Former Shell CEO Urges Gasoline Rationing Plan
A system to limit gasoline purchases should be considered to curb long lines at service stations for future natural disasters, former Shell Oil CEO John Hofmeister said Thrusday on CNBC.
On "Fast Money," he suggested putting in "a short-term rationing system" that would limit how much gasoline any individual could purchase, as well as alternating by odd and even license plate numbers.
Such a measure, he added, could prevent the hours-long lines at many gas stations seen throughout the New York region.
"You need some kind of order in chaos," he said.
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Hofmeister, who is also founder and CEO of Citizens for Affordable Energy, said that the service stations could also use back-up systems that went beyond supplemental generators. Many gas pumps are also connected to credit card machines, which would have trouble working if telephone lines were down.
In Florida, he added, laws require that gas stations are wired for back-up power.
"With so much electricity out of order, gas stations are just as impacted as a person's house or a retail store," he said. "I would submit that instant generators is not a fix."
Trader disclosure: On Nov. 1, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephanie Link is long AAPL; Stephanie Link is long WFC; Stephanie Link is long SBUX; Stephanie Link is long AIG; Brian Kelly is long SMH; Brian Kelly is long FXP; Brian Kelly is short XLF; Mike Murphy is long AAPL; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is long PFE; Mike Murphy is long V; Mike Murphy is long F; Mike Murphy is long CMI.
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