I must agree with ianqui

(not to be too genral but) knowing the republicans they will probably use the huricanes as justification to drill in alaska and import more oil.  

Keep in mind that oil is money and money is power and the USA wants all the power so the USA wants to use the middle east oil (before is uses its own coal or alaskan oil) to continue geopoplitical dominace

I can't wait for the day we find out that the military has been keeping its own SPR

In the long run I think there's zero chance we'll pass up on drilling ANWR and everywhere else there's oil on US land.  Once US gasoline gets expensive (and it's not close yet), the American public will be clamoring for oil companies to extract every drop.

(I know someone will ask what I think expensive gasoline is, so here's my answer: A sustained price above $6/gallon.)

The retail and entertainment sectors of the enconomy would lose too much money if gas was 6 dollars a gallon. The USA fed. gov. will quietly subsidize gas if it gets past 4 dollars a gallon.  Big corporations and banks will do anything to keep ignorant consumers spending.  Short term profits over long term quality of life. This is why every buisness and goverment leader will say that everything is fine no matter how bad the real world is.  The poor people must be calmed because if they panic the rich people lose their power.

How exactly are we going to subsidize oil prices?  We have huge budget deficits, the mess in Iraq, and now the cleanup in New Orleans.   Next we will have a cleanup in Texas.
Maybe the Chinese will lend an additional few hundreds of billions...
Although I could foresee the fed and state govs eliminating gas taxes I doubt there would be outright subsidies.  More likely would be more indirect subsidies of the kind that are already in place:  big tax breaks for new discovery, the lifting of drilling bans in ecologically sensitive areas, and subsidies for alt fuel production (ethanol from crops, coal to natural gas and diesel, etc).

Of course we've seen short term gas tax repeals already.  What kills me is that a tax cut in response to a short term supply deficit is not at all likely to actually cut prices.  Prices still must rise high enough to curtail consumption; if the state doesn't collect taxes then the refiners and distributors will pocket more of the markup.  The best way to get short term prices to drop is to curtail demand - federal and state governments could ban non-emergency employee travel, or could issue employees free bus passes and require them to use the passes at least once a week.

Heck, I'm a patriotic guy.  When gas goes over $3/gal I'll happily do my part to reduce demand and ride my bike to work.

So does anyone think we'll see panic buying before Rita hits the coast?

I plan on doing some panic gasoline buying tomorrow :)
"More likely would be more indirect subsidies of the kind that are already in place:  big tax breaks for new discovery, the lifting of drilling bans in ecologically sensitive areas, and subsidies for alt fuel production (ethanol from crops, coal to natural gas and diesel, etc)."

Don't forget things like the Iraq war.. That's an indirect oil subsidy, and if you don't believe it, ask yourself it this war would have happened in a country that had no oil.

another backfire, maybe. or, maybe not.

getting into the war, who were the most vehement agitators of longest standing? certainly not the inhabitants of israeli american think tanks like PNAC, AEI, JINSA and AIPAC.

i know you are trying to keep focussed, all of you, but this thing is way too big to stick in one box.

and if you start factoring in sea level rise from global warming, overshoot of the natural warming cycle, and a potential sea level rise of 240 feet, you begin to see reasons why israel needs to get started on the greater israel project, now, before peak oil cripples american support for israel.

and nobody in a million years is allowed to ask himself: who benefited from 9/11, who was in position to pull it off, who was in position to promulgate the official conspiracy theory. who was in position to turn the investigations into whitewashes and coverups, and, finally, who called for "a new pearl harbor" in september of 2000 to kick off the program we now see being implemented?

I think your point is valid, although I'm not sure we tread exactly the same ground when it comes to the Iraq war.  I don't think Bush and his cabinet wanted the US or US companies to end up owning Iraq's wells outright - even the most obtuse politician would understand the likely response across the rest of the Arab world.  But certainly they wanted a Iraq government that would be friendly to our mindset, one that would support aggressive new production development and would serve as a good pro-democracy, pro-free market example to nearby neighbors.

So much for that thought.

Whether on not Hussein posed a real threat I agree that Iraq's oil revenues gave him the capability to follow through and without those revenues he would have been ignored.

At least our troubles in Iraq clearly demonstrate the difficulty of imposing the government of out choice on another nation.  Hopefully even if neocon ideology continues to hold sway after the next election the next administration will use or not use our military might with more wisdom.  I also hope the American public is wary enough of overseas military adventures that even when our oil supply problem really becomes desperate they will seek solutions within our borders.  Better to sacrifice our freedom to drive around the block at will and avoid taking the bus to work than any more of our soldiers' blood.  As scary as rationing is to a politician I don't see many of them favoring the blood for oil trade.  But perhaps I'm too much of an idealist.

good ol' WWII style rationing is my guess.  If refining gets nailed in Galveston, you ain't seen nothin yet.   (NB, I added a gasoline chart in the sidebar...)