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Indonesia troubles unlikely
to disrupt Hawaii oil supply

Local energy officials say the isles could
find alternative sources in an emergency

Isle residents canceling trips to Bali

Bali regulars in shock over attack

Kailua couple recalls terror and confusion in Bali

Indonesia acknowledges al-Qaida presence


By Tim Ruel
truel@starbulletin.com

Hawaii's supply of crude oil, a large portion of which comes from Indonesia, is not likely to be cut short despite the country's upheaval after Saturday's terrorist attack.

Even if Indonesian supply were cut off, Hawaii could get the oil from other sources without affecting supply, said Nathan Hokama, spokesman for Tesoro Hawaii. The firm runs one of the state's two refineries and generally receives 15 percent to 30 percent of its crude oil from Indonesia.

Fortunately for the state, Chevron and Tesoro import crude oil from Alaska and about a dozen countries, including China, Australia, Vietnam, Venezuela and Norway. The state would be in worse straits if it only received oil from a few sources, said Albert Chee, spokesman for Chevron, Hawaii's other refinery operator.

Between 1990 and 1997, more than one-third of Hawaii's total imported crude oil came from Indonesia, according to a state report.

More recently, from January to August of this year, Chevron and Tesoro brought a total of 9.8 million barrels into Hawaii from Indonesia, 42 percent of their foreign imported oil, according to federal data. But those numbers do not include domestic imported oil from Alaska.

Indonesia's chief security minister, Susilo Bambang Yudhoyono, said his country had information about possible terrorist plots against vital oil and gas facilities, according to CNN. Security was being heightened at U.S.-run industrial sites, including at Chevron's Caltex refinery in Sumatra, Yudhoyono said.

Indonesia is not alone in recent violence.

On Oct. 6, an explosion tore a hole in a French oil tanker off the coast of Yemen, spilling 90,000 barrels of oil. President Bush yesterday said the incident, along with the bombing in Bali and other attacks, appears to be part of a pattern.

The potential impact on isle pump prices is not clear.

Crude oil prices have nearly doubled in the past year, and could keep rising as the threat of war continues in the Middle East, but Hawaii's pump prices are down 10 percent from year-ago levels and have been rising relatively slowly. The average price for regular unleaded in the islands was $1.77 a gallon yesterday, down from $1.97 a year ago but up from $1.73 last month, according to the Oil Price Information Service.

Tesoro Hawaii is expecting to lose money this year, and is laying off 35 of its 700 workers, Hokama said.

Lawyers for the state have accused the oil companies of keeping prices down because of calls for regulating gas prices here. The state Legislature this year passed a law that would regulate wholesale and retail prices, but the measure does not take effect until 2004.



The New York Times contributed to this report.



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