Big Oil Re-Thinks Traffic on Houston Channel Spill

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March 27 (Bloomberg) -- Bloomberg’s Julie Hyman and Isaac Arnsdorf examine the fallout of this weekend’s oil spill in the Houston ship channel in “On The Markets” on Bloomberg Television’s “In The Loop.”

Yesterday but it had been closed for four or five days since this crash happened, the closing that led to the spill over the weekend, and over that time, it was affecting the price of crude oil, gasoline, natural gas liquids like propane.

Because this is like a choke point for u.s. energy infrastructure, like you mentioned, 1/10 of the capacity, oilfields throughout the midwest , pipelines, this is really a vital area for the u.s. a lot of refineries along the waterway they are actually cut back on the refining activity.

Now, this is sort of a rudimentary question, but i'm curious -- at a refinery there when they cut back on the refining capacity, is it just because they do not have a place to put the refined product after a wild?

That they have to load on a ship and move it out of the area/ ? it could be either.

I think it was actually because they cannot get the crude oil in that they would then use to make refined products, but there could be some instances where there are exports of petrochemicals or refined fuels, and they cannot get the ships to move them out.

There are more than 100 ships waiting to come into the port during this outage.

It is one of the busiest waterways in the whole world, and it is the biggest gateway for exports, the biggest export port in the u.s. on that front, the backdrop for this has been that there is the historic increase in u.s. energy production, so how does this play into that?

It is making this area even more congested.

It is leading to an unprecedented three $5 billion in spansion -- expansion along this -- $35 billion expansion along this waterway.

Some people are saying maybe we have too many eggs in this basket, or the port is even close offense for fog delays and it is risky to have such a high concentration in this area.

Isn't also risky because of traffic?

This accident was caused by a collision.

Is that why it happened, are there just too many ships around there>? traffic is actually down slightly because there are fewer tankers coming in bringing in crude oil now that we are producing more oil in the u.s., but hundreds of ships use this channel every day and it is cruise ships and ferries and patrol boats and tankers and barges.

It is so narrow actually that when you have two big ships that are crossing, they do this thing

This text has been automatically generated. It may not be 100% accurate.

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