Impact and Perspective on Hurricane Harvey’s Aftermath: Transforming

Some friends and neighbors of ours drove down to Houston this past weekend to assist with the recovery and cleanup effort in the wake of Hurricane Harvey (we were left with the much easier job of watching one of their children for a few days).

They used to live in Houston and were moved to go down and help in relief efforts.  They, along with a group from their church, came back yesterday with stories and photos of mold from floor to ceiling, throwing housefuls of furniture to the curb, and dead fish that managed to find their way through the floodwaters into people’s living rooms.  To add to the loss, the majority of people affected were not covered by flood insurance.

However, one thing that was not lost was unyielding dignity, hope, and courage that pulsated throughout the city.  This was the most uplifting news to emerge out of the wreckage.  As our friends described it, the experience was “transforming” on many levels.

The Immediate and Residual Impact of Harvey

Don Stowers – Chief Editor of the Oil & Gas Financial Journal recently wrote an editorial on the impact of Hurricane Harvey from an industry perspective. It too was transforming.

According to the editorial – companies now are only beginning to assess the damages.  More than 20% of the oil production from the Gulf of Mexico was taken offline with additional onshore volumes shut-in.  Four terminals in Corpus Christi were closed to tanker traffic.  Nearly 50% of the nation’s refining capacity is located along the Gulf Coast and at least 10 refineries were shut down before the storm’s arrival.  This was felt here in Dallas as long lines and gas shortages were common for some days after the storm.  However, this is anticipated to be more widespread.  NYMEX gasoline contracts spiked to their highest levels in two years.  Analysts say this will continue for months following the storm.

The good news is that the industry will recover in a matter of months.  Terminals will re-open.  Shipping will resume and gas prices will likely return to lower levels.  However, it will take longer for a number of other people to recover.

Yet we remain encouraged by the resilient spirit of the people affected and the scores of inspiring people who are continuing to demonstrate the transformative power of the golden rule: Do to others what you would wish for them to do to you.  Have a great week.


Mercer Capital’s Energy Valuation Insights Blog

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