Gov't Warns Against Gas Shortages

[BEER980]

U.S. sees cause for concern over gas

By James R. Healey and James Cox, USA TODAY
The government amplified concern Thursday about rising gasoline prices and repeated a warning of possible shortages, but it didn't offer relief for either. "This administration is extremely concerned" about the near-record gas prices, Energy Secretary Spencer Abraham said, strengthening a department statement a day earlier that said "spikes in gasoline prices are always of concern."

Separately, the head of the department's Energy Information Administration, Guy Caruso, told a Senate panel that "many signs are pointing to a tight gasoline market this driving season," repeating the caution about possible shortages from a recent EIA analysis. Nationwide average price for a gallon of unleaded regular gas is $1.709, motorists' club AAA reported Thursday. The record was $1.737 Aug. 30 of last year.

California hit a statewide record of $2.178, AAA said, 0.1 cent higher than its previous record set last March 21. Six states were less than a penny from their highs Thursday.

Behind the increases:

• Fears of shortages. As warmer weather triggers more driving, demand for gasoline will rise from 8.8 million barrels a day now to 9.5 million by late summer. U.S. refineries can't make that much and depend on imported gas to fill the gap.

• Petro-politics: OPEC, the cartel that pumps one-third of world oil, says it will cut production April 1. Venezuela, a major source of U.S. oil and gas, is in political turmoil that is causing work stoppages in the petroleum industry.

• Regulations: U.S. clean-air rules require lower-sulfur gas that some overseas suppliers can provide. Also, refineries are shifting to summer-blend gas, which is designed to lower pollution. The switchovers can cause shortages.

A glimmer of good news: Average prices are edging down in Nevada and West Virginia, which set records earlier this week, and in Hawaii, which nearly did.

But brief shortages are occurring at gas stations in central Florida, says Tom Kloza, analyst at Oil Price Information Service, and prices there have zipped 10 cents higher in as many days. A shipping accident Feb. 21 on the lower Mississippi River interrupted Florida supplies. Kloza points out that a bigger price jump typically comes in late summer, when "I wouldn't be surprised if we blistered right through" record prices across the country.

Gas stations report big jumps in gas theft by aggravated motorists. Stations, which seldom earn even a dime a gallon, typically make less when prices rise because they cut profit margins to stay competitive.

"Drive-off gas thefts are up about 500% the past two or three weeks," says Sonja Hubbard, CEO of 358 E-Z Mart Stores based in Texarkana, Texas. "I am always amazed that the consumers we deal with every day, when it costs them another buck for their fill-up, think that's justification to steal."

The government hasn't moved to lower prices because "we haven't met the pain threshold yet," says Thomas Bentz, BNP Paribas Commodity Futures analyst. But if fuel prices slow the economy, "you'd see how quickly Washington would act."

Some lawmakers suggested Thursday that the United States quit pumping oil into the Strategic Petroleum Reserve, freeing that oil for refining into gasoline. That would shave only 1.5 to 2 cents a gallon from the price, though, says Lawrence Goldstein, president of the Petroleum Industry Research Foundation.
Source

Here is a link to Gas Price Watch if you want to find the best deal in your area.

[Lindaloo]

Well they better resolve this as soon as they can. I think it is just pure price gouging. We have capped oil right here in the United States. Time to dip into it.

[stormraiser]

OPEC is considering upping production. I don't like them, but they seem to want to keep prices somewhat reasonable.

[stormchazer]

Where is all the oil we are stealing from Iraq?

[Guest]

First the higher prices then will come the trickle down effect. Will cost more to haul things which then they will charge more and in the end we will pay more out of our pockets once again. I say this much. Someone had better step up to the plate because this is gonna becoms a very big sore spot for alot of people when election time comes if nothing is done about it. Im hearing gas could approach 3 bucks a gallon by summer.

[southerngale]

Where is all the oil we are stealing from Iraq?

ROFL!!

[CaptinCrunch]

Where is all the oil we are stealing from Iraq?

We kick Iraq's ass so we should have some oil to show for it.

[azsnowman]

Whatta CROCK......it's BUSH and his money grubbin' OIL buddies in Texas!

Dennis

[BEER980]

king of weather the trickle down effect is going on every week. The trucking company I work for has a fuel surcharge of over 6% right now and is recomputed every week. This is an additional charge to whatever gets shipped and will have to get passed along to consumers. Even UPS has a fuel surcharge bump.

[coriolis]

Just in time for good weather to ride my bike to work.
Our one car got totalled in a snowstorm (see previous post) so that cut our gas bill in half

[rainstorm]

i think we will have to get used to high prices and shortages. there is going to be no new oil exploration in the states, no expansion of nuclear power, no new refineries will be built, and should kerry get elected, the arab world will know they have defeated the united states, and they will become quite aggressive towrds us. this will mostly be due to the fact that they will know we will not confront terrorism, so the arab states will have to appease the terroists in order to survive. a bleak future awaits 20 years down the road.

[Lindaloo]

Whatta CROCK......it's BUSH and his money grubbin' OIL buddies in Texas!

Dennis

Nope wrong Dennis. It is OPEC and their greediness plus price gougers.

[southerngale]

Whatta CROCK......it's BUSH and his money grubbin' OIL buddies in Texas!

Dennis

Nope wrong Dennis. It is OPEC and their greediness plus price gougers.

I think Dennis was joking...being sarcastic.

[george_r_1961]

Kinda reminds me of the 1970's when the "shortage" ended once gas prices doubled. Rest assured when we are paying $2.50 at the pump there will be plenty of gas.

[Lindaloo]

OH!! I shoulda known he was being sarcastic. gee. ROFL!!!