War, hurricanes, drive oil up again - WALB.com, Albany News, Weather, Sports

War, hurricanes, drive oil up again

July 7, 2005

Albany-- An already busy hurricane season has oil prices hitting record highs and some are concerned that the storms could put a strain on the nation's already stressed oil production.

Oil rigs in the Gulf of Mexico are integral in supplying oil and natural gas to the country.

If Hurricane Dennis were to rip through the gulf, oil companies could be forced to evacuate those rigs and halt production. The shut down could interfere with the oil supply and cause prices at the pump to jump even higher for motorists.

Oil traders fear if hurricane Dennis is a repeat of Ivan, many oil platforms could damaged or shut down for months. The flow oil from the region has been reduced by 190,000 barrels per day, or less than one percent of the daily demand.

South Georgia drivers are again feeling the punch of high gas prices. Prices went up more than 7-cents overnight at some places in Albany. Unleaded gas cost anywhere between $2.10 and $2.15. Some drivers, we talked to, feared the prices would go even more because of today's terror attacks in London.

That, added to the crude oil price hike has driver Oscar Flores worried gas prices won't go under $2.00 ever again. "It's never stable. Once you think it's stable, it's up overnight. It might drop a couple of pennies from city to city," said Flores.

Flores travels for work and says south Georgia still has lower gas prices than surrounding cities like Tallahassee, Jacksonville, and Atlanta.

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