Harvey's impacts on the energy sector - Axios
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Harvey's impacts on the energy sector

Charlie Riedel / AP

Harvey's devastating flooding is hitting a state and region that's a central hub for the energy sector. For instance, BP and Shell alone have roughly 11,000 employees in the Houston region combined.

The storm is closing down refineries, some crude oil production offshore in the Gulf of Mexico and onshore in the Eagle Ford shale region, pipelines, shipping, and other infrastructure networks.

Via a sobering Reuters story: "Damage assessments could take days to weeks to complete, and the storm continues to drop unprecedented levels of rain as it lingers west of Houston, home to oil, gas, pipeline and chemical plants. And restarts are dangerous periods, as fires and explosions can occur."

Power loss: Over 300,000 people are without electricity, according to the Electric Reliability Council of Texas, which oversees the Texas power grid.

Gasoline: The disruption of Gulf Coast refining and pipeline networks will send prices upward nationwide, and gasoline futures are already trading higher.

  • On Sunday night, GasBuddy analyst Patrick DeHaan issued a forecast that prices in the Gulf region will rise by as much as 35 cents per gallon over the next two weeks. The midwest is due for a 10-25 cent rise, with smaller increases in other regions.
  • Gasoline futures were around 6% higher in Asian trading on early Monday, and The Wall Street Journal reports: "Energy markets could be in for a bumpy ride when they open Monday as investors try to gauge the impact of the disruption."

Refineries affected: The storm has forced the shutdown of multiple refineries in Corpus Christi, Houston, and elsewhere in the Gulf of Mexico, such as Exxon's huge Baytown facility that processes nearly 600,000 barrels of crude per day and Shell's big Houston-area refinery, which has a 340,000 barrel-per-day capacity.

  • Nearly three million barrels of refining capacity, or over 16% of the U.S. total, has been taken offline, according to a Goldman Sachs research note Monday morning.
  • "At this stage, most of the refining outages are reported as preventive, with only a few comments on minor flooding. However, the slow moving nature of the storm will likely lead to these shut-downs continuing in coming days and may generate persistent damage as well," Goldman said.
  • "Some of the issues around gasoline and refinery production are going to be a little bit enduring, at least for the next month," Wayne Gordon, a top analyst at UBS, told Bloomberg late last night.

Crude oil: The Interior Department said in a Sunday afternoon update that 105 Gulf of Mexico's platforms have been evacuated. Nearly 22% of Gulf of Mexico oil production has been halted.

  • Yes, but: Overall, the storm has been harder on the refining sector than on oil production, notes Goldman, stating that overall about 11% of total U.S. crude production is halted, including offshore and onshore. The heart of the Gulf of Mexico producing area was not in the storm's direct path, and the greater production impact has been onshore wells, they note.

Horrifying: Via Mashable, one meteorologist believes ongoing rainfall in Texas could eventually lead to a total of 25 trillion gallons dropped on the state, with 11 trillion having occurred already.

Featured

Software jobs grow at fast clip

Jacquelyn Martin / AP

The software industry directly accounts for 2.9 million jobs in the U.S., a 14.6% increase since 2014, according to a report out today by Software.org, the research arm of the software industry's trade group BSA. The average annual salary for software developers is $104,360, which is more than twice the annual average wage for all U.S. occupations, according to the report.

Why this matters: The software industry is growing as new technologies like artificial technology, self-driving cars, augmented reality and the internet of things — all of which rely heavily on software — continue to advance. Software-related jobs continue to be among the more lucrative jobs requiring STEM skills, a shortage of which puts such workers in high demand.

Just yesterday the Trump administration announced an initiative to expand students' access to computer science and STEM education. Increased training in these areas, particularly in the K-12 setting, is one way experts think students can be better prepared for the modern economy that is increasingly leaving many communities behind.

Go deeper: Silicon Valley no longer has a lock on software developer jobs.

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Puerto Rico in crisis

A man looks at the horizon early in the morning after the passing of Hurricane Maria, in Yabucoa, Puerto Rico. Photo: Carlos Giusti / AP

Puerto Rico remains without power and short on supplies after being slammed by Hurricanes Irma and Maria. Officials are having difficulty even communicating with outlying towns that were devastated by the storm, and the humanitarian crisis is growing.

After focusing for days, at least publicly, on NFL protests and other matters, President Trump tweeted about the crisis in Puerto Rico on Monday night — and seemed to blame Puerto Rico in part for its own misfortune.

