Energy 02 May 2007 10:08 pm

With Tight Supplies Expect Record-High Gas Prices

by Sean Hackbarth

Old gas pump

If you like to drive (or you have to drive) you’re in trouble. Tight gas supplies mean rising gas prices. In the Southeast Wisconsin area where I live gas is comfortably over $3/gal. Analysts say current gas inventories are only slightly higher than just after Hurricane Katrina blasted the Gulf Coast. Expect the average gas price to top the record of $3.06/gal set in 2005.

We’re in a situation where too few refineries mean supply shocks when they go down due to fires or maintenance. High oil prices mean the oil companies have the cash to build more. It requires governments allowing them to build and locals rejecting NIMBY attitudes for the sake more gas. Or we just accept high gas prices and buy a Prius.


[Photo via Flickr]

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