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"People Will Be Furious When
Gas Prices Triple From Current Levels"
by Epic Economist
"Are you prepared for panic at the pump? People will be fuming when they hear this, but they should probably start rushing to the gas stations and filling up their tanks while prices are still somewhat reasonable because national reserves of all types of oil-based fuels, including gasoline, diesel, and heating oil, have been depleted, and could run out in less than a month, according to a recent letter released by The Energy Information Administration that is sparking fears of shortages and rising prices starting in the next couple of weeks. In fact, some states are already experiencing gas shortages and seeing prices jump by 30% in a single week. The trend is rapidly spreading all over America, worrying authorities, industry executives, and refineries, which are already operating at 100% capacity but still can’t fulfill the demand. The chaos that will erupt all over the nation when fuel prices double or triple from current levels is going to push millions of people over the edge. This is just the beginning of an unprecedented energy crisis, and the fact that domestic supplies of energy are collapsing before the winter even begins is truly alarming.
The U.S. fuel market is facing a nightmare scenario, with dwindling supplies, drought on the Mississippi River pushing more product to rail and truck, and a looming rail strike leading to a dramatic surge in freight prices that is expected to continue. The Energy Information Administration reported that our national reserves of gasoline, diesel, and heating oil are at an “unacceptably low” level, and can drop to zero before the end of the month.
This crisis is getting worse by the day, EIA said, urging authorities to take swift action to prevent a total collapse of energy reserves. CNBC is calling it a perfect storm, “with low inventories combining with rising demand ahead of the winter, which is a recipe for even higher prices spilling out across industries and hitting consumers’ already emptying pocket”. EIA data shows that while gasoline reserves reached the lowest point since 2008, U.S. diesel reserves have never been so low since 1951. Many cities in California have just seen brand new all-time record highs last week. Meanwhile, gasoline shortages are rippling across the East Coast and pushing up pump prices from New York to Maine.
At the same time, diesel prices are soaring again and shortages are hitting coast to coast. The problem is aggravating to the point of prompting a major fuel supply and logistics company to raise a red flag on upcoming nationwide fuel shortages. "Because conditions are rapidly devolving and market economics are changing significantly each day, Mansfield is moving to Alert Level 4 to address market volatility," Mansfield's press statement said.
If people think a shortage of gasoline is already distressing is because they can’t fully grasp the chaos that would emerge all over the nation due to a worsening shortage of diesel. With diesel supplies collapsing, virtually all of our trains, trucks, and ships would stop running, which means that the delivery of pretty much everything we buy at our stores and supermarkets that comes to us via trains, trucks, and ships would be halted. So the fact that inventories can collapse in less than a month is a really big deal.
Needless to say, that is going to push consumer prices to sky-highs in the coming months because just about everything that we buy has to be transported. This is yet another reason why our standard of living is falling apart at such a frightening pace.
"In less than a month..."
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