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For us, active is more than our investment approach \u00e2\u0080\u0093 it is the way we translate ideas into action, how we communicate our views and the partnerships we build in order to create the best outcomes for clients.", "allow_comments": false, "members_pay": null, "disclaimer": null, "custom_pdf_watermark": null, "pending_professional": null, "domain": null}, "name": "Janus Henderson Investors", "action_links": {"google_plus_link": "http://plus.google.com/share?url=https%3a%2f%2fwww.hvst.com/posts/the-impact-of-hurricane-harvey-on-the-u-s-energy-sector-wGRf09GV", "email_link": "mailto:%20?subject=The Impact of Hurricane Harvey on the U.S. Energy Sector&body=https%3a%2f%2fwww.hvst.com/posts/the-impact-of-hurricane-harvey-on-the-u-s-energy-sector-wGRf09GV", "saved": false, "linkedin_link": "http://www.linkedin.com/shareArticle?mini=true&url=https%3a%2f%2fwww.hvst.com/posts/the-impact-of-hurricane-harvey-on-the-u-s-energy-sector-wGRf09GV&title=The Impact of Hurricane Harvey on the U.S. Energy Sector", "stocktwits_link": "http://stocktwits.com/widgets/share?body=The Impact of Hurricane Harvey on the U.S. Energy Sector%20https%3A%2F%2Fwww.hvst.com/posts/the-impact-of-hurricane-harvey-on-the-u-s-energy-sector-wGRf09GV via @harvest", "twitter_link": "http://twitter.com/intent/tweet?url=https%3a%2f%2fwww.hvst.com/posts/the-impact-of-hurricane-harvey-on-the-u-s-energy-sector-wGRf09GV&text=The Impact of Hurricane Harvey on the U.S. Energy Sector&via=hvst", "not_my_post": true, "facebook_link": "http://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.hvst.com/posts/the-impact-of-hurricane-harvey-on-the-u-s-energy-sector-wGRf09GV"}, "overide_pdf_downloadable": true, "question_impression": 2483879, "spreadsheets": [], "picked": false, "allow_comments": false, "allowed_to_view_analytics": false, "post_path": "/posts/the-impact-of-hurricane-harvey-on-the-u-s-energy-sector-wGRf09GV", "main_body": "<html><body><p>Financial markets are attempting to assess the impact of Hurricane Harvey, even as the storm continues to wreak havoc along the Texas coast \u2013 home to a significant amount of U.S. energy refining capacity. While all segments of the energy sector\u2019s value chain have been affected, we believe the brunt will be in the downstream segment. It is currently estimated that roughly 15% of U.S. refining capacity, which represents 3% of global crude demand, is offline. As is standard practice, much of this capacity was closed down prior to the storm\u2019s arrival. Yet, given the magnitude of the rainfall in this slow-moving storm, we believe that the roughly 2.8 million barrels per day currently offline could rise. Specific information about the status of these facilities is limited at this time; we will be able to provide more precise estimates on the longer term implications on downstream operations as events unfold.<\/p>\n<p>In upstream, both onshore and offshore production (roughly 22% and 26% of offshore oil and gas production, respectively) were closed down prior to Harvey\u2019s arrival, yet it should be able to ramp back up relatively quickly. As Gulf of Mexico operators constantly face the risk of major storms, they have processes in place to limit the effects of these events. Unlike many storms, however, Harvey has led to a meaningful curtailment of <em>onshore<\/em> oil and gas production, namely in the Eagle Ford shale formation. Overall, roughly 11% of U.S. crude production and 3% of gas production is presently offline. As onshore production tends to recover more rapidly than offshore, we expect the impact to crude and gas supply to be fairly limited.<\/p>\n<p>Similarly, midstream companies shuttered their operations in preparation of the storm. The Houston and Corpus Christi ports are shut down and virtually the entire Gulf is closed to vessel traffic. We are closely monitoring reports to determine the level of damage to midstream infrastructure. The degree of damage will likely have significant ramifications for energy products stored and transported by midstream operators, as well as for regions of the country dependent upon products originating from Gulf refiners.