Experts anticipate Gustav will have minimal impact on local gas prices

by Sarah Rice (srice@wsbt.com)

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Tropical storm Gustav headed to Gulf Coast

John McDonnell of Biloxi, Miss., stocks up on gasoline Wednesday Aug. 27, 2008 in anticipation of Tropical Storm Gustav becoming a hurricane and affecting southern Mississippi. McDonnell, whose house flooded in Hurricane Katrina, said "If I need it for the generators, I got it. If I don't I can put it in the truck when the gas prices go up." (AP Photo/John Fitzhugh, Sun Herald)

By WSBT News1

Story Created: Aug 31, 2008 at 6:52 PM EST

Story Updated: Aug 31, 2008 at 11:25 PM EST

SOUTH BEND -- Hurricane Gustav isn't just threatening homes along the Gulf Coast. Oil rigs are also a big concern. Some worry the damage from the storm could send oil prices soaring. But experts don't anticipate drivers in our area will experience much of an impact.

Like many drivers, Janette Anderson cringes when she fills up her car.

"It would be nice if it would go down," said Anderson.

But thanks to Hurricane Gustav that most likely won't happen. According to the U.S. Energy Information Administration 1.3 million barrels a day are produced in the Gulf. That makes up 25 percent of the oil produced in the U.S.

"It is huge," said IU South Bend Economics Professor Douglas Agbetsiafa.

Agbetsiafa says Gustav could impact gas prices.

"Any large disruption in that particular part of the production will cause quite some disruption in terms of prices," said Agbetsiafa.

And drivers say that's the last thing they want to hear.

"It's a pretty big concern," said driver Tyler Cline. "Because I pay enough as it is already."

But there is some good news. At this point, experts don't think drivers in our area will see a major jump in prices.

"I do not anticipate a large increase if this remains a storm of category three. Maybe another nickel above what the prices are today," said Agbetsiafa.

Experts say unlike Hurricane Katrina, oil companies are much more prepared. They've shut down all the oil rigs in the Gulf.

"Because you don't know how severe the storm will be. So it will too risky to even take a chance," said Agbetsiafa.

Experts say thorough preparation will be the key to keeping gas prices down.

"That if there are damages they will be much more subdued. And therefore, the potential for huge disruption are not as severe as they would have been in this case," said Agbetsiafa.

"The only thing we can do is pray, that's all," said Anderson.

According to the U.S. Energy Information Administration, the damage from Hurricane Katrina forced gas prices across the nation to jump 46 cents in just one week.

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