Worldwide Response on Oil Reserves

[TIES2]

I keep hearing how many countries are planning to release oil reserves or have offered to release oil reserves...

Makes me wonder if it's to prevent a worldwide economic crisis by attempting to stabalize prices of oil or if the damage to the US oil infrastructure will result in enormous oil shortages...(I have read that 20 oil rigs are missing and many more have sustained significant damge, not to mention that the oil companies cannot get in touch with their employees (the ones working the rigs)).

I posted in another post about the mini run on gas here the other day in SC. While there are not currently lines at the pumps, I have noticed many of the gas stations I have passed have had the plastic bags or no gas signs on many of their pumps. As those that have full tanks now begin to run out, and if interim gas deliveries have not yet happened, there will be a true shortage and the situation will snowball from there.

[Daddy-O]

I heard on Marketwatch yesterday that the issue wasn't so much the oil supply, but rather the fact that the refining capacity was so adversely impacted. The price of oil has gone up, but not that much to justify the extreme increase in gas prices. The point of the story was that no communities want refining done in their area, so there isn't the excess refining capacity we once had.

The economist they interviewed suggested that rather than try to artificially manipulate the market (which could lead to a true energy crisis) we should let the market run its course. The price of gas would stay above $3/gallon for several months until consumer behavior altered enough to bring the demand for gas back down. Based on what I remember from my Econ classes in college (I was an Econ major for two years), this seems to make a lot of sense.

[On Highway 29]

Of all the interviews I've heard with politicians about the "gas" crisis, only one governor (either in Mississippi or Alabama) has stepped up to the plate and asked the citizens of that state to conserve -- to use their cars as little as possible for a while until we get over this current crisis.

[TIES2]

Of all the interviews I've heard with politicians about the "gas" crisis, only one governor (either in Mississippi or Alabama) has stepped up to the plate and asked the citizens of that state to conserve -- to use their cars as little as possible for a while until we get over this current crisis.

Actually, here in Charlotte they have also asked us to conserve -- appears the gas comes through a pipeline that was destroyed. May also affect airports, Charlotte, Ft. Lauderdale, (there were 6 or 7 all together) it seems all get their oil via pipeline direct from the gulf area hit by the storm.

[mhafinancial]

I heard on Marketwatch yesterday that the issue wasn't so much the oil supply, but rather the fact that the refining capacity was so adversely impacted. The price of oil has gone up, but not that much to justify the extreme increase in gas prices. The point of the story was that no communities want refining done in their area, so there isn't the excess refining capacity we once had.

The economist they interviewed suggested that rather than try to artificially manipulate the market (which could lead to a true energy crisis) we should let the market run its course. The price of gas would stay above $3/gallon for several months until consumer behavior altered enough to bring the demand for gas back down. Based on what I remember from my Econ classes in college (I was an Econ major for two years), this seems to make a lot of sense.
As painful as that might be in the short run, it sure makes a lot of sense in the long run.

This coming from a guy who just spent $87 for a fill-up.

I drive about 30,000 miles a year. Wife about 25,000. That's about 3,000 gallons of gas. At $3.60, I need to do a little budget adjusting to account for an annual gas bill of $10,600.

There goes my tax cut, George :D.