Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (5602)	5/5/2004 9:52:08 AM
From: Elroy Jetson	Respond to of 116555

I'll tell you my comments. The reason given: "the rupture in the pipeline carrying diesel fuel from the Bay Area (I assume the Richmond Refinery) to Reno" certainly does not provide a reason for gasoline rationing in California. If they choose to supply Reno by truck from the Salt Lake pipeline in the interim, there's no bottleneck in diesel stacking up. The refinery computers can reformulate the refinery output so no diesel is produced and in fact even more gasoline is created. There may be a shortage due to lack of refining capacity or something else, but certainly none because of the nonsense reason cited. There's a possibility the "isomaxing" process ChevronTexaco uses may require more natural gas to blend with the crude to avoid diesel - maybe that's the bottleneck. If so they didn't explain it terribly well.

To: mishedlo who wrote (5602)	5/5/2004 10:46:19 AM
From: russwinter	Respond to of 116555

<CA gas rationing?. I would think this will be devastating for malls, travel, and the California lifestyle, but who knows, maybe it will spun into a plus for credit card companies who service gas stations <ng>. Also watch the natural gas and electricity market going into June. Since Jan. 17, national electric usage is already up 4.4% yoy. Last year there was nearly perfect weather from late May into early July, so the comparables could be astonishing if we get a hot late spring-early summer.