Trump's tweets: "Texas & Florida are doing great but Puerto Rico, which was already suffering from broken infrastructure & massive debt, is in deep trouble....It's old electrical grid, which was in terrible shape, was devastated. Much of the Island was destroyed, with billions of dollars....owed to Wall Street and the banks which, sadly, must be dealt with. Food, water and medical are top priorities - and doing well. #FEMA"

What Puerto Rican officials have said

From Governor Ricardo Rosselló: "We are U.S. citizens that just a few weeks ago went to the aid of other U.S. citizens even as we're going through our fiscal downturn and as we were hit by another storm…Now, we've been essentially devastated. Complete destruction of the power infrastructure, severe destruction of the housing infrastructure, food and water are needed. My petition is that we were there once for our brothers and sisters, our other U.S. citizens, now it's time that U.S. citizens in Puerto Rico are taken care of adequately, properly."

From Manati mayor Jose Sanchez Gonzalez: "Hysteria is starting to spread. The hospital is about to collapse. It's at capacity," he said, crying. "We need someone to help us immediately."

The scale of the crisis

  • Government officials said Sunday a dam on the Western part of the island "will collapse at any time." Eastern areas, which were hit by the eye of the storm, could take years to recover.
  • Officials estimate it could take up to 6 months to restore power to the whole island.
  • Federal agencies have cleared the Port of San Juan for daytime operations, but accessing Puerto Rico is pretty difficult right now — airports and harbors are severely damaged and the whole island remains out of power. 11 ships have delivered 1.6 million gallons of water, 23,000 cots, dozens of generators and food, per the AP. Many hospital patients are being flown to the U.S. mainland for treatment.
  • The death toll is at least 10 in Puerto Rico, and 31 if you include other Caribbean islands, per the AP.
  • 1,360 of the island's 1,600 cell towers are down. 85% of phone and internet cables were knocked out.

Personal experiences

  • When locals see outsiders, the first thing they ask is "Are you FEMA?" per The Washington Post.
  • "Nothing's working, we don't hear from anyone…We feel abandoned," Toa Baja resident Johanna Ortega told USAToday.
  • Food at local grocery stores is "VERY LIMITED," San Juan resident Claudia Batista messaged Axios. Batista described the situation in San Juan as "desperate times," saying because of "all the material loss, people are losing control and patience and are stealing in other homes and assaulting people on the streets."
  • Some local responders in Juncos cleared streets with machetes since the town doesn't have enough chain saws. People are riding bikes and walking for miles to get to gas stations

What FEMA is doing

  • FEMA teams were in Puerto Rico earlier this month following Hurricane Irma, and as soon as Hurricane Maria's winds died down they launched search-and-rescue missions, per USAToday.
  • All of the 28 task force teams around the U.S. have been recruited to help, which is rare, per Karl Lee, a FEMA Incident Support Team member.
  • FEMA responders are using a San Juan hotel as a command center.
  • 4,000 U.S. Army Reserve members have also been deployed to the island. The Army Corps of Engineers dispatched the 249th Engineer Battalion, per CNN.

What Trump has said

Trump declared a major disaster in Puerto Rico and said all of the U.S. government is behind the relief efforts. White House adviser Tom Bossert and FEMA's chief are heading to Puerto Rico Monday, although a trip from Trump isn't expected for a while, per CNN.

  • Rosselló thanked Trump on Monday for having federal emergency assistance provided, per the AP, noting FEMA has done a "phenomenal job."

Trump's most recent tweets about Puerto Rico, from last week:

Take a look

How to help

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Trump goes after McCain over health care vote

President Trump tweeted at Senator John McCain, who is currently in treatment for brain cancer, over his decision to oppose the latest Republican health care plan:

The back-and-forth: McCain was more subtle in critiquing Trump during a 60 Minutes interview Sunday. He said the two had very different upbringings, after noting that Trump had not apologized for saying he was not a war hero.

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Entire Cowboys team takes a knee

Photo: Matt York / AP

Prior to the national anthem at their Monday Night Football matchup with the Arizona Cardinals, the entire Dallas Cowboys team, including owner Jerry Jones, took a knee. They then stood for the anthem.

Go deeper: How NFL teams have reacted to Trump's comments.

