Texas edges closer to recovery after Harvey as key pipeline restarts

The move by Colonial Pipeline to resume transporting distillates such as diesel fuel comes as the Gulf region’s energy industry starts to come back online. 

Flooding from Harvey drove up fuel prices by shutting down almost a quarter of U.S. refining capacity. Retail fuel costs surged through the weekend amid fears of shortages, despite the restart of several key Gulf refineries that had been crippled by Harvey. 

The pipelines’ reopening will restore links between refineries along the Gulf Coast, the US petrochemical hub, to markets in the Northeast. 

Treasury Secretary Steven Mnuchin challenged Congress on Sunday to raise the government’s debt limit in order to free up relief spending. Texas Governor Greg Abbott said the storm had caused up to $180 billion in damage. 

President Donald Trump’s administration has asked Congress for an initial $7.85 billion for recovery efforts, a small fraction of what will eventually be needed.