Gas Prices and Chris

[BUD]

I don't know about other states but in Florida, if the Governor issues a State of Emergency then gas prices would be fixed to prevent price gouging.

If that's true, you'll eventually be sorry about it. If you fix gas at $3 a gallon and it costs $3.50 to buy it at the wholesale level, you're going to have NO gas to buy because the gas station owners will not take a loss on gasoline.

Thankfully, I doubt that Florida wouldn't have allowed for normal price fluctuations. They are probably just preventing retail gasoline "price gouging", which keeps stations from going from $3 to $8 when supply still costs $2.50.

Just my $0.02. (Pun intended)

I agree with that.They will probadly close the pumps for 2 weeks until everything gets back to normal.They make alittle money off the grocery that they sale but lose big time on the gas if they have the pumps on and lose money on pay roll also.

[pup55]

http://en.wikipedia.org/wiki/Louisiana_Offshore_Oil_Port

The US energy supply is really vulnerable to weather-related disruptions in the GOM.

The above offshore facility is the point of highest vulnerability. It connects to 35% of the nation's refining capability.

A substantial amount of oil and natural gas production has still not recovered from Katrina and Rita last fall, and will not be brought back online.

Add to this the fact that despite the high prices, gasoline demand is still about 1.7% higher this year than last year. Due to the heat wave, the consumption of natural gas last week exceeded production during the summertime for the first time ever last week, and will probably do so again this week. We normally use the summer months to build up a supply of natural gas for winter.

All of this against the backdrop of a really tight oil supply situation globally, and questionable ability of even OPEC to keep up with the growth in demand.

We know that between August 1 and September 1 (Katrina) last year, the unleaded gas price went from 2.27 to 3.08. That's 81 cents. Crude oil went from 61 on August 1 to 69 on September 9.

So, any storm like this one, of any size, at the very least causes people to worry, and at the extreme, can cause a lot of problems, some of them permanent.

Feel free to check in at the following site to see what the oilers are thinking about this.

http://peakoil.com/


http://tonto.eia.doe.gov/dnav/pet/hist/mg_tco_usw.htm

http://tonto.eia.doe.gov/dnav/pet/hist/rwtcd.htm[/url]

[pcwick]

An interesting graphic for monitoring gasoline prices in the US and Canada...

Gas Price Temperature Map
http://www.gasbuddy.com/gb_gastemperaturemap.aspx

[Steve]

>>I'd say it's possible we could see a short term spike to $3.50. I doubt it'll even get there.

Don't be surprised if it does. If oil was to hit $90 a barrel, look out. The economy can supposedly weather it, but that would be another $100 or so out of my pocket a month just to get to work and the grocery store (current expenditures about $450/month in gas). $3.50 is the minimum I'd bet on if there is any damage to infrastructure and/or if Chris (as a Cat 3 or higher) makes a run at Texas. Uptick could be temporary, it could last. As for the Gas Price Temperature Map, I'd love to know where I could get $2.71-$2.78 a gallon gas. The last few times I've filled up in SC Louisiana (you know, the place so much of that oil and gas comes from) it's been $2.899/gallon for regular.

UGH!

Steve