Gasoline prices surged to a two-year high at the pump Thursday after the owner of the largest pipeline in the U.S. reported that shipments are being sharply curtailed, spreading the economic pain from Hurricane Harvey throughout the nation.
For years, much of the nation’s refinery capacity and chemical production have been concentrated along the swamps and narrow inlets of the Gulf of Mexico, risking devastation in a monster storm.
The Colonial Pipeline said its system, which runs from Texas to New Jersey, is starting to have problems stemming from Hurricane Harvey. The notice from the company adds to concern that Houston’s hard-hit energy infrastructure could result in higher fuel prices or shortages in other parts of the country.
Former Shell president John Hofmeister, a member of Fuel Freedom’s board, said Tropical Storm Harvey poses risks to the U.S. energy supply during an appearance on Fox Business.
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Our over-reliance on oil has dangerous consequences. When you pay at the pump, your hard-earned cash isn’t just going to oil companies — it also fills the pockets of terrorists and hostile regimes that harbor dangerous ideologies. Read more
It’s more than you think.