NO GAS !!!

The Governor of NC has said no gas sales on Friday the 2nd. Good thing my Mustang is full from last weekend, it was too windy to go wakeboarding. Now I just heard it might be a rumour.

Here in Memphis, TN gas prices are around $2.79/gallon. However, in response to the sudden spike in prices people have bought all available supplies.

During my morning commute I pass about a half dozen gas stations....this morning all but one were completely sold out of fuel.

Tough times ahead for the entire south.

Ouch, I'm sure there are lot's of inconveniences out there, but, at least for me, I think it's better to keep it in perspective.

When I look at the news and see families who have lost everything, poeple stepping over dead bodies, jumping off roofs, etc. it just doesn't seem right for me to complain about a few bucks on gasoline.

I also disagree with you rutancanard. The oil companies have every right to make a profit.
They are in business to do so. Thousands of employees and millions of shareholders are counting on them to do so.

This disaster will create short supply and higher prices for lots of goods. Should all
the industries be regulated?
I wouldn't think so.

BKH

The demand for gasoline has not gone down. The supply has gone down. The fixed costs have remained the same, or have gone up due to
unexpected capital expenditures. The shareholder expectations to make a profit have not gone down.

If the oil companies meet demand by getting oil from a different source, price of gas goes up because they are charged more for raw materials and/or it cost more to refine and ship to the U.S.

If the oil company just sells less gas because they have less supply, prices must go up to meet shareholder demand for profit, and the public is unhappy because its demand for gas is not met.

Reducing fixed costs involves less exploration, laying off workers, refusing to rebuild, etc. In the end, supply is reduced, prices still go up, and demand cannot be met.

If shareholder profit expectations are not met, then the stock goes down, it's bad for the economy, people get fired, and a new set of leaders comes in and raises prices anyway.

Gas will go down, if at all, when demand is greatly reduced, when supply stabilizes, when fixed costs go down.

Shareholders will never be willing to take a loss. That will only happen if the government steps in and artificially reduces the price of gasoline. IMHO, that's called socialism and that's a bad idea for a host of reasons.

It sucks for all Americans, particularly those
whose jobs and pastimes rely upon burning gas, but it is the laws of economics.

BKH,

WOW did I get a response. I know gas isn't the most important thing. I just think it is ridiculous that oil companies feel the need to gouge. I have my own business so I understand the economics I just wish I could sell a product that everyone really needs and then once I have the market cornered take advantage of it. I don't complaign about the cost of milk because I know that there are not a handful of farmers out there making hundreds of millions of dollars every year no matter how good the company is doing. Corporate greed, "if I can get I will". aka Enron, etc. How much is enough? What do you think would happen if Lowes and Home Depot started selling their plywood for twice as much just because there was a greater need?

I know there are more important things. We didn't know if we lost a nephew and some cousins because of the hurricane. We heard from them last night at about midnight because that is the first time they were able to get thru on the phone. I have sister in law in Waveland who lost her house and the foundation it sits on!! My mother in law had four feet of water in hers in Bay St Louis and likely has been looted also. I have hundreds of relatives in New Orleans so I know what is important. But the oil companies are affecting everyone and could end up upsetting the economy of the entire country. GW are you listening?

I agree with supply and demand economics. However, oil companies use tragedy and natural disasters to gain profit. Did the gas supply really fall that low to justify the incredible raise in price? Research the "net" and find out how much the Hurricane actually affected the oil production/storage and you will be suprised. You will notice the price at the pumps raised immediately when the crisis hits, even before the full amount of damage or shortage is determined. When the crisis is over do the pumps immediately return to the original price?

Also, the economy is on thin ice to begin with. You add inflated gas prices, it affects consumer spending, the costs of goods, the cost of transportation, costs of just about everything. A negative economical "spiral" is created.

Gas in North Florida is 3.21 to 3.89 for regular IF you can find it as most all stations here are either out or rationing it at 10 gallons max!

Ya'll excuse my rant above - I was setting in the Seattle airport for 3 hours waiting on my flight to Houston - I really missed my CC. (For those that have not read my posts in other threads, my '68 often sits in the water, in full view, just outside the window of my home-office. Some days I just can't help playing hooky by hopping in the boat, firing it up and either idling up and down the bayou, waiving at all the neighbors, or letting it loose and head towards the Gulf at 45+MPH with the little 289 screaming it's heart out... can ya'll relate?

Things are going to be "less than great" for a while. I'm old enough to have seen other hickups in the economy - if we avoid knee-jerk reactions all will return to normal. The economy will respond to these hickups we are seeing.

Upon returning from Seattle I see that our local gas prices haved jumped to over $3.00. I suspect gasoline wholesalers are scrambling to find sources and are having to bid against each other in order to have gasoline for their retailers (gas stations and convenience stores). Normally gasoline in our area comes from Gulf Coast refiners. Probably, gasoline is now being trucked in from the East Coast. This adds expense and shortens the supply for those folks on the East Coast. Our wholesalers are having to bid against their wholesalers and that drives the price up for everyone. It's not that anyone is greedy, it's just natural to sell your product to the highest bidder.

Suppose you wanted to sell your CC for a price of $10,000 which you considered reasonable, and someone offered you $10,500. Would you turn it down because in your mind $10,500 is unreasonably high? Of course not - it would not be fair for your family for you to turn it down.

We do have a common problem. I usually burn 18 gallons in 3 hours of boating bliss. This weekend I will probably burn 36 to 50 gallons pulling tubers. But that is my decision and the possible $150 I may spend on gasoline this weekend still makes for an enjoyable family fun weekend. All of ya'll have a great weekend... burn some incense for those less fortunate. I think I am going to play hooky today.

Jim, I have never burned 18 gallons in 3 hours in my Mustang. What are you doing?

PS: Hey The Lake - You are right in that your heart is in the right place. For better or worse, in this country, officers of any corporation, large or small, have a legal and binding obligation to act in the best interest of the shareholders - the punishment for not doing so is jail-time. It is considered gross negligence for officers of any size corporation to give away the shareholders money. It would be nice if we could give away other people's money but a lot of folk's frown on that. It is considered acceptable for corporations to set a reasonable budget for charitable contributions but these are usually set a year ahead of time. Other than that, a corporation really can't just start giving away money willy-nilly.

The oil companies hold a monoply. They can raise the prices to whatever they want, with no recourse.   So if all grocery stores raised all prices a $1.00 higher, for everything, we be forced to pay for extra freight and the grocery execs. would make more money. However, that would never happen because of the competition factor. This is not true with oil companies. How much government tax breaks do oil companies receive? Where does the President and his family make their money?
For good people to stand by and do nothing are just as bad as the people who perform the evil....

I stand corrected.... But I believe price fixing is occurring....