America’s gasoline shortage is a bigger threat than the financial crisis, WorldEnergy.TV interviews Matt Simmons.

“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 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 North East.”
 
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.