JohnnyBz00LS
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Posted on Thu, Sep. 01, 2005
Experts see gas price hikes in short term, no shortages
By Benjamin Lanka
The Journal Gazette
As consumers fume over surging gasoline costs, experts predicted petrol prices have not peaked.
Jerry Conover, director of the Indiana Business Research Center at Indiana University, said the $3.29 a gallon price many were seeing across Fort Wayne is likely to increase in the short term.
“My guess is we’ll see a short-term continued increase over the next couple of days,” he said, adding that prices likely won’t increase much, “over the exorbitant level it’s already reached.”
Conover said he could see prices hit $4 a gallon in parts of the country, but he would be surprised for that price level to hit Indiana.
George Bullion, director of the center for economic education at Indiana University-Purdue University Fort Wayne, said prices will go as high as supply and demand will take them. He believed prices were close to peaking, but he said there was still some room for increases.
“The main thing, I suspect the price is going to force some of that discretionary driving is going to be cut,” he said. “Budgets won’t allow driving at past levels.”
James Halloran, energy analyst for National City Private Client Group, said the rising gas prices have been largely caused by Hurricane Katrina. The storm damaged drilling operations in the Gulf of Mexico and shut down oil refineries, where gasoline is made.
“There’s just not enough gasoline,” he said. “The only way to ration that in an effective basis is through price.”
Wholesale gasoline prices closed at $2.60 a gallon, and the added taxes, transportation costs and profit make $3.29 seem reasonable, Halloran said.
At least one legislator, Rep. Dave Crooks, D-Washington, said Gov. Mitch Daniels should suspend the 13-cent-a-gallon gasoline sales tax just as the late Gov. Frank O’Bannon did in 2000, when prices hit about $1.80 a gallon.
“I understand the state is in a tough state fiscally, but so are Hoosiers and they need relief,” Crooks said. “I’m hearing about this from people all over my area.”
Daniels said eliminating the tax would not be a financially responsible step for a state he said was coming out of bankruptcy.
The good news for consumers is Bullion and Conover believed $3 prices are a short-term phenomenon while the country works through the damage caused by the storm.
“We should see a resumption of fuel production from the Gulf area, definitely putting downward pressure on fuel prices,” Conover said.
He also said rising public pressure is expected to keep prices from escalating much further.
Bullion said he thinks prices will fall to between $2 and $2.50 a gallon by the end of the year.
“By the end of September the pressures will have alleviated the situation, barring another storm,” he said.
All agree that the best way to ensure another increase in gas prices was for consumers to make unneeded runs to the station in fear that gasoline supplies will run out.
Maggie McShane, executive director of the Indiana Petroleum Council, a trade association that represents major oil companies in the state, said consumers should use common sense and follow their normal gas-purchasing routine.
“The one thing we do now for certain is panic buying and hording gasoline, and long lines at the pump will cause your local retailer to have problems. It’s not helpful behavior,” she said.
Although some gas stations might be without fuel, there is no actual shortage of gasoline, Halloran said. He said it is only a dislocation caused by the shutdown of oil refineries because of the hurricane.
McShane said the Midwest gets 25 percent of its gasoline from refineries outside the Midwest.
The words of caution and high price didn’t stop Randy Konowitz, 45, of Fort Wayne, from filling up his half-full Jeep Wrangler.
“I hear there’s not going to be any gas by the weekend. Why take the chance?” he asked.
McShane said most of the shortages will occur in independently owned stations, as brand-name stores such as BP or Shell have long-term contracts providing them with fuel.
The Associated Press contributed to this report.
OK, cliff notes: Avoiding panic gas purchases will help keep prices in check. Meanwhile, back on Shrub's Island...........
Posted on Thu, Sep. 01, 2005
President Bush called Hurricane Katrina one of the worst natural disasters in U.S. history.
Bush offers hope, sees long recovery
Associated Press
WASHINGTON – President Bush flew over New Orleans and parts of Mississippi’s hurricane-blasted coastline in Air Force One on Wednesday. Turning to his aides, he said: “It’s totally wiped out. ... It’s devastating, it’s got to be doubly devastating on the ground.”
“We’re dealing with one of the worst national disasters in our nation’s history,” Bush said later in a televised address from the White House, which most victims could not see because power remains out to 1 million Gulf Coast residents.
Bush pledged to do “all in our power” to save lives and provide sustenance to victims of Hurricane Katrina but cautioned that recovery of the Gulf Coast will take years.
Although Bush did not minimize the destruction left by the storm, he expressed optimism in words directed at victims who have lost their homes, possessions and employment.
“I’m confident that with time you’ll get your life back in order, new communities will flourish, the great city of New Orleans will get back on its feet and America will be a stronger place for it,” he said at the White House after making the aerial tour of the devastation and return to Washington.
“The country stands with you. We’ll do all in our power to help you,” he said.
Bush cautioned that the effects of the storm will be felt far beyond Louisiana, Mississippi, Alabama and Florida.
He raised the possibility that Hurricane Katrina will lead to even higher gasoline prices and shortages in some areas, even as his administration moved to release oil from an emergency government stockpile and to temporarily ease pollution standards on gasoline and diesel fuel.
(snip)
BuSh quitely chuckes to himself as he walks off stage, "Fool Americans will never learn. Watch them panic now and line up at the gas stations driving up prices and lining the pockets of my oil constituency. Wo ho ho ha ha ha!!"
