News reporting is going on that gasoline might top $4 gallon across much of the United States by the end of summer. The Energy Information Agency’s gasoline report provides one sign that this might be the case. This graphic representation of gasoline stocks doesn’t look so good — basically, it shows current gasoline stocks about 10% below the low end of “average” for this time and the trend line isn’t the right way.
As per Lou Grinzo at The Cost of Energy,
No one should leap to conclusions about this. It does not mean we’re headed for $4 or $5 gasoline or lines at the pumps or outright shortages. But it does mean that the people who run the refineries will have their work cut out for them from now until late summer. Remember, as badly as the US oil industry was hit by hurricanes in 2005 the situation remained relatively stable. Yes, prices rose and there were shortages in some places, but the effect on the energy supply wasn’t nearly as bad as it could have been.
This data … and the potential for $4 gasoline … should help drive more purchasers to look to more fuel efficient vehicles and forms of transport.
Perhaps electric bike purchases will pick up?