ATLANTA — Gas prices in Georgia are up almost 50 cents compared to a month ago, and other states have seen it even worse. Some sources have suggested it's tied to the rising temperatures across the country.
There are many factors that can influence gas prices - including basic supply and demand. Does the weather really figure into it?
11Alive's Jerry Carnes looks into the question.
Question
Has the heat wave impacting portions of the U.S. influenced prices at the gas pump?
Our sources
- Tom Kloza of the Oil Price Information Service
- Patrick DeHaan, head of petroleum analysis at GasBuddy
Answer
What we found
DeHaan tells us that U.S. oil refineries involve a lot of sensitive equipment that is outdoors and can fail in extreme temperatures just like a car engine.
The summer heatwave has been rough on Texas and Louisiana, home to several of the nation’s largest refineries. According to DeHaan, a half dozen refineries have had equipment problems due to the heat impacting their ability to produce fuel.
The issue doesn’t have to be at the refinery. Kloza points out that interruptions to a local power grid can impact production at a refinery. When a large area of Memphis lost power recently it disrupted operations at the Valero refinery there.
Failures due to heat related issues can take days and even weeks to resolve.
Kloza estimates that heat-related interruptions at U.S. refineries this summer have reduced production by as many as 500,000 barrels a day during a time of peak demand for gasoline.
DeHaan tells us that issues at U.S. refineries are not the only reason for the decline in supply and higher prices. Saudi Arabia and Russia are two of the world’s largest oil producers. They’re cutting production in an effort to increase prices.
So while it’s not the only reason, it’s true, our nation’s heatwave has been a factor in the rising cost of gasoline.