Petroleum-Refining Industry Business Interruption Losses due to Hurricane Katrina

Coastal Flood Risk Reduction

“…Historical loss data are almost nonexistent. Therefore, scientific understanding about hazard-loss relation is at best based on assumptions that cannot be validated (Burleson, Rifai, Proft, Dawson, & Bedient, 2015;Kirgiz, Burtis, & Lunin, 2009). In a handful of instances, companies publish reports indicating sustained losses to structures and operations.…”

Do Seasonal Tropical Storm Forecasts Affect Crack Spread Prices?

“…If the seasonal forecasts are reasonably accurate, there is reason to believe that they may affect the markets for refined petroleum. For example, Considine, Jablonowski, Posner, and Bishop () find that short‐term hurricane forecasts are valuable to oil producers, while Kirgiz, Burtis, and Lunin () find that hurricane Katrina resulted in both significant damage to oil refiners and an increase in the crack spread. However, Kilian and Vega () find that neither daily crude oil futures prices, nor daily gasoline futures prices respond even to macroeconomic news announcements widely perceived to affect asset prices.…”