Prolonged port strike could shake up the oil and gas industry, experts say
Square 1 Farmers owner Tim Ryan, and Tim Ryan Jr., his son and VP of sales, explain their preparation for supply chain issues ahead of the port strikes and discuss the impact on businesses and consumers.
The union dockworkers strike that began early Tuesday impacting dozens of U.S. ports is not expected to disrupt the oil and gas industry right away, but experts say that will eventually change if the work stoppage lasts long enough.
The Department of Energy (DOE) issued a statement after the strike began saying the shutdown of the 36 East and Gulf Coast ports «will not impact crude oil, gasoline, natural gas, and other liquid fuel exports and imports, as such operations are handled by other workers. Therefore, the strike will not have any immediate impact on fuel supplies or prices.»
Dockworkers strike at the Bayport Container Terminal in Seabrook, Texas, on Tuesday. (Mark Felix/AFP via Getty Images / Getty Images)
In response to the DOE's statement, oil and gas expert Adam Ferrari, CEO of Phoenix Capital Group, told FOX Business, «While you can say there might not be an ‘immediate’ impact, there is still the consideration of the overall economic hit the U.S. will take across all industries, including the oil and gas industry.»
Ferrari noted that the East and Gulf Coast ports are responsible for approximately half of U.S. container imports. So if the strike heightens, he says, it is possible that the entire supply chain is affected.
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The supply chain is essential for the oil and gas industry to import and export their products, and Ferrari argues that because of these strikes, there could be major disruptions in
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