Re: Gasoline Shortage
One reason these countries with high gas prices (all of Europe, for example) have much better public transportation systems is of course most of that high price of gas is in the form of taxes, much of which goes to fund the transportation systems of those countries. They pay the same for crude as we do (or at least a comparable price) It is all a matter of priorities. If we ever really wanted to be energy self reliant, we could adopt a similar strategy. Nothing like $5 a gallon gas to reduce usage. (Note: I like my SUV just as much as the next person, and am not advocating this--just commenting that it is a potential solution)<br /><br />There was new standards passed for the Office of pipeline safety in 2002, in response to several accidents, one of which I witnessed as I happened to be in Bellingham Wa when a gas pipeline burst and exploded. Killed three kids, and completely destroyed a pretty little salmon spawning stream. I'll never forget an interview given by the fire chief, where he said "We've never before had to chase a fire down a stream, and didn't know how to do it!"<br /><br />It came out that the OPS more or less rubber stamped compliance reports from the owner of the pipelines, and apparently that was common practice. No longer, with the new laws.<br /><br />Gas prices are set by supply and demand. As prices fall, people use more and inventories fall. As prices rise, people use less and inventories climb. When there is a disruption in supply, as in this case, prices rise quickly. In normal cases, usage might not change a great deal, maybe only plus or minus 2-3% but it is enough to matter. Some may not alter their consumption at all, but enough do to make that difference. In this case, usage must be reduced-there is no other option for the time being, at least.<br /><br />The price has next to nothing to do with the price of crude, even though they all blame the price of crude for the prices. Of course, if crude goes high they may reduce hours at refineries to keep inventory in line at times and prices up, but it is all a part of the supply and demand analysis that oil companies make.<br /><br />And a 30 % reduction in the supply of a major market would result in a huge disruption of services. No matter what percentage of stations are open, you can bet that all told they are pumping that 70% as fast as they can.<br /><br />And why should they abandon environmental regulations at the first sign of a problem? Your inconvenience at the gas pump is a small price to pay for everyone else being able to breathe.<br /><br />That you can get gas is an improvement from the gas lines of the 70's. In northwest Washington State at the time, for example, stations often would limit sales to "regular customers" which of course meant their friends. If you were friends with the right people-no problem-If not, too bad, so sad.
<br /> Mid-$1.759 
