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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Triffin who wrote (2923)	10/31/2005 7:56:14 PM
From: Wharf Rat	Read Replies (1) \| Respond to of 24232

That was pretty interestng stuff. ========================================================= Diesel Users Feeling Pinch at the Pump; Industry Insiders Warn of Long-Term Impact on Economy By Slawsky, Richard Although drivers are getting a small break on gasoline prices now, diesel customers aren't experiencing similar relief.Diesel prices have been at record levels in recent weeks. Industry insiders and economic experts warn it could have a long-term impact on the economy.We're living in an unprecedented time as it relates to energy, said American Trucking Association President Bill Graves. Skyrocketing fuel costs are one of the greatest threats facing the trucking industry and the overall economy today.Historically, diesel prices always have averaged lower than gasoline prices. In recent months, however, the trend has reversed.According to the Energy Information Administration, diesel fuel fell less than a penny last week from the previous week's all-time record high to an average of $3.15 a gallon. The near-record price came on the heels of two straight record-high weeks and four overall increases.Gasoline prices fell by 12 cents a gallon to an average of $2.73, according to the EIA. Gasoline prices have dropped more than 20 cents so far this month after topping $3 per gallon in September.The price of a gallon of diesel is 97 cents, 31 percent higher than this time last year. Gasoline prices are 69 cents per gallon, 25 percent higher than in October 2004.Economists say it's just a matter of time before energy prices put a damper on the world economy.Although the global economic expansion appears to have been on a reasonably firm path through the summer months, the recent surge in energy prices will undoubtedly be a drag from now on, said Federal Reserve Chairman Alan Greenspan in an Oct. 17 speech to Japanese business leaders.About 665 million gallons of diesel are used in the United States each week, according to the EIA. The rise in fuel prices adds $645 million each week to the cost of transporting goods.Rising fuel prices are the No. 1 concern in the trucking industry, Graves said. The cargo carried on trucks has fallen for three straight months after rising earlier this year, he said.Trucks carry more than 190 million tons of U.S. freight each week.Refining capacity, already stretched to the limit before the hurricanes, is down about 3 million barrels per day because of storm damage.We have been able to import a little more gasoline but diesel has been hard to come by because there has been strong demand in Europe, said Ron Planting, economist with the Washington, D.C.-based trade association the American Petroleum Institute.Refinery capacity is down to about 13.5 million barrels a day because of hurricane damage. About 21 million barrels of oil are consumed in the United States each day.A bill aimed at boosting U.S. refining capacity is working its way through the Senate. The Gas Price Act was the subject of hearings before the Environment and Public Works Committee last Tuesday and could be voted on within a month.Last week, the House passed a similar bill, the Gasoline for America's Security Act of 2005. The bills focus on expediting the permitting process for new refineries and using closed military bases as refinery sites.We use 21 million barrels of oil a day and only have the refinery capacity for 16 million on a good day, said Rep. Joe Barton, R-Texas, who sponsored the House bill. After Katrina and Rita, we haven't had many good days. rednova.com