U.S. energy companies check for damage after Ike
HOUSTON (Reuters) - Oil companies rushed to check their facilities for damage on Sunday in the wake of Hurricane Ike, which passed over the heart of the U.S. energy industry near Houston leaving a quarter of the nation's oil and refined fuel production idled.
The biggest disruption to U.S. energy supplies in three years sent gasoline prices spiking higher while U.S. President George W. Bush said federal and state authorities were on the lookout for gouging at the pumps.
Emergency officials said Texas refineries appeared to have escaped major flooding -- a sign production could rebound quickly once power is restored -- but oil companies warned the effects of Ike could still lead to a temporary crunch.
"Chevron is concerned about severe gasoline supply disruptions in the wake of Hurricane Ike. It may not be possible for us -- and other manufacturers -- to maintain normal supplies in the coming days," Chevron Corp said in a news release.
U.S. gasoline prices jumped more than 11 cents to $3.795 a gallon since Friday -- the biggest two-day increase since hurricanes Katrina and Rita devastated portions of the Gulf Coast in 2005, according to the AAA's daily survey of more than 100,000 service stations.
Some 15 Texas oil refineries, including the giant Exxon Mobil refinery in Baytown, were shut down as a precaution ahead of the storm, while another in Louisiana remained shut in the wake of Hurricane Gustav two weeks ago.
Together, the refineries make up just under a quarter of U.S. fuel production capacity. A Reuters witness on Saturday said eight refineries around Houston and Texas City showed no visible signs of flooding or significant damage.
Ike also shutdown crude oil production in the Gulf of Mexico, representing a quarter of U.S. output, along with the bulk of shipping, port and pipeline operations on shore, hindering the transport of fuel to other parts of the country.
The International Energy Agency said it was monitoring U.S. energy supplies in Ike's wake to determine if a release of emergency stockpiles in necessary.
The U.S. Environmental Protection Agency also has relaxed clean air fuel regulations in 11 states to ease any supply disruptions resulting from the storm.
U.S. oil prices fell more than a dollar on Sunday to below $100 a barrel as dealers anticipated limited damage from Ike to the U.S. energy industry. The New York Mercantile Exchange opened trade eight hours early Sunday due to increased trader interest around the storm.
(Reporting by Erwin Seba, Bruce Nichols, Eileen O'Grady in Houston and Jeremy Pelofsky in Washington; Editing by Doina Chiacu)
