BP Pipeline Closure Has Minimal Impact at Gasoline Pumps—So Far

Overnight statewide average price spiked by less than a penny per gallon over the BP pipeline announcement. National average price held steady, but during the past week, state and national average rose by 3-cents. Oregon now ranks 30th among 50 states and District of Columbia.

Compressor Station at Prudhoe Bay, Alaska Photo courtesy: emcomet.com

(SALEM) - A day after BP announced the closure of one of its Prudhoe Bay pipelines; a more thorough, although incomplete, assessment of conditions offers some optimism. While the market price of crude oil immediately jumped and closed Monday at just under $77 per barrel, average gasoline prices, even in the Pacific Northwest, remained fairly stable.

The current national average price, 3-cents higher than a week ago, did not change overnight, holding steady at $3.04. Yet, it's only pennies away from the record high set last September as a result of Hurricane Katrina.

In Oregon, the average price rose by more than 3-cents per gallon in the past week—only 7-tenths of a cent overnight—to $2.99.

Salem resumed its place as the best price in the state, with motorists paying an average of $2.93, and Portland drivers paying $2.94 a gallon for regular. Vancouver, Washington’s price of $2.96 for self-serve gas is the only other area coming in under $3.00 a gallon, with Eugene/Springfield seeing an average of $3.01 and Medford/Ashland residents paying an average of $3.03 at the pump. "The Pacific Northwest relies heavily on refined products from the Anacortes, Washington, area," said AAA Public Affairs Director Elliott Eki. "BP owns a Puget Sound refinery, which is very dependent on Alaskan crude, but it's reported that the plant can run through the end of the month on existing oil inventories and supplies in transit.

The other refiners in the area quickly point out that they receive very small supplies from the North Slope, and the losses can be replaced easily through other sources.

The biggest challenge is logistics—delivering replacement crude oil on a regular schedule to meet West Coast needs." Earliest estimates are that the pipeline could be down for several months. Undoubtedly the disruption will have some impact on pump prices, but prior to this latest event, consumer demand and global tensions were driving prices steadily upward.

More than a month ago, the Oil Price Information Service, which compiles AAA's Daily Fuel Gauge Report, forecast crude oil prices could hit $80, possibly $90, per barrel by early Autumn based on historical pricing patterns.

Once prices peak, OPIS analysts expect fuel prices to decline by as much as 50-to-75 cents per gallon during the last 100 days of the year.

Gasoline now averages over $3 per gallon in twenty-seven states and the District of Columbia. At $2.99, Oregon’s average gasoline price remains 30th highest in the nation.

Hawaii has the highest statewide average price at $3.37. California’s dipped to $3.20; Nevada’s crept up to $3.06; Washington’s gained 3-cents to $3.07, and Idaho’s moved up to $2.97. South Carolina has the lowest statewide average price at $2.87. The national average diesel price moved up to $3.10 per gallon.

In California, diesel averages $3.27 per gallon; in Washington, it’s up to $3.31; in Idaho, it rose 14-cents to $3.33; in Nevada, it's $3.09; and in Oregon, it gained 10-cents to $3.20 per gallon.