Ike’s force still being felt at the gas pump

updated 5:56 p.m. ET Sept. 15, 2008

HOUSTON - Gasoline prices spiked for a third straight day Monday even as power was restored to a number of massive refineries along the Gulf Coast, and industry officials said it may be several weeks before the nation's refining capacity is restored.

At least 14 Texas refineries closed before Hurricane Ike made landfall, removing more than 20 percent of the nation's petroleum refining capacity. The storm destroyed at least a dozen production platforms and drilling rigs in the Gulf of Mexico, and production is still shut down in the critical region.

Red Cavaney, president of the American Petroleum Institute, which represents the major oil companies, said refineries appeared to have escaped a repeat of the widespread damage three years ago.

"We've not seen anywhere near the water damage as we saw in 2005," according to Cavaney, who said refinery operation could resume in a matter of several weeks, not months as was the case after hurricanes Katrina and Rita.

Valero Energy Corp., North America's largest refiner, said it had regained limited power at two of three shuttered facilities — in Houston and Texas City — while its plant in Port Arthur remained dark.

"All three remain shut down, though crews are working around the clock on getting the refineries prepared for restart," spokesman Bill Day said in an e-mail.

Exxon Mobil Corp. said Monday electricity had been restored at its refinery in Bay City, east of Houston, and it was preparing to resume operations. That refinery is the nation's largest. The oil giant was still inspecting another of its refineries farther east in Beaumont, where power was still out.

ConocoPhillips said its Sweeny, Texas, refinery had power and the company's Lake Charles, La., refinery was operating at reduced rates.

But the pipes that bring crude into the refineries and those that carry finished products like gasoline away must also have power, and there were shortages all over the south and Midwest on Monday.

That has created problems for gas stations from the Gulf Coast to the Northeast.

The Sheetz convenience store chain said more than two dozen stations from North Carolina Maryland were without gasoline.

Long lines formed at stations in Texas and Chevron transport trucks were being sent to the Houston area to speed refueling at its stations.

Royal Dutch Shell said Monday 40 percent of Shell-branded stations in the Houston and Beaumont areas were open. "We are trying to restock these stations as quickly as possible, but sporadic outages should be expected," Shell said.

Overnight, retail gasoline prices nationwide rose an average of about a nickel for a gallon of regular gasoline, to $3.842, according to auto club AAA, the Oil Price Information Service and Wright Express.

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