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163 comments on Looking Ahead - The Weekly Petroleum Inventory Reports

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wisco on September 17, 2008 - 8:57am Permalink | Subthread | Parent | Comments top

There seems to be a tacit cap on price increases, perhaps fear of being charged of gouging, or desire to not face angry customers. Higher prices would temper demand and maybe prevent dry gas pumps, but perhaps its easier to just let the customers take the gas "off the shelf" until the shelf is bare and then turn out the lights until supply returns to normal. I wonder what will happen at the last few stations still pumping gas in these regions- will they finally break, or continue selling at around $4/gallon?

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Starship Trooper on September 17, 2008 - 11:20am Permalink | Subthread | Parent | Comments top

As a follow-up. I just talked with the BP/AMOCO station operator next to our offices. She told me that all 20 of their stations in the Raleigh area are out of gas (well, 800 gallons left in the bottom but she does not want to plug her filters) and that the terminals are also out (Selma and Greensboro). She does not know when they are going to be supplied again, though she estimates maybe in a week or so. As she noted, the pipelines are still down

As the shortages become more apparent maybe there will be more coverage on the news, but people are going to figure out if there is no gas pretty quickly.

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Nate Hagens on September 17, 2008 - 11:46am Permalink | Subthread | Parent | Comments top

And that has several dynamics:
1)less gas will be sold overall which is why futures prices are declining (i.e. the imports and expected restarts of refineries will offset c rrent demand.

however,
2)we could shift from just-in-time to just-in-case behaviour and people will keep some of that 180 mill barrels of gasoline storage in their own tanks instead of government/private tanks

3)it will result in less driving to malls, Chuck-e-Cheeses, etc.

4)on top of some likely bank runs this weekend, it's gonna make for some stressed out folks. Accessing rational neo-cortex may be increasingly be trumped by our reactionary synapses. Jekyll...meet Hyde... :-o

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jteehan on September 17, 2008 - 5:35pm Permalink | Subthread | Parent | Comments top

A million fewer barrels a day of usage is great no matter what the reasoning.

I just wish California would run out for a while so that I could ride my bike in peace.

My vehicles stay above 3/4s from here on out. That's two barrels of diesel and one barrel of gasoline off the system. Ironically, prices are falling out here. I'm happy to bike and take the train, but my wife has two artificial legs and unfortunately really needs the minivan to get around town. Although the Prius also has hand controls.

Thanks Nate for all your hard work. You guys really do the world a service.

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futureseeker on September 17, 2008 - 5:56pm Permalink | Subthread | Parent | Comments top

I guess it depends on the station, Exxon normally has gas no matter what, they are also the most expensive, Wilco (Hess) is also normally supplied.

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163 comments on Looking Ahead - The Weekly Petroleum Inventory Reports

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