It has now been a week since hurricane Harvey made its debut in Texas. As much as 12 feet of storm surge and 120 mph winds. He knocked out electricity among millions and literally flooded homes and displaced nearly 17,000 people as well as flooded many parts of Houston. There were 60 deaths reported because of the hurricane. Harvey is known as one of the most catastrophic storms that has hit the US since 2005. Not only has this major hurricane affected the population but it has affected gas prices as well.
Harvey flooded much of Southeast Texas which is one of the nations most busiest oilfields. The Eagle Ford Shale is found in this part of Texas and because of the rain and winds, more than half of the rigs are down and need to be serviced, but because of the flooding, it is very difficult to get to the rigs. Given that much of oil and gas activity occurs in areas only accessible via dirt roads, the heavy rainfall usually makes the movement of trucks and supplies much more difficult. EOG Resources and Marathon Oil stopped production as they had to pull their crews out of harms way. The Eagle Ford was the only shale basin of the big four to drop activity last week, as some in the industry start to look at shale as a more expensive option compared to other places.