With all the devastation currently going on in Houston, it’s hard to find any sort of silver lining to Hurricane Harvey. The storm is currently one of the worst on record and has already caused billions of dollars’ worth of damage in its wake. Texas and the Gulf Coast have been utterly crippled by the storm.
Also being crippled has been the nation’s refining infrastructure.
The vast bulk of the country’s crackers, refineries and other facilities for turning crude oil and gasoline lie on the coast of Texas and Louisiana. And as a result, Harvey and its relentless nature have put the sector in a major bind. But for dividend seekers, this temporary setback could be the entry point they are looking for.
Read here to know if there is an opportunity in oil.
Ten Refineries Hit
It’s not a coincidence that the bulk of America’s refining infrastructure sits on the Gulf Coast. Conveniently located near major areas of production, shipping ports and major pipeline terminals, the Gulf Coast is the perfect place to process crude oil and natural gas. The Energy Information Administration pegs that has over 45% of total U.S. petroleum refining capacity and 51% of total U.S. natural gas processing plant capacity is located along the Gulf Coast.
