[SadisticSid]

Hmm before now I wasn't aware how significant NO was to the oil market in the US. But, as Goober said, the market will take care of it. The disaster should be by no means long-term for the oil business and draining the reserves is unnecessary from that perspective. Instead consumers and business should be persuaded to cut back on their consumption by rising prices.

[redmenace]

Just a neat picture.

[WMCoolmon]

"Still undecided is whether or not to call for a nationwide effort to reduce energy consumption during this emergency," a top Bush source explains. "It is seriously being considered."

A second White House source says there are no plans for the president to address the country on gas.

Dunno the verifiability of this news source, but that sounds very, very bad.

IMHO what they should be doing is investing some money into methods of manufacturing and refueling that involve less oil. Not sitting on their hands, occassionally chatting about asking people to use less. Maybe people would listen if they did and do something about it...buy more fuel efficient cars or something.

[Rictor]

Here's something to chew on.

http://news.yahoo.com/s/afp/20050829/wl_afp/usweathervenezuelaoil_050829235602

"We place at the disposition of the people of the United States in the event of shortages -- we have drinking water, food, we can provide fuel," Chavez told reporters.

Venezuela, a constant target for US attacks, is offering oil to the US to make up for the Gulf of Mexico fields that have been hit by Katrina. That dastardly Chavez, does his evil know no bounds!

[redmenace]

I thought he was only offering it to the working class and poor?

[Rictor]

No, that's a different initiative (I think). Venezuela offered that a week or so before Katrina hit.

[Kosh]

Originally posted by Goober5000
Just let the market work.  The reduced supply will cause the price to go up, the increased price will cause people to cut down on their use of oil, and the reduced usage will offset the reduced supply.  Subsidizing the oil supply is price controlling in reverse, and it masks the underlying problem.

Unfortunately it doesn't quite work that way. America is so heavily dependant on oil for even everyday life that another crisis like the 70's could probably cripple the economy.

[Solatar]

Well, dunno if they're having this problem elsewhere, but here in Nashville gas stations are starting to run out of gasoline period. It's not a matter of keeping prices down, it's a matter of having something to sell. They want to keep stocking the stations if possible, because if people start panicking that there's no gas, they'll run out and buy a bunch as fast as possible which will make the situation worse.

[Kosh]

Well, dunno if they're having this problem elsewhere, but here in Nashville gas stations are starting to run out of gasoline period.

Interesting, that happened in Guangdong a month ago. I remember seeing pictures on the net of of very long lines of cars. Reminded me of seeing pictures in my history textbook of the 70's oil crisis.

[phreak]

w00t gas prices jumped about 50 cents in 8 hours 2.50 to 3.00.  Looks like i should start biking 10 miles to school with 40 pounds of books :\

[Kosh]

Do you think gas prices will go down after the US makes Iraq the 51st state?

[DeepSpace9er]

Bush needs to sign an executive order temporarily halting all gas tax. I think that would lower the price faster than the federal reserve being released.

[Bobboau]

yeah dropping the 5 cent gas tax will realy help with the 50 cent hicke in prices, this is unfortunately what I think these reserves were made for, to keep the oil suply going durring a temporary peroid of crisis, hopefully they'll be able to get the oil flowing again (at least to the extent posable) before we run out

[Solatar]

Originally posted by DeepSpace9er
Bush needs to sign an executive order temporarily halting all gas tax. I think that would lower the price faster than the federal reserve being released.

In certain areas...namely my house, the price isn't the problem (it is A problem). The bigger problem is that there is NO gas to sell at overinflated prices. Doesn't matter if it's cheap, if there isn't any to sell to the gas stations around here, it won't make much difference.

[Unknown Target]

All this gas nonsence just as I'm about to get my first car...yeesh...at least I live next to a refinery.
Hopefully this will provide some initiative for people to care whether or not their cars are fuel efficient. With enough luck, they'll pressure their representitives, who will pressure Bush, and we'll get some progress.


*Laughs at all the suburbanites who bought Hummer H1,2,3s*

[vyper]

Originally posted by redmenace
Maybe you ought to talk to the gov't about lowering taxes on gas. Nah, never mind, enviromental extremists would ***** and mone.

I don't mind disincentive taxes to a degree. I certainly think the US needs them more than us given your typical engine size and consumption, which is beyond the realms of rediculous. The problem is that people in the UK drive cars you lot think of as small, and we can weather fairly sharp tax hikes in prices as a result. What we cannot weather is sharp increases in the market price on top of current taxes - something you can absorb much easier due to your already low prices in the first place.

Until a few months ago my fuel costs were managable, even with the tax you mention - but then the market shifted rediculously and now the effect is to alter my mileage (that would be 40 quid a month btw - about $80, compared to what's now looking like £60-80 quid depending on how often I go out - all this on a 1.6 Rover Saloon). My father is spending approximately $80 a week on petrol (2.0L Ford Mondeo).

My original point stands: you are going to get an increase in price that's managable. We are going to get an increase that's not despite the fact it should realistically be the other way around.

[vyper]

Originally posted by Unknown Target
All this gas nonsence just as I'm about to get my first car...yeesh...at least I live next to a refinery.
Hopefully this will provide some initiative for people to care whether or not their cars are fuel efficient. With enough luck, they'll pressure their representitives, who will pressure Bush, and we'll get some progress.


*Laughs at all the suburbanites who bought Hummer H1,2,3s*

See that's better thinking.

[EtherShock]

It went up 50 cents here overnight to $3.00.

[Bobboau]

were at $2.99

it cost me $30 this morning to fill my tank, thank god I got a efficent car recently (40mpg)

[Goober5000]

Originally posted by Kosh
Unfortunately it doesn't quite work that way. America is so heavily dependant on oil for even everyday life that another crisis like the 70's could probably cripple the economy.

Capitalist economies naturally follow a cycle of boom and recession.  Once the economy balances out it will start growing again.

The problem is that artificially extending the boom makes the recession worse.