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Wednesday, September 24, 2008

Update on Gas Crunch: Causes and Solutions

Here are snippets from an interesting article in the AC-T:

As area fuel companies searched for gas, state Energy Office Director Larry Shirley acknowledged that WNC has been particularly hard hit by the fuel shortage. Other areas of the Southeast, including Atlanta and Knoxville, Tenn., also have been enduring severe shortages.

Shirley, in a communication with Rep. Bruce Goforth, D-Buncombe, said terminals in upstate South Carolina are smaller than those in Charlotte and Greensboro, and that may be contributing to the shortage in WNC.

Also, the refineries before the storms hit were switching from a summer blend of fuel to the winter formula, so supplies were already tight.

“The aftereffects of Hurricanes Ike and Gustav appear to now be hitting the state with more force than last week,” Shirley said.

The “vast majority” of the stations out of gas here are “independent stations who are the first to be closed out of the terminals during short supplies,” he said.

Source: Asheville Citizen-Times




COMMENTARY


To re-cap, these are the reasons listed:

  1. Terminals in SC are smaller
  2. Refineries switching from summer to winter blend
  3. Hurricanes Gustav and Ike forced refinery shutdowns
  4. Independent Gas Stations first to be hit
Allow me to add more reasons to the list:

  1. Panic Buying...people are buying gas when their tanks are more than half full. I spoke with several gas station attendants who said a lot of people were buying less than 5 gallons, and often less than 2 gallons.
  2. Gas Stations are afraid to raise the price of gas to reflect market conditions because of threats from the Governor and Attorney General. This means that stations that do have fuel will run out in short order because prices are artificially low.
This crisis was a result of a perfect storm of nature, bad environmental regulations forcing useless blends of gasoline, people freaking out and buying when they don't need fuel and/or failing to cut back on unnecessary driving, and (perhaps the greatest contributor) criminal threats from Governor Mike Easley and Attorney General Roy Cooper.

If you take out the panic buying and threats of prosecution from the communists in Raleigh...things would be a whole lot better...and there would be more gasoline available for purchase...for a price that would eliminate frivolous use.

I left my camera at home this morning, otherwise I would be able to show you the aftermath of people not using their heads in a situation where the supply of fuel is going to be tight for a week or three...empty gas pumps.

For a cogent analysis of the situation, I refer you to Tim Peck. He also has reproduced some of the lunacy from comments at the socialist newspaper, Mountain Xpress.

SOLUTIONS

  1. Reduce your driving to only what is necessary, carpool if you can.
  2. Only fill up when you are under half a tank.
  3. Call Mike Easly (919)733-2120 and Roy Cooper 919-716-6400 and ask them if they are communists, because they sure don't seem to understand how a capitalist economy is supposed to work.
  4. Call your Congress Critter and ask them to support drilling in the USA, Building Coal and Nuclear-powered Power Plants in the USA. The US Senate Switchboard is (202) 224-3121 and the US House Switchboard is (202) 225-3121.
  5. Volunteer to work on the Campaign of someone who supports these options. Call the Campaign of someone opposed and tell them why you support their opponent. Make your voice heard, and vote with your labor on the campaign trail and time letting your elected officials that you will not tolerate unused resources.
When you are waiting in line for fuel, or run out of gasoline, think on these things...and resolve to DO SOMETHING CONSTRUCTIVE. Channel your outrage to make changes that will prevent this kind of thing from happening again. After all, this is an election year.

1 comments :

Gas stations can't charge a price lower than they pay for it. There is a law that prevents that. A law pushed by the oil industry.

So to say that shortages are being caused by stations afraid to raise their prices for fear of claims of gas gouging is just not possible. In fact, they are more likely to be sued by their competitors if they sell below cost than they are to get sued by the government for selling at too high a cost.