Experts see gas price hikes in short term, no shortages
By Benjamin Lanka
The Journal Gazette
As consumers fume over surging gasoline costs, experts predicted petrol prices have not peaked.
Jerry Conover, director of the Indiana Business Research Center at Indiana University, said the $3.29 a gallon price many were seeing across Fort Wayne is likely to increase in the short term.
“My guess is we’ll see a short-term continued increase over the next couple of days,” he said, adding that prices likely won’t increase much, “over the exorbitant level it’s already reached.”
Conover said he could see prices hit $4 a gallon in parts of the country, but he would be surprised for that price level to hit Indiana.
George Bullion, director of the center for economic education at Indiana University-Purdue University Fort Wayne, said prices will go as high as supply and demand will take them. He believed prices were close to peaking, but he said there was still some room for increases.
“The main thing, I suspect the price is going to force some of that discretionary driving is going to be cut,” he said. “Budgets won’t allow driving at past levels.”
James Halloran, energy analyst for National City Private Client Group, said the rising gas prices have been largely caused by Hurricane Katrina. The storm damaged drilling operations in the Gulf of Mexico and shut down oil refineries, where gasoline is made.
“There’s just not enough gasoline,” he said. “The only way to ration that in an effective basis is through price.”
Wholesale gasoline prices closed at $2.60 a gallon, and the added taxes, transportation costs and profit make $3.29 seem reasonable, Halloran said.
At least one legislator, Rep. Dave Crooks, D-Washington, said Gov. Mitch Daniels should suspend the 13-cent-a-gallon gasoline sales tax just as the late Gov. Frank O’Bannon did in 2000, when prices hit about $1.80 a gallon.
“I understand the state is in a tough state fiscally, but so are Hoosiers and they need relief,” Crooks said. “I’m hearing about this from people all over my area.”
Daniels said eliminating the tax would not be a financially responsible step for a state he said was coming out of bankruptcy.
The good news for consumers is Bullion and Conover believed $3 prices are a short-term phenomenon while the country works through the damage caused by the storm.
“We should see a resumption of fuel production from the Gulf area, definitely putting downward pressure on fuel prices,” Conover said.
He also said rising public pressure is expected to keep prices from escalating much further.
Bullion said he thinks prices will fall to between $2 and $2.50 a gallon by the end of the year.
“By the end of September the pressures will have alleviated the situation, barring another storm,” he said.
All agree that the best way to ensure another increase in gas prices was for consumers to make unneeded runs to the station in fear that gasoline supplies will run out.
Maggie McShane, executive director of the Indiana Petroleum Council, a trade association that represents major oil companies in the state, said consumers should use common sense and follow their normal gas-purchasing routine.
“The one thing we do now for certain is panic buying and hording gasoline, and long lines at the pump will cause your local retailer to have problems. It’s not helpful behavior,” she said.
Although some gas stations might be without fuel, there is no actual shortage of gasoline, Halloran said. He said it is only a dislocation caused by the shutdown of oil refineries because of the hurricane.
McShane said the Midwest gets 25 percent of its gasoline from refineries outside the Midwest.
The words of caution and high price didn’t stop Randy Konowitz, 45, of Fort Wayne, from filling up his half-full Jeep Wrangler.
“I hear there’s not going to be any gas by the weekend. Why take the chance?” he asked.
McShane said most of the shortages will occur in independently owned stations, as brand-name stores such as BP or Shell have long-term contracts providing them with fuel.
The Associated Press contributed to this report.
OK, cliff notes: Avoiding panic gas purchases will help keep prices in check. Meanwhile, back on Shrub's Island...........
Posted on Thu, Sep. 01, 2005
President Bush called Hurricane Katrina one of the worst natural disasters in U.S. history.
Bush offers hope, sees long recovery
Associated Press
WASHINGTON – President Bush flew over New Orleans and parts of Mississippi’s hurricane-blasted coastline in Air Force One on Wednesday. Turning to his aides, he said: “It’s totally wiped out. ... It’s devastating, it’s got to be doubly devastating on the ground.”
“We’re dealing with one of the worst national disasters in our nation’s history,” Bush said later in a televised address from the White House, which most victims could not see because power remains out to 1 million Gulf Coast residents.
Bush pledged to do “all in our power” to save lives and provide sustenance to victims of Hurricane Katrina but cautioned that recovery of the Gulf Coast will take years.
Although Bush did not minimize the destruction left by the storm, he expressed optimism in words directed at victims who have lost their homes, possessions and employment.
“I’m confident that with time you’ll get your life back in order, new communities will flourish, the great city of New Orleans will get back on its feet and America will be a stronger place for it,” he said at the White House after making the aerial tour of the devastation and return to Washington.
“The country stands with you. We’ll do all in our power to help you,” he said.
Bush cautioned that the effects of the storm will be felt far beyond Louisiana, Mississippi, Alabama and Florida.
He raised the possibility that Hurricane Katrina will lead to even higher gasoline prices and shortages in some areas, even as his administration moved to release oil from an emergency government stockpile and to temporarily ease pollution standards on gasoline and diesel fuel.
(snip)
BuSh quitely chuckes to himself as he walks off stage, "Fool Americans will never learn. Watch them panic now and line up at the gas stations driving up prices and lining the pockets of my oil constituency. Wo ho ho ha ha ha!!"
