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		                <h2 class="storyTitle">Hurricane Harvey pushes Peterborough gas prices higher </h2>
		                
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                                    <p style="clear:both;">Filling up at the gas pumps. (Veronica Henri/Postmedia Network/file photo) 
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	                                <p>The Gulf Coast of Texas is about 3,000 kilometres away, but we're feeling Hurricane Harvey here.</p>
<p>And it could get even worse by the long weekend.</p>
<p>The price of gasoline has jumped considerably in Peterborough,  and it will likely go higher as Harvey hits Gulf Coast oil refineries,  according to analyst Dan McTeague.</p>
<p>As of Wednesday afternoon, most stations in Peterborough were reporting prices in the 104.9-109.9 cents range.</p>
<p>McTeague said Wednesday that Peterborough prices could go up three cents on Thursday and another five cents on Friday -- just as people hit the road for the Labour Day weekend.</p>
<p>&ldquo;Almost one-third of gasoline production will be offline so  you can imagine prices are going to be the first thing to give and they  are doing that already,&quot; he said.</p>
<p>&quot;This story will go on for the entire  month of September and it will mean higher prices than what we are  paying now on average and that will probably maintain with higher prices  for the entire month of September until refineries can get back up and  running.&quot;</p>
<p>McTeague's advice is simple: &quot;Hope for the best, but brace for the worst.&quot;</p>
<p>&quot;Within a week or so, if the prices don&rsquo;t move high enough then we are  going to be dealing with shortages and disruptions in the United  States,&quot; he said.</p>
<hr />
<p><b>Harvey knocks out more refineries, shifting global oil flows </b></p>
<p><em>David Koenig </em></p>
<p><em>THE ASSOCIATED PRESS </em></p>
<p>DALLAS &mdash; Hurricane Harvey is sending pump prices higher for U.S.  motorists and causing temporary shifts in the flow of oil and gasoline  around the world after taking down a huge chunk of U.S. refining  capacity.</p>
<p>It will be days or even weeks before the energy sector in the  southeast Texas Gulf Coast is back to normal operations as it deals with  flooding in the aftermath of Harvey, which has been downgraded to a  tropical storm. The region from Corpus Christi, Texas, where Harvey made  landfall, to the Louisiana state line accounts for about 3 per cent of  the U.S. economy and is a crucial export market for oil and chemicals.</p>
<p>Wednesday brought news that the nation&rsquo;s biggest refinery, which was  already running below half-speed, had begun a complete shutdown. The  Motiva Enterprises plant in Port Arthur, Texas, run by a unit of the  state-owned oil company of Saudi Arabia, was the latest domino to fall  among Gulf Coast refineries.</p>
<p>More than one-fifth of U.S. refining capacity has been shuttered, according to S&amp;P Global Platts.</p>
<p>With that, gasoline futures headed higher for a third straight day. They had climbed 10 cents to $1.88 a gallon Wednesday</p>
<p>Retail gas prices climbed, too, up 2 cents a gallon on Wednesday and 7  cents in the past week, to a national average price of $2.42 per  gallon, according to Gasbuddy.</p>
<p>&ldquo;In terms of product price increases, it might get worse before it  gets better,&rdquo; said Rob Smith, an energy analyst with IHS Markit.</p>
<p>It could take two weeks or longer before big refineries in the  Houston area can recover from a record-setting deluge and resume normal  operations. That assumes they didn&rsquo;t suffer serious damage, which is  still unknown.</p>
<p>Harvey isn&rsquo;t the first big storm to hit the refinery-rich Gulf Coast,  but the oil industry has undergone big changes since the last major  interruption from Hurricane Ike in 2008.</p>
<p>The so-called shale revolution has led to a surge in oil production  in the U.S., increasing the nation&rsquo;s exports of crude oil and gasoline  to Mexico and other places in Latin America, and diesel to Europe.</p>
<p>When the U.S. can&rsquo;t produce enough gasoline or diesel to meet export  demands, other regions are forced to look for replacement supplies &ldquo;and  the backfill has to come from further away,&rdquo; said Richard Joswick, an  analyst with S&amp;P Global Platts. &ldquo;It has to come from Asia even.&rdquo;</p>
<p>The result will be higher prices, but it should be just a one- or two-week problem, Joswick said.</p>
<p>Patrick DeHaan, an analyst for GasBuddy, predicts that U.S. gasoline  prices will top out around $2.50 or $2.55 a gallon, an increase of up to  20 cents since Harvey hit, with bigger spikes closer to the Gulf.</p>
<p>The recovery from Harvey will mimic the storm&rsquo;s path from west to  east. Flint Hill Resources&rsquo; refinery in Corpus Christi, where Harvey  made landfall as a Category 4 hurricane, could begin to restart &mdash; a  process that takes days &mdash; as early as Wednesday. Other refineries in the  area are likely to do the same later this week.</p>
<p>&ldquo;It takes some time to start up a refinery under normal  circumstances, and it wouldn&rsquo;t be surprising if they run into hiccups,&rdquo;  said Smith, the HIS Markit analyst. &ldquo;It could be a week if not longer  before Corpus Christi is at normal operations.&rdquo;</p>
<p>Exxon, Shell and other companies have reported to Texas regulators  that some of their storage tanks and other facilities near Houston were  damaged by the torrential rains and flooding. Most of the reports seem  to indicate relatively minor damage, but still it could be days before  crews can assess matters and make repairs.</p>
<p>Even once the refineries are running, pipelines and ports are needed  to carry their gasoline, diesel and other fuels to consumers.</p>
<p>A major pipeline supplying the East Coast with gasoline remains shut  down &mdash; partly because with refineries closed, there is nothing to ship,  but also because of damage in at least three areas. Another pipeline  that carries crude from the big Permian Basin field in Texas to  Houston-area refineries is also closed.</p>
<p>Other sectors are also slowly emerging from Harvey&rsquo;s mess.</p>
<p><strong>&mdash; INSURANCE:</strong> Damage estimates from wind, storm surges and flooding are  soaring, with Moody&rsquo;s Analytics putting them between $51 billion and  $75 billion. RMS, a company that advises insurers, estimates the cost at  $70 billion to $90 billion. TD Economics said Harvey will cut 0.1 to  0.4 points from U.S. third-quarter economic growth.</p>
<p><strong>&mdash; SHIPPING: </strong>In a hopeful sign, port officials in Corpus Christi say  that an initial check turned up some damage from Harvey&rsquo;s landfall over  the weekend, but they hope to restart shipping on Monday. First,  however, the Coast Guard will have to declare the shipping lanes clear,  and boat pilots will have to be satisfied it&rsquo;s safe.</p>
<p>All four ports in the Houston area remain closed and aren&rsquo;t likely to reopen for several days.</p>
<p><strong>&mdash; TRAVEL: </strong>Houston Mayor Sylvester Turner said Houston&rsquo;s two airports would resume limited service late Wednesday afternoon.</p>
<p>United Airlines planned to operate three departures and three  arrivals Wednesday night at Bush Intercontinental Airport, a spokesman  said. Other carriers, such as American Airlines, planned to wait until  Thursday. At Hobby Airport, Southwest Airlines, the dominant carrier,  doesn&rsquo;t plan any flights before Saturday, according to a spokeswoman.</p>
<p>More than 1,600 U.S. flights had been cancelled by afternoon, most of  them at the Houston airports, according to tracking service  FlightAware.&nbsp;</p>
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