GAS SCARCITY

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GAS SCARCITY
GAS SCARCITY

• Presented By
• Enenwan Akpan-Iquot
• TCOM 4045
• 11-22-2005

Presented By Enenwan Akpan-Iquot TCOM
4045 11-22-2005
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What is Gas Scarcity?
Tuesdays average is about 16 cents higher than
last months average and about 33 cents higher
than this time last year. For several weeks,
analysts have predicted new record high prices
this spring, said Dawn Duffy, AAA spokeswoman.
The same dynamics that created record high
prices last year still exist today, including the
seasonal switch to summer fuel production. The
one difference is that crude oil traded at 37
per barrel a year ago, but now hovers near 54
today. The U.S. government also this week said
gasoline prices are within a cent of its
record. The AAA conducts surveys published fives
days a week while the U.S. Energy Information
Administration publishes weekly surveys of
gasoline pump prices. Diesel fuel pump prices are
also near a record, hitting 2.234 a gallon
Tuesday, which is only 1.5 cents less than the
record set last Nov. 1. AAA is the largest motor
club in the United States.

• Gas Scarcity simply means that gas is in
  insufficient supply.

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This could be attributed to several factors,
such as

• The various blends of gasoline as mandated by the
  federal and state governments, some of which are
  more expensive to produce than others. As a
  result, refinery businesses may not have any
  incentive to produce them.
• Reluctance on the parts of states like Florida to
  open up their gulf shorelines to oil exploration.
• Refinery numbers not increasing to match demands,
  in part due to tough EPA restrictions. As a
  result, the available refineries are already
  working at 100 capacity. Any hiccups, like
  hurricane Katrina for instance, could trigger
  scarcity.

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What caused the recent gas scarcity?

What caused the recent gas scarcity?

• Hurricane Katrina the hurricane damaged
  facilities of the company that delivers gas from
  Louisiana to Georgia
• Consequently, this damage spawned rumors that
  Georgia would be out of gas 10 days following
  Katrinas aftermath. Georgia drivers then
  flocked to the pump in droves to purchase
  whatever gas they could find, which also lead to
  price gouging on the part of some gas stations

• Hurricane Katrina the hurricane damaged
  facilities of the company that delivers gas from
  Louisiana to Georgia
• Consequently, this damage spawned rumors that
  Georgia would be out of gas 10 days following
  Katrinas aftermath. Georgia drivers then
  flocked to the pump in droves to purchase
  whatever gas they could find, which also lead to
  price gouging on the part of some gas stations

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How to Save Gas
How to save gas, Continues

• Car Care
• Check air pressure of tires
• Avoid frequent stepping on accelerator
• Avoid long idling periods mostly during rush
  hour
• Obey speed limits, imposed in the 70s to help
  conserve gas
• Clear car of excess weight
• Drive with windows down as opposed to using the
  air conditioner

• Walk more
• Carpool if you must drive
• Combine errands
• Shop online let others burn the gas
• Telecommute

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Free Gas For You

• 3movie.wmv

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How to save gas, Contd.

• Car Care
• Check air pressure of tires
• Avoid frequent stepping on accelerator
• Avoid long idling periods mostly during rush
  hour
• Obey speed limits, imposed in the 70s to help
  conserve gas
• Clear car of excess weight
• Drive with windows down as opposed to using the
  air conditioner

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We Cant Afford Our Gasoline

• Movie1.wmv

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How to Avoid Dangers of Storing Gas
How to Avoid Dangers of Storing Gas

• Always use approved containers to store gas
• Always touch the side of the container to
  discharge any static electricity that may have
  built up
• Store gas containers in a cool environment

• Always use approved containers to store gas
• Always touch the side of the container to
  discharge any static electricity that may have
  built up
• Store gas containers in a cool environment

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High Gas Pump Prices
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The Effect of Gas Scarcity on the Economy

• Gas scarcity leads to higher gas prices.
• Higher gas prices lead to an increase in cost of
  production to businesses
• This increase in cost is then passed on to the
  consumer in the form of higher prices.
• Consumers in turn ask for higher wages to combat
  the higher cost of goods
• Ultimately, inflation sets in and the economy
  stalls (in the form of recession which could lead
  to a depression) as consumer spending dips

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• Any Questions