Type to search

Texas Faces Fuel Crisis Due To Panic Buying, Damaged Refineries


Texas Faces Fuel Crisis Due To Panic Buying, Damaged Refineries

The state of Texas is now facing a massive fuel crisis as the damaging effects of Hurricane Harvey continue to be felt throughout both Texas and Louisiana. However, it is likely that the fuel crisis will not be strictly an issue for Texas and Louisiana, rather, for the entire country as gas prices are expected to surge. When it comes to prepping, we often write about prepping for fuel outages. In the case of Harvey, we are seeing the real-life effects of fuel shortages. With a potential catastrophic Hurricane Irma swelling over the warm waters of the Atlantic, now is the time to understand what you can do to help alleviate the effects of fuel crisis on you and your family. Over the past few days, our article, how to siphon gas, has been more popular than ever. That should tell you everything you need to know.

  • Labor Day weekend travel could place additional pressure on fuel supplies throughout the nation.
  • Dallas residents panic, buy massive gas, creating additional shortages.
  • Gas prices most likely hit $2.80 in some areas of the country.

Labor Day weekend is likely to cause dire circumstances for gasoline supplies that remain compromised post-Hurricane Harvey. The current problem is that damaged oil refineries in the Gulf aren’t able to supply gas at the same rate they were. This is further complicated by Dallas residents experiencing a “perceived fuel shortage” and stampeding to gas pumps to hoard gasoline. The very real lowered supply is already a problem, the additional strain of gas hoarding is causing it to be a lot worse. In Dallas, huge car lines sat for hours waiting to fill up their tanks. We’ve said it before and we will say it again, always keep your tank full if at all possible.

Texas Gov. Greg Abbott said, “There’s plenty of gasoline in the state of Texas,” Reuters reported. “Don’t worry. We will not run out.”

But here’s the thing, there truly isn’t “plenty of gas” to go around. Many of the fuel pipelines are out of fuel due to a quarter of U.S. refineries having suffered flood damage. In other words, the fuel supply chain is no longer able to provide the amount of gas it could before Harvey slammed the Texas coast and dumped over 50 inches of rain in the region. Abbott says they are turning to states like Oklahoma to help fill supplies throughout Texas. With Labor Day in full swing, people are also filling up their tanks for travel purposes, placing more strain on the damaged supply chain.

Texas is about to experience a massive fuel crisis.

The Texas governor is doing a great job in dealing with the damage caused by Hurricane Harvey. But make no mistake about it, a fuel crisis is coming to Texas, most likely on Monday.

Texas fuel crisis

Panicked Dallas resident fills up vats of fuel, fearing impending fuel crisis.

“By Monday Texas will be in crisis for petroleum fuel. I am not a crisis man, but with the refineries down, power outages, roads flooded, and pumps underwater this is a crisis.”-Harvey Steinhagen, PetroTexFuels president, as quoted on CNBC.

Fuel terminals operate by Motiva had lines of trucks waiting. Here’s the thing, when terminals are unable to supply fuel truck needs, those fuel trucks have to turn back towards their headquarters, or just search out new terminals that do have fuel. And it isn’t just Motiva terminals, Delek terminals are also experiencing a rush of trucks and can’t supply them. Further worsening the situation, Motiva’s underground supplies are almost out.

Say NO To Censorship - LIKE Our Facebook Page

“By Monday, Texas will be in crisis for petroleum fuel,” Steinhagen said. “I am not a crisis man, but with the refineries down, power outages, roads flooded and pumps underwater this is a crisis.”

And this is not going to be just a Texas issue, but a national crisis. With gas supplies compromised in Port Arthur and Beaumont, Texas, national fuel supply chains won’t function. That’s 8 percent of the national gas supply gone. With a third of gas production compromised, next week a fuel crisis places the country in dire straights. Many have taken to Twitter to share stories citing “there is no fuel crisis” and comparing the perception of a fuel crisis to that of people making runs on banks fearing a dollar collapse. Perception of a lack of fuel may likely be somewhat exaggerated, however, the above quotes are from experts in the field.

Dallas Fuel Crisis (Panic or Not?)

Is the city of Dallas making our fuel crisis worse by madly rushing to pumps? Some are calling the Dallas fuel crisis one of perception and not fully based in reality. But, there is a fuel crisis on the horizon, clearly. Because people don’t typically prep properly, they are left to scramble based on possibilities. Dallas residents are placing a strain on the Texas gas supply chain and the could certainly create a problem for the entire country. Dallas residents are buying up gas to fill half full tanks, as well, stocking piling gasoline in tanks to store.

Dallas could be a future model for a national crisis next week. In other words, other cities and town’s residents are likely to start acting in the same way, placing even more strain on the fuel supply line. This is how a fuel crisis happens. The supply is both truly compromised, as well, the perception of the gasoline supply chain being dry will cause more strain on the supply. The gasoline demand is surging all over the nation.

Consumers Will Feel Rising Prices At Pumps

On Friday, the average cost of gasoline was a hair over $2.50 per gallon. According to analyst via CNBC, that price is set to rise to $2.60 to $2.80, depending on the location. Meaning, the cost of the fuel crisis is about to be slapped down on consumers, many of which will be driving this holiday weekend, taking advantage of an extended weekend.

Hurricane Irma Could Contribute

Hurricane Irma continues to batter the empty waters of the Atlantic. And she’s getting big; massive, some would say. Irma is currently a category 2 but is expected to be a category 3, if not 4, by Sunday. While Hurricane Irma’s threat to the United States remains unknown, the potential of Irma hitting the United States coupled with the fuel crisis could add even more strain on the current fuel situation. People are now sensing reality: our fuel sources can be compromised.

Another category 4 making landfall anywhere in the United States would be crippling, however, more damage to fuel refineries would be a nail in our proverbial coffin.

Always have your supplies, that’s the best advice I can give.



Author: Jim Satney

PrepForThat’s Editor and lead writer for political, survival, and weather categories.