Demand for Fuel in U.S Seems to Be Falling

Washington DC September 9, 2005; The Auto Channel reported that the AIADA newsletter wrote that after Hurricane Katrina apparently sent consumers speeding to gas stations to top off their tanks, the reality of $3 a gallon gas seems to have quieted demand, according to the LA Times.

Demand normally drops off after Labor Day, which marks the unofficial end of the busy summer driving season. A sampling of motorists and commuters in Southern California confirmed many were conserving or taking public transportation instead of using their cars.

The Energy Information Administration [EIA] reported Thursday that in the week ended Sept. 2, gasoline demand fell 4% from the previous week to 9.03 million barrels a day. A Marathon Oil Corp. executive reported that at some of its Midwest stations, customers rushed to top off their tanks in the two days after Katrina hit, bought very little gas the next two days and then filled up again before the holiday weekend.

About 60% of the Gulf region’s oil production remained shut down, up from 57% on Wednesday, and the amount of natural-gas output that remained off line was unchanged at 40%, according to the U.S. Minerals Management Service.

Whether or not the drop in drivers’ demand for gas reflects a temporary reaction to Katrina or a longer-term change in motorists’ habits is still in question