Refineries 'a few weeks' from normal

Gulf Coast refineries may still be "a few weeks" away from normal production rates after two hurricanes forced closures and sent inventories to a 41-year low, an Energy Department official said.

At least 46 million barrels of motor fuel was lost between Aug. 30 and Sept. 19 as Hurricanes Gustav and Ike shut 20 percent of U.S. capacity. Retail gasoline prices remained stable, based on national averages, as demand fell, while distributors and marketers in the Southeast and Midwest said customers ran out of fuel.

"We're now at about 85 percent of refinery operations in Louisiana and Mississippi and 43 percent in Texas," Kevin Kolevar, assistant secretary for electricity delivery and energy reliability, said in an interview. "If we don't have any nasty surprises as these refineries come back online, we should see near normal rates in about a few weeks' time."

Gustav struck on Sept. 1 and Ike on Sept. 13, shutting refineries along the Gulf Coast and causing flooding, power outages and wind damage. As of Thursday, four refineries were still shut, five were restarting and nine were running at reduced rates.

Recovery may be hampered after a fire shut a regional fuel terminal in Pasadena, Texas, on Sept. 23. The owner, Kinder Morgan Energy Partners LP, said Thursday that it has resumed "limited operations," The terminal connects at least six refineries to about 35 pipeline systems, which send fuel to terminals in the eastern U.S. and Midwest.

As of Thursday, pipelines that would normally carry 4.9 million barrels a day of gasoline and distillate fuels were shut or running at reduced capacity.