[BitterSweetCrude]

$this->bbcode_second_pass_quote('', 'T')he Emergency Petroleum Allocation Act (HR 3722) would direct the government to establish controls on gas prices during fuel emergencies. At the current time, the bill would limit gas prices at $2.50 per gallon, which was the national price average before Hurricane Katrina hit the Gulf coast.

Under the Act, Congress could also direct the President to take a variety of other actions to reign in oil prices, such as ordering refineries to modify their output, and controlling the accumulation of oil by importers, producers, refiners, marketers or distributors.

At a time when we are not getting any leadership from the White House, the responsibility falls on the leaders of this Congress to do all they can to ease the burden of high gas prices. I hope you will join me in urging the leaders of the Energy Committee to pay immediate attention to this issue, examine the practice of zone-pricing in the oil industry, and review the efficacy of designing temporary gasoline allocations during fuel emergencies. - LMS"The Emergency Petroleum Allocation Act (HR 3722) would direct the government to establish controls on gas prices during fuel emergencies. At the current time, the bill would limit gas prices at $2.50 per gallon, which was the national price average before Hurricane Katrina hit the Gulf coast.

Under the Act, Congress could also direct the President to take a variety of other actions to reign in oil prices, such as ordering refineries to modify their output, and controlling the accumulation of oil by importers, producers, refiners, marketers or distributors.

At a time when we are not getting any leadership from the White House, the responsibility falls on the leaders of this Congress to do all they can to ease the burden of high gas prices. I hope you will join me in urging the leaders of the Energy Committee to pay immediate attention to this issue, examine the practice of zone-pricing in the oil industry, and review the efficacy of designing temporary gasoline allocations during fuel emergencies. - LMS

[Grimnir]

If it passes, would we be able to say the gasoline economy had been Slaughtered?

[Revi]

I don't know who will sell the stuff. Gasoline is going for around $2.25 wholesale. Who is going to truck it, pay staff, keep things running for a quarter? I doubt if it'll happen, but if it does, there will be no retailers willing to sell gas. The government will have to do it. And we know how well they do things.

[emersonbiggins]

Sounds awesome! Let the government absorb the real market price of oil and let the consumers have their $2 gas. And when the bill comes, the government simply won't pay it! What are "they" going to do? America can't file for bankruptcy!!!! The government is above the law!

*morons*

Actually, I would love the ability to take off work for about 6 hours and sit in a gas line for 4 of those hours in order to save 50 cents on a gallon of gas. Woohoo! I saved 5 bucks!

[pea-jay]

I think Gas caps would be a wonderful idea, if AND ONLY IF, it is accompanied by a ration-and-and trade system. For example, we cap gasoline at $3 AND allocate a fixed amount of gasoline allowances to every (working) vehicle in the country. That amount would be equal to what can get refined domestically. If you use less, you can put the credits up for sale. If you need more, you have to bid for them. Then, each year the government reduces the number of credits available.

Transit, Truckers and farmers would be exempted initially.

If crude prices rise, that cost figure could be adjusted upward.

Couple that with no drive days, mandatory car pooling and forced retirement of gas guzzlers, we could save some oil in a real hurry and manage the inevitable decline somewhat. The key is make it tougher each year without turning it into a free-for-all bidding war. Supply and demand will always balance somehow. Its better for society that it happens with a fixed 3 to 4 per gallon price accompanied by gas ration credits rather than by whole segments of the economy dropping out as gas marches north of 5 per gallon. Or ten.

Shared pain.

[Dan1195]

I suspect this bill is nothing more than pandering to voters who will only read "my congressman is trying to lowe the gas price" and dont understand the ramifications if such a bill were to actually pass. Besides the wholesale price issue, this is only inviting Americans not to conserve, triggerings actual shortages quicker.

[alecifel]

Could you cite a source?

HR3722 Googles as an immigration reform bill.

The Emergency Petroleum Allocation Act was passed in 1973 after the American oil peak. It was a tremendous flop, and everybody knows it.

Is this piece of proven legislative excrement being resurrected a third time? Please provide a link.. I want to know more.

[alecifel]

here's a pretty good summary of the federal price-rigging powers I found.

http://www.fas.org/sgp/crs/misc/RS22236.pdf

[alecifel]

Whoops I see your link at the bottom there. This guy needs to get his facts straight. HR3722 was a bill to allow illegal immigrants to receive health care benefits.

Perhaps we should write him a letter explaining basics of geology and logistics. "Imagine you have an orange...."

[emersonbiggins]

The neocons over at freerepublic have shed their libertarian skirts and are already calling for practically hanging Exxon executives, a suspension of federal and state gas taxes, the elimination of all environmental regulations concerning drilling in the U.S. (apparently, the U.S. didn't peak in 1970, they just weren't allowed to drill where they needed to ) and a windfall profits tax. Basically, what the democrats are asking for these days.

