Gas Shortage

[Ashtanga 0]

I just heard that there will be gas shortages in the Southeast U.S. in the next couple of days and there are huge lines at gas stations here in Atlanta. People gasing up before the prices go up.

They are saying that there are gas lines broken because of the flood and there is a possibility that the SE will be totally out of gas within possibly 24 hours.

Anyone else heard this?

I found this story on CNN............


[url]NEW YORK (CNN/Money) - Consumers can expect retail gas prices to rise to $4 a gallon soon, but whether they stay there depends on the long-term damage to oil facilities from Hurricane Katrina, oil and gas analysts said Wednesday.

"There's no question gas will hit $4 a gallon," Ben Brockwell, director of pricing at the Oil Price Information Service, said. "The question is how high will it go and how long will it last?"

OPIS tracks wholesale and retail oil prices and provides pricing information for AAA's daily reports on fuel prices.

Brockwell said with gasoline prices now exceeding $3 a gallon before even reaching the wholesale level, it "doesn't take a genius" to expect retail prices to hit $4 a gallon soon.

"Consumers haven't seen the worst of it yet," Brockwell said.

He expects consumers in the Southeast and Northeast to be pinched first, following the impact of Hurricane Katrina on the Gulf Coast region.

Katrina pressures gas supplies
Katrina forced operators to close more than a tenth of the country's refining capacity and a quarter of its oil production, which sent gasoline prices surging.

Two major pipelines that supply gasoline to key terminals and distribution centers within the eastern U.S. were shut down due to power outages caused by the storm. (Video of Energy Secretary Samuel Bodman discussing U.S. plans to tap strategic oil reserve to help refiners -- 4:16. Click here to watch.)

Colonial Pipeline said it hopes to be back in partial operation soon, while the date of Plantation Pipeline's restart is not clear. Each day the pipelines are closed, supplies get backlogged and distribution centers must rely on reserves.

"With this kind of hiccup in refinery capacity, in stretched markets like California, you could see over $4 a gallon in gas," Evan Smith, an analyst at U.S. Global Investors, told CNN/Money.

While it's still too early to fully assess the damage caused by Katrina, efforts to build up inventories of crude oil, natural gas and other products like gasoline will be set back by the storm, according to Nariman Behravesh, chief economist at Global Insight.

In a research note, Behravesh laid out a worst-case scenario that puts average prices for regular unleaded gasoline at about $3.50 a gallon for the next four to six months.

"The impact on consumer spending in such a scenario would be very dramatic, cutting the growth rate by as much as 3 percent and pushing real GDP growth in the fourth quarter closer to zero," he wrote.

In a best-case scenario, he forecast retail pump prices to peak at $3 a gallon for a couple of months, but then fall back to around $2.50 by year-end.

The nationwide average price for a gallon of regular unleaded hit a fresh high of $2.619 Wednesday, according to AAA, the largest U.S. motorist organization, formerly known as the American Automobile Association.

Average gasoline prices have gained 40 percent in the last year.

Prices for crude oil are also up sharply and are currently hovering near record highs just under $70 a barrel.

[rhino 0]

I'm glad I get 50 plus miles to the gallon.

[Casurf1978 0]

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He expects consumers in the Southeast and Northeast to be pinched first, following the impact of Hurricane Katrina on the Gulf Coast region.

They already raised them here is so cal. Overnight the gas station by my house added 10 cents to all grades. Looks like gas companies are taking advantage of this already.

[Ashtanga 0]

Well the radio first said there would be gas shortages here in Georgia and now they are saying that is just rumor. However, some gas stations here in Atlanta have 1/2 mile lines at them.

[PhreeZone 15]

Gas jumped 50 cents a gallon here since Tuesday. It's now 3.09 for the cheap stuff.

Yesterday is history
And tomorrow is a mystery

Parachutemanuals.com

[kelpdiver 2]

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They already raised them here is so cal. Overnight the gas station by my house added 10 cents to all grades. Looks like gas companies are taking advantage of this already.

Yep - California gas stations are always leading on the bad news...and trailing on the good news. Paid 3.14 for 91 this morning. Fortunately a full tank is 4 gallons. I filled the car up on Saturday.

[Casurf1978 0]

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Well the radio first said there would be gas shortages here in Georgia and now they are saying that is just rumor. However, some gas stations here in Atlanta have 1/2 mile lines at them.

Bloomberg had an interesting article. Even after the Prez releases some of our emergency reserves we wont have the ability to process it since some refineries have been affected by Katrina. They also mentioned that it might shave off a 1/4 point from our GDP in the coming quarter. In the end those things are trivial to what some people are going through right now.

[kelpdiver 2]

I've been reading that in the longer term, these sort of hurricane disasters are great for the economy. Lots of spending and jobs. Of course, these aren't free, so I don't quite get it. Shouldn't the depleted savings and increased debt be part of the equation?

[billvon 2,471]

>Paid 3.14 for 91 this morning.

Last I checked, E85 was still around $2.20 from the station here.

[Casurf1978 0]

All good points. Didn't really think of the long term though so thanks for a different perspective. As to depleted savings and debt being factored in I really dont know. Wish I could post the Bloom article but its from my Bloom terminal.

[billvon 2,471]

>However, some gas stations here in Atlanta have 1/2 mile lines at them.

Same thing happened in the 70's during the oil embargo. As soon as the embargo started people started stocking up, and everyone ran out.

[Ashtanga 0]

That is what is happening here. People are running out because everyone is rushing out to buy some becasue there is a rumor going on that gas will run out. If they bought gas like normal than the damn stations would not run out. They don't know that gas is being delivered to the stations tomorrow.

[billvon 2,471]

>People are running out because everyone is rushing out to buy
>some becasue there is a rumor going on that gas will run out.

Sort of a prisoner's dilemma. If you are the first to panic you get your gas. If you're the last to panic you're out of luck - so people get good at very rapid panic.

[kelpdiver 2]

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>Paid 3.14 for 91 this morning.

Last I checked, E85 was still around $2.20 from the station here.

don't think my boxer would like it very much. And since it still gets over 40mpg while doing 0-60 in under 4, no reason to change there.

But it is a bit silly for CA gas to change much because of limited referinery capability in the South. I don't remember the rest of the country shedding many tears when we were being gouged by a fake power shortage.

I know there are a couple deisel motorcycles out there (240mpg, but top speed only 50mph), not aware of any made to run on ethanol. I also remember a lot of bikes have fuel line problems back in 98 when we switched gas in CA, but I think that was simply a matter of the material used.

[JohnRich 4]

You forgot to say: "It's all George Bush's fault".

[shropshire 0]

It's all George Bush's fa...It's all George Bush's fa...It's all George Bush's fa...It's all George Bush's fa...It's all George Bush's fa...It's all George Bush's fa...It's all George Bush's fa...It's all George Bush's fa...It's all George Bush's fa...It's all George Bush's fa...

(.)Y(.)
Chivalry is not dead; it only sleeps for want of work to do. - Jerome K Jerome

[rhino 0]

Port Huron,

$3.29, $3.39, $3.49

Diesel is $2.89

We'll see $4 soon.. Eventually leveling off at $4.50. Why are we bitching? It's $9 a gallon in London.

[dbattman 0]

There is no shortage and the pipeline is not busted. The pipeline is wired for power with flatbed generators and is expected to be back at full capacity next week. There is plenty of gas in the storage tanks around Atlanta but it will take some time to replenish the filling stations that were run yesterday. Nothings changed from Monday or Tuesday except some people on the radio Wednesday morning flapping their gums about gas running out. This morning I hear a soundbite from some interview with a trucker this morning who says every station in Gwinnette county is officially out of gas. Good grief- where do people get this stuff?

If you want to help the temporary gas 'crisis' as the refineries get going again check you tires for proper inflation and then add a few extra pounds. Being a few pounds low can significantly eat into your mileage. I keep mine at 35 even though it's placarded for 29 and I get about 5-10% better mileage. I also don't have wear patterns on the outer edge as much leaving me to think Nissan underrated their tire pressure for some reason.

[mnealtx 0]

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I also don't have wear patterns on the outer edge as much leaving me to think Nissan underrated their tire pressure for some reason.

Most vehicle manufacturers do.... makes for a softer ride, so people don't complain about it being 'rough'.

I always go by the tire manufacturer placard...

Mike
I love you, Shannon and Jim.
POPS 9708 , SCR 14706