This Is How Hurricane Harvey Will Affect the World in the Months to Come

Tropical Storm Harvey is still flooding the south coast and shows no signs of retreating. But even if your home isn’t anywhere close to the flood waters, the storm will reach you by affecting a huge portion of the U.S. gasoline supply.

“So you know, this is going to affect the entire country,” Glenn said of the storm on radio Wednesday.

When the largest oil refinery in the country is shut down, it touches the whole economy. Port Arthur refinery, the biggest oil plant in the U.S., shuttered early Wednesday and won’t re-open until the flood waters recede. According to a Facebook post from Port Arthur Mayor Derrick Freeman, the “whole city is underwater right now.”

Gas prices are rising and in turn affecting the cost of production and shipping on all goods. The U.S depends on gas for the economy to work, which means that a spike in oil prices spells trouble.

“The lower the cost of oil, the better our system runs,” Glenn said.

Glenn also explained how a glut of oil building up in reserves while the refineries are down will affect people worldwide. When the reserve of oil hits the market, prices could drop dramatically and impact the Middle East and Russia.

“You will see the ramifications of what is happening in Texas will not only affect you, but affect freedom … all around the world,” Glenn said. “We’re interconnected now.”

GLENN: And, by the way, America's largest oil refinery just shut down yesterday. That now is 20 percent of all gasoline, is now off line.

PAT: Yeah, so those wishing for the oil industry to be hard hit in this crisis -- and who was that the other day?

STU: The Young Turks guy, I think.

PAT: Yeah, the Young Turks guy. Well, congratulations, your gas prices are going to go way up, and they're already starting to.

GLENN: Yeah, here in Texas, they're expecting by, what, I think tomorrow they're expecting it to be $3 a gallon. It was 2.20.

JEFFY: I mean, it was already up 19, 20 cents this morning last night.

GLENN: Yeah. So they're thinking Texas, it will be up $3 a gallon.

So you know, this is going to affect the entire country. You can't take 20 percent of the gasoline offline, and gasoline goes -- I don't know if the Young Turks have done the math, but the food that's delivered to your grocery store comes in a big truck, or it comes on a train. And that choo-choo doesn't use coal. It uses diesel, which is made out of oil, which is made in a refinery.

Congratulations, Young Turks, you're getting exactly what you hoped for. Now, in the next few days, once we get past all this, I'm going to spend time with you on the ramifications of this hurricane. This is much larger than Katrina. This is the largest, most impactful hurricane in history.

As you're looking at this, I want you to understand, the downstream, if you will that will impact not only you, but I can guarantee you, Vladimir Putin is getting a briefing every day on what is happening in Houston.

And not because it's some evil, sinister plot or anything else. But because Vladimir Putin's country was geared for $100 per barrel of oil. When it went down to 50, they were saying, "Oh, well, they can make it with $80 a barrel, but they've got to get the price of the barrel of oil up. Otherwise, their economy will collapse.

We're the opposite of Russia. The lower the cost of oil, the better our system runs. The higher the cost of oil -- once we get over $100, our economy, our -- the way we've structured our house loans and our credit cards and our car loans -- everything else -- once it's over $100 a barrel, it starts to hurt the US. A sustained 120, $130 a barrel collapses our economy. That's why 2008 happened. We had all kinds of stuff that required everything to remain exactly the same and nothing to go wrong.

Well, as soon as gas prices started to creep up, we couldn't handle it. Russia is the opposite. When gas prices go down and here hovering around 50, they become desperate and unstable.

Because we've closed the refineries, they're still producing the oil. But we've taken 20 percent of the refinement of that oil offline. So what happens?

All of the barrels that we are purchasing now begin to back up. Now they're going to sit on ships, somewhere in the gulf or off coasts. And they're going to sit there until there is an opening for that oil to get into a refinery or into an oil reserve. That oil reserve, that's going to be a glut. Which means the price of oil will plummet. Which means people in the Middle East and in Russia will become more desperate.

Because of this hurricane, you will see over the next few days, as we start to line this up -- and I hope to be able to really give you some in-depth analysis on this beginning next week, you will see the ramifications of what is happening in Texas, will not only affect you, but affect freedom, literal freedom all around the world.

We're interconnected now. Everything relies on everything else. And we rely on one another. The good news is, I have some real evidence that Americans -- forget about the companies and the politicians and everything else. Americans have not lost their soul. Americans are still the people we grew up believing we were.


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