Economists say Harvey will cost billions — but still significantly less than Katrina


While it is still too early to fully assess the damage from Hurricane Harvey, immediate concerns about costly damage to the Gulf's gas and oil industry were somewhat reduced Monday as they "[do] not appear to have been seriously compromised," The New York Times writes.
Moody's Analytics told The Wall Street Journal that "about two million barrels a day of refining capacity — about 10 percent of the nation's overall refining capacity — is now offline." While gas prices are expected to spike as they historically do after major storms, costs could go back to normal after a few weeks. In sum, "economists were predicting that the storm's cost would be less than half that of [2005's Hurricane] Katrina's," the Times writes.
Katrina caused more than $100 billion in damage, a number that was exacerbated by the failure of levees. Moody's estimates that Harvey will cost several billion, with around $30 to $40 billion in property damage.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Despite the Gulf's oil hub managing to scrape by without crippling damage, the storm's toll on other industries, like freight, will be felt throughout the country. The chief economist of Truckstop.com, Noël Perry, told The Wall Street Journal that "the storm affected up to 10 percent of the U.S,'s trucking capacity" and "shipping costs could rise anywhere from 5 percent to 22 percent."
"This may be unprecedented when all is said and done," said Mark Rourke, the chief shipping officer of Wisconsin's Schneider National Inc. trucking company, echoing a sentiment held by experts in many different fields.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.
-
Anshu Ahuja's golden coconut and butter bean curry recipe
The Week Recommends Plump, creamy beans in a sweet, spicy sauce
-
The treasure trove of platinum on the moon
Under the radar This kind of bounty could lead to commercial exploitation
-
Sudoku medium: June 23, 2025
The Week's daily medium sudoku puzzle
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores