State Barreling Ahead Toward a Fuel Shortage

Since 1996, half of the 26state refineries have shut down in response to the tighter environmentallaws, while others have delayed revamping their systems to meet futurerequirements. Also, gasoline supplies in the state will fall outrightwith the ban of MTBE, an additive that helps gasoline burn more cleanlybut contaminates water. The January 2003 ban will effectively cut 11% ofgasoline supply, the equivalent volume that MTBE represents in the fuel.Legislators have responded by authorizing two studies on the feasibilityof establishing a gasoline pipeline from Texas and a state gasolinereserve. Some economists have predicted that the increased demand anddecreased supply could result in gas prices of nearly $3 per gallon by2003.

Thanks to California 2000 Project