And gas is only $3/gal, folks...

[DantesPeak]

First, let me state that something should be done to reduce gasoline demand and, unfortunately, the federal government is likely the only one in position to do it if - and that's a big if - the rest of the world is still content to exchange ever greater amounts of goods like energy for US dollars. Currently the rest of the world is absorbing almost $1 trillion a year in dollars, and the US reaps the high life of those world savings.

Any energy plan to allocate gas, by price or direct controls, assumes that energy supplies are more or less stable and that the US dollar will still be accepted as payment for oil. For the last 25 years, that assumption has proved to be mostly true. In the future, there may well be less oil and less universal accpetance of the dollar at face value. Rapidly escalating commodity prices are telling us the end of the US regime started under the Bretton Woods conference may be nearing its end.

Since only about 3 or 4 Congress persons out of 435 actually understand the reality of the situtaion, it is unlikely that they will come up with helpful solution. More likely, they will come up with a counter-productive 'solution'.

[oil4u]

$this->bbcode_second_pass_quote('pea-jay', 'I') think Gas caps would be a wonderful idea, if AND ONLY IF, it is accompanied by a ration-and-and trade system. For example, we cap gasoline at $3 AND allocate a fixed amount of gasoline allowances to every (working) vehicle in the country. That amount would be equal to what can get refined domestically. If you use less, you can put the credits up for sale. If you need more, you have to bid for them. Then, each year the government reduces the number of credits available.

Transit, Truckers and farmers would be exempted initially.

If crude prices rise, that cost figure could be adjusted upward.

Couple that with no drive days, mandatory car pooling and forced retirement of gas guzzlers, we could save some oil in a real hurry and manage the inevitable decline somewhat. The key is make it tougher each year without turning it into a free-for-all bidding war. Supply and demand will always balance somehow. Its better for society that it happens with a fixed 3 to 4 per gallon price accompanied by gas ration credits rather than by whole segments of the economy dropping out as gas marches north of 5 per gallon. Or ten.

Shared pain.

[SoothSayer]

I saw a comment yesterday saying that the US military should be exempt from any fuel cuts / cutbacks because "they use such a small fraction of the total consumption". [Sorry, no link]

I suppose lawyers will claim exemption too. And other small groupings such as politicians, local government officials, tax officials etc.

Which will leave ... yes, The Consumer to suffer the shortages and price hikes.

Our Lords & Masters will of course need access to fuel to "better serve the Nation" ....

[donshan]

According to this news item from Bahrain, President Ahmadinejad has announced Iran needs to stop imports of gasoline/diesel for "national security reasons" and will begin a rationing program this September.

This is yet another sign that Iran is preparing for war!. If the US was as serious about the impact on our economy by a cutoff in oil imports, Bush would have a gas rationing plan in the works too along with all his Iran war plans and be preparing the American people for gas shortages.

This news item raised my doom level yet another notch. If Bush attacks Iran, the US will compound the strategic blunder of Iraq into chaos of untold proportions. Gas rationing will be one of the minor problems!

http://www.gulf-daily-news.com/Story.as ... ueID=29033

$this->bbcode_second_pass_quote('', 'T')ehran rules out petrol import plan

TEHRAN: Iran's president said yesterday the country should depend on domestic petrol rather than imports in the second half of the Iranian year, which starts in September, and would have to impose rationing from then.

Iran's domestic production of petrol does not meet local demand, forcing the world's fourth largest exporter of oil to import oil products.

Parliament has cut the budget for petrol imports this Iranian year, which began in March.

"We can import for the first six months of the year, and it means that for the second six months we should consume domestic production only, which means we would naturally move towards some kind of a rationing," President Mahmoud Ahmadinejad said.

His announcement coincides with mounting tension over Iran's nuclear programme.

Many Iranian officials have stressed Iran's dependence on imported gasoline threatens national security

[pea-jay]

$this->bbcode_second_pass_quote('', 'M')any Iranian officials have stressed Iran's dependence on imported gasoline threatens national security

[Terrapin]

$this->bbcode_second_pass_quote('alecifel', 'W')hoops I see your link at the bottom there. This guy needs to get his facts straight. HR3722 was a bill to allow illegal immigrants to receive health care benefits.

Perhaps we should write him a letter explaining basics of geology and logistics. "Imagine you have an orange...."

[mjdlight]

This bill has as much chance of passing as Charles Rangel's bill to reinstate the draft did. And that would be about 0%. This is pure political grandstanding, nothing more.

What will the goverment do when gas hits 4-5 dollars a gallon? Direct you to more credit card applications.

If it works for them, why shouldn't it work for you?