When governmet demonizes and industry, scapegoats it, seeks to make it unprofitable with excessive regulation, the result is much less incentive to produce the product. Production drops and the shortage begin. Rent control has the exact same affect. Similar policies caused the gas lines and shortages under Carter as well. Those with even the most rudimentary understanding of economics understand this and yet new university trained leftist academics keep causing these same problems and keep expecting a different result.
This administration seems to think that by making regulatory war on refineries, drilling, coal technology and power plants people will rush out to pin a solar panel on their car (a solar panel made in China no doubt).
Gasoline station owners in the Los Angeles area including Costco Wholesale Corp. (COST) are beginning to shut pumps as the state’s oil refiners started rationing supplies and spot prices surged to a record.
Valero Energy Corp. (VLO) stopped selling gasoline on the spot, or wholesale, market in Southern California and is allocating deliveries to customers. Exxon Mobil Corp. (XOM) is also rationing fuel to U.S. West Coast terminal customers. Costco’s outlet in Simi Valley, 40 miles (64 kilometers) northwest of Los Angeles, ran out of regular gasoline yesterday and was selling premium fuel at the price of regular.
The gasoline shortage “feels like a hurricane to me, but it’s the West Coast,” Jeff Cole, Costco’s vice president of gasoline, said by telephone yesterday. “We’re obviously extremely disheartened that we are unable to do this, and we’re pulling fuel from all corners of California to fix this.”
Spot gasoline in Los Angeles has surged $1 a gallon this week to a record $1.45 a gallon premium versus gasoline futures traded on the New York Mercantile Exchange, data compiled by Bloomberg show. That’s the highest level for the fuel since at least November 2007, when Bloomberg began publishing prices there. On an outright basis, the fuel has jumped to $4.3929 a gallon.
Gasoline at the pump gained 8.3 cents to $4.315 a gallon in California yesterday, according to AAA.com, 53.1 cents more than the national average of $3.784. In Los Angeles the price was $4.347. Gasoline futures for November delivery on the Nymex rose 14.34 cents to settle at $2.9429 a gallon, after falling yesterday to a 10-week low. Retail price movements tend to lag behind those of futures.
“Product supply in California has tightened, especially in Southern California, due to refinery outages,” Bill Day, a Valero spokesman at the company’s headquarters in San Antonio, said by e-mail.
More energy price hikes and power shortages on the way due to government regulation – LINK
Obama’s EPA Shutting Down 10% of America’s Power Plant Capacity – LINK
Obama’s EPA crushing coal-fired power plants, electricity bills rise… – LINK
Candidate Joe Kennedy III Calls for End To “Cheap Oil” – LINK
Gas Prices Under President Obama – LINK
EPA Official on Video: We Are “Crucifying” Oil And Gas Companies – LINK
Under Obama, Price of Gas Has Jumped 83 Percent, Ground Beef 24 Percent, Bacon 22 Percent – LINK
Obama Green Energy Program Cost $9.8 million Per Job – LINK
15th Green Energy Company Funded by Obama Goes Under – LINK
On Oil Obama Says One Thing & Does Another – LINK
GAO: Recoverable American oil in a single location equal to the entire world oil reserves – LINK