$3 gas to stay for weeks, analysts say

[sabra]

http://www.tucsoncitizen.com/index.php?page=business&story_id=092705d1_rita_refineries

$3 gas to stay for weeks, analysts say

The Associated Press


DALLAS - Oil companies said yesterday that damage to their massive Texas refineries from Hurricane Rita appeared lighter than expected, but analysts are still predicting that retail gasoline prices may remain near $3 a gallon for weeks or even months longer.
That's a consequence of tight supplies and that fact that it may take weeks to restart all the closed refineries in Texas, Louisiana and Mississippi, more than a dozen in all.

Normally by this time of year, refineries are beginning to shift production from gasoline to heating oil. But analysts said oil companies will be under pressure from politicians and the public to produce enough gasoline to prevent shortages and keep prices from spiking much above $3 a gallon. That could push production of heating oil back, they said.

Bill Veno, a director at consultant Cambridge Energy Research Associates, predicted roughly $3 a gallon at the gas pump into next year.

[Delphinus]

1. Hmm ...

their definition of weeks is different than mine. I would call that months if we're talking about it staying with us until next year.

Soft core news.

[sabra]

2. Some can even say minutes... :-)

thousands and thousands of them...

[fasttense]

3. It's the same way the corporate media counts anti-war protesters

You know if there are 1,000 then it is hundreds, if there are 100,000 then it is thousands, if there are 500,000 then it is tens of thousands. So if it is days, then it is hours; if it is weeks, then it is days; if it is months, then it is weeks. Of course if it is possible to change that and give brush a positive spin they will do it, especially limpball.

[mike_c]

4. "my god how the money rolls in..."

Rolls in, rolls in, my God, how the money rolls in, rolls in!
Rolls in, rolls in, my God, how the money rolls in!

[Richard D]

5. I'll personally be quite surprised . . .

. . . if the price of gasoline ever drops significantly below three dollars a gallon.

[bemildred]

6. Analysts say they have no clue what gas prices will do next ... nt

[Dissenting_Prole]

7. Then analysts have not been doing their homework n/t

n/t

[bemildred]

9. They should spend more time with the crystal ball?

Or do you really think that they have the means to predict the future?
And if they did, do you really think they would tell us?
You could make a killing if you really knew what comes next.

[Dissenting_Prole]

10. Yeah...I could make a killing

That's why gold and silver is starting to pile up in my deposit box.

[bemildred]

12. Well, in the long term, you can make a pretty good guess ...

:-)

[high density]

8. Sounds like more bullcrap

I was talking to my Republican tanker captain uncle this weekend, and he said there's no such thing as a widespread gas shortage in this country. We're shipping it all over the place, like to Puerto Rico.

[sarcasmo]

11. Four dollars by the 4th of July, IMHO.

[wishlist]

13. Stations near me in N.C. just jumped up to $3.10 today (ten cents higher)

I have noticed much less traffic on the roads this week. At least some of our driving is discretionary, unlike heating.

Our natural gas company just announced a 22% hike and electric company just announced a 4.4% hike with even higher increase for businesses. Our weather is expected to turn cold tomorrow with 40's at night. It is going to be shock.

[Delphinus]

15. We may see a light frost tonight.

I'm keeping the house closed up tight and an extra blanket on the bed. My gas prices have risen from $0.7690 per therm to $1.287 per therm. Last year, the house was set at 67° - can't really go below that because of my dog (short to the ground) and the heat coming from the ceiling.

[Demeter]

22. We Had 30 cent increase overnight in Ann Arbor

Fortunately I had fill up on Tuesday.

[AllegroRondo]

14. In other news, more record profits for oil companies

[physioex]

16. WOW......

What a Job, Get Paid a Six Figure Salary and Sit Around Stating the Obvious...

[IDemo]

17. $3.00 for weeks, perhaps. More likely $4 by xmas, and higher by Spring

Katrina and Rita performed strongly in knocking out a significant portion of Gulf of Mexico oil platforms, along with silencing (at least for a few weeks) a few refineries.

