barge shipments of gasoline to the East Coast. The port of Houston also handles export shipments of grain.

Travel: Houston’s two big airports are expected to remain closed to all but relief flights until later this week, as runways were flooded and nearby roadways were under water.