Consumer Energy Report is now Energy Trends Insider -- Read More »

By Robert Rapier on Sep 15, 2008 with no responses

You Heard it Here First

As I warned on Saturday:

Gas Prices Climb Quickly as Refineries Remain Closed

At least 14 Texas refineries, representing nearly a quarter of the nation’s refining capacity, will probably remain shut for the next week or more. Three more Louisiana refineries may be damaged from widespread flooding.

“It may not be possible for us — and other manufacturers — to maintain normal supplies in the coming days,” Chevron stated in a bleak assessment on its Web site on Sunday, warning of “severe supply disruptions in the wake of Hurricane Ike.”

Hopefully you heeded the warning and got yourself some gasoline on Saturday. If you didn’t – especially if you live in the South – you are probably going to pay a lot more for it now.

The situation looks to be tight for at least another 2-3 weeks:

Senator Kay Bailey Hutchison, Republican of Texas, said on CBS’s “Face the Nation” on Sunday, “We are looking at another week or eight or nine days before refineries are up and going, so refined gasoline is going to be in a shortage situation because of the power outages and flooding.”

“It is going to be felt for the next week that we have gasoline shortages,” Ms. Hutchison said, “so people need to be prepared for that.”

Plan on at least 3 weeks of this. Limit your gasoline consumption whenever possible and hope that another hurricane doesn’t enter the gulf before hurricane season ends.