Saudi Aramco claims (lies) that crude supply is a non-issue for decades.

Shrubya has mentioned releasing more crude from the strategic reserve. Oh, and advised Americans to drive less.

Unfortunately, the combination of impacts from less GOM production and refining will absolutely have an impact on gas prices, probably through this winter at least. After recovery efforts by energy companies are completed in the Gulfcoast region, we are still ultimately left with the far larger problem of peak oil.

[Sub Atomic]

18. THANK GOD!!!! Now I know at least I can fill my tank

for the next several weeks.

Here in San Diego, the price briefly went above $3, and is now hovering just below $2.90 a gallon.

Typically, we have some of the highest prices in the country.

[Triana]

19. Horse Puckey

We've had several COUNTRIES offering to give us both crude and refined oil and gasoline to counteract any shortages by Katrina and Rita.

These cretins are profiting hand over fist. What ARE their profit margins? And what were they before Katrina?

I'm not buying this load of bunk. SOMEBODY is just a tad greedy. I expect that gas will NEVER be below $3/gallon in this country again.

[IDemo]

20. No argument here that oil co.'s aren't greedy cretins

But the US consumes about 21-22 million barrels/per day of oil, about 1/4 of the global consumption. Where are we receiving even a tiny fraction of that from elsewhere, despite a heartfelt contribution from Hugo Chavez?

[Triana]

24. If bu$hit had done more to support and promote...

...alternative sources, we'd not be in this mess - or it might not be as bad. I still say the oil tycoons are gouging consumers needlessly - and he CAN demand price caps, but he won't, being an oil tycoon himself. It's sad that we're so addicted to oil - not to mention dangerous. It's a national noose around our collective necks in so many ways.

[Strelnikov_]

25. Fungible Commodity. Simple Price Caps Won't Work

Read up on what is happening in Asian countries that have caps/subsidies.

The premium prices we are paying are what are keeping the tanks full here, and empty in Asia.

We would need major legislation/restructuring of the petroleum industry. Problem is, because we import 60% of the raw material (oil), legislative fixes are limited.

Conservation/alternates are the only sure ways out of the 'oil trap' we are now in.

[IDemo]

28. Alternatives needed to be pushed 40 years ago to have effect now

[LostinVA]

27. Profiteering, not profiting

They are a bunch of common criminals being given free rein to rob us by our so-called government.

This is legally profiteering, not price gouging, and they all should be arrested and convicted.

[Roland99]

21. Gas went up $0.25-0.40 today...$2.89 - $3.09 now.

[Strelnikov_]

23. Why Free Market Energy Infrastructure Planning Does Not Work

Normally by this time of year, refineries are beginning to shift production from gasoline to heating oil. But analysts said oil companies will be under pressure from politicians and the public to produce enough gasoline to prevent shortages and keep prices from spiking much above $3 a gallon.

So, to keep everyone driving SUV's at 75 mph down the highway, we are going to risk heating oil shortages this winter.

"No, Grandma didn't freeze to death because she couldn't afford fuel oil, she just destroyed demand so we can drive our Expedition."

Rationing by price.

Couldn't we just pass an emergency reduction to a 55 mph speed limit, thus reducing transport fuel consumption by 5.1%?

[Nihil]

26. Good catch! Need to get this point a wider audience though.

> Normally by this time of year, refineries are beginning to shift
> production from gasoline to heating oil. But analysts said oil
> companies will be under pressure from politicians and the public to
> produce enough gasoline to prevent shortages and keep prices from
> spiking much above $3 a gallon.

This point NEEDS to be driven home to every car owner and everyone
who uses oil to heat their home (or workplace for that matter).

The price & availability of *heating* oil is increasing as the result
of a deliberate policy to try to keep the gasoline price low.
Your government has chosen to accept the death by hyperthermia of
the poor & elderly in order to allow you to drive inefficient cars.
Is your conscience happy with this Republican trade-off?

By wasting gasoline, you are KILLING people this winter.