Gas supply generally safe despite port strike, unless it continues: Current average state prices
Update: East Coast port workers and management reach an agreement to swiftly conclude the strike on October 3.Learn more.
While certain products, such as bananas, vehicle parts, and electronics, could become less available due to the ongoing dockworkers’ strike, experts believe the oil and gas sector will likely remain unaffected initially.
This past Tuesday, 45,000 union workers stopped working after contract negotiations stalled, causing the closure of 36 ports on the East and Gulf coasts that account for roughly half of all U.S. ocean imports. This strike marked the first for the International Longshoremen’s Association (ILA) in 46 years.
The U.S. Department of Energy indicated in a statement on Tuesday that the strike “will not result in any immediate effects on fuel supplies or pricing,” as crude oil, gasoline, natural gas, and other liquid fuels are managed by “other workers.”
The Department of Energy assured that it would collaborate with the White House and other governmental organizations to “continue working alongside oil and gas firms, as well as electricity providers, to observe operations and supply chains.”
“We urge all involved parties to engage in fair and prompt negotiations at the bargaining table,” the department stated.
Experts warn prolonged strike could affect gas sector
Those consulted by YSL News on Wednesday largely concurred with the Department of Energy’s viewpoint, provided that the strike remains short-lived.
Ernie Miller, CEO of Verde Clean Fuels, suggested that concerns regarding a significant rise in oil prices due to the strike or escalating tensions in the Middle East, particularly following Iran’s missile strikes on Israel, may be overstated. He pointed out that U.S. domestic oil production has significantly increased over the last ten years, acting as a buffer.
“Our current production landscape is markedly different now compared to the past when we were net importers,” Miller noted.
Although this domestic reserve could stave off shortages for now, an extended strike “might have consequences,” warned Stephen Schwartz, managing director at Wells Fargo overseeing supply chain, trade, and channel solutions.
According to Schwartz, “Different workers usually manage oil and gas imports and exports, often through terminals unaffected by the strike. Nevertheless, if the standoff drags on, it could impact energy demand across sectors like trucking, rail transport, and bunker fuel for cargo ships.”
States with highest fuel prices
Currently, the top five states with the highest average gas prices, according to AAA, are:
- California: $4.669
- Hawaii: $4.606
- Washington: $4.021
- Nevada: $3.901
- Alaska: $3.658
States with lowest fuel prices
As per AAA, here are the five states with the lowest average gas prices as of Thursday:
- Mississippi: $2.677
- Tennessee: $2.728
- Louisiana: $2.749
- Alabama: $2.768
- Oklahoma: $2.782
Gas prices across states
Here’s a snapshot of average gas prices by state as of Thursday, according to AAA.
The national average for regular gas now stands at $3.190 per gallon, which is a slight decrease from $3.220 last week and $3.325 last month, and significantly lower than $3.798 a year ago, according to AAA data.
