At the time of this writing, the Colonial Pipeline that was hacked on May 7 has been back up and running for a few days, restoring normal levels of fuel to the parts of the United States that were facing shortages about one week ago. This was because the pipeline, which just so happens to be one of the most important ones in the country, was forced to temporarily shut down — leading to shortages that drove up prices and instigated panic buying.
In the days following the ransomware attack, gas prices nationally increased by nearly 2.5 percent (though some areas saw increases of up to 11 percent) — and even though the United States is past this gas crisis, experts say that high gas prices are something Americans should get used to this summer. It’s largely because vaccinated Americans now have the confidence to travel again.
Flashback to April 2020 for a moment. The United States was largely on pause. Non-essential workers were asked to do their jobs remotely, airlines were practically grounded and nobody was going anywhere or doing anything. As a result, the demand for crude oil plummeted — and so did the price per barrel. As we began to understand more about the coronavirus and what activities were and were not safe, people began to do more into late spring and summer 2020. Oil producers also adjusted their outputs to help stabilize prices. Overall, however, the average price for a tank of gas remained low.
And that’s what brings us to February 2021, which is when gas prices stabilized to pre-pandemic levels — and because there’s more demand for gasoline, it’s going to cost more. The Colonial Pipeline shut down temporarily escalated gas prices due to a shortage of fuel in areas of the country, but it’s not going to be the reason why gas costs more this spring and summer than it did a year ago. Demand is the true reason. And with more than one-third of Americans already fully vaccinated and about half of all Americans half vaccinated, it’s estimated that nearly 80 percent of Americans will be hitting the road this summer.
When it’s all said and done, that looks to be an increase in travel activity upwards of 60 percent of what it was a year ago. Though many Americans may scoff at higher gas prices, the reason for it is actually a good one. It means that life is getting back to normal.
The Colonial Pipeline hack was unfortunate. So too was the $5 million ransom that the owners of the 5,500-mile pipeline had to eventually pay to the hackers. Also unfortunate was the panic that it set off in certain parts of the United States. We’re beyond that now, and while many may assume that higher prices this summer are related to that, know that they’re not. They’re related to higher demand for fuel.
I know that when the gas stations shut down they still had fuel products in their tanks. They all shut down the same time. When they reopened they all opened the same time. There were no delivery trucks involved. When they opened the prices were up.
So who is fooling who.?
Exactly, I really don’t think it was “hacked” AT ALL , Just think about WHO was hurt by it. The VERY PEOPLE that they call deplorable and don’t wear mask’s , THE SOUTH ..
Prices had been maintained at a low level well prior to April 2020, with a robust active economy humming along. This position doesn’t hold water.
Biden said during the campaign he was going to take fossil fuels away from the public. No one believed him. Well here we go. He shut down domestic production, cancelled pipeline projects and all those jobs while he funds Russian pipelines. So Soviet Biden is no friend to America or the economy.
We are now fully dependent on foreign oil again so we must pay the price. Biden destroyed in 3 months everything Trump accomplished in 4 years.
I grew up in Alberta Canada. I worked maintainence on the pipeling of Bow River Pipelines owned by Charlie Koch at that time. 1978-1980.There were three looped lines sending 2,000 BPH going north to the TransCanada pipeline traveling east to Ontario. There was a loop head south to Shelby, Montana. In the several oil leases around us most wells were capped off. we did not have the ability to ship all the oil found. AS for natural gas at that time the region had 1000 wells drilled and erery one hit and was a potentially a productive well. It seemed we were floating on oil. We never had a pipeline spill. Why the hell this administration has shot itself in the foot from getting oil from a bordereing ALLY is confusing. I am now retired US army.. Canada has billions of barrels of oil. The keystone would provide thousands of jobs and millions of barrels of oil.
Just another way for the liberal socialist communist government of the FRAUD president and his greedy power hungry, MONEY & CONTROL, administration to destroy this country. Why are we buying oil from foreign countries when we have such abundance that we ,under PRESIDENT TRUMP, had just about attained complete self sustaining with our own resources??? Is it to fill the pockets of the greedy money hungry Demo-RATS???
And also to KILL all the jobs related to this industry and those who depend on this product. The socialist demo-rats have put people out of work and now using the Covid-19 to keep them out and run up our national debt by giving small payments so people will stay away from work thus causing this country to become “SLAVES” for the liberal socialist dictator government.
BI DEN IS A TRAITOR TO THIS COUNTRY @ SHOULD BE IMPEACEACHED .HE IS ALSO THE BIGGEST IDIOT PRESIDENT THIS COUNTRY NEVER ELECTED.HE IS THE WORST OF THE WORST.HE IS ALSO THE MOST DANGER EST PERSON THIS WORLD HAS EVER PRODUCED .WHO WOULD INTRUST THE FATE OF THE ENTIRE WORLD INTO THE HANDS OF A LUNATIC .? HE IS ABOUT TO BRING US TO ARMOGEDDEN WHICH THE WORLD HAS TALKED ABOUT FOR THOUSANDS OF YEARS. HE IS THE PRECURSER TO THE FALSE PROPHET MENTIONED IN THE BIBLE. THE MID TERMS WILL DECIDE WHICH WAY THIS COUNTRY WILL DECIDE ITS FATE.AND A RETURN T0 SANITY.AND HOPEFULLY PRESIDENT TRUMP WILL BE ABLE TO TURN THIS COUNTRY AROUND WHEN HE IS REALECTED NOTHING IS SET IN STONE. SO THINGS CAN CHSNGE UNDER HIS LEADER SHIP @ GODS HELP.