News Release No. 388

ENERGY ANALYSTS EYE POSSIBLE GAS
DISRUPTIONS FROM HURRICANE RITA

Volume 33-388

Contact: Larry Archer

(For immediate release)

573-751-3807

JEFFERSON CITY, MO., SEPT. 21, 2005 - The Missouri Department of Natural Resources is closely watching the path of Hurricane Rita in the Gulf of Mexico with an eye toward how landfall along the Texas coast on Friday might affect energy prices in Missouri.

"As we saw with Katrina, when major hurricanes make landfall in the oil-producing and refining areas of the country, we are subject to future uncertainties in fuel prices," said Anita Randolph, Energy Center director. "We will be paying close attention to those facilities that supply Missouri, the nation's overall supply and prices statewide."

While damage to - and shutdown of - oil-producing and refining facilities from Katrina caused Missouri gasoline prices to rise above $3 per gallon, the storm did not damage the facilities that directly supply the state. Some of those facilities that do supply Missouri are in Rita's projected path.

According to the U.S. Department of Energy (DOE), 56 percent of the cost of a gallon of gasoline is tied to the price of oil, and 24 percent is tied to the cost of refining. The remaining 20 percent are taxes (18 percent), and distribution and marketing (2 percent).

While the department will track gas prices, it has no legal authority to control fuel prices or investigate price gouging. It relies on voluntary pricing information supplied by local gas stations and fuel distributors across the state.

The department's Energy Center does have a focus on providing information to the public about issues related to fuel uses. In an effort to reduce gasoline consumption, the department has developed a brochure entitled, "Saving Green on Gasoline," which is aimed at encouraging drivers to consider a number of steps that can decrease transportation fuel use. These steps range from keeping the family car in tune to decreasing single-driver commuting in favor of carpooling, using public transportation or riding a bicycle. Each option can save Missourians a significant amount of money on transportation expenses.

You can learn more about the department's Energy Center and its information on the Web at www.dnr.mo.gov/gasprices.htm. For more information, contact the Department of Natural Resources' Energy Center at 573-751-2254 or the department toll free at 800-361-4827.

For department news releases on the Web, visit www.dnr.mo.gov/newsrel. For a complete listing of the department's upcoming meetings, hearings and events, visit the department's online calendar at www.dnr.mo.gov/calendar/search.do.

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Note to Editor: The U.S. Department of Energy provides a graphic illustrating what factors are included in the price of a gallon of gasoline. The graphic is available online at: http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp