S.C. governor:
Conserve gas again; Rita impact unclear
Hurricane Rita's wandering aim could determine whether motorists
in the Carolinas and across the country face a small and temporary
bump in gasoline prices or must adjust their budgets to absorb a
bigger hit over a period of weeks.
With the possibility the storm could disrupt the flow of gas to
South Carolina - much like Hurricane Katrina - Gov. Mark Sanford on
Friday asked residents to use common sense and limit gas purchases
to their immediate needs.
"At this point, we don't know exactly what kind of effect Rita is
going to have on prices and supply," Sanford said. "In the meantime,
people once again need to ride to the Friday night football game
with a neighbor, ride to lunch with a co-worker or ride to the
grocery store with a friend from down the street.
"Also, we have to remember our neighbor at the gas pump and not
attempt to fill up every five-gallon tank we've got in the back of
the garage. That same kind of common-sense conservation helped get
us though the previous storm, and will go a long way toward helping
us weather this one."
Sanford also said residents should report suspected price gouging
on his Web site, http://www.scgovernor.com/.
Oil-industry experts say Rita's changing projected path and
wavering power make it difficult to predict how much damage it will
do to refineries on the Gulf Coast in Texas and Louisiana. But
experts agree that the Houston area - home to 13 percent of the U.S.
oil- refining capacity - will not be spared the brunt of the storm.
The storm will reduce the supply of gasoline and other refined
products no matter what because just about every major refinery
around Houston and Port Arthur, Texas, 100 miles away on the Gulf
Coast, shut down ahead of Rita's arrival. Together, the areas
represent 20 percent of U.S. capacity.
"Best case, it costs us 2 million barrels a day (of refining
production) for about three days," resulting in gas prices briefly
rising 5 to 15 cents per gallon, said Fadel Gheit, an energy analyst
for Oppenheimer & Co. "But if it hits Houston hard, four or five
refineries could be flooded."
Gheit declined to offer a price forecast for the worst-case
scenario.
Energy Secretary Samuel Bodman said even if the Gulf Coast
refineries escape serious damage, the public should be ready for
interruptions of supplies for two or three weeks.
"We will be dependent on attracting cargoes (of gasoline) from
abroad which are already en route," he said.
Later, an Energy Department spokesman clarified Bodman's remarks,
saying he was referring to local disruptions in Texas and that the
administration does not expect a significant effect nationwide.
Some local residents are not taking any chances.
"I heard it might go up, so I want to be safe," said Linda
Sherman, a Tiger Mart employee who was filling up at her company's
Hess station in Myrtle Beach. At $2.75 for a gallon of regular
unleaded gasoline, the price at the pump has fallen from the $3-plus
peak after Hurricane Katrina.
The average price for a gallon of self-serve regular in the
Myrtle Beach area Thursday was $2.79, according to AAA Carolinas. In
the Brunswick County, N.C., area, the average was $2.76 a gallon.
But AAA had some reports of 10-cent-per-gallon increases Thursday
around the Carolinas.
Charleston-based economist Al Parish predicted prices could rise
8 to 10 cents - as opposed to the 30-cent jump after Katrina -
partially because eight state attorneys general are investigating
oil companies for price gouging.
"I think that may scare the oil companies a little bit," Parish
said. "The second thing is, the futures market hasn't soared the way
it did before Katrina. It's back above $2, but it hasn't gone up
anywhere near what it was with Katrina."
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