Ruh Roh Redux

Stocks are now at their lowest level since 1967...I don't even want to figure out what the per capita for per vehicle story is - that is just too damn low.

Update on gasoline stocks

Well, the stocks are down regionally and prices are up - hope they can get the grid back to speed as that is what seems to be producing the kink in the hose.

Ruh Roh

This is the state of gasoline stocks BEFORE Hurricane Ike.

Res ipsa loquitur.

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OK, a bit of elaboration since it probably is not as self-evident as it seems to me. See the links below about the Colonial pipeline being shut in, and the extensive damage to the backbone of the electrical grid by Hurricane Ike. That ties in with the gasoline distribution system being very near Minimum Operating Level (MOL).

This is the point where bits of the system for moving gasoline around start shutting down because there is not enough physically present to make it flow through the supply chain. That level is around 170 million barrels or so but that is at the national level - it is very large and complex and not in perfect balance, so we are going to be experiencing localized shut downs and gasoline shortages starting now...


Graphic produced by Energy Information Administration
EIA Petroleum Week in Review: Gasoline

Dow Jones Newswire report on Ike related transmission line damage
Ike Leaves Widespread Power Outages; Review Begins

Reuters report on Colonial Pipeline closure
Colonial says oil product pipelines shut due to Ike