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212 comments on DrumBeat: August 27, 2006

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Robert Rapier on August 27, 2006 - 11:40am Permalink | Subthread | Parent | Comments top
I don't think it's a big number. I can't think off the top of my head of any mega-refineries in that area. I would guess it would be 5% or less of total U.S. refining capacity.
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totoneila on August 27, 2006 - 12:30pm Permalink | Subthread | Parent | Comments top
Hello R-squared,

So if this happens: will each American proactively drive 5% less to keep the gasoline price the same, or will the price/gallon rise to force some more people to unhappily pedal and/or use shoe leather?  I think we TODers already know the answer. MPP is really difficult to overcome.

Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?

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PaulS on August 27, 2006 - 1:34pm Permalink | Subthread | Parent | Comments top
Well, duh. Of course the price will rise if it turns out there isn't enough to go around. It always does, even when governments intervene - in fact, especially when they intervene.

No one was eager to pay a higher price "proactively" to pay for reserve capacity. No one was eager to disempower the NIMBYs and BANANAs "proactively" in order that there would be a place outside the hurricane zone to put reserve capacity. That means the system - any system - always gets stretched to its limits. Pay now or pay later, but always pay in the end.

There is no free lunch, even though politicians on all sides promise free lunches and feckless fools happily vote accordingly. Then again, none of this is new. So what?

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212 comments on DrumBeat: August 27, 2006

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