<\/p>\n<p>Most importantly, our thoughts are with the citizens and first responders of the region. We are also closely watching the unfolding situation on behalf of our investors. We believe the impact on energy supply will likely be a matter of weeks, while the impact on demand \u2013 especially from refiners \u2013 could last months. As a result, we expect U.S. upstream operators to soon return to normal operations. However, demand for their crude will be altered as several regional refineries undergo repairs. Accordingly, downstream operators with capacity outside of the Gulf region stand to benefit, with stocks of these companies initially higher in the trading hours after the storm made landfall.<\/p>\n<p>The post <a href=\"https://blog.janushenderson.com/impact-hurricane-harvey-us-energy-sector/\" rel=\"nofollow\">The Impact of Hurricane Harvey on the U.S. Energy Sector<\/a> appeared first on <a href=\"https://blog.janushenderson.com\" rel=\"nofollow\">Janus Henderson Blog<\/a>.<\/p>\n<p class=\"rss_import_src_link\">RSS Import: <a href=\"https://blog.janushenderson.com/impact-hurricane-harvey-us-energy-sector/\">Original Source<\/a><\/p><\/body><\/html>", "display_exclusive_tag": false, "from_paywalled_network": null, "from_private_network": false, "post_title": "The Impact of Hurricane Harvey on the U.S. Energy Sector", "avatar_path": "/avatars/public_page/avatar/1184/JanusHenderson_Icon_.png", "pdf_articles": null, "verified": true, "allowed_to_add_tags": false, "author_is_visible": true, "question": {"yes_url": "", "show_answer_poll": null, "text": "What organization do you work for?", "title": "", "id": 7, "display_type": "freeform", "subsequent_message": null, "available_for_page": true, "reason": "", "multiple_choice_options": null, "created_on_page": null, "hint": "", "options": [], "no_url": ""}, "page_pick_id": null, "author_description": "As a leading global manager, Janus Henderson offers actively managed solutions to meet diverse investment goals and seeks to deliver exceptional service to our clients.", "notarized_by": [], "author_path": "/organization/janus-capital-group", "author_id": 1184, "display_pdf_download_button": true, "tags": [], "display_share_buttons": true, "hash_id": "wGRf09GV", "post_notices": {"linkedin": null, "twitter": null}, "is_following_author": null, "current_user_id": null}, "post_id": 96716, "symphony_user": null, "show_right_rail": true, "page_gated_content": [], "key": "rrw", "allowed_to_add_tags": false},[React.createElement(bottlereact.QuestionnaireCard,{"display_header": true, "impression": 2483879, "title": "Improve Your Experience", "post_id": 96716, "show_poll": true, "question": {"yes_url": "", "show_answer_poll": null, "text": "What organization do you work for?", "title": "", "id": 7, "display_type": "freeform", "subsequent_message": null, "available_for_page": true, "reason": "", "multiple_choice_options": null, "created_on_page": null, "hint": "", "options": [], "no_url": ""}, "logged_out": true, "key": "postQuestionnaire", "dismissable": false},[]),"token","banner",React.createElement(bottlereact.RecommendedReading,{"logged_out": true, "dataPath": null, "key": "postRR", "admin": false, "page_path": null, "custom_header": null},[]),]),React.createElement(bottlereact.BottomNavBar,{"post_id": 96716, "symphony_user": false, "is_following_author": null, "author_path": "/organization/janus-capital-group", "from_private_network": false, "post_title": "The Impact of Hurricane Harvey on the U.S. Energy Sector", "avatar_path": "/avatars/public_page/avatar/1184/JanusHenderson_Icon_.png", "company_name": null, "author": {"custom_homepage": null, "type": "PublicPage", "id": 1184, "disclosures": null, "display_members": true, "custom_header": null, "all_members_may_post": false, "groups_enabled": null, "background_path": "/avatars/public_page/page_background/1184/LinkedInBanner_1536x768px.jpg", "block_all_downloads": false, "allow_trades": null, "is_vosterra": false, "allow_competitions": null, "picture_path": "/avatars/public_page/avatar/1184/JanusHenderson_Icon_.png", "custom_pdf_watermark_pages": "all_pages", "splash_message": null, "professional": true, "url": "/organization/janus-capital-group", "path": "/organization/janus-capital-group", "users_can_message_each_other": false, "is_preview_mode": false, "splash_use_banner_background": true, "name": "Janus Henderson Investors", "hide_billpay_link": null, "allow_messaging": false, "has_sidenav_logo": false, "onboarding_message": "The private content you are trying to access requires pre-qualification. 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