Broad Economic Impacts Beyond Public Safety Caused by Extreme Heat

In mid-July, the entire United States has already faced extreme heat, with the West and Southwest expecting unprecedented temperatures until the end of the month. Excessive heat warnings have been issued for parts of California, Nevada, and Arizona, where temperatures are expected to exceed 100 degrees Fahrenheit. Heat advisories are also in effect in several counties across New Mexico, Texas, Florida, and even the Northeast region, where Central Park recently recorded a new high temperature of 91 degrees Fahrenheit. While public safety remains a top concern, the economic impacts of this heatwave on healthcare, infrastructure, transportation, and other sectors are estimated to cost the U.S. economy $100 billion annually.

Extreme heat is the leading cause of weather-related deaths in the U.S., resulting in an estimated average of 702 deaths per year, according to the Centers for Disease Control and Prevention. The healthcare system faces significant challenges due to life-threatening temperatures, with a projected $1 billion increase in healthcare-related costs this summer alone.

In addition to the risks to public safety, businesses and municipalities also experience losses and damages due to high temperatures. One notable impact is the effect on infrastructure, particularly roadways. The Houston area witnessed several incidents of road damage and buckling during a dry and sunny period with daily temperatures exceeding 100 degrees Fahrenheit. Even concrete roads are vulnerable to extreme heat, as research has shown that the heat causes the water within the concrete to vaporize and become trapped, leading to explosions. Similar incidents have been documented during heatwaves in Iowa, where concrete blowouts and sewer collapses occurred.

Airports and airplanes are also affected by extreme temperatures, often resulting in grounded aircraft at locations like Phoenix Airport. High temperatures reduce air density, making it challenging for planes to generate lift. This poses difficulties for planes carrying heavier passenger or cargo loads. In 2017, American Airlines had to cancel 40 flights in Phoenix due to temperatures reaching 120 degrees Fahrenheit, causing inconvenience for travelers and straining supply chains.

The upstream and downstream oil and gas sectors are yet another industry affected by extreme heat. Refinery operations suffer due to increased operational pressures, decreased flow of liquids in pipelines, and limited electricity supply. This disruption impacts field production operations of oil and natural gas, resulting in reduced Gulf Coast refinery throughput and limited production of refined fuels like gasoline, jet fuel, and diesel.

As extreme weather events continue to grow, businesses and municipalities must implement additional policies and technologies to safeguard people and assets during the hottest days of the year. With summer not even at its peak, the challenges posed by extreme temperatures are expected to persist. It is essential to address not only the direct health and safety effects but also the secondary effects on business operations, productivity, supply chains, and infrastructure.

*This article was written by an author affiliated with DTN.

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