Hurricane Ike and gas prices / oil infrastructure

[Tim Vasquez]

I haven't kept up too much on Ike due to errands today (had to drive to Gainesville TX to renew my TX drivers license! ugh) but it appears that the media is not paying much attention to the impact here on US oil refining. I just checked on USGS maps the elevation of the Texas City refinery complex, which processes a substantial part of the domestic oil supply, and the complex elevation according to survey bench markers averages about 6 to 8 ft MSL.

I'm worried that if the storm surge inundates the refinery complex that this could have a substantial impact on gasoline and diesel supplies, especially since inventories are at a minimum right now. I think there's a good chance of shortages, gas lines, and a spike in prices during the next week, and IF that happens that could set off a cascade of everyday problems related to supermarkets, deliveries, mail, temporary business closures, etc. The economy is so dependent on the fuel supply being stable, much more so than in 1973.

Any thoughts on this? If anyone sees any footage on TV of what the storm is doing to the bay area oil refineries, please post here.

Tim

P.S. Fill your tanks!

 

[Ed Boik]

I filled up my vehicles expecting a 30-70 cent increase per gallon before the weekend is over. It could conceivabley be much higher, but I read an article that suggests the oil suppliers will eat some of the wholesale costs in order to prevent price shock and economic issues due to the wholesale increase in price (there's been a huge run up in the last 2 days).

If there is major refining damage, expect +$4.00/gal nationwide through the end of the year.

 

[rdale]

Gas jumped over a dollar here to $4.99 - Attorney General and Governor report that gas station owners will be prosecuted...

 

[Tyler Allison]

Gas jumped $0.50 yesterday in the middle of the day in the western suburbs of chicago. One gas station on the corner had $3.98/g with the other one on the other side with $4.49/g

I have a feeling somebody needs to get smacked around

 

[Chris Nuttall]

CNN was all over this for about 3 hours earlier today. Gas prices here in Amarillo are up to $3.65. I think that's about a $0.30 increase.

 

[David Draun]

Only a steady rise here in Dekalb, IL. The Road Ranger near NIU Campus is still below $4.00. Sounds like some local price gouging is going on in MI. Seems like it will hurt the local stations when people fill up only a few miles away finding lower prices.

 

[Patrick Martin]

Gas jumped over a dollar here to $4.99 - Attorney General and Governor report that gas station owners will be prosecuted...

Was speaking with colleagues in Lansing today and was hearing of gas in the mid $5 range. Was stunned especially considering oil prices dropped again today.
I filled up north of Denver tonight at Costco for $3.59/gallon.

 

[Lou Ruh]

The price of gas hasn't budged here in the northwest suburbs of Philadelphia (which really surprised me). I expected a healthy jump. Really weird.

 

[Jay Cazel]

Here in Wichita the price jumped $0.10 today.

 

[Matthew Havin]

People have gone crazy here! (Huntsville, AL). As of 5 PM, 3 of the 4 gas stations I passed are completely out of gas (with plastic bags over the pump handles). The one that did have gas had lines 3-4 cars deep filling the entire lot. Prices in the metro are anywhere between $3.80-$4.69/gallon.... with most stations $4.09 and higher as they get tanker refills. One of the stations that was out of gas was getting refilled by a tanker truck at the time and was being constantly circled by 10-20 cars at a time waiting for the station to reopen. It is an amazing how viscous the cycle has gotten. People hear gas prices jump, or some tiny station ran out, and everybody runs on the pumps! Average wait times at the few gas stations that DO have gas are 1-2 hours! I filled up the night before, so no waiting or worries here. Plus, I have been keeping 10 gallons of gas stored in the garage this hurricane season for situations just like this!

 

[Chris Nuttall]

They showed some video on CNN this morning of gas prices at $5.23/gallon somewhere in South Carolina.

 

[Jay Barnes]

I spoke with my parents in southeast Arkansas a few minutes ago and they were saying
there were lines at the local gas stations, and gas prices jumped up to over $4.00 per gallon today.

 

[Heidi Farrar]

Gas jumped over a dollar here to $4.99 - Attorney General and Governor report that gas station owners will be prosecuted...

KAIT's top story tonight was that our Attorney General is investigating some stations in northeast AR on price gouging. Apparently some stations in the Jonesboro area knocked the price up about $.60 today or something. Since our governor declared a state of emergency for AR yesterday (I believe), gougers can be prosecuted.

http://www.kait8.com/global/story.asp?s=8999291
http://www.kait8.com/global/story.asp?s=8998826

 

[Jeff Richardson]

Lowest price in Tulsa as of this moment is $3.43, but I don't expect that to last long.

We had some price gouging in the Tulsa metro area during a severe ice storm in Dec. '07. Those folks who got greedy exploiting the misery of others were really hung out to dry.

 

[Christine Hudnall]

As of earlier today - before 6pm - some stations here out of gas and prices had gone to $3.59. Was speaking to a friend in Valdosta (GA) and she said there it was over $5.00, if you could find it.