Home Work
September 8, 2005
Gas Supply Falls to Lowest Point in 5 Years
By VIKAS BAJAJ
The nation's gasoline inventories fell to their lowest levels in almost five years last week, the government said today, quantifying for the first time Hurricane Katrina's impact on the nation's energy supplies and production.
Americans bought and used about as much gasoline as they did a year earlier - 9.3 million barrels a day - in the week that ended last Friday, but gasoline inventories fell 2.2 percent from the previous week because of supply and production disruptions, the Energy Department reported. The figures did not include the impact of the Labor Day holiday weekend, indicating that gasoline stocks might have declined even further since then.
The hurricane dealt a severe blow to oil and gasoline production, refining and distribution in the Gulf of Mexico region and energy companies are still trying to recover significant lost capacity. For consumers, the disruptions meant high retail prices and, in some areas, spot shortages of gasoline.
This morning, a gallon of regular unleaded gasoline was selling for $3.03 on average nationwide, down from $3.04 on Wednesday, according to AAA. Average prices peaked at $3.06 on Monday and briefly spiked up to $4 to $5 in the last week in some cities like Atlanta.
Gasoline futures for October delivery fell 1.22 cents, to $2.01 a gallon, on the New York Mercantile Exchange around midday. Crude oil prices fell 47 cents, to $63.90 a barrel.
Up to 10 refineries in the Gulf Coast that account for 10 percent of the nation's capacity were shut down and two critical pipelines that bring gasoline and other fuels to the South, Mid-Atlantic and Northeast were not operating at full capacity for much of last week. Six refineries are still shut down and about half of the gulf's oil and natural gas production also remains out of service.
All told, gasoline inventories fell to 190.1 million barrels as of Friday, down 8.6 percent from the same period a year earlier. Crude oil inventories of 315 million barrels were up 13.1 percent from a year earlier and down 2 percent from the previous week. Domestic oil production fell 3.5 percent from a year earlier, to 5.1 million barrels a day.
Gas Supply Falls to Lowest Point in 5 Years
By VIKAS BAJAJ
The nation's gasoline inventories fell to their lowest levels in almost five years last week, the government said today, quantifying for the first time Hurricane Katrina's impact on the nation's energy supplies and production.
Americans bought and used about as much gasoline as they did a year earlier - 9.3 million barrels a day - in the week that ended last Friday, but gasoline inventories fell 2.2 percent from the previous week because of supply and production disruptions, the Energy Department reported. The figures did not include the impact of the Labor Day holiday weekend, indicating that gasoline stocks might have declined even further since then.
The hurricane dealt a severe blow to oil and gasoline production, refining and distribution in the Gulf of Mexico region and energy companies are still trying to recover significant lost capacity. For consumers, the disruptions meant high retail prices and, in some areas, spot shortages of gasoline.
This morning, a gallon of regular unleaded gasoline was selling for $3.03 on average nationwide, down from $3.04 on Wednesday, according to AAA. Average prices peaked at $3.06 on Monday and briefly spiked up to $4 to $5 in the last week in some cities like Atlanta.
Gasoline futures for October delivery fell 1.22 cents, to $2.01 a gallon, on the New York Mercantile Exchange around midday. Crude oil prices fell 47 cents, to $63.90 a barrel.
Up to 10 refineries in the Gulf Coast that account for 10 percent of the nation's capacity were shut down and two critical pipelines that bring gasoline and other fuels to the South, Mid-Atlantic and Northeast were not operating at full capacity for much of last week. Six refineries are still shut down and about half of the gulf's oil and natural gas production also remains out of service.
All told, gasoline inventories fell to 190.1 million barrels as of Friday, down 8.6 percent from the same period a year earlier. Crude oil inventories of 315 million barrels were up 13.1 percent from a year earlier and down 2 percent from the previous week. Domestic oil production fell 3.5 percent from a year earlier, to 5.1 million barrels a day.