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A strange thought just occurred to me after reading your post and looking back at the lead comment with link to gas stations running out of gas...Do gas stations going out of business increase, decrease, or change the MOL? My first thought is that the MOL would be decreased by a tiny amount as you can't run a holding tank down to zero (or, it's uncouth to). So consolidating stations would seem to lower MOL. But more importantly, it will decrease storage capacity and increase the reliance on JIT fuel delivery, causing a decrease in resiliency in the system. i.e. since there is now only one station, with it's normal fuel supply, there is no other station to go to when the first station runs out.
I agree, I think that fewer gas stations will reduce the MOL by a small amount. This will be true up until we reach the point where it is actually hard to find a gas station. Then, if people have to go out of their way to get gas, our situation will be worse. We're nowhere close to that yet. At least here in Houston, it seems that there is a gas station on every block. Often, multiple gas stations are side by side or across the street, and most convenience stores sell gas as well.
You've made a reasonable argument but as we've often learned, reasonable arguments are often contradicted by fact. Want to do everyone some good deed? See if you can validate your argument from actual data. It's a good argument but basing conclusions from it is premature until we can validate it. Good luck!
Ghawar Is Dying
The greatest shortcoming of the human race is our inability to understand the exponential function. - Dr. Albert Bartlett
I think the oil shocks from the 70s provide some good data. Gas station closings and "out of gas" signs, coupled with rising gas prices, induce panic buying and hoarding, drawing down stocks faster, increasing the likelihood of dipping below the MOL.
Well, where is the data? Just because certain events occurred doesn't mean they were related unless we can show that. I'd love to see some correlation between these factors that looks reasonable so where is it?
Ghawar Is Dying
The greatest shortcoming of the human race is our inability to understand the exponential function. - Dr. Albert Bartlett
This is terrible: what is MOL? I'm hoping, hoping, hoping it's not too obvious.
You're better than me. I was afraid to ask.
Minimum Operating Level. The oil products (gasoline, etc.) required to keep the system operating. Pipelines full, barges of gasoline in transit from refinery to the filling station nearest you, quarter full tanks at the deport nearest you to fill up the gasoline tankers.
I THINK it also includes gasoline at the corner filling station as well (it should).
The minimum inventory required to prevent spot shortages.
Best Hopes for Spot Shortages and High Prices (except at harvest time),
Alan
Minimum Operating Level of the Distribution pipelines. It goes in one end, they take it out at the other. But the pipe has to be full to work. Last figure I saw was 185 million barrels. That's what's in the pipeline you can't take out. The minimum amount necessary to keep the fuel flowing through the pipeline. In other words, if you have 195 million barrels, you can only take out 10 million barrels.
How our distribution pipelines work.
http://www.eia.doe.gov/oiaf/servicerpt/ulsd/pdf/appendix_c.pdf