MAY 9, 2004 - Price of regular unleaded gas at an Amoco Station, located at Elm and Big Bend in Webster Groves, was $1.869. Two days later, May 11, 2004, price for regular unleaded gas was $1.999 and $2.199 for super premium (ultimate) at the same station.
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Gas Prices Continue to Rise With Demand
ST. LOUIS, MO. (SLFP.com), May 10, 2004 - Motorists saw the price of gas top out at $1.869 for regular unleaded at stations throughout the St. Louis area over the weekend.
And the prices may go higher based on factors including consumer demand, rising crude oil prices, low gasoline stocks and pipeline problems.
According to a recent report from the Missouri Department of Natural Resources, Energy Center, total motor gasoline stocks this spring were about 10 percent below the June 1999 level. Midwest inventory was as much as 13 percent below last year's levels, thus lending to the tight supplies in Missouri and other Midwest states.
Nearly half of all gasoline produced in the United States comes from Gulf Coast refiners. Therefore, areas farthest from the Gulf tend to have higher gasoline prices. Proximity of refineries to crude oil supplies is also a factor. Missouri has no active refineries and the distance from the Gulf to the Midwest may be a factor in higher gasoline prices.
The Houston-based Explorer pipeline that supplies fuel to the Midwest, including St. Louis and Chicago, ruptured in early March and was shut down for a five-day period. This single pipeline provides approximately 50 percent of the total St. Louis market of reformulated gas. This pipeline break occurred at a time when St. Louis area terminals were drawing down storage of gasoline in preparation for delivery of a new mixture of summer RFG.
The low inventory and timing of the pipeline break exacerbated the supply shortage in St. Louis during late March, April and May. The St. Louis supply situation has been rectified.
A primary indicator for gasoline prices at the pump is the price of crude oil. The United States imports approximately 50 percent of its crude oil, thus domestic and foreign crude oil production levels are extremely important in determining the market price that consumers pay at the retail level. Crude oil prices have more than doubled, and at some points nearly tripled, since early 1999.
(News Update: May 11, 2004)
This week, consumers may see record prices in nearly every state. In California, according to AAA's Daily Fuel Gauge Report, average prices for regular unleaded are currently at $2.253, Colorado is $1.946, Kansas is $1.938, Illinois is $1.992 and Missouri is $1.846. Records are also being set for diesel fuel and for jet fuel, according to reports from OPIS, which tracks petroleum product prices.
In a phone interview, Michael J. Right, Vice President, Public Affairs, AAA Missouri, told Saint Louis Front Page that, "The U.S. Department of Energy has suggested that gas prices may peak sometime in May and moderate somewhat in June, July and August to around $1.76. Price of crude oil is around $40 a barrel and above $1.30 a gallon for wholesale gas."
Right said that to combat the effects of the high price of gas, drivers should consider combining trips, make sure vehicles are tuned-up, maintain proper tire pressure and try using the air conditioner sparingly and stop buying the premium high octane gas.
"I don't have a crystal ball to predict what gas prices may be in the future. There are a number of things that are causing gas prices to rise. Recent terrorists attacks in Nigeria, the sabotage of the pipeline in Iraq, and economic instability have caused anxiety in the market. Whenever you see that, you are going to see prices remain high," stated Right.
"I don't think we can sustain these prices forever without changing our lifestyles," continued Right. "Consumers may consider buying more fuel efficient cars. Drivers may also want to try alternative methods of transportation such as carpooling or taking the bus. If you have to go to the grocery store and it's only a couple of blocks, try walking. It's good exercise."
Missouri Economic Indicators Showing Strong Growth
JEFFERSON CITY, MO. (SLFP.com), May 9, 2004 - Missouri's manufacturing sector, which makes up nearly 12 percent of the state's employment, has stabilized and has started growing since July, according to reports from the Department of Economic Development's research center.
Missouri's job growth during the first quarter of 2004 ranks the state 16th in the nation with the addition of 6,100 jobs. But since July Missouri has added 29,300 jobs, (seasonally adjusted) ranking the state ninth in the nation and better than all eight states that border Missouri.
Missouri Department of Economic Development Director Kelvin L. Simmons reported last Wednesday that a variety of economic indicators are reflecting strong growth trends for the state.
"The economic trends paint a very clear picture about Missouri's economy," said Simmons. "Missouri's economy is fundamentally strong; we have a strong and vibrant business climate; jobs are being created and economic growth is occurring. In fact we have been seeing strong signs of economic momentum in Missouri for more than a year and particularly since July of 2003.
