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Ike Hits Fuel Production, May Cause Shortages

Experts warn of shortage for 'extended period'

By Matt Cantor,  Newser Staff

Posted Sep 13, 2008 8:45 AM CDT

(Newser) – Hurricane Ike’s assault on the Gulf Coast has closed over 19% of US refinery capacity and may hurt delivery nationwide, Bloomberg reports. At least 13 Texas refineries have shut down operations, which may trigger a gasoline shortage in the southern and eastern US—and it may last a while, observers say. “Ike is headed into the heart of the refining industry,” says an energy expert.

“The damage is likely to come in flooding, a lack of power for an extended period of time,” he adds. Fears of gas shortages have already prompted price gouging in some parts of the Southeast, ABC reports, with some gas stations charging as much as $6 a gallon. The governors of several states have signed orders declaring a state of "abnormal market disruption," activating anti-gouging laws. The Gulf Coast provides half the fuel and crude oil used in the eastern US.

A Galveston Police officer, right, helps residents evacuate as a house burns in the background during Hurricane Ike, Friday, Sept. 12, 2008, in Galveston, Texas.
A Galveston Police officer, right, helps residents evacuate as a house burns in the background during Hurricane Ike, Friday, Sept. 12, 2008, in Galveston, Texas.   (AP Photo/Matt Slocum)
Little Rock, Ark., gas station employees change the price sign for fuel Friday, Sept. 12, 2008. The threat of Hurricane Ike pushed gasoline prices higher.
Little Rock, Ark., gas station employees change the price sign for fuel Friday, Sept. 12, 2008. The threat of Hurricane Ike pushed gasoline prices higher.   (AP Photo/Danny Johnston)
Water blows over a roadway as the effects of Hurricane Ike are seen in Surfside  Beach, Texas, Friday, Sept. 12, 2008. Hurricane Ike, a colossal storm nearly as big as Texas itself, began battering the coast Friday, threatening to obliterate waterfront towns and give the skyscrapers, refineries and docks of...
Water blows over a roadway as the effects of Hurricane Ike are seen in Surfside Beach, Texas, Friday, Sept. 12, 2008. Hurricane Ike, a colossal storm nearly as big as Texas itself, began battering the...   (AP Photo/Eric Gay)
A man clutches a brief case as he makes his way through high water created by hurricane Ike's storm surge in downtown Galveston, Texas, Friday, Sept. 12, 2008. Hurricane Ike, a colossal storm nearly as big as Texas itself, began battering the coast Friday, threatening to obliterate waterfront towns and...
A man clutches a brief case as he makes his way through high water created by hurricane Ike's storm surge in downtown Galveston, Texas, Friday, Sept. 12, 2008. Hurricane Ike, a colossal storm nearly as...   (AP Photo/LM Otero)
An apartment complex damaged after Hurricane Ike hit the Texas coast is seen Saturday, Sept. 13, 2008, in Galveston, Texas.
An apartment complex damaged after Hurricane Ike hit the Texas coast is seen Saturday, Sept. 13, 2008, in Galveston, Texas.   (AP Photo/Matt Slocum)
Graphic shows the projected path of Hurricane Ike.
Graphic shows the projected path of Hurricane Ike.   (AP Photo)
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