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CNN Live At Daybreak

Energy Crisis is Over

Aired October 01, 2001 - 08:13   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: The September 11 attacks dealt a severe blow to America's already shaky economy but there may be one positive economic development.

CNN's Brooks Jackson has that story for you.

(BEGIN VIDEOTAPE)

BROOKS JACKSON, CNN CORRESPONDENT (voice-over): Maybe you haven't noticed yet but the energy crisis is over. Take a look. Gasoline prices have been falling since September 11. They're four cents lower than before the attacks and 23 cents lower than the high point in May when talk of a crisis was at a peak. And home heating oil, consumers are likely to be very pleasantly surprised this winter. Just listen to this Boston area dealer.

DICK HORAN, HUGHES OIL: We're looking at a peak of $1.69 last year and those prices are in the $1.20 range now.

JACKSON: That's partly because airlines aren't flying so much, consuming less jet fuel, similar to heating oil. Diesel fuel is also a similar product and its price is down, too.

(on camera): Many feared the September 11 attacks would bring fuel shortages. What they brought instead was economic slowdown, weaker demand and falling prices.

DANIEL YERGIN, CAMBRIDGE ENERGY RESEARCH: What's dominating the energy markets today whether it's oil, natural gas or electric power is the economic slump that we were in prior to September 11 is now much accentuated and what you're really seeing is in these markets the reflection of fear that we're in a -- in a significant recession.

JACKSON (voice-over): Natural gas prices so painfully high last winter spurred the highest levels of drilling since 1986, that and a soft economy pushed prices down at the well head long before the attacks. Now they're less than half of what they were a year ago. Some utilities already are passing lower prices on to homeowners.

As for electricity, there hasn't been a blackout in California since last May, according to the California Energy Commission. The state got through summer's peak demands thanks to a few new power plants, a weakening economy and conservation.

(END VIDEOTAPE)

PAULA ZAHN, CNN ANCHOR: Well obviously...

O'BRIEN: All right, yes.

ZAHN: ... having a little technical problem there.

O'BRIEN: That was Brooks Jackson.

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