Investing.com - U.S. exploration and production (E&P) companies with facilities in Texas have extended their losses into a second session on concerns Hurricane Harvey could result in longer-term disruptions to oil and gas production in the region.
On Tuesday, losses were across the board, and included: Apache Corporation (NYSE:APA) Cimarex Energy Co (NYSE:XEC), Newfield Exploration Company (NYSE:NFX), Carrizo Oil & Gas Inc (NASDAQ:CRZO), EOG Resources Inc (NYSE:EOG), and Chesapeake Energy Corporation (NYSE:CHK). In addition, refiners, who posted significant gains on Monday in concert with higher gas prices were starting to pull back on Tuesday.
While so far it appears that the major facilities have escaped serious damage, flooding and continued rain, and the resulting damage to supporting infrastructure including roadways could mean it will take awhile before workers can access the facilities to reopen them. A note from Barclays (LON:BARC) on Tuesday cautioned that the impact of flooding could mean that “onshore and offshore production may not bounce back as quickly as the market is initially assuming.”
As E&P companies extended their losses, shutdowns continued. Exxon Mobil Corporation (NYSE:XOM) reportedly added its Beaumont refinery with 362,000 bbl/day of output to the list of closures.