Imagineer
08-28-2005, 06:38 PM
Hurricane Katrina has shut down a signifigant percentage of offshore oil production in the Gulf of Mexico. Also one of our major offloading points for oil tankers is located offshore near New Orleans. Here is a link to the CNN story about the predicted economic impacts of the storm.
http://money.cnn.com/2005/08/28/news/economy/katrina_oil.reut/index.htm?cnn=yes
According to NBC news tonight, gas prices are expected to jump tommorrow by about $0.60 a gallon. The crude oil prices are expected to top $80.00/bbl tommorrow. Natural gas prices are also expected to increase signifigantly. It is unknown at this time how many of the offshore oil facilities will be damaged or destroyed. This could impact oil prices for years.
Heating oil and natural gas could be in short supply, and very high priced this winter, in addition to very high gasoline prices. I hope that we will try to offset the supply shortage with the strategic oil reserve, but this is also uncertain. It is stored in salt deposits in Louisiana, and the infrastructure could also be damaged there.
In addition, the Port of New Orleans could suffer a great deal of damage. This is a major transhipment point for imports and exports for the entire Mississippi River basin. Disruptions could affect the economies of the entire midwest. This years harvest may be stuck in grain elevators rather than being exported. It will be interesting to observe the ripple effects of all this.
http://money.cnn.com/2005/08/28/news/economy/katrina_oil.reut/index.htm?cnn=yes
According to NBC news tonight, gas prices are expected to jump tommorrow by about $0.60 a gallon. The crude oil prices are expected to top $80.00/bbl tommorrow. Natural gas prices are also expected to increase signifigantly. It is unknown at this time how many of the offshore oil facilities will be damaged or destroyed. This could impact oil prices for years.
Heating oil and natural gas could be in short supply, and very high priced this winter, in addition to very high gasoline prices. I hope that we will try to offset the supply shortage with the strategic oil reserve, but this is also uncertain. It is stored in salt deposits in Louisiana, and the infrastructure could also be damaged there.
In addition, the Port of New Orleans could suffer a great deal of damage. This is a major transhipment point for imports and exports for the entire Mississippi River basin. Disruptions could affect the economies of the entire midwest. This years harvest may be stuck in grain elevators rather than being exported. It will be interesting to observe the ripple effects of all this.