Fears of gas shortages growing across America

by Troy Kehoe (tkehoe@wsbt.com)

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Fears of gas shortages growing across America

As prices at the pump continue to rise, fears of gas shortages start to grow across the country. (WSBT photo)

By WSBT News1

SOUTH BEND — A new poll released Tuesday shows an increasing number of Americans are worried they could soon be forced to wait in line to buy rationed gas. It's an even bigger worry for some than high prices at the pump.

The poll comes from CNN/Opinion Research, and it shows something unexpected: more Americans are more worried about gas shortages, long lines and rationing, than high prices.

55 percent of the 1,035 drivers surveyed by phone for the poll last week listed long lines at gas stations and gasoline rationing as their number one energy worry. 40 percent responded that high gas prices were their main concern.

The survey carries a margin of error of +/- 3 percentage points.

It's a reminder of a different era, when gas shortages were front page news.

In 1973, long lines, quota signs, and empty gas pumps were common sights. But Notre Dame Economics Professor Dr. Thomas Gresik says there was little other choice.

"That was a serious problem because there simply was not enough oil coming into the United States," he said. "There had to be rationing."

But the supply eventually grew.

So did prices.

By 1979, the jump at the pump was so bad, then President Jimmy Carter implored Congress to impose "price controls,"-- a sort of "artificial ration" aimed at lowering the price at the pump.

Decreased demand equals increased supply, and thus, lower prices.

And oil costs did drop, at least temporarily. But the drop came at another cost: those familiar long lines and inconveniences of gas available only a few days a week.

Now, it seems at least some drivers fear that happening again.

While neither Congress or President Bush have given any indication that rationing is even on their radar as a potential solution, Dr. Gresik isn't convinced it hasn't crossed minds in Washington, D.C.

"Given what I've seen in Congress, anything is on the table," he said.

The reason for the fear is convenience, he added.

Even at $60 or $70 per fill up, many drivers say they're willing to toe the line between easily accessible gasoline and higher prices. Simply put, they're willing to pay a little more to avoid being inconvenienced.

"I hope they don't do that," said South Bend driver Curtis Scott, Jr. "It worries me, because I don't want to have to wait and wait in line for it."

"I'd be against rationing," agreed driver Kevin Deneen. "I don't think it would solve the purpose they're trying to accomplish. It's a quick fix. I get scared of quick fixes."

"It's a band-aid to me," nodded driver Dan Kagarise. "I don't know that it would really be the best solution."

Dr. Gresik agrees.

"If we want to see some policy that's really going to mess up the availability of gasoline in this country, and create long lines, price controls would certainly be it," he said.

The problem, he says, is supply.

"Right now, at current prices, the quantity of oil demanded is equal to the quantity supplied. People want to see lower prices. But what they don't realize is that there's two important factors in any market: price, and quantity. Unless you can control both, there's always going to be unexpected consequences," Gresik said.

It's one reason why he doesn't believe Congress will move forward with any sort of rationing plan in the near future. But that could change if oil prices continue to rise.

Meanwhile, alternative plans to deal with the soaring price at the pump continue to hit gridlock.

On Tuesday, Democrats in the U.S. Senate pushed legislation to impose a "windfall profits tax" on the five largest U.S. oil companies. They claim it would address America's anger over prices, and "big oil" could afford it after reporting $36 billion in profits in just the first 3 months of this year alone.

But Senate Republicans say a new tax won't fix the Country's energy problems. They want to expand domestic oil production, and used a filibuster to block any action on the energy package on the Senate floor. Democrats couldn't muster the 60 votes needed to consider the motion, so it failed.

Dr. Gresik says it's a dangerous line to walk.

"We already have a record of how windfall profit taxes work," he said. "Congress implemented them on the oil companies in 1979, in reaction to exactly the same situation [we have now] and it made the problem worse. Windfall profit tax is a backward looking policy. It hurts the incentives for future investments in production, which is what we need to get lower prices."

The only solution, Gresik says, is an alteration in the equation: decrease demand or increase supply. Since it appears, so far, that Americans are unwilling to alter their energy consumption levels, he says lower prices will only come through increased supply from new drilling sites or expanded refinery capacity.

Until that happens, he predicts prices will remain steady or rise slightly. And a huge increase, he says, isn't out of the question.

"We could hit 5 [dollars] a gallon," he said. "It is possible. In fact, it will happen if we don't make some changes."

