Hurricane Rita To Hike Gas Prices Again - Yahoo! News
Hurricane Rita To Hike Gas Prices Again - Yahoo! News: "Hurricane Katrina damaged a significant amount of the U.S. oil production capacity in the Gulf of Mexico, sending gas prices to record levels. Now Rita appears set to knock out even more.
How high could prices at the pump actually go? NewsCenter 5's Gail Huff reported that consumers were shocked when the price of gasoline topped $3 a gallon, but energy industry analysts are saying motorists need to be prepared for steeper cost increases that may follow Hurricane Rita. They're saying pump prices are certain to rise again.
'May be $3.70 or $4 a gallon, maybe even as high as $5,' energy trader Phil Flynn said.
The reason is because the Texas Gulf Coast has the largest concentration of oil refineries in the world. There are 24 of them on a 300-mile stretch of coast from Corpus Christi, Texas to Lake Charles, La. The refineries produce more than 4.5 million barrels of heating oil and gas a day, which is nearly 25 percent of the nation's supply.
'This could be the worst storm we've ever seen when we talk about the potential damage and the potential price ramifications when it comes to the oil industry,' Flynn said."
How high could prices at the pump actually go? NewsCenter 5's Gail Huff reported that consumers were shocked when the price of gasoline topped $3 a gallon, but energy industry analysts are saying motorists need to be prepared for steeper cost increases that may follow Hurricane Rita. They're saying pump prices are certain to rise again.
'May be $3.70 or $4 a gallon, maybe even as high as $5,' energy trader Phil Flynn said.
The reason is because the Texas Gulf Coast has the largest concentration of oil refineries in the world. There are 24 of them on a 300-mile stretch of coast from Corpus Christi, Texas to Lake Charles, La. The refineries produce more than 4.5 million barrels of heating oil and gas a day, which is nearly 25 percent of the nation's supply.
'This could be the worst storm we've ever seen when we talk about the potential damage and the potential price ramifications when it comes to the oil industry,' Flynn said."
posted by Blackgold at 9:59 PM
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