Sat
Sep 13 2008
09:53 am

Archcrone deconstructs hysterical front page hyperbole and calls BS.

Joe Powell has more.

Michael Silence is tracking bloggers tracking gas prices.

Welcome to Peak Oil, a preview.

It sounds like distribution terminals aren't holding any inventories in reserve (because that would cost, you know, money and stuff) and are instead pumping directly from the distribution pipelines into your tank. This doesn't sound like a good system for national energy security. In addition to investigating reports of price gouging, somebody should look in to this, too.

P.S. The gallon of gas you paid $5 for yesterday probably entered the pipeline a week ago with 90% of its acquisition and production cost already accounted for.

Konethanol's picture

curious

Does anyone remember if hurricanes existed when Clinton was President?

Odd, I seem to remember that they did, but gas prices never went up when one approached.

RayCapps's picture

Strangely enough, they didn't...

The only major storm to strike in the Gulf of Mexico during the Clinton Administration was Hurricane Brett on 8/23/1999 (God, I love Google). Brett, however, swung south of the oil production areas and struck the extreme south of Texas (Brownsville area) and did no damage to oil production in the U.S.

/Begin Snark: If lib'rul Democrats were Evengelical Christian Republicans, they might be tempted to claim that Katrina, Rita, Gustav, and Ike were "judgments from God" against a wicked administration. :/End Snark

Factchecker's picture

DHS and other tsunamis

At least FEMA was reliable and apolitical back then. And didn't have to be the gigantic federal program that the Hypocrite Party has made it. But it's also supportable that such storms are trending larger and more frequent. I'm sure climate change has nothing to do with it.

Tamara Shepherd's picture

It sounds like distribution

It sounds like distribution terminals aren't holding any inventories in reserve (because that would cost, you know, money and stuff) and are instead pumping directly from the distribution pipelines into your tank. This doesn't sound like a good system for national energy security.

No, I guess the practice doesn't bode well for energy security, but on the other hand, isn't this essentially that "Just In Time" inventory practice that originated with Japanese auto manufacturers and has since been hailed as genius by manufacturers the world over?

Is the trade-off, then, between energy security and keeping prices lower than they might have been?

Bikona-Diesel's picture

FEMA

Good point about FEMA, FC.
Everything under the umbrella of "Homeland Security" is either a disaster waiting to happen or it already has. The have failed as an organizational entity and they have destroyed what were previously decent, useful agencies.

During the Pre-Chimpenfuhrer America, they always said "don't worry, only a small percentage of our production will be affected".

I hate these people.

Tamara:

That Japanese analogy is interesting, thanx.

KC's picture

Perhaps they're trying to

Perhaps they're trying to make up for the decrease in driving over the summer by gouging now, since they seem to claim to have a reasonable justification for it.

It is interesting that immediately after Gustav, no one predicted this was coming down the line. Wouldn't they have known then?

It's also interesting when I saw the number of empty places at Neyland Stadium today for the home opener. TV commentators claimed it was probably due to the spike in gas prices, but I'm wondering if it's not due to the shape of the economy in general.

Kudzu's picture

So when are Pilot prices going back down?

Here's Pilot's press release for today:

AFTERNOON FUEL STATEMENT FROM PILOT SEPT. 13
September 13, 2008

UPDATE ON PILOT OPERATIONS

All Pilot stores in the Knoxville area are operating normally with adequate supplies of all grades of fuel, according to Alan Wright, Pilot’s vice president of supply and distribution.

Wright said that demand has decreased significantly from yesterday’s levels when it was about double the normal volume for a Friday.

In the areas affected by Hurricane Ike, five Pilot Travel Centers are closed: two in Houston, TX, as well as locations in Baytown and Orange, TX, and LaPlace, LA. Pilot is committed to getting these locations reopened as soon as possible.

All locations have ample inventory of both gas and diesel and will be ready to serve customers as soon as they re-open. Pilot has a team of transport drivers and trucks ready to move into the area to continue fuel deliveries to the travel centers when evacuation orders are lifted.

All other locations in Texas and Louisiana are open and operating.
++++++++++++++++++

So, should we expect prices back at $3.60-something, the pre-gouge level, when the locations re-open in the morning as well????

As Randy would say, "Huh."

reform4's picture

Pilot down the road- still $5.00

Well, $4.999, that is.

I guess that's "normal" for the New Amerika.

Remember when we used to mock the Soviets for shortages, having to 'toe the party line', being constantly surveilled by their government, etc? The irony would be funny if it wasn't us.

gonzone's picture

Heh. Indeed.

But, but, but ...

Just this morning I was reading Pravda and brother McCain assured me that all the fundamentals of our economy are strong!
And let me tell you right now, that is not the NSA you're looking for. (yes, a Star Wars movie reference)

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

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