Crude Oil Story Archives - West Virginia Public Broadcasting

Oil Prices Decline, But Gasoline May Take Weeks To Catch Up

The price of oil has dropped in the past few days, but it may take a while for drivers to see a difference at the pump.

After peaking at nearly $124 a barrel on Tuesday, oil settled Thursday at nearly $20 lower.

Meanwhile, the national average price of regular, unleaded gasoline surged to $4.31 a gallon Thursday, and $4.11 in West Virginia, according to AAA. Prices in the Eastern Panhandle are higher than they are in the rest of the state.

Traci Nelson, president of the West Virginia Oil Marketers and Grocers Association, said it may take a few weeks for motorists to notice a difference.

“Whatever the price of crude is, it usually takes about two weeks for it to go down on the street,” she said.

The price of gasoline rose last year with increased demand. Prices plunged during 2020 with lower demand driven by coronavirus shutdowns.

Now, Russia’s war in Ukraine is causing further instability in the global oil market, and the White House has ordered a ban on Russian oil imports.

While prices may come down, industry analysts say that drivers should expect to pay $4 a gallon for the rest of the year.

Manchin: U.S. Can Produce More Oil To Offset Russian Imports

U.S. Sen. Joe Manchin drew big bipartisan support for his bill to ban oil imports from Russia.

The Ban Russian Energy Imports Act would block imports of crude oil, petroleum products, liquefied natural gas and coal.

Manchin’s bill aims to punish Russia’s Vladimir Putin for waging war against Ukraine.

Manchin said U.S. energy producers could make up for it by increasing production to where it was before the coronavirus.

“The United States of America in 2019 produced 12 million barrels a day – 12.3 – we’re down to 11.2 because of COVID,” he said. “The market dropped off. We have no problem at all ramping back up with what we already have ready to go.”

U.S. consumers have already seen a spike in energy prices from last year because of a sharp rise in demand as the economy recovered from the pandemic.

A disruption in energy supplies could drive prices even higher.

U.S. DOT: Stronger Rail Cars Must Be in Place By 2020

After several accidents involving trains carrying crude oil in the past few years, including one in southern West Virginia, the U.S. Department of Transportation has announced new rules to make rail shipping safer.

The new rules apply to rail shipments of flammable and hazardous materials, like crude oil and ethanol.

They include phasing out some of the most widely used rail cars in the industry, like the CPC 1232s involved in the February derailment in Fayette County. That crash resulted in a massive fire that evacuated dozens of people from their homes.

Cars like CPC 1232s must be retrofitted by 2017 or phased out of use by 2020. Manufacturers are also required to begin producing new cars with thicker steel walls and thermal jackets to prevent punctures and fires.

USDOT Secreatary Anthony Foxx at the announcement of new rules for train cars Friday.

“One of the challenges with this rule, quite frankly, is that we’re dealing with prospective risk,” U.S. DOT Secretary Anthony Foxx said at the press conference releasing the strengthened regulations, “an industry that continues to grow, a use of transportation that continues to expand and the fact that we’ve got to think ahead of the problem.”

“So, this rule is recognizing that we’ve got a growing risk and its attempting to put some brackets around that risk and reduce the risk to the public.”

The rules also require trains carrying flammable liquids at more than 30 miles per hour be equipped with specialty breaks and those traveling through densely populated areas slow to 40 miles per hour.