Connection Between Electricity,Gas & Food

[OK Jeanne]

In consideration of the recent events (Gustav, Ike), does anyone see the connection
between electricity, gasoline, and food? I guess the mainstream media is trying to
be careful not to "panic" people into filling up their tanks. There is such a thing
as the "minimum operating level" of all those big fuel and crude pipelines. Something
like 170 million gallons I believe. An excellent analysis is posted at
http://www.theoildrum.com. It is titled "Implications of a Ten Day Refinery Outage".
:help:

 

[HerefordSire]

In consideration of the recent events (Gustav, Ike), does anyone see the connection
between electricity, gasoline, and food? I guess the mainstream media is trying to
be careful not to "panic" people into filling up their tanks. There is such a thing
as the "minimum operating level" of all those big fuel and crude pipelines. Something
like 170 million gallons I believe. An excellent analysis is posted at
http://www.theoildrum.com. It is titled "Implications of a Ten Day Refinery Outage".
:help:

Yes, there is a connection. They are all forms of energy. One shortage of one type of energy affects the supply and demand for all other types of energy and prices are adjusted accordingly.

 

[CattleHand]

In consideration of the recent events (Gustav, Ike), does anyone see the connection
between electricity, gasoline, and food? I guess the mainstream media is trying to
be careful not to "panic" people into filling up their tanks. There is such a thing
as the "minimum operating level" of all those big fuel and crude pipelines. Something
like 170 million gallons I believe. An excellent analysis is posted at
http://www.theoildrum.com. It is titled "Implications of a Ten Day Refinery Outage".
:help:

Yes, there is a connection. They are all forms of energy. One shortage of one type of energy affects the supply and demand for all other types of energy and prices are suppose to be adjusted accordingly.

just thought id add that part since it seems sometimes the oil companies like to over adjust

 

[jfont]

What's funny is that with two hurricanes back to back, the price of a barrel of oil is the lowest it's been in six months. If there is extra now, why was there a shortage before the storms ? Something fishy there.

 

[OK Jeanne]

It is my "guestimate" that the big boyz on Wall Street,etc are frantically selling assets still worth something in order to
cover their bad bets---thus all commodities have dropped.

 

[grannysoo]

Sure it's all connected. It's all a game played by a select few to make loads of money. We and the general public have no control over how the game is played.

Now if you want to think about a bad situation, imagine no diesel fuel for a couple of weeks. With just in time delivery, there is no backup inventory on the shelves most places. People in the city would be starving in a few days.

 

[1982vett]

What's funny is that with two hurricanes back to back, the price of a barrel of oil is the lowest it's been in six months. If there is extra now, why was there a shortage before the storms ? Something fishy there.

Kind of simple really. Liquidating hedge funds, investment banks, and insurance companies that are trying to raise cash to beef up their balance sheets and make margin calls and those to avoid down grade in bond ratings. They are putting on a firesale. Crumbling pretty much like a pyramid scheme. They pushed the snowball uphill long enough, now it is coming back to flatten them.

 

[backhoeboogie]

Now if you want to think about a bad situation, imagine no diesel fuel for a couple of weeks. With just in time delivery, there is no backup inventory on the shelves most places. People in the city would be starving in a few days.

No electricty is the current problem. Stations that have fuel cannot pump it or use cash registers to sell or scanners to scan. Refrigerated items will spoil so they are giving them away - and other things too. One store posted a sign, "Take it all but do not vandalize this business".