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Timeline for fuel shortages

General discussions of the systemic, societal and civilisational effects of depletion.

Timeline for fuel shortages

Unread postby TheDude » Wed 05 Dec 2007, 18:02:54

Am curious about how long it will take oil shortages to impact consumers, what the leading indicators will be (beyond the obvious one of lack of oil for refineries), etc. How low will imports have to descend before we have to tap the SPR - and what kind of justification for that could the President offer? If finished products were rationed out, how much time could that buy for mitigation plans to be drawn up?

Been reading about the 1973 oil crisis, and wondered much time it took for the announcement of the embargo and actual shortages to appear - pretty fast, it seems. I notice OPEC played favorites, too:

$this->bbcode_second_pass_quote('', 'T')he embargo was not uniform across Europe. Of the nine members of the European Economic Community (EEC), the Dutch faced a complete embargo for their support of Israel, the United Kingdom and France received almost uninterrupted supplies (having refused to allow America to use their airfields and embargoed arms and supplies to both the Arabs and the Israelis), whilst the other six faced only partial cutbacks.


Maybe they'll go easy on us this time. MAD, you know.

I've noticed a few other timeline subjects here, such as Timeline for collapse (thuja's first post!), and Jack's bit of creative writing, A Doomer’s Midsummer Nightmare, which you Cornies will be sure to snigger at:

$this->bbcode_second_pass_quote('', 'A')s summer 2007 began, gasoline hit $6.00 a gallon; even at that price, it wasn’t always available. Perhaps more problematic were the rolling blackouts in California, resulting in large economic losses and frayed nerves. Nationally, crime increased as desperate people tried to survive price increases for food, gasoline, electricity, and other needs. In formerly middle class households, discretionary income had become a mere memory. Food banks could not keep up with demand, and social services of every sort failed.
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Re: Timeline for fuel shortages

Unread postby Pixie » Wed 05 Dec 2007, 18:51:10

I doubt that the SPR will be used to mitigate a long term oil decline. The SPR is only useful for SHORT term shortfalls, not a long term slide. It's not nearly big enough to mitigate a shortfall that aint ever getting better.

If you ask me, the main purpose for the SPR is war. The SPR is a temporary supply to be used to conduct a war in case we are ever embargoed again. Like food and water stockpiled inside a medieval castle.
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Re: Timeline for fuel shortages

Unread postby Pixie » Wed 05 Dec 2007, 19:07:16

$this->bbcode_second_pass_quote('TheDude', '
')I've noticed a few other timeline subjects here, such as Timeline for collapse (thuja's first post!), and Jack's bit of creative writing, A Doomer’s Midsummer Nightmare, which you Cornies will be sure to snigger at:

$this->bbcode_second_pass_quote('', 'A')s summer 2007 began, gasoline hit $6.00 a gallon; even at that price, it wasn’t always available. Perhaps more problematic were the rolling blackouts in California, resulting in large economic losses and frayed nerves. Nationally, crime increased as desperate people tried to survive price increases for food, gasoline, electricity, and other needs. In formerly middle class households, discretionary income had become a mere memory. Food banks could not keep up with demand, and social services of every sort failed.


Multiply Jack's timeline by 2.5 and I still bet it's fairly accurate. Add in a few select locations on the globe where hydro, wind, nuclear or solar provide a continuing semblance of civilization, at least until the reservoirs silt in, the u238 stops flowing and the solar panels and turbines break down.
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Re: Timeline for fuel shortages

Unread postby billp » Wed 05 Dec 2007, 23:19:09

$this->bbcode_second_pass_quote('', 'B')een reading about the 1973 oil crisis, and wondered much time it took for the announcement of the embargo and actual shortages to appear - pretty fast, it seems.


I was on sabbatical leave in computer science at the university of illinois in 1972-3.

We had just purchased a gas guzzling 1972 Ford F250 4x4 [10-12 mpg] http://www.prosefights.org/sellford/sellford.htm

From my recollections shortages appeared rapidly but on the east coast and in Texas. But not in the remainder of the US.

We were also scared about increased gas prices in 1980.

The Iraq/Iran war.

http://www.prosefights.org/thecanadian/ ... gotstarted

But gas prices declined to about $12 per barrel in 1999. And lots of Texas oilmen went into bankruptcy.

I've been told that George W Bush went into politics when the texas oil business went south.

http://en.wikipedia.org/wiki/George_W._Bush

Let's see what happens this third oil crunch time.

Peak oil may be real?

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Re: Timeline for fuel shortages

Unread postby LoneSnark » Wed 05 Dec 2007, 23:59:23

$this->bbcode_second_pass_quote('', 'B')een reading about the 1973 oil crisis, and wondered much time it took for the announcement of the embargo and actual shortages to appear - pretty fast, it seems.

A similar percentage of worldwide production capacity was cut in 2005 (primarily in refining capacity). How bad was that for you?
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Re: Timeline for fuel shortages

Unread postby Tyler_JC » Thu 06 Dec 2007, 00:10:16

Shortages?

We are always "short" of everything. That's why "price" exists.

Is the question, "what is the time line for rapid price increases?"

