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That's raised many questions about how gas is priced at the pump and about the future.
The Tampa Tribune talked to Dave Mica, executive director of the Florida Petroleum Council, for answers to questions on some people's minds:
When will the price of gas come down?
We don't know that. We don't know if it will go down or up. That's a magic question. Markets to investors to the retailer to the producers would all like to know the answer to that
question. World production was high and demand was meeting that. Then, we got a kick in the gut in a significant area.
Can we expect shortages or when will we see the gasoline supply increase?
President Bush ... indicated to the nation that we may see some shortages. Hopefully, they will be isolated. The good news is in the Bay area ... they had uninterrupted deliveries this
week. Pressure from consumers that is driven by fear that they fill up when they have three-quarters of a tank does significant harm to the inventory levels of the state, and it's not helpful.
We do know that
President Bush ... indicated to the nation that we may see some shortages. Hopefully, they will be isolated. The good news is in the Bay area ... they had uninterrupted deliveries this week.
Pressure from consumers that is driven by fear that they fill up when they have three-
quarters of a tank does significant harm to the inventory levels of the state, and it's not helpful. We do know that conservation helps.
Why is there such disparity among gasoline prices even at stations across the street from each other?
Oftentimes, that retailer might have had to pay a bunch more for his supply. That's one thing. Then, one of the things I've found: You see those signs up with the lower price, and there's
no gas there.
Why do some stations change prices two or three times in one day?
Some stations get three or four shipments in a day.
Why are prices so high, and who is benefiting from the additional cost?
That goes back to global oil prices. There is a lot of speculation in the market. And those who have speculated at a lower price would benefit; a big trading firm or a producer of oil. We
import about 60 percent of our crude every day. If you're a big producing company and you're selling at market prices, then you're doing better right now. If you bought on futures three weeks
ago, you can se
That goes back to global oil prices. There is a lot of speculation in the market. And those who have speculated at a lower price would benefit; a big trading firm or a producer of oil. We
import about 60 percent of our crude every day. If you're a big producing company and you're selling at market prices, then you're doing better right now. If you bought on futures three weeks
ago, you can sell at a greater price right now. Oil is the most heavily traded commodity in the world.
How many oil rigs, refineries and pipelines are shut down?
We have about 6,500 rigs in the state waters and in the Gulf of Mexico. The area that was hit is a prime producing area. We know that at least 41 producing platforms have been destroyed.
The good news is that some of those were in shallow waters and were small producers. Conversely, we know that some of the major big ones have sustained some damage, and some are ready to come
back online. We
We have about 6,500 rigs in the state waters and in the Gulf of Mexico. The area that was hit is a prime producing area. We know that at least 41 producing platforms have been destroyed. The
good news is that some of those were in shallow waters and were small producers. Conversely, we know that some of the major big ones have sustained some damage, and some are ready to come back
online.
We're still evaluating a massive pipeline system. Some of the onshore pipeline systems are just starting to come back up online. Some are making good strides.
What can each individual do to help the situation?
They can listen to what the president said and what the governor said and what I'm saying as a representative of the [oil] industry: Use the product wisely.
Compiled by Tribune reporter Will Rodgers