Panicked motorists overran local gas stations Thursday in an effort to top off their tanks as prices exceeded $3 per gallon and reports of shortages spread.
As a result of the damages caused by Hurricane Katrina, which shut down the two major pipelines that deliver fuel to southeastern states, price hikes and “No Gas” signs were common at North Carolina pumps.
The two downed pipelines—the Colonial and Plantation—usually deliver 90 percent North Carolina's fuel.
The George W. Bush administration moved Wednesday to release at least one million barrels of oil from the nation’s strategic reserve, but the effort has done little to slow swelling prices.
There was a 20-cent increase over Wednesday’s gas prices at the B.P. station on Ninth Street, but the store had run out of gas as of 5 p.m. Thursday. Other retailers were facing similar conditions.
Bill Weatherspoon, executive director of the North Carolina Petroleum Council, explained that the damages the hurricane caused could be fixed within several days.
The two gas pipelines suffered electrical problems rather than physical damage as a result of the storm. Weatherspoon said the power in the refineries and pipelines is being restored imminently, and the fuel flow should increase over the weekend, lessening concerns about future shortages.
He said the two pipelines were shut down Monday, Tuesday and Wednesday, but service began to be restored Thursday.
The flow was at 25 percent capacity Thursday, but Weatherspoon said it will rise to 60 percent by this weekend.
“Colonial anticipates 75 percent of normal flow rate by early or [the middle of] next week,” he said.
Catherine Reeve, director of parking and transportation services, said Duke does not currently have a shortage, as it received a shipment of Biodiesel—the fuel Duke’s busses use—earlier this week. Reeve said the shipment will last for at least nine days.
Duke Transit Services also secured other shipments of fuel for the next few weeks.
“We are not at a point to reduce service, but it may become a consideration,” Reeve said.
She added that Duke is contacting other sources to make sure they have access to supplies if the shortage worsens.
“I’m cautious, but it doesn’t mean that we are going to park the buses one day and say, ‘We’re sorry,’” Reeve said.
Stephen Mancuso, transit administrator for Durham Area Transit Authority, said DATA’s supplier assured them that there would be no problem providing fuel. He said Durham busses would remain running on schedule.
“We are preparing for a shortage if it ever occurs, but at the current moment, the information we have is that it won’t [occur],” he said.
Durham Mayor Bill Bell called on residents to limit gas consumption.
“Try to conserve the use of gas as much as possible,” he said. “Don’t travel if you don’t have to.”
Bell was nonetheless optimistic about the future, noting that he is confident the problem is temporary.
“There is a limited supply right now,” he said “but it is going to get better.”
Pietro Peretto, associate professor in the Department of Economics, warned that gas is an inelastic good—individuals will have to continue purchasing gas no matter what the cost. He also said the price of gas depends on what is happening in the world economy.
He asked that people be more cautious and not fill up tanks in a panic because it may run down the supply.
Weatherspoon expressed the same view.
“Over the next following weeks we will slowly resume normalcy, but that can’t happen if people don’t stop their panic-buying,” he said.
Peretto suggested that people should car-pool to beat sky-high fuel prices. He said he expects the shortage to last less than three weeks based on current information.
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