America's Gasoline Shortage is a Bigger Threat Than Wall Street Crisis, and Much Harder to Bail Out, Matt Simmons Tells World Energy

Business Wire, Oct 3, 2008

HOUSTON -- "Congress should realize we have two diseases crippling America today," warned Matthew R. Simmons, Chairman of Simmons & Company International. "While the financial crisis is like asthma or tuberculosis to the economy, a gasoline supply crisis could be terminal cancer," Simmons argues. "The government can print more money but gasoline is a hard asset. If we drain the pipelines, we won't be able to drive; if we don't ban driving we could run out of food within 5-6 days and face the greatest crisis in the history of the United States," Simmons said on WorldEnergy.TV, where he focused on the current financial crisis, the price of oil, the gasoline shortages, and the upcoming presidential election.

Because prices have plummeted from a high of $140 a barrel, Simmons thinks we have created the impression that the oil supply problem is solved. "We know gasoline is in short supply but we really don't have an idea as to how widespread the shortage is, when in fact it may be hemorrhaging," said Simmons. "We don't have a Strategic Petroleum Reserve for finished gasoline. If Americans were to suddenly top off their tanks, gasoline supplies worsen and it takes more than 120 days to refine Middle East crude, transport it to U.S. refineries, transfer finished gasoline via pipelines at 4 mph to markets already in short supply like Atlanta, Nashville, Richmond, Baltimore, Charlotte, and along the Northeast."

Matt Simmons has a perspective developed by looking at the data and recognizing the danger signals. Matt tells us that according to the data, oil production peaked in May 2005; we just have not recognized it yet. You can see his comments at www.WorldEnergy.TV.

About World Energy:

World Energy Television produces a wide array of interviews and video concerning relevant issues in oil and gas, available for viewing at www.WorldEnergySource.com, YouTube, Google Video and on select cable channels in major markets. For more than a decade, World Energy has provided inside access to the energy industry through its Web site and publications, including World Energy Monthly Review, World Energy Magazine and World Energy Television. Access to editorials, articles and streaming video is available at www.WorldEnergySource.com.