Texas Gas Shortages.

[Trainwreck20]

Originally Posted by HighSpeed

there should be national reserves for emergencies. think after those got activated it solved the line problem.

There was no shortage - there were plenty of reserves - but the spike in consumption out-stripped the ability of the trucks to transfer from storage to stations. To put in more loading racks for the once in a decade or two consumer panic would be too wasteful for government and too cost inefficient for a private company.

[TheOverdog]

There was no shortage - there were plenty of reserves - but the spike in consumption out-stripped the ability of the trucks to transfer from storage to stations.

There was a spike in consumption - that was due to more people driving supplies and equipment to the flood-struck areas. And from 1/3 of TX driving slightly west to avoid a flood while all the supplies in those locations were offline or ruined.

Reserves of oil is not the same as unrefined gas. If there was no shortage, then why are premium fuels still unavailable at most stations? It's been 2 weeks. Does it take that long to ship from a rack? No. If there aren't enough trucks, you can drive a gas truck from New Mexico and Arizona, and other points north where there are no shortages or consumption spikes.

There was (and still is) a shortage of refined fuel ready to be shipped to gas stations.

[Trainwreck20]

Originally Posted by TheOverdog

There was a spike in consumption - that was due to more people driving supplies and equipment to the flood-struck areas. And from 1/3 of TX driving slightly west to avoid a flood while all the supplies in those locations were offline or ruined.

Reserves of oil is not the same as unrefined gas. If there was no shortage, then why are premium fuels still unavailable at most stations? It's been 2 weeks. Does it take that long to ship from a rack? No. If there aren't enough trucks, you can drive a gas truck from New Mexico and Arizona, and other points north where there are no shortages or consumption spikes.

There was (and still is) a shortage of refined fuel ready to be shipped to gas stations.

Are you talking state-wide spike in consumption? I suspect that the 1/2 million flooded and inoperable vehicles probably reduced consumption more than the extra trips toward the area increased it.

It isn't a truck issue - there were lines of trucks at the terminals, but not enough loading racks to fill them.

The tankers stopped carrying premium fuels because they needed the regular fuel and there was more of it to begin with, not to mention they were (are) selling it for premium prices and therefore getting a larger margin.

Additional reserves (as in quantity) of gasoline would have had minimal impact, although additional locations of reserves might have helped. There was a shortage of drivers, I have heard, but that the ones that were driving made a killing on the extra hours.

[TheOverdog]

I suspect that the 1/2 million flooded and inoperable vehicles probably reduced consumption more than the extra trips toward the area increased it.

You'd suspect wrong, because the supply is in tanks that are flooded and therefore unavailable to be useful. The net of available and useful gas is decreased while the supply of people who need it has increased.

The tankers stopped carrying premium fuels because they needed the regular fuel and there was more of it to begin with, not to mention they were (are) selling it for premium prices and therefore getting a larger margin.

This tells me that 1) you don't know how much premium fuel costs (2) that you don't know that regular cars can run on premium but premium cars can't run on regular (3) that you don't know what the margins on each kind of fuel are. That you also don't understand margins in the first place by saying that regular is selling for the 'premium' price. No it is not, except historically, but that's not a measure of current pricing. My soda pop is selling at the premium price of soda from a decade ago, so the manufacturer should be happy, right? No, that's not how it works.

It isn't a truck issue - there were lines of trucks at the terminals, but not enough loading racks to fill them.There was a shortage of drivers, I have heard, but that the ones that were driving made a killing on the extra hours

How could there be a line of trucks at the racks but no drivers to drive them? Again, it's almost 2 weeks later. You think all the truck drivers in Houston somehow can't make it to racks today? So they are just letting processed ready to go premium fuel degrade?

No. Premium fuel actually takes longer to process than regular, and since there is a shortage, they are producing the easiest to produce first at lower margins for the refiner. The supply at the racks ran out long ago and is dripping in.

[Trainwreck20]

Originally Posted by TheOverdog

You'd suspect wrong, because the supply is in tanks that are flooded and therefore unavailable to be useful. The net of available and useful gas is decreased while the supply of people who need it has increased.

So, you are telling me that the people with ruined cars are busy filling up those cars? The people that no longer have a car are not busy filling a car with gas.

Originally Posted by TheOverdog

This tells me that 1) you don't know how much premium fuel costs (2) that you don't know that regular cars can run on premium but premium cars can't run on regular (3) that you don't know what the margins on each kind of fuel are. That you also don't understand margins in the first place by saying that regular is selling for the 'premium' price. [...pointless stuff]

Gas stations are selling all that they can put into their tanks and yes, refiners are probably are making only regular 'now' because of the run on gas. Nothing to do with the 'shortage' last week. Regular is easier to make. Make the easy stuff, get to sell it for a high price. The loss in production from making premium does not offset the minor price differential. The hoarders are not buying premium. No one is going to 'opt' for paying extra for premium if they don't have to. If you need premium, you are likely out of luck (although I have not had trouble finding it so far).

Originally Posted by TheOverdog

How could there be a line of trucks at the racks but no drivers to drive them? Again, it's almost 2 weeks later. You think all the truck drivers in Houston somehow can't make it to racks today? So they are just letting processed ready to go premium fuel degrade?

You are conflating two things. Short term lack of drivers, then a bottle neck at the racks.

Originally Posted by TheOverdog

No. Premium fuel actually takes longer to process than regular, and since there is a shortage, they are producing the easiest to produce first at lower margins for the refiner. The supply at the racks ran out long ago and is dripping in.

No, lost production from making premium does not offset the short term gain in margin from making extra regular. The cost of making a gallon of fuel has not changed, only the price they are selling it for. The percent extra margin on premium has shrunk.