I would look at the past few years and plot those out until the recession hits.
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Re: Timeline for fuel shortages

Unread postby alokin » Thu 06 Dec 2007, 05:34:22

I wonder a bit, about the post, because prices are down and it seems that demand declined due to the bad economic decline in the US?
Or are I'm wrong? I didn't realize anything in 2005, maybe because we had "only" car sharing by then.
Is there a current reason for posting this question right now?
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Re: Timeline for fuel shortages

Unread postby TheDude » Thu 06 Dec 2007, 14:29:34

$this->bbcode_second_pass_quote('Tyler_JC', 'S')hortages?

We are always "short" of everything. That's why "price" exists.


I mean shortages as in demand exceeding supply, specifically empty pumps with lines of motorists demanding gas/diesel.

There's always the chance of another volatile hurricane season damaging refineries and rigs, LoneSnark. As it stands people in cold climes are effectively being priced out of heating oil right now, and you have fuel shortages in remote parts of the country too. What's your solution to these problems? Increase wages? We know it's not price controls.
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Re: Timeline for fuel shortages

Unread postby TheDude » Thu 06 Dec 2007, 14:56:47

Hey, how about this timing: IEA: oil demand has surpassed supply

"Posted by Rembrandt on December 6, 2007 - 8:00am in The Oil Drum: Europe "

OMGWTF?

$this->bbcode_second_pass_quote('', 'W')hat is the significance of the current crisis on the oil market?

“The situation on the oil market is worrisome in the sense of there being more demand than supply. This does not mean that we should panic because of an acute shortage of oil, there is sufficient oil in the world. There is production capacity that can be brought to the market by the oil producing countries. But this capacity should be brought to the market to meet supply. So the situation is on overall worrisome, but it is not yet time to panic.”

But if there is more demand then supply then stocks will decrease, how long can the west maintain this situation?

“This is indeed already happening for almost a year. A year ago OPEC decided to decrease their production. They are able to increase production again since the capacity is still there. Because of this decline, however, demand has surpassed supply and the western countries are consuming their own oil stocks to fill the gap. In the last quarter this event was reflected in higher oil prices. It can be solved by increasing production, but then the oil producing countries have to decide that they want to increase production.”
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Re: Timeline for fuel shortages

Unread postby Tyler_JC » Thu 06 Dec 2007, 15:54:31

$this->bbcode_second_pass_quote('TheDude', '')$this->bbcode_second_pass_quote('Tyler_JC', 'S')hortages?

We are always "short" of everything. That's why "price" exists.


I mean shortages as in demand exceeding supply, specifically empty pumps with lines of motorists demanding gas/diesel.

There's always the chance of another volatile hurricane season damaging refineries and rigs, LoneSnark. As it stands people in cold climes are effectively being priced out of heating oil right now, and you have fuel shortages in remote parts of the country too. What's your solution to these problems? Increase wages? We know it's not price controls.


Demand always exceeds supply. That's the entire basis of economics.

If short term demand is greater than current production, inventories drop. This increases the relative scarcity of oil and raises the price of its derivatives (gasoline, diesel, jet fuel, plastics, chemicals, etc.)

Higher prices make substitution more economical and reduce overall demand.

Now if some gas station owner decides to be foolish and let his product "fly off the shelves" for far less than it is actually worth, sure there will be lines. But next time the price tag will be higher and people will make better choices.

Conservation is possible. Car pooling is possible. Making smarter choices about what you choose to drive is a good idea.

Folks are not going to sit in their suburban homes rather than carpool into work with somebody on your street.

Wouldn't it make sense to have several people do their grocery shopping at once rather than each person driving him or herself?

We have a long way to go efficiency-wise before people will be completely stranded.
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Re: Timeline for fuel shortages

Unread postby TheDude » Thu 06 Dec 2007, 17:23:14

$this->bbcode_second_pass_quote('Tyler_JC', 'C')onservation is possible. Car pooling is possible. Making smarter choices about what you choose to drive is a good idea.

Folks are not going to sit in their suburban homes rather than carpool into work with somebody on your street.


I agree, but some here vehemently insist they'll refuse, for some reason. Ridiculous but you can't deny that'll be a severe shock psychologically. And that's a good thing, it'll wake people up and put PO front and center where it should be, and maybe we'll get around to actually coping with it on a large scale.

$this->bbcode_second_pass_quote('', 'N')ow if some gas station owner decides to be foolish and let his product "fly off the shelves" for far less than it is actually worth, sure there will be lines. But next time the price tag will be higher and people will make better choices.


But I'm talking about the lack of availability of the product in the first place, even if only on every other day. What better choice does a motorist have to make? They can go to gasbuddy.com to find the best local prices, but that will only get them so far. Of course there are plenty of fuel efficiency tactics most people don't avail themselves of, simple things like keeping their tires inflated or removing excess baggage.

$this->bbcode_second_pass_quote('', 'H')igher prices make substitution more economical and reduce overall demand.


Substitution can only take place at a finite pace, though, meaning it'll be your second option for most people. Which will make them demand substitutes be made available all the more.
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