Hurricane Harvey May Have Far-Reaching Effects on Oil Industry

HOUSTON — One of the largest storms to hit the United States since 2005 could have a direct impact on the oil and gas industry. 

Hurricane Harvey hit eastern Texas over the weekend — landing as a Category 4 in the state's refinery-rich coast. Though downgraded to Tropical Storm Harvey, massive flooding caused by the storm could not only affect the industry in Texas, but the U.S. economy overall, reported The Associated Press.

The storm left much of Houston, the country's fourth largest city, underwater and could bring as much as 50 inches of rain to the area as it stalls over the state, according to the National Weather Service.

While the full damage remains to be seen, the AP reported that key oil and gas facilities along the Texas Gulf Coast have temporarily shut down, and flooding in the Houston and Beaumont areas could seriously pinch gasoline supplies.

Experts believe gasoline prices could increase as much as 25 cents a gallon.