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Metropolis Reality Forums Ť Oil Companies Use Katrina as Excuse to Raise Price ť

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   Oil Companies Use Katrina as Excuse to Raise Price

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Topic: Oil Companies Use Katrina as Excuse to Raise Price (Read 711 times)

Rhune
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Oil Companies Use Katrina as Excuse to Raise Price
« on: Aug 31^st, 2005, 1:10pm »

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NEW YORK (CNN/Money) - Consumers can expect retail gas prices to rise to $4 a gallon soon but whether they stay there depends on the long-term damage to oil facilities from Hurricane Katrina, oil and gas analysts said Wednesday.

"There's no question gas will hit $4 a gallon," Ben Brockwell, director of pricing at the Oil Price Information Service, said. "The question is how high will it go and how long will it last?"

OPIS tracks wholesale and retail oil prices and provides pricing information for AAA's daily reports on fuel prices.
Brockwell said with gasoline prices now exceeding $3 a gallon before even reaching the wholesale level, it "doesn't take a genius" to expect retail prices to hit $4 a gallon soon.

"Consumers haven't seen the worst of it yet," Brockwell said. He expects consumers in the Southeast and Northeast to be pinched first, following the impact of Hurricane Katrina on the Gulf Coast region.

Katrina pressures gas supplies

Katrina forced operators to close more than a tenth of the country's refining capacity and a quarter of its oil production, which sent gasoline prices surging.

Two major pipelines that supply gasoline to key terminals and distribution centers along the Eastern U.S. were shut down due to power outages caused by the storm. (Video of Energy Secretary Samuel Bodman discussing U.S. plans to tap strategic oil reserve to help refiners -- 4:16. Click here to watch).

Colonial Pipeline said it hopes to be back in partial operation soon, while the date of Plantation Pipeline's restart is not clear. Each day the pipelines are closed, supplies get backlogged and distribution centers must rely on reserves.

"With this kind of hiccup in refinery capacity, in stretched markets like California, you could see over $4 a gallon in gas," Evan Smith, an analyst at U.S. Global Investors, told CNN/Money.

While it's still too early to fully assess the damage caused by Katrina, efforts to build up inventories of crude oil, natural gas and other products like gasoline will be set back by the storm, according to Nariman Behravesh, chief economist at Global Insight.

In a research note, Behravesh laid out a worst-case scenario that puts average prices for regular unleaded gasoline at about $3.50 a gallon for the next four to six months.

"The impact on consumer spending in such a scenario would be very dramatic, cutting the growth rate by as much as 3 percent and pushing real GDP growth in the fourth quarter closer to zero," he wrote.

In a best-case scenario, he forecast retail pump prices to peak at $3 a gallon for a couple of months, but then fall back to around $2.50 by year-end.

The nationwide average price for a gallon of regular unleaded hit a fresh high of $2.619 Wednesday, according to AAA, the largest U.S. motorist organization, formerly known as the American Automobile Association.

Average gasoline prices have gained 40 percent in the last year.

Prices for crude oil are also up sharply and are currently hovering near record highs just under $70 a barrel.

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Rhune
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #1 on: Aug 31^st, 2005, 1:11pm »

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If we haven't opened up the reserves, can anyone explain to me exactly how Katrina will have caused the price of gas to go up? This is BS.

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AoM
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #2 on: Aug 31^st, 2005, 1:19pm »

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you're right Rhune it is BS, its total BS that gas prices went up so quick, the gas stations get gas twice a week and that gas has already been refined at the lower price per gallon of oil, it should have been WEEKS before we saw an increase at all. This is all price gouging, and for once i think the government needs to step in and stop it!!

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luci
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #3 on: Aug 31^st, 2005, 1:24pm »

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Yes it is total BS! I heard on the news the Bush Adm is "considering" releasing some
of the Federal Gov. oil reserve!

Will someone please explain why they have
to think twice about this subject Huh

« Last Edit: Aug 31^st, 2005, 1:25pm by luci »

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azure
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #4 on: Aug 31^st, 2005, 1:26pm »

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I totally agree with you all

:steamed:

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AoM
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #5 on: Aug 31^st, 2005, 1:27pm »

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but they did release the reserves, which i think is the point here, if they released the reserves, why are prices going up to $4 a gallon? Its GOUGING

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FLORIDAGIRL
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #6 on: Aug 31^st, 2005, 1:30pm »

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I went out to lunch and noticed gas in Gainesville Florida jumped 14 cents since 8:00 am this morning.
2.82 a gallon!

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lakelady
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #7 on: Aug 31^st, 2005, 5:24pm »

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Not only that, but now we are running OUT of gas. All 4 of our marinas went to order gas today and cannot get it. I passed by many stations on the way home and cars are lined up at the pumps and many have already covered the pumps and are out. Glad I filled up yesterday.

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Heather
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #8 on: Aug 31^st, 2005, 5:28pm »

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Like i said already, it went up 40 cents in 8 hours here.

From 2.69 to 3.09! Roll Eyes

And just now, on the news, they said gas in Atlanta is 6.07 a gallon. My aunt's going there again next week for work. Roll Eyes

« Last Edit: Aug 31^st, 2005, 5:29pm by Heather »

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Rhune
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #9 on: Aug 31^st, 2005, 5:33pm »

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They should be reported for illegal price gouging.

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shamon
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #10 on: Aug 31^st, 2005, 7:13pm »

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It is certainly price gouging if they don't refill the tank installed at the gas stations.... a refill might justify increase....

something just doesn't add up.....

who thinks we will start drilling in Alaska soon?

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yesteach
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #11 on: Aug 31^st, 2005, 7:15pm »

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If you are looking for where to buy gas - go to www.gasbuddy.com and you can check your state for prices.

LL, didn't you say you were headed for Opelika? According to their site at the moment, at 2:41 this afternoon, gas was 2.43 at the Amoco there..

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yesteach
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #12 on: Aug 31^st, 2005, 7:17pm »

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OK, either somebody typed it in wrong, or I need to go fill up... says gas is $1.77 at a station here in Ft. Worth... Shocked

Guessing it was $2.77.. LOL

eta: it's not far out of my way.. I'm gonna head home and see if it's really that cheap!!.. LOL

« Last Edit: Aug 31^st, 2005, 7:19pm by yesteach »

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lakelady
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #13 on: Aug 31^st, 2005, 7:25pm »

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No teach, I said your folks would be going right by me to get to Opelika.

As for price gouging, there is a place on foxnews.com to report it to the government. Least it was there last time I checked.

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Isle_be_back
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Re: Oil Companies Use Katrina as Excuse to Raise P
« Reply #14 on: Aug 31^st, 2005, 9:33pm »

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on Aug 31^st, 2005, 1:11pm, Rhune wrote:

If we haven't opened up the reserves, can anyone explain to me exactly how Katrina will have caused the price of gas to go up? This is BS.

1/4 to 1/3 of the oil we get is from oil rigs in the Gulf of Mexico. They have been shut down due to the storm. (I'm not sure if any were damaged or not.) Still, this is not an excuse for higher gas prices. It's a justification. Tomorrow it will be something else. Sad

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