Friday, Jul 4 at 9:51 AM boomer954 wrote ...

i can solve our problems with high fuel prices & food prices! vote out the career politians that's how. it doesn't take a rocket scientist to know thay are bought off. but people are not smart enough to figure that out they would rather blame the president than the source a house and senate of crooked politians!!!!!!

Friday, Jul 4 at 7:26 AM Anonymous wrote ...

Has anyone seen a gas station with out gas yet? No, speculators are buying up gas with no intention of getting delivery. They just want to drive up the prices. Sounds like price fixing to me.

Sunday, Jun 15 at 4:01 PM Rusty Carr wrote ...

Why is the U.S. not the same as the Japanese or chinese, they know the solutions to "the Fuel Crisis" and its simple... Electric is the way to flying vehicles and better ways to commute! The chinese are one of our main resources for trade, lets trade ideas and concepts to better the planet and the "falling Economy"!

Saturday, Jun 14 at 2:24 PM dany wrote ...

Just mention the word ration will cause people like me to hoard it. Just spent $4500 on a storage tank and gasoline, enough for 6 month supply.

Saturday, Jun 14 at 12:17 PM rising prices wrote ...

if you want to start pointing fingers let me be the first THE GOVERMENT is lining there pockets and killing the american people with high prices i want to know what in the heck heating bills higher gas higher electric higher food higher every thing costs more and our bay stays the same how in the heck are people going to make it while the goverment sits and lines there pockets its bull crap to me there has to be somthing we can do to put a stop to this crap America the Beautiful i dont thing so

Thursday, Jun 12 at 11:24 PM Larry wrote ...

I want to know how it is possible that everyone I know is cutting back on their fuel usage and downsizing their vehicles. Mass transit ridership is setting new records, airlines are parking inefficient planes etc,etc,etc.... Yet there seems to be no impact on the amount of oil we as a nation are using. This information has served more than once in the last few months as further justification for the continued price run up. This does not pass the smell test for me. Someone is cooking the books.

Thursday, Jun 12 at 5:35 PM I can see it coming wrote ...

Here's how it will go; everytime the media announces that Obama has a slight lead in any way shape or form, the price will move; first down, than higher than it was before. In October, the Rebublicans will come up with the magic formula to reduce gas prices close to $3 a gallon. After the election but before Christmas, the prices will rise to almost $3.75. After the Christmas season, look for $5 a gallon this time next year, we've been getting set up for it for a long time. Mark my words.

Thursday, Jun 12 at 10:07 AM lorri wrote ...

the gas is now 419 a gallon

Thursday, Jun 12 at 9:02 AM Jon Mitchell wrote ...

fueled by the media?

Thursday, Jun 12 at 7:33 AM puzzled wrote ...

what gets me is that canada hasnt gone over 1.12/gal. y i asked.. it is because they pump there own oil.. y in the heck cant we pump our own oil and keep the price down.. it is stupid that we have to go to other countries for it when we can pump our own.. to me it is just people being money hungry.. i am a single mom and go no were and still cant afford it..

Thursday, Jun 12 at 7:05 AM TJ wrote ...

36 Billion in three months. Crumbling refining plants that have to "shut down for maintainence" in high demand times. Does anyone else smell something?? Ripping people apart who have a fragile grip on life as it is, for economic gain, will have to be paid for at some point. The price may be VERY steep.

Thursday, Jun 12 at 5:13 AM Yeah Right wrote ...

Blame the government. The government gets at least rwice the amount, in taxes from each gallon of gas, that "big oil" makes in profit.

Wednesday, Jun 11 at 8:44 PM Barry wrote ...

Bring the BOLT electric buses back. Get rid of the $6000,00.00 trollies.

Wednesday, Jun 11 at 8:23 PM Brad wrote ...

The government could step in and subsidize electric vehicle prices. A temporary fix I know and apparently now there is a concern regarding the batteries and disposal. I would rather the money be spent this way than protecting the Pres and V.Pres for 6 months after their term, something both can afford on their own.

Wednesday, Jun 11 at 8:09 PM Anonymous wrote ...

There is no shortage! OPEC has said that the demand is not there for a shortage. Blame demos, treehuggers and environmentalists for our predictament. DRILL IN THE U.S. and you'll get the monkey off our backs! DRILL IN THE U.S.

Wednesday, Jun 11 at 8:08 PM Anonymous wrote ...

blame the democrats and the treehuggers for our problems. If we drill on our soil we do several different things. (1) will reduce our dependence on foreign oil, (2) we create hight paying jobs (3) will reduce cost of oil because we won't be buying it and (4) we get the monkey off our back. The only people we needed blame is the demos and environmentalist and celebirty gasbags.

