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Originally Posted by pisser
OF course, one more devastating hurricane (rita) might just do that anyways!  |
WASHINGTON (Reuters) - Hurricane Rita could have a "substantial impact" on U.S. Gulf Coast refineries, a situation that the nation's already tight gasoline market cannot afford, the head of the U.S. Energy Information Administration said on Wednesday.
Hurricane Rita was packing 150 mph winds as it churned through the Gulf of Mexico, with computer models forecasting landfall south of Houston on Saturday.
"There's a risk that we could have a substantial impact on further refineries," EIA Administrator Guy Caruso told a Senate Commerce Committee hearing on gasoline prices. "We clearly cannot afford any further disruptions in gasoline production and capacity."
Caruso's remarks echoed worries expressed by oil market traders.
Four large refineries in the Gulf Coast region, which together account for about 5 percent of U.S. capacity, remain out of service from Hurricane Katrina last month.
Soon after Katrina hit Louisiana and Mississippi on August 29, the nationwide average retail gasoline price jumped to $3.07 per gallon, nearly tying the inflation-adjusted high of $3.12 set in 1981.
Earlier on Wednesday, the EIA said Rita could threaten up to 18 Texas oil refineries that have a combined capacity of 4 million barrels per day, or nearly one-fourth of the nation's total refining capacity.
"While not all of this capacity would be affected under any scenario, it does point out how much refining capacity is at risk," the EIA said in a weekly oil market report.
More..
not to mention more devestation of the environment...