WHOMP....recession?

[killercane]

quote:Originally posted by Robboo

Gas prices are pretty easy to explain...almost 20 % of the refining capacity down due to Ike and Gustav. Depending on where you live almost 100% of your areas gas could come from Houston area. (Georgia, Tenn, SC, NC, KEn...big time Houston importers.) Check out gas buddies temperature map to see what I mean. Couple that with increase use in the Gulf of Mexico region and you have a shortage. Supposedly there is a 3 day storage supply...we just went past 3 days since shut down.

/puts on tin foil hat.

Its all BS. Katrina was the first one that saw a "refinery/supply/whatever crisis" and prices stayed high afterwards, ie avg prices pre katrina were significantly less than post-katrina. Katrina was a test on how much people could take, and that test is ongoing. I predict this will be the same situation. Katrina gas went from $2.10->$3, 50%; Gas here went from $3.50->$5, what is that, 43%?

With the aforementioned gas, we had a small family trip this weekend. Gas here was $5.29, gas south about 45 miles was $3.99. Somebody is gouging somewhere on the downstream./takes off tin foil hat

And Im going to make the bold statement-> if you fix oil, you fix the economy. The market is now such in TN, that people are throwing money everywhere trying to hit the big one in a super small market (28th or 30th out of all states that produce oil). It costs $40k to drill a dry well, and these guys are wildcatting all over the place with a 10% success rate and running a profitable enterprise.