As fuel shortages continue to plague the Southeast, officials with the U.S. Department of Energy said it may be another “week or two” before production is at full capacity again.
That’s because more than 57 percent of crude oil and nearly 53 percent of natural gas production in the Gulf Coast region remains “shut in” following storm damage caused by hurricanes Ike and Gustav.
Healy Baumgardner, DOE press secretary, told Land Line on Tuesday, Sept. 30, that as refineries get back to full production and restoration efforts continue to progress in the Gulf region, “the market will balance.”
“The Southeast is feeling the affects of constrained supply more than other areas of the country because the region relies so heavily on refineries in the Gulf of Mexico,” she said. “When the refineries’ production is interrupted, for instance, following two massive hurricanes, the Southeast will be subject to temporary supply constraints.”
She said the fuel shortages the Southeast is now experiencing again demonstrate why the U.S. needs to “increase and diversify domestic sources of energy and enhance regional and national energy security.”
According to Baumgardner, the DOE has released more than 4 million barrels of emergency crude oil from the Strategic Petroleum Reserve to refineries “impacted by disrupted petroleum supplies.” Those receiving oil from the SPR include Marathon, Citgo, Placid Refining Co., ConocoPhillips and Alon USA.
The U.S. Environmental Protection Agency has also waived fuel blend requirements in states that are experiencing fuel shortages following Ike and Gustav. Click here for more information on states with fuel waivers.
In the Southeast on Tuesday, both the Petro Stopping Centers and TravelCenters of America were reporting they had some diesel fuel at all of their locations. However, the Flying J is continuing to ration its fuel supplies.
DOE is investigating price-gouging schemes in Southeast
If you are traveling in the Southeast and you spot astronomical prices being posted for fuel, the DOE is urging people to file complaints. Click here for more information.
– By Clarissa Kell-Holland, staff writer
clarissa_kell-holland@landlinemag.com