Did you happen to catch Jim Haslam on the HHH Show this morn?

Your earlier thought about how maybe the various oil companies' customary level of reserves pose an energy security problem (and my thought about how this Just In Time inventory approach could be keeping prices lower than they might have been) appear to be spot on.

Haslam Sr. says that Pilot keeps only a day, day-and-a-half inventory--and Knoxvillians bought two days worth of gas on Friday! A little spooky, really...

Entire interview here: (link...)

7 days.
That's how long it takes for the product to travel to Knoxville in the pipeline.
Another data point:
Prices went up on Friday. The hurricane didn't even hit until Saturday. Pre-hurricane damage from last week ya' think?

And on these people filling up their tanks with gas:
(link...)

And as economist Tom Palley has pointed out, consumers can help too. An awful lot of gas is stored in cars. If people stop topping off and make do with half a tank, they'll back up supply and lower demand. It's a brilliant suggestion and definitely worth a try.

"When the going gets weird, the weird turn pro."
Hunter S. Thompson

After Fulmer goes 4 - 8 this season, the UT Athletic Department will look to Big Jim to buyout the great orange coach and Ole Jim will happen to have an extra 3 or 4 million laying around he skimmed on the locals during the home football season and he'll throw it their way, making the grand orange one go away.

Downright brilliant if you ask me. New coach, paid for by folks just scraping by in good old Knocksville.

Will he have enough left over to fly the jet down to see Vanderbilt in the Citrus Bowl?

This morning, gasoline at the Exxon outside my subdivision in East Texas dropped 10c and the proprietor (to whom I spoke) said he expects another substantial drop on his next shipment. October futures are around $2.53 this morning also, meaning that if current trends hold, 2 weeks from now, gasoline here will be going for around $3.10/gallon.

I'm not sure about all of the factors affecting gas pricing in East Tennessee, but it sure sounds like the supply chain needs some better management.

When Bill Weigel imprudently mentioned to the news media he wasn't sure he was going to be able to secure enough gas to keep his pumps open after Ike, and after the media then ran with that story, it triggered a run on gasoline throughout the area.

If I hit my guess correctly, had gasoline buying (as opposed to actual vehicle consumption) remained normal, most area retailers would have had no issues at all. A few, like Weigel's, may have had to bag a few grades at a few locations (a not terribly unusual sight, btw) until things were flowing normally again.

However, by triggering a "panic," where absolutely everyone immediately topped off the tanks of every vehicle they own, the available inventory was rapidly depleted. As when there's a run on anything and retailers are afraid of running out, prices began to skyrocket (raise prices to lower demand - high school econ stuff).

If you're looking to hang someone off the side of a gas station sign, I'd say Bill is a more viable candidate than Big Jim. And I like Bill, btw. I think he just went and stuck his foot in his mouth.

Imagine if, in the front of a predicted local snow storm (remember those?), the manager of a local Kroger's was to say, "I'm not sure we have enough bread, milk, and batteries to get us through until we can dig out of this mess and get the delivery trucks on the road again." Methinks that is what we've seen here. I'll run my car to E and beyond before I buy gas at panic induced prices.

Colonial Pipeline stated they returned full capacity Sept. 10.

(link...)

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"Whoever corrects a mocker invites insult; whoever rebukes a wicked man incurs abuse."

As of Thursday night, rumors were rampant that Knoxville gas prices were going up $1.50 by the weekend. No one has a legitimate answer.

Of course this is going to make everyone go fill up before paying an extra $1.50 per gallon!

The whole situation does not pass the smell test. Jimmy Haslam has Wal-Mart like purchasing power due to the amount of gas he buys. To act like he is powerless and has to charge $4.99 is disingenous at best.

Our prices are highest in the NATION right now. It is gouging, pure and simple. Because there is a Pilot on every corner, and they were all 4.99 over the weekend, I think they set the price for the weekend. Call your congresspeople and the dept of consumer affairs and demand an investigation.

Look, I feel for people who had to buy gas over the weekend, but no one put a gun to people's head and forced them to top off every car in the household.

I just don't get it.

Why not avoid needless car trips and wait a few days until prices inevitably go down, at least a bit?

Can any of the topper-offers explain this to me?