Active Hurricane Season This Year Could Drive Up Prices Of Fuel And Cause Shortages

The National Oceanic and Atmospheric Administration (NOAA) has predicted that this year’s hurricane season is predicting an above-normal season and the results could be bad for crop production for those who are around the Gulf Coast and other areas that are struggling to find a decent supply of diesel.

“We’re probably one Category 3 storm away [from a shortage], and that Category 3 storm would have to take aim for an area roughly from the Mississippi river to Houston. That’s the really sensitive area. Not only could it affect refining, but it could affect offshore oil production,” said Patrick De Haan, head of petroleum analysis firm GasBuddy.

Over the weekend, there were more than 10 million people in Cuba, the Bahamas and southern Florida, who were warned of a tropical storm and if these storms track further west, it could be bad for diesel supply.

Vice president and head of Americas Refining, S&P Global commodity Insights, Debnil Chowdhury said, “Diesel supplies are especially vulnerable due to very low inventory entering the summertime. Any type of impact on refining capacity is also going to increase the chance of shortage.”

Shortage of refining capacity has largely caused the shortages at the pump and the higher prices – not a shortage of oil.

Oil companies act preemptively to protect workers and their facilities, by tracking tropical activity and any warnings of impending storms, closing production to keep operations safe.

Re-starting a closed down refinery, however, can be a painstaking task because of the chemical and thermal reactions involved with turning it to fuel.

Prices usually spike after a hurricane because demand increases for fuel for vehicles and generators.

“Not only is oil a problem with the sanctions on Russia’s oil but turning that oil into something like gasoline and diesel is also now a choke point,” said De Haan.

America is producing around one million less barrels of oil per day, compared to the output of three years ago and the covid shutdowns only added to the weakening supply.

“It’s only a million barrels, so it’s not an infinite amount of supply. Now, we do have some tropical activity. So, when do you use the inventories? Do you use them now because of high prices? Or do you wait for a bigger potential issue later this summer?” De Haan said.

De Haan also noted that, “It could take a couple of years, and keep in mind, the longer we go down this road that demand eclipses supply, the more catching up we’re going to have to do.”

Hurricane Ida also caused a lot of damage to refineries last year and some were not able to get back up and running, and fuel prices started to rise again from there.

So, this hurricane season, be prepared for higher prices, if you can find it in the first place. Yet another example of Joe Biden’s complete incompetence.


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3 thoughts on “Active Hurricane Season This Year Could Drive Up Prices Of Fuel And Cause Shortages”

  1. Once again ass backwards biden is wrong about going green. First you have green energy in place, then maybe you transition from fossil fuels. Just like afghan withdrawal. Should have had protections in place first, then start withdrawal. How many billions in military equipment were left behind for the terrorist? Let’s go BRANDON!

  2. What do you expect whrn you have a president that is dead from the neck up you should be here in New Hampshire the traffic is going just like nothing is has changed gas here is $ 5.29 It has to come down what goes up must come down the question is only when in the mean time we have to suffer
    Sincerely
    Stephen. F. Flanders

  3. Biden once again, being an elitist, doesn’t have any “insight.” If a heavy-duty hurricane comes our way, I hope it works its way down the Chesapeake Bay, and ends up at Ocean City and Rehoboth Beach. Delaware might just get a taste of “Mother Nature” as a category 4 or 5. I’ve been through two category fives. “Hugo”, in Charleston, South Carolina the other, Michael here in Panama City, Florida. Of course, the Biden Mob would be protected. God help us during this hurricane season.

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