Gas Shortage

[Phlegm]

From associated press:

WASHINGTON (AP) -- Twenty-six countries in an international energy consortium will release more than 60 million barrels of crude oil and gasoline to relieve the energy crunch caused by Hurricane Katrina in the United States.

As part of that effort, the Bush administration will release 30 million barrels of crude oil from U.S. reserves.

Energy Secretary Samuel Bodman called this an initial move, part of what he called an "aggressive" federal response to the hurricane disaster. The fuel being released by the Paris-based International Energy Agency will be in the form of both crude oil and gasoline and will be released over the coming month.

The reserves will amount to about 2 million barrels a day coming into U.S. markets.

"We have made it known that we are facing shortfalls in available supplies of refined products in our country as a consequence of this storm," Bodman said at a news conference.

The Paris-based IEA said in a statement that its member countries "unanimously support" the measures, which will take effect for an initial period of 30 days. The IEA board will meet in two weeks to review the situation, it said.

"They've all agreed and this is something that they're prepared to do to stabilize energy markets worldwide," Bodman said in Washington.

Bodman said the additional supply should help relieve high gasoline prices, but he gave no timeline. He also said the administration's main concern is "to avoid disruptions," rather than short-term price relief.

"We have all been saddened by the tragedy still unfolding in the United States," British Energy Minister Malcolm Wicks said.

"This coordinated response will free up extra supplies to help the market deal more effectively with the disruption caused by Katrina," he said. "This is a global oil market and so a multilateral response is the right way forward."

Georgia and other states are moving to suspend state gasoline taxes, but Treasury Department officials said the possibility of reducing the federal tax on gasoline is not under active consideration in the administration.

Legislation would be required to reduce the federal tax.

Technically, even the release of supplies from the U.S.-based SPR is a matter of joint decision-making by the United States and its European partners. Until now, the administration has loaned oil from the SPR to several refineries, but has not had a general release of crude to counter supply problems. Under international agreements, such a release must be coordinated with other IEA members.

The IEA is an oil market watchdog formed under the auspices of the Organization for Economic Cooperation and Development.

Fears of escalating fuel prices spread across the country this week as damaged Gulf Coast refineries and fuel lines shut down. Gas prices jumped 35 to 50 cents a gallon overnight in many places, pushing the pump costs to well over $3 a gallon in some areas.

On Thursday, President Bush urged Americans to be prudent in their consumption of energy, but called the hurricane a "temporary disruption" to gasoline supplies.

Katrina has disrupted 90 percent of the oil production in the Gulf of Mexico. Nine Gulf Coast refineries have been shut down by electrical problems, flooding and other damage caused by Katrina. Two major pipelines carrying gas to the Midwest and East also have been partially disrupted by the Hurricane.

[araby]

Listening to congress speak this morning was interesting-one representative made the comment that it's completely unethical to raise gas prices at this point. People are making money from this. They also are all in agreeance that they should have done something by now about relief down there.

[mappatazee]

made the comment that it's completely unethical to raise gas prices at this point. People are making money from this. They also are all in agreeance that they should have done something by now about relief down there.

WHY? If they are fucking running out of it. You don't know what the fuck you're talking about. Do you know what money IS?

[araby]

made the comment that it's completely unethical to raise gas prices at this point. People are making money from this. They also are all in agreeance that they should have done something by now about relief down there.

WHY? If they are fucking running out of it. You don't know what the fuck you're talking about. Do you know what money IS?

wtf is your problem? You're always spewing bullshit. I fucking watched them speaking TODAY on C-Span saying that the allowance of gas prices to rise is WRONG and that something has to be done about it. If you have questions, fucking look the shit up on google or something instead of attacking me.

[Martrae]

No, stopping the rise in prices is causing the shortage. People are hoarding because the price is low and they are afraid of running out. If the prices would raise people would only buy what is needed and there wouldn't be empty stations.

[mappatazee]

made the comment that it's completely unethical to raise gas prices at this point. People are making money from this. They also are all in agreeance that they should have done something by now about relief down there.

WHY? If they are fucking running out of it. You don't know what the fuck you're talking about. Do you know what money IS?

wtf is your problem? You're always spewing bullshit. I fucking watched them speaking TODAY on C-Span saying that the allowance of gas prices to rise is WRONG and that something has to be done about it. If you have questions, fucking look the shit up on google or something instead of attacking me.

WELL YOU DON'T UNDERSTAND FUCKING ECONOMICS, <I>WHOOOOOOOOOOOOOORRRRRRRRRREE!!</I>

[KILL]

no one likes high gas prices except the guys selling the gas.

however, i think it is the only way to get people to wake the hell, start conserving and looking into alternative sources. this is just a minor inconvenience compared to what we are facing if we dont develop alternatives to oil real soon.

i dont mind the higher prices. i just hope is doesnt collapse the economy. i listed my house for sale this week :/

[Martrae]

Welcome to the housing burst

[araby]

Yet, I heard on the news that the shortage is caused by the pipe that comes from Louisiana working at only 50% to get to us in the southeast the usual supply of the 25% we get in total from Lousiana. They said that gas is not gone, but absolutely limited.

so raising the price of gas because it is limited, is making people money. they know that when people hear of a shortage, they will fill up. And that is what everyone did here the last two days.

It's no different than looting in my opinion.

[mappatazee]

Housing burst, that reminds me, when do the new bankruptcy laws take effect?

[Martrae]

October something

[DangerPaul]

October 17th

[KILL]

i really hope there is an agressive effort to keep us in a strong real estate market. if it takes a strong hit, combine that with high fuel costs right now and we can say adios to the good ol days.

[Martrae]

Greenspan said a couple days ago the housing boom was about to burst...this'll probably be the catalyst.

[leah]

just back from the gas station... about 35$ for less than 11 gallons. /sigh

[mappatazee]

Inflation, the dollar becomes worthless, countries who manufacture our goods to put in our suburbs and cars to drive to walmart to buy all that shit no longer want our money, etc.