Wednesday, Jun 11 at 7:40 PM Sad Sack wrote ...

On 22 news tonight they had a story that Toyota will have a Prius out in 2010 that will get over 100 mpg in gasoline mode and will go 40 miles in pure electric mode(short trips). Once again the Japanese have trumped us and will continue to dominate the market. Large trucks and SUVs are being advertised 5-6 thousand off, must sell, sacrifice. Our automakers are pathetic in not having a desirable fuel-efficient car to offer. This crunch has been coming for decades. Will we survive the coming chaos

Wednesday, Jun 11 at 7:35 PM CB wrote ...

I'm thinking someone's sitting on the oil to drive the prices up. I feel secure in saying that I hope Big Oil is enjoying life now because in the next life they're probably going to have to pay for raping hard working people. I ride a scooter, when the weather permits, I laugh and laugh when I go to the pump once a week and put my 1 gallon in...there you go Big Oil!

Wednesday, Jun 11 at 4:53 PM rcculver wrote ...

Better get used to the price. As long as the environmentalists will not let us drill in our own country we will be dependent on foreign oil. t on foreign oil.

Wednesday, Jun 11 at 4:39 PM An old sorehead wrote ...

Make real changes in your driving habits. Take the bus, walk, ride a bike. Don't run around as if gas is still cheap. Move closer to your work. Cut out the things in your life that you don't really need. You CAN make changes. If not, don't blame anyone but yourself. If you use half as much gas as you do now the it will be as if gas was only $2/gal.

Wednesday, Jun 11 at 3:26 PM nathan wrote ...

truthfully, congress should not allow oil companies nor the health industry to charge as much as they do. it is all about money and we as americans are getting raked over the coals. and this is by our own fellow americans,too! WE wonder why this great country of ours is headed in the dismal direction it's going. I love this country but greed is shaking our foundations along with immorality and we are paying the price.The birth pangs are here...... but corruption marches on. read God's word!

Wednesday, Jun 11 at 3:15 PM betty wrote ...

oh my gosh thank you i never thought about not having gas i guess i just always get gas and its just there now i am going start saving gas in gas cans and stuff in my garage in case it runs out i can still have some then ill be driving around and everyone wilkl say hey how come you have gas when theres none to have and ill say because i saved it i wonder if theres like a gas bank or something you can deposit gas and get it later but anyway yeah now im scared of no gas too thanks a lot sbt

Wednesday, Jun 11 at 2:51 PM vet wrote ...

Junkyard Dog , just elect a Demo. Pres. and there won't be any shortage of money - they will just print more!!!

Wednesday, Jun 11 at 11:27 AM Junkyard Dog wrote ...

I think that it isn't the gas shortage that people should be worried about, it is the money shortage to buy the gas they should be worried about!

Wednesday, Jun 11 at 9:06 AM PETE wrote ...

there won't be a shortageof gas. because at $4-$5 the people won't be able to afford it. so there will be plenty

Wednesday, Jun 11 at 8:36 AM John Pillow wrote ...

Never even thought about this, until I read this story. I`am also sick of hearing about gas prices!

Wednesday, Jun 11 at 8:30 AM T Gaskill wrote ...

My feeling has always been that we have no shortage of oil and there's data that shows that. The government is just making sure we save ours for the future. If we used all of ours then was not able to get any during a war then our military would be crippled. Some of you might be interested in this video, it's very long but very interesting. http://video.google.com/ videoplay?docid=33402746971 67011147

Wednesday, Jun 11 at 8:09 AM Joel wrote ...

Why is this news? This is total speculation based on a poll from people who have no facts other than fear. Stick to what's actually happening.

Wednesday, Jun 11 at 8:09 AM dh wrote ...

we all no about the gas prices so stop with the storys because you are just getting people up set

Wednesday, Jun 11 at 8:04 AM This is driving me CRAZY wrote ...

I'm so sick of hearing about gas prices. Will it ever get better? It's like the government doesn't care if Americans are spending every last penny on gas. How do they expect us to go to WORK?!???

Wednesday, Jun 11 at 1:20 AM I've seen enough wrote ...

Yesterday I pulled into a station to put several gallons of gas in my truck and a woman at the pump next to me was crying. I was concerned but said nothing. She shut the pump down with $12 worth of gas on the pump then got in her car and sat there. She got out of the car sobbing as if she was in pain and said she didn't have the money to pay for the gas and she couldn't bring herself to steal it. She wanted to know if it could be retrieved from the tank. This crisis is hurting really good people

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