Well heck Harvey, you’ve really created quite a mess.
Here in Nebraska we won’t see the environmental impact of Hurricane Harvey, but we sure will feel the economic impact and it has already started. Gas prices jumped 12¢ a gallon overnight, notwithstanding that there is a supply of gas in storage tanks and at stations. Can you say profit-taking?
According to Business Insider, ten oil refinery plants in the Houston area and Corpus Christi are shutting down because of the storm. They normally have the capacity to refine about 2 million barrels of oil a day. Among the companies cited in the report as shutting down refineries are Exxon Mobil, Valero, Citgo, Shell, and Phillips 66.
No doubt the shut down of these refineries will have an impact, however why do prices at the pump jump overnight? Also, what about the world oil reserves?
Okay, so with just the mere anticipation of refinery shut downs there might be a little profit-taking and no one wants to tap the reserves, right?
This past quarter six of the major international oil companies recorded over $50 billion in combined profit for the first time. Altogether, the profits of the six companies jumped more than 40% in the second quarter to $51.5 billion, the first time big Western oil companies have ever reached that level.
ExxonMobil stood apart even from this crowd, logging the largest ever quarterly operating profit for a U.S. company. They reported second-quarter earnings of $11.7 billion, a record for any U.S. company.
Here’s a thought big oil: why not hold the line on a few billion in profits to stabilize oil prices so I and Joe-six-pack can afford to buy gas. It isn't always about profit, is it? Hell, even Budweiser stopped brewing beer at their Cartersville, Georgia plant to process 155,000 cans of drinking water to send to Harvey’s victims.
Just one day more…























