Thread: 06 honda civic`
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Old Sep 3, 2005 | 03:03 AM
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GPF
Joined: Jun 2005
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Default Re: 06 honda civic`

Originally Posted by +fireamx
To TCK, I didn't say I couldn't afford it, (gasoline) I just don't like being, the victim of "Highway Robbery", that all the oil Companies are perpetrating upon the American public.
Please stop being ignorant. Nobody is 'perpetrating' on you. Now, I know you're going to totally ignore this post, but that's fine.

Unlike Europe and some other countries, the US does not store up refined products. Instead, we store crude. This is the primary reason for the floating gas prices we pay. There is a much smaller amount of storage for refined products. When the stored refined gasoline begins to become tight, gas companies raise prices to slow demand. When the stores raise again, the price drops to keep the refineries running to fill the temporary stores of refined product.

This info is available to pretty much everyone...even you. This temporary spike in gas prices is directly tied to worries about refined product shortages. Higher prices slow demand. With slower demand, the temporary storage fills. The refineries in Louisiana are not destroyed, and neither are the pipelines. They are merely missing power. When power is restored, the refineries will be able to supply refined products to temporary storage once again.

Crude deliveries have been impacted, but not to a ridiculous level. It's the lack of power that makes pumping oil difficult. Restored electricity will restart refining and refill the supplies. When the supplies refill, prices will lower once again.

So, the crux of this whole situation is that with a little patience, we'll have affordable gasoline once again. This is a temporary situation that will correct soon enough.

Or, you can continue to believe doomsayers. Your choice. I've done the research and I'm not very worried about things in the medium to long term.
 
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