"Those trends are reflected in many of our indicators, including job growth, taxable sales, personal income, new businesses and manufacturing."
Joining Simmons at the press conference was Carol Fischer, director of the Department of Revenue, and Dr. Marty Romitti, director the Missouri Economic Research and Information Center.
"On a percentage basis, our job growth during the first quarter of this year has been at the national average, however, since July, our growth rate has been nearly double the national rate," said Simmons.
Missouri's percentage of job growth between July and March was 1.10 percent, compared with the national rate of 0.57 percent.
For the past three years Missouri's unemployment rate has consistently been well below the national rate, often by a half percent or greater. Missouri's seasonally adjusted March rate was 5.0 percent, well below the national rate of 5.7 percent and six-tenths below where it was in March of 2003.
The state's unadjusted unemployment rate in March was 5.1 percent, compared with the nation's rate of 6.0.
Fischer reported that taxable sales rebounded in Missouri during the second half of 2003. "Missouri's recent taxable sales reports, and what we have seen so far this year, indicate improvement in the consumer economy," said Fischer.
After nine consecutive quarters of negative growth in taxable sales, there was an increase the last two quarters of 2003. Quarterly taxable sales climbed by 0.55 percent in the third quarter and by 2.07 percent in the fourth quarter. Numbers for the first quarter of 2004 are not yet available.
The state's monthly Purchasing Managers Index, compiled by Creighton University using factors related to manufacturing strength, reached 67.9 in March, the highest it has been in a decade.
New business formations were another strong indicator for Missouri, with 14,930 started during 2003 in nearly 100 different industries.
"Last year was the first time we were able to gather this data and the fact that we are adding more than 1200 businesses a month tells a strong story about our business climate," Simmons said.
The conditions report also looked at personal income. During 2003 personal income in Missouri grew at a slightly higher rate on a per capita basis than the rest of the nation. Simmons attributed this rise to good growth during the second half of last year.
"I believe the economic momentum we have been seeing for more than a year shows how well our state is doing in its efforts to transition to the new knowledge-based global economy of the 21st century," said Simmons. "This is not an easy transition to make. Many states have not figured it out yet, but Missouri has."
"Transitioning Missouri's economy is a long term effort, but we are moving forward in that effort. The good economic trends we are seeing are clear signs of that progress," stated Simmons.
VA Announces Changes for Missouri Facilities
WASHINGTON, D.C. (PRNewswire), May 9, 2004 - Opening three new community outpatient clinics, referring complex surgical procedures from Topeka and Leavenworth, Kan., to Kansas City and maintaining the current mission of Poplar Bluff are part of a comprehensive plan by the Department of Veterans Affairs (VA) to modernize its nationwide system of health care facilities.
"These changes will provide greater access to care for veterans," said Secretary of Veterans Affairs Anthony J. Principi. "By strengthening our network of outpatient clinics, we will bring a greater quality of care closer to where most of Missouri's veterans live."
About 135,000 of Missouri's 570,000 veterans were treated last year in VA's health care facilities, up from nearly 100,000 in 2000. In 2003, VA spent $1.5 billion in Missouri, an increase from $951 million three years before.
Secretary Principi noted that about 80 percent of the health care provided by VA is outpatient care. He said the plan would allow the department to provide more of the outpatient care veterans want and use, while building upon VA's expertise in providing highly specialized inpatient care.
The changes are part of a comprehensive plan called CARES, short for "Capital Asset Realignment for Enhanced Services." The Secretary announced the following for Missouri:
- Open three new community outpatient clinics in Jefferson City, Sullivan and Branson;
- Realign and consolidate service between Kansas City, Topeka, Kan., and
Leavenworth, Kan., including realigning intensive substance abuse
treatment programs and referring complex surgical procedures to Kansas
City;
- Conduct a cost-effective analysis of contracting for care and the
efficiency of providing care at the Poplar Bluff medical center for area
veterans. Maintain the current mission at the Poplar Bluff medical
center while the analysis is being conducted;
- Meet demand for outpatient care through construction, conversion, renovation, expanded use of telemedicine and contracting for care; and
- Transfer land to the Jefferson Barracks National Cemetery.
CARES is a plan to modernize and improve VA's health care system. Among the elements of the Secretary's CARES decision are more than 150 new community based outpatient clinics, potential creation of four new -- and expansion of five existing -- spinal cord injury centers, two new blind rehabilitation centers, and expansions throughout VA's healthcare system that will enhance veterans' access to VA care.
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