Texas, Energy Industry, Crude Oil discussed on WSJ MoneyBeat - This Week: GDP, Jobs, and Energy


So one of the most remarkable things about that market reaction you know when this tropical storm became a hurricane on its way to texas is that you know we saw crude prices drop mainly because of what we know about the energy industry after post shell revolution in that we have a lot of crude oil sitting around and storage so even though there is some production that's going to be affected no one's worried about you know a lack of crude oil but we did see gasoline prices rise because a lot of these refiners are going to be impacted some companies are already talked about shutting down their operations alley you're covering the market i dunno if there's a yeah i mean i think what's really it changed near the last time a hurricane hit texas was in two thousand nine aides of his hurricane i can even the last time there was a major hurricane the golf was 2012 and since then um the gulf mexico's just the less important um as a driver of us production with the advances that have allowed companies to tap shale formation a lot of both oil and natural gas production have moved on shore companies shut in production in the gulf the way they always do ahead of a storm to you know to be prepared uh but the market is in having the same reaction you know head of katrina in two thousand five prices really spiked because there was a big source of production just being disrupted and the disruption is likely to happen again it's just not as big a factor i think that's going to surprise a lot of people are no when i was first reading your story on i saw you said prices went down at the other it's audio you historically you're used to hurricanes gonna come.

Coming up next