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Report: Bannon, Priebus, Ivanka used private email in White House

From L-R, Stephen Miller, Reince Priebus, Steve Bannon. Photo: Carolyn Kaster / AP

Several current and former senior Trump administration officials occasionally used private email to conduct government business, the NY Times reports. The officials named: Steve Bannon, Reince Priebus, Ivanka Trump, Gary Cohn, Stephen Miller and Jared Kushner (Politico had previously reported Kushner sent or received about 100 emails about White House matters using his private address).

Why it matters: Trump railed against Hillary Clinton incessantly during the campaign for her use of private email as Secretary of State. Government officials are supposed to use their government accounts so their communications will be stored, and failing to do so can cause security risks.
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Trump denies split with Kelly over NFL comments

Trump lashed out at CNN for reporting that John Kelly opposed his NFL remarks. Photo: Evan Vucci / AP

President Trump lashed out at CNN on Twitter Monday evening, calling them "Fake News" for reporting that John Kelly was opposed to his comments at Friday's rally calling for NFL players who protest during the national anthem to be "fired." CNN reported that Kelly "was not pleased" with Trump's remarks, later updating the story to reflect Kelly's conversation with CNN reporter Jeff Zeleny, during which Kelly said he was "appalled" by the lack of respect for the flag.

"I believe every American, when the national anthem is played, should cover their hearts and think about all the men and women who have been maimed and killed," Kelly told Zeleny. "Every American should stand up and think for three lousy minutes." However, Zeleny noted that Kelly declined to say whether he felt Trump should have weighed in.

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Russian Facebook ads aimed to spark divisions over Black Lives Matter

Russian hackers used Facebook ads to pit different social, racial and political groups against one another. Photo: Joerg Koch / AP

Last week, Facebook said it was planning to turn more than 3,000 ads bought by Russian operatives during the 2016 campaign over to congressional investigators. On Monday, the Washington Post reported on details of some of the ads, which pitted different social groups against one another. For example, some of the Russian ads promoted groups like Black Lives Matter, while others warned that those groups pose a dangerous threat to society.

Between the lines: Russian hackers, who worked off of evolving lists of racial, religious, political and economic themes, were able to take advantage of the ability to send targeted messages to different Facebook users based on their political and demographic affiliations. The aim appears to have been to inflate tension between already feuding groups.

Facebook declined to comment, but referred Axios to its earlier update, which noted that "the ads and accounts appeared to focus on amplifying divisive social and political messages across the ideological spectrum."

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Collins will oppose Senate health care bill

Sen. Susan Collins said she opposes the Senate's health care plan. (AP Photo/Robert F. Bukaty, File)

Sen. Susan Collins officially said she will oppose the Senate's latest bill to repeal parts of the Affordable Care Act — yet another nail in the coffin for a bill that's moving further away from the 50 votes it would need to pass.

Why it matters: It would only take three "no" votes to kill the bill. And Collins' opposition makes it a total of four Republicans who say they won't vote for the bill — two moderates (Collins and Sen. John McCain) and two conservatives (Sens. Rand Paul and Ted Cruz).

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Report: 'Iranian missile test' Trump tweeted about never happened

Missiles are on display in Tehran on Sunday during the country's annual Defense Week. Photo: Vahid Salemi / AP

On Friday, Iran claimed to have tested a new medium-range ballistic missile capable of striking Israel with multiple warheads — but, according to Fox News, that missile launch never actually took place. Video footage purporting to show the launch was actually from a failed test back in January.

Why it matters: The world is waiting to hear President Trump's decision — he claimed to have made up his mind last week — on whether or not to stay in the Iran nuclear deal. It's significant that Trump used the "launch" to again decry the deal, tweeting on Saturday: "Not much of an agreement we have!"

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Irma captured America's attention more than other storms

It's been a busy hurricane season, with three powerful hurricanes hitting and one just missing U.S. territories. Here's when and how often Americans' searched Google each of them.

Data: Google Trends; Chart: Lazaro Gamio / Axios

Why it matters: Irma received the most attention, according to Google, likely due to reports it'd be the most powerful hurricane ever to hit the U.S. Meanwhile, Puerto Rico has been devastated by Hurricane Maria, but interest from the U.S. is substantially less than during both Harvey and Irma.

Note: This search data does not include Puerto Rico. Puerto Ricans were highly interested in both Hurricane Irma and Hurricane Maria, with the least interest in Harvey.