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As of March 2008, there is no gasoline shortage - Adventures in Engineering — LiveJournal
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Ben Cantrick
  Date: 2008-04-04 13:54
  Subject:   As of March 2008, there is no gasoline shortage
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Gasoline reserves on hand are at the highest levels since the early 1990s, which is remarkable considering the nation's refineries have been cutting back on the production of gasoline because their margins have declined. In fact, average gasoline reserves on hand have risen since this past October, while oil reserves in this country have gone up virtually every week this year. Only fog in the Houston Ship Channel that kept oil tankers from unloading their crude one week kept it from being every week.

Just so we can all get on the same page, here are the verifiable facts on oil supplies, production, and gasoline demand.

In January of this year, the U.S. used 4% less petroleum than we did a year ago. (Oil demand was down 3.2% in February.) Furthermore, demand has been falling slowly since July of last year. Ronald Bailey of Reason Online has pointed out that worldwide production of oil has risen 2.5% in the first quarter, while worldwide demand has grown by only 2%.

Production is expected to increase by 3.3% in the second quarter, and by as much as 4.1% by the third quarter. The net result is that the U.S. daily buffer for oil production against demand, which was a paltry 1.5 million barrels as recently as 2005, is now up to 3 million barrels in excess capacity today.

So what is going on here? Why would our Energy Secretary say there's a supply and demand problem when none exists? Why would he say that speculators have little or nothing to do with the incredibly high price of oil and gasoline, when it's clear they do? President Bush — a former oilman — gives the ever-growing demand for gasoline as the primary reason prices are so high, yet that notion can be dispelled with one minute of research. That's the problem with rhetoric; it rarely matches the facts.


http://www.businessweek.com/lifestyle/content/apr2008/bw2008041_945564.htm
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Ohmi
  User: ohmisunao
  Date: 2008-04-04 21:44 (UTC)
  Subject:   (no subject)
Gee and here I was happy that gas prices were going up so that idiots with their SUVs (which they obviously don't use offroad (obviously 'cuz they'd break if you did)) would decide to buy something more sensible and planet-friendly.
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Ben Cantrick
  User: mackys
  Date: 2008-04-04 22:41 (UTC)
  Subject:   (no subject)
Oh, gas prices ARE going up. But the the reason is not that we have a shortage of gasoline reserves.
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Ohmi
  User: ohmisunao
  Date: 2008-04-04 23:06 (UTC)
  Subject:   (no subject)
In otherwords they're lying about what's actually going on.
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Ben Cantrick
  User: mackys
  Date: 2008-04-05 23:01 (UTC)
  Subject:   (no subject)
In Bush's case I'm willing to give him the benefit of the doubt and say that he's merely too stupid to understand the real situation. Other people, though, especially the oil companies... lying.
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  User: nickhalfasleep
  Date: 2008-04-05 04:24 (UTC)
  Subject:   (no subject)
It's all a matter of hedge funds placing the money they made in housing / internet / technology speculation into natural resources, placing huge amounts of money on future fuel usage.
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