After bracing for and experiencing the strongest storm to hit the United States since 2004, flooding and other weather issues shut oil refineries across Texas. While the cost of the storm is still being calculated and the damages are piling up, the effects are being felt across the United States as the nation tries to determine how the industry will recover from this hit.

The fuel situation is critical for the nation. The plants that were shut processed some 2.26 million barrels of oil a day. Immediately, gasoline prices surged to their highest point in two years as a whopping 10% of U.S. fuel-making capacity shut down. Pipelines are closed, stranding crude in West Texas, and the possibility exists that the gasoline supply will be disrupted. Crude oil in particular has been affected as an industry, because the refining capacity is in limbo at the moment.

The timing has been interesting from an economic point of view, since motor vehicle demand was set to decline anyway over the next few weeks since the U.S. “driving season” was on the wane and refineries were set to begin seasonal maintenance. So a slowdown in production was expected. Still, oil futures are trading on the stock market in a tight trend and gasoline prices are climbing as crude begins to come at a premium. Customers can expect higher prices at the pump.

While the nation braces to figure out the economic impact of this storm, companies like Komax stand ready to deliver important solutions in a cost-effective manner to companies hit hard by the weather event. Now is the time to confer with our experts and see how we can customize a solution to get your refining capabilities back on track.