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November 19, 2019

Economic damages caused by Hurricane Harvey may reach 42 billion USD

Hurricane Harvey economyThe preliminary estimates of the damages caused by Hurricane Harvey are rising, as the storm recovers power in the Gulf of Mexico. According to analysts the economic loss forecast may reach 42 billion USD. The reason is the increasing obstacles to drainage systems and flood control systems.

Analysts estimated that spending could reach 100 billion USD, which could cause more damage than Hurricane Katrina in 2005, which resulted in losses of at least 118 billion USD. Then about 47% of the costs were covered by insurers. Although today less damage would be taken by insurers, as brokers say fewer homeowners have flood insurance.

Harvey hit the Texas coast as a fierce fourth-degree hurricane, causing massive floods that paralyzed 11% of the US oil refineries a quarter of oil production in the Gulf of Mexico, and shut down ports all over Texas.

It hit the heart of the US energy industry and is expected to cut in almost a few weeks the record-breaking US oil production, with a likely impact across the country and international energy markets.

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