War won’t dry up A war with Iraq would not cause a fuel shortage in Hawaii, but likely would result in higher gasoline prices, energy industry officials told a state war preparedness committee yesterday.
isle fuel, says group
Energy officials do say that
gas prices would likely escalateBy Matt Sedensky
Associated Press"There's been comforting testimony that we won't see a gas shortage," said Dr. Pearl Imada Iboshi, the state economist and a member of the House Committee on War Preparedness.
But officials admitted there was no way of accurately predicting how a war in the Persian Gulf could affect fuel prices.
"No one is really sure what it will mean for consumer prices," said Faye Kurren, president of Hawaii Tesoro Corp.
"That's out of our control," said Marti Gillin, the refinery manager at Chevron Hawaii. "The one thing we can control is supply. And we would not expect to see any disruptions in our crude supply."
There is flexibility in where the state acquires its fuel, but only a small percentage comes from Iraq, officials said. Most of Hawaii's oil comes from Asia and Alaska.
Industry officials called for state assistance in preparing for possible difficulties stemming from a war with Iraq, including easing state regulations to allow petroleum companies to truck one another's fuel.
Jim Yates, vice president and general manager of The Gas Co., requested the state seek an exemption to the Jones act, which he said prevents his company from bringing in U.S. propane.
Gillin said one of the industry's bigger concerns is acquiring needed supplies -- such as chemicals or parts for repairs -- if transportation is affected by a war.
"Right now, we're not asking for anything," said Albert Chee, a spokesman for Chevron Hawaii. "But if they grounded all the planes, as in 9/11, we would probably be asking for some assistance."
House Speaker Calvin Say, who convened the committee, has said he expects it to come up with its initial report in about a month.