Wednesday, August 31, 2005

The gas situation

People are starting get a little panicky about gasoline. That's not good, because the panicking is driving any supply issues out there right now. People know that gas prices are increasing daily, so everyone is rushing to the pumps to put gas in their cars before the next increase. On top of that, when they find a gas station where the price is lagging a bit compared to competitors, they are over running those stations, causing long lines and gas shortages at those particular stations. This is creating the perception of an acute gas shortage.

If we want to get out of this upward spiral, everyone needs to take their fingers off the panic button. Continue to gas your car up as you usually do. Don't hit the gas station every day. If there are lines at a "cheap" gas station, chalk it up as a loss and hit the gas station down the street that doesn't have anyone at the pumps.

Hurricane Katrina dealt a small blow to our energy supply, and we are going to be paying more for our petroleum products for a little while. We are beginning to create an unnecessary crisis by panicking, though. Take a deep breath, because we are going to be alright. Let's just hope that in the face of this perceived shortage, the human nature to hoard doesn't kick in. If people start hoarding gasoline, it is going to put a lot of pressure on supplies.

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