Gasoline Prices Surge as Hurricane Ike Threatens Texas Refineries
The reason for all of this high-priced anxiety is that Texas oil refineries supply a significant percentage of the gasoline Americans use every day. There are 24 oil refineries in Texas, including the nation’s largest, and many of them are directly in the path of Hurricane Ike. For safety, the refineries have shut down their operations, taking millions of barrels of gasoline offline at least until the storm has passed.
Officials are predicting Hurricane Ike will bring a wall of seawater 20-25 feet high, which could devastate the city of Galveston and cause significant damage as far inland as Houston. That much seawater could also flood several refineries, threatening storage tanks and pipelines, and wiping out the electrical power the refineries need to operate. Similar flooding during Hurricane Katrina in 2005 kept some oil refineries out of operation for as much as six to nine months after the hurricane was over.
The current interruption in the flow of gasoline from the Texas refineries, combined with fears about future shortages if the refineries are severely damaged and unable to operate for weeks or months after Hurricane Ike has run its course, is why prices are rising so quickly today. In the days ahead, prices are likely to rise even higher, and gasoline shortages may become a part of daily life for awhile.
Also Read:
Comments
Thanks for your analysis of the reason for high gas prices. We, as consumers, know the reason is that the oil companies are just looking for another excuse to gouge us in the pocket. The storm is just another excuse for the media to have something to talk & talk & talk about, ad nauseum. Like sharks at a feeding frenzy. What will they harp on next???
I wonder, when the waves settle and the wind dies, and the refineries are left in good working order, how long it will be before we see lower prices.
http://www.goinggreenaccidently.blogspot.com
At the peak of the price oer barrell of oil in June, we were paying 3.98 a gallon. Now with oil prices at 100/barrell, the oil companies need to find another excuse to gouge us..when is it going to end? The government needs to step in and regulate..the middle class is feeling the worst crunch of all!!!
With the weather emergency as an excuse, the oil companies have again raised the price at the pump to over $4/gal. How high does it have to get before YOU switch to a scooter or a bicycle? $5, $6, $6.50? At “only” $4, they’re doing us a favor, and not gouging us. WE are the problem, not THEM.
There’s not enough oil left to put the planet in jeopardy thru pollution. It’s our lifestyle that’s in jeopardy when the oil is depleted. Abd that’s sooner than we think.
We need to look at reducing our oil usage and moving away from relying on oil as much as possible.
The development of new products at the moment is so expensive that people can not afford to switch. More needs to be done with renewable energy and also alternative transport, like electric cars.