Gas prices surge as Ike closes in on Texas

Gas prices surge as Ike closes in on Texas

features.csmonitor.com

Atlanta – Gas prices spiked by 12 cents at some north Georgia gas stations overnight, with some stations already limiting drivers to a 10-gallon fill-up.

The ensuing lines at the pump – watched over in some places by sheriff’s deputies – are a first-hand glimpse of hurricane Ike’s potential impact on American wallets as it threatens the port of Houston, one of America’s key energy crossroads. The extent of Ike’s potentially formidable storm surge will play a critical role in whether the gas crimp lasts a few days – or more than a month.

If the impact is major, hurricane Ike is also likely to draw attention to one of the top themes of the current presidential campaign: offshore drilling. Hurricanes Katrina and Rita first showed the vulnerability of the Gulf Coast’s oil rigs and refineries, which supply about 24 percent of the nation’s gasoline and oil-related products. Ike is likely to drive that point home for Americans deciding between two presidential candidates who disagree on whether the United States should drill more widely for oil and natural gas.

(visit the link for the full news article)

This is insane, gas prices go up before the hurricane hits?

Look at this from the above article:

In anticipation of those kinds of losses, some reports indicate that gas prices are already inching toward $5 a gallon along the Gulf Coast. That news is bringing back memories of gas-price spikes following hurricane Katrina in 2005, when some Atlanta gas stations were selling gas in excess of $8 a gallon.

One member of ATS is reporting $5 + per gallon in a thread here:

www.abovetopsecret.com...

If this does what some will 'speculate' it could cause gas prices to rise far above $5 per gallon.

This should be criminal, at last report crude oil prices are at about $102 per barrel.

Of course the crude is useless if the refineries are shut down. Way to go Ike!

These oil companies will take advantage of this storm, to again profit greatly from the American people.

At what point do we just stop driving?

$10 per gallon?

$20?

Higher?


features.csmonitor.com
(visit the link for the full news article)

It's definately a shocking jump.

I started this thread early this morning about the prices where I live.

It's getting ugly.

I saw this coming. Luckily I fuled up both of my vehicles 2 days ago and have no travel plans. Given that I only use 1 of my 2 vehicles and each one will get me around town for about 2 weeks on one tank, I'm almost certain that by thinking ahead, I will avoid this price surge. HOPE!!!!!

Even here in Canada, at some pumps, gas prices went up by 15 cents/Litre.

So tu fill un my car, wich is 55 Litres, it will cost me 8. 25 $ More !!!!

And, the barrel of oil was still 100 $ a barrel in the markets.....

Nothing of this fits together

Originally posted by Grinder
Nothing of this fits together

Exactly, but the major gas suppliers and oil companies will argue that the price of crude is meaningless, the oil refineries that will be "shut down" as a result of this storm will cause regional shortages of gas and diesel, which will cause the prices to rise sharply and affect the prices across the board.

I'm not sure how Canadian prices would be affected, unless they are dependant on US refineries?

Yes here in my neck of the woods this morning was 3.80 by lunch was up to 3.99, nothing but a scam.

[edit on 12-9-2008 by marg6043]

Originally posted by Grinder
Even here in Canada,

I guess you are right, Canadians will pay for Ike too...

Gas prices shoot up across Canada on Friday as U.S. refineries affected by Ike

canadianpress.google.com...

TORONTO — Gasoline prices spiked Friday by as much as 13 cents a litre in some parts of Canada as refineries on the U.S. Gulf coast shut down operations ahead of hurricane Ike, sparking consumer frustration and pressure on governments to curb soaring fuel costs.

The price for gas at stations throughout southern Ontario soared by about 13 cents a litre early Friday to more than $1.36 a litre. Prices in Ottawa were also up by 13 cents.

In Montreal, prices jumped about a dime to $1.38 a litre, while Halifax prices were up to about $1.33 a litre and $1.42 in parts of Newfoundland.

Prices in Western Canada did not move as much because they have trended higher in recent weeks because of a regional supply shortage. In Vancouver, the highest per litre pump price was more than $1.40 at many stations, while Calgary prices ranged between $1.10 to $1.41.

GasBuddy.com, a website that monitors North American fuel prices, said the average price Friday in Canada was a shade under $1.33 a litre, compared with $1.05 a litre a year ago.

One customer at a Petro-Canada (TSX

CA) station in downtown Toronto said the price at the pumps was "atrocious," while a tow-truck driver described it as "robbery."

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

The oil execs will love this news, and the hefty profit bonuses they will be getting for this quarter, on top of already record prices this has to be good for their bank accounts.

It is comforting though, to know that our brothers and sisters in Canada will help carry the burden of higher prices.

[edit on 12-9-2008 by The_Alarmist2012]

Originally posted by The_Alarmist2012

One customer at a Petro-Canada (TSX

CA) station in downtown Toronto said the price at the pumps was "atrocious," while a tow-truck driver described it as "robbery."

That is weird, I didn't put that silly face there, WTF?

I have a solution to help keep our American gas prices lower:

How about we stop exporting the nearly two million barrels a day of domestic oil we drill, until repairs can be made.

Frickin idiots...

I'm having trouble confirming the impact on pricing.

www.gasbuddy.com...

In the past, that site was pretty accurate.

Can we get some more personal evidence in here?

People are idiots.

Everyone and their mom ran to fill there tanks up today. There were lines 10-20 cars long out of gas stations from people panicking.

