The US runs on oil

As much as I hate to make it seem like my problems are more important than those in LA and MS, I had to comment on the gas situation. During a normal hurricane event, the local economy is clobbered but nationally, the economy doesn't take a hit. We could have easily have weathered Katrina if she made shore in Florida or in the Carolinas. This time, we are really hurting and we are beginning to feel it.

First of all is gas. I filled up yesterday during my lunch hour at $2.76/gal. When I left work, it was $2.88. When I went to the COA this morning, it was $2.99. Three hours later during lunch, it had soared to $3.19. When my dad came home he said it was $3.29. I have never, ever seen prices rise this quickly. Hell, I've never seen gas in the $2.80's before much less breaking over $3.00.

So you may be saying, what's the big deal? They pay these prices and then some in plenty of other countries. I don't think that they appreciate just how much our economy is linked to oil and its price. It really is the fuel of America's economy. Slowly creeping to these prices wouldn't have been so bad, but this really is a price shock.

In response, some gas stations have dramatically raised their prices in an effort to drive customers away. Yup, you read that right. Stations that charge over $5.oo/gal while their competitors are selling at two dollars less are doing so to keep their reserves.

President Bush has authorized the tapping of the Strategic Oil Reserves. However, I'm not sure how this would help. Oil supply is not the problem. It's the refining and distribution of that oil that is. Four of the eight refineries are down. That region supplies 25% of the nation's gas. So you can see how that would be a problem. Although I have not personally read it anywhere, I heard that the government has rescinded the emission standards on fuels temporarily. This will allow, for example, gas made for Nevada to be sold in California which has higher fuel standards.

Then there is the fact that we just lost our southern port. Most of America's agricultural land drains into the Mississippi. Most of the ag exports go through New Orleans and with it gone, we may expect to see prices on those products going up as well. Shipments will now have to be done on rail or by truck which requires more of--you guessed it--gas.