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.
Sign up for Today's Best Articles in your inbox
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.
-
'The disconnect between actual health care and the insurance model is widening'
Instant Opinion Opinion, comment and editorials of the day
By Anya Jaremko-Greenwold, The Week US Published
-
Cautious optimism surrounds plans for the world's first nuclear fusion power plant
Talking Point Some in the industry feel that the plant will face many challenges
By Justin Klawans, The Week US Published
-
Explore new worlds this winter at these 6 enlightening museum exhibitions
The Week Recommends Discover the estrados of Spain and the connection between art and chess in various African countries
By Catherine Garcia, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published