And the crude jumped over the Moon…
by Jarret M. on August 28th, 2005
Category 5 Hurricane + 30-foot water surge + major oil network = bad economic news
Hurricane Katrina is nailing in for New Orleans. Besides the fact that the city won’t be there by tomorrow night, there’s the minor issue of our already-taxed and over-used oil infrastructure. A major import station that is several miles off the Lousiana coastline is directly in the path of the hurricane. Small deal, until you realize that this single station handles 11 percent of all U.S. oil imports .
The Gulf of Mexico rigs are also in major trouble. Suffice it to say that they’ll be out of commission for a bit.
Allow me to make a pair of predictions:
1) Oil will surpass $70 a barrel (I mean, c’mon- it already struck $68 last week)
2) Unleaded gasoline in cities will easily buck the $3 per gallon mark.
And I wouldn’t be surprised if oil went past $75/barrel, either… I’m glad that I’m not in New Orleans right now.
1 Comment
Derek W.
August 29th, 2005 at 12:57 pm
I wonder how many, if any of those hard-line environmentalists will be changing their mind about the U.S. drilling for oil in a very small section of that Alaskan Wildlife preservation when they find themselves paying upwards of four bucks a gallon for gas.