Homestead mailing list

["Don Bowen" <don.bowen AT earthlink.net>]

> You know what I'm shocked about? Gas prices here have come down by a
> bunch...how can that be when just weeks ago I heard there were placesi
> n the South that had no petrol atall...

It was a problem caused by the hurricanes.  The pipelines were empty and the
refineries were not up to capacity.  That problem seems to have been fixed.

When I arrived in Asheville, NC a month ago many stations only had regular
and that at $3.879.  Yesterday I $2.349 and no blocked off pumps.  

I keep a close eye on gasoline prices for my intended route back.  The trip
from Asheville to Southern California via Missouri will cost $200 less than
the trip from Southern California to Missouri at the end of June.

The price reductions are the result of many things, all temporary.  One is
the renewed strength of the dollar ad investors fear other currencies and
look for a safe haven.  Another is the worldwide drop in demand as the
economy falters.  China has resumed using coal to generate electricity after
the Olympics.  China and India have seen significant slowing in growth.

There other reasons but all are or could be temporary.  Do not expect much
more decline.  The dollar appears to have paused on its relative climb.
Producers and refiners are adjusting to new demands.  World wide shipping
has slowed reducing supplies.  All major oil fields are showing an average
production decline of just over 9%.  

When or if the world economy recovers and China returns to double digit
growth you will see oil prices return to this summers levels.  I am enjoying
these low prices because they help me return to CA but I am not counting on
them to remain this low.  My future planning still includes a lower oil
energy future.

Don Bowen  KI6DIU
http://www.braingarage.com/Dons/Travels/journal/Journal.html