Now, due to that, supply will be even lower. Gas stations are already running out, and gas prices will now skyrocket.

If people would just relax, there wouldn't be a problem. Maybe a gas station here and there would run out of gas for a day or so, but it would still be possible to get gas.

Now, it's next to impossible to get gas, and the prices will be at least a dollar higher.

*Edited to add:

I hate people.

[edit on 12-9-2008 by Sublime620]

Major news outlets on TV tonight are saying the price could double and even triple in the coming days. Saying Ike is hitting the worst possible place it could anywhere along the coastal US.

Well I guess the prices are going up and up and up this morning was 3.80 by lunch was 3.99 now in the evening is up to 4.50 and many gas stations are closed out because they ran out of gas.

I can not wait to see tomorrow.

Gouging is what is going on.

Something about the upper right quadrant of the storm (the strongest area in any hurricane) will be hitting Galveston Bay and the Houston River. They said this is the absolute worst place a storm could hit...like hitting the bullseye on a target if you will. At any rate, some are speculating that this could cause the biggest economic disaster in US history. Wow.

reply to post by loam

Can we get some more personal evidence in here?

Oooohhhh, someone wants me to talk....

J/k loam. Seriously, though, after this last trip I was looking to add to these type of threads. Here's what I know:

North GA had gasoline at $3.999 per gallon today. Yesterday it was around $3.55. Diesel appeared to be unaffected.

A friend here in North Alabama called me today. He told me had to drive all around town to find gasoline. Everyone was out except for a few large-quantity stations and truck stops.

On the way home from the terminal, I stopped to load up on Mountain Dew at a gas station that happened to have them on sale (and room for my bobtail). As I checked out, I asked about the line of cars three deep at the pumps. the cashier said they had been out of regular gas for some time.

Every other station I passed coming home either had long lines or no one at all in the pumps (I assume because there was nothing left to pump).

My daughter tells me that the local news was predicting $5.75 per gallon gas by this morning.

The above are factual observations; the remainder is opinion based on known conditions.

Ike has not yet even hit Houston. If the refineries are shut down, it happened today, not a few weeks ago. The oil platforms in the Gulf are still empty from the Gustav evacuation, since it was simply too expensive to return them with the strong possibility of an Ike-related evacuation so soon. I would assume they will be back to producing as soon as Ike passes.

If the refineries are damaged, it will most likely be minor damage. They have weathered hurricanes before, and Ike, while huge (OK, extremely huge), is still a Cat 2. It may make Cat 3 before landfall, or it may not. It may damage refineries, but it may not. And even if it does, those refineries have massive reserves to cover them in such an event.

There is a possibility that Ike will happen to wipe some refining capability off the map and cause massive gasoline/diesel shortages in the US (and Canada too). There is also a possibility that I will find a suitcase packed with $100 bills jammed under my truck Sunday. I doubt either will happen.

This is scare tactics by the media. It's no different than screaming "FIRE!" in a crowded theater, and should be treated as such. Now I ask each of you, if you were to scream "FIRE!" in a crowded theater and cause a major panic, exactly what would happen to you when the police showed up?

TheRedneck

It seems fuel price gouging is almost nationwide.

This from Florida Governor Charlie Christ:

“It is important for the people of Florida to know that our state currently has an adequate fuel supply. Major fuel companies continue to deliver millions of gallons of gasoline and diesel to retailers and communities across the state. In addition, we are coordinating with the petroleum industry and representatives from the Florida Petroleum Council and Florida Petroleum Marketers and Convenience Store Association to ensure that there is fuel to meet current consumer needs.



“Despite this fact, there are confirmed reports of gas stations charging more than five dollars a gallon, which can only be described as unconscionable. Raising rates to exorbitant levels like this only causes unnecessary panic and fear. This type of behavior will not be tolerated, and I pledge to work with Attorney General McCollum and Agriculture Commissioner Bronson to ensure swift and appropriate action is taken against all price gougers.

www.fosterfollynews.com...

How long will we be powerless to stop the financial rape of the tax payers.

Anything will justify a new record profit quarter by the oil monopolies.

I am from South GA, I already posted what is going on in my neck of the woods.

loammy friend I have not reason to lie, what I posted is what is going on in my area, already gas in other small towns is gone.

Did a little community research this PM

9 o/o 27 gas stations are out of all fuels.

The BP truck stop has increased $0.22/ gal. since yesterday AM.

And for today as stated earlier this:

(NEW YORK) — Crude oil on the futures market briefly sank below the $100-a-barrel Friday for the first time in five months — suggesting investors believe a worsening global economy will continue to drive down demand for some time in the United States and elsewhere.

The last time crude traded below $100 a barrel was on April 2.

Gasoline prices, however, jumped at the wholesale level as Hurricane Ike swept toward Houston, home to about one-fifth of U.S. refining capacity, and the site of a major fuel and grain distribution channel.

Wholesale gasoline prices on the Gulf Coast moved even further into uncharted territory to around $4.85 a gallon, as refineries anticipated that Ike would incur at least a significant pause in their operations, and at worst severe damage to their facilities.

www.time.com...

The immediate gouging is mostly local retailers and distributors.

The big oil record profit parade will continue as long as we allow it.

I see no way to ever return to a truly free market of supply & demand. Oil is the engine of economies, diplomancy, and citizen control.