President Bush's Wednesday afternoon speech

[Tim Vasquez]

The President will be making a speech in several minutes. In addition to information about the disaster and pending aid, we may also hear about him releasing the strategic petroleum stockpiles as well as a call to conserve energy.

Tim

 

[Cole McConnell]

he is on now.

 

[J West]

68,000+ people in shelters. Damn.

EPA suspended the fuel blend restrictions on gas and diesel. This is good, as it's a choking point when every state has different fuel blends. For instance, WI has at least 3 different blends of fuel depending on location. When the refineries come back on line, they can just make one blend and get it on the trucks and pipelines. That is great for the entire country.

Bush stopped short of saying we have shortage, or asking for a reduction in usage, but did make it clear the fuel production in the country is severely restricted. We know that a shortage is forseeable, however.

 

[Edward Ballou]

Summary:
- Recovery will take years.
- Federal government is working with state and local government to mobilize operations.
- Ships are on there way.
- Superdome occupants on their way to Astrodome
- If you want to help - help financially; make sure your donations go to hurricane relief.
- Make sure donations go to reputable organizations.
- Blankets, cots, water, other supplies already on their way.
- We will get through this - America will be better for it.
- New communities will flourish.

Feel free to add that which I might have missed.

 

[Tim Vasquez]

He mentioned that the Department of Defense was going to fall under a Cabinet-level disaster task force. Among the assets beong deployed:
* USS Bataan
* Iwo Jima readiness group
* USNS Comfort hospital ship
* 8 SWIFT rescue teams

Tim

 

[David Wolfson]

The oil companies are really hurting so it makes sense that prices may go through the roof.

Our citizens must understand this storm has disrupted the capacity to make gasoline and to distribute gasoline....

 

[Jason Toft]

Edward,

Thank you for the summary. I had to work and missed it.

Edit: removed possible 'bait' statement.

Jason

 

[Justin Turcotte]

Originally posted by David Wolfson
The oil companies are really hurting so it makes sense that prices may go through the roof.

<rant>
This statement is pure no knowledge, opinion page, break room B.S. Commodities prices are set by the traders, not the oil firms. If "big oil" set the price than I can guarantee there would not have been $6/bl oil in the 1980s. In defense of "big oil", Exxon payed $23 Billion in various taxes, royalties, and fees to the various states and federal governments last quater. Sombody has to pay the bills and big oil is doing it. If you think Exxon is making too much money than go buy the stock. I am tired of the same old lack of intelligence one liners about oil. Phillip Morris is making money hand over first yet people arn't griping about the price of Marlboros. I don't see people complaining about big Microsoft with it's overpriced software. Nobody complains if McDonalds raises the price of a Big Mac. It's funny how that many folks complaining about gas prices are the ones who just purchased a new GM truck with the employee discount offer. Whatever they saved will be eaten up at the pump.
</rant>

Back to the original topic... Bush basically said there are some production and supply problems and steps are being taken to remedy the situation. How effective the steps are remains to be seen. You can release crude from the SPR but if there isn't the refining capacity than you are nowhere. I noticed intraday crude prices where lower yesterday buy unleaded gas futures were higher. The investors know what is going on. Follow their lead.

 

[Jeff Snyder]

PLEASE avoid bringing politics into this discussion! I know politics may be inherent to this discussion, but I stress that we should all try to avoid making one-liner "bait" statements or longer rants.

You can discuss what was said, but there isn't a huge need to state your own opinion if you think it'll result in political debate. Remember, ST is a storm chasing board, and just as political discussions are to be avoided in Bar and Grill, they should be avoided here as well.

 

[Tom Mitchell]

Politics aside, I can't see how releasing crude oil will help when we need gasoline. The refineries simply aren't functioning. Any amount of oil won't help the situation, as every refinery in the country was at full capacity before the crisis.

Relaxing the blending restrictions will help, but does anybody know how much that will really effect the supply of gasoline and diesel for consumers?

And trust me, any extra cost burdening the oil companies will quickly be passed on to consumers. I am not being angry at the oil companies, it's just economics. Unfortunately for consumers, there are very few alternatives to going to the gas station.

As for me, I'm in Japan, and prices haven't gone up here yet. They were 4 dollars a gallon before any of this anyway.

Have a great day!
Tom