From Dr. Jeff Master's Blog at Weather Underground dated 4:42 PM today (www.underground.com):
"Gustav's potential impact on the oil and gas industry
The price of U.S. crude oil has jumped about 2%, and the price of U.S. natural gas has increased 11% in the past two days, in anticipation that Gustav might rip through the oil and gas production areas of the Gulf of Mexico. About 25% of U.S. crude oil and 15% of its natural gas are produced in the Gulf of Mexico. As seen in Figure 3, the oil production areas are concentrated along the Louisiana and Texas coast. If Gustav makes a landfall on the right side of its cone of uncertainty, in Alabama or the Florida Panhandle, the oil and gas infrastructure might not be significantly affected. However, most of the cone of uncertainty lies in the major oil and gas producing areas, and I give a 60% chance that Gustav will significantly hurt oil and gas production in the Gulf."
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60% chance folks! That's real liberal for a cautious meteorologist. That's fitting. No matter what, it looks like a rough ride for the folks around New Orleans (the current storm prediction track puts Gustav there or near there by Monday, September 1). If he holds course it could very well be a Black Monday for the residents of the Big Easy who are still not recovered from Katrina and a Black Monday for the rest of our oil addicted nation.
Hmmm - I wonder if my guess at $4.50 per gallon as a post-Gustav impact was low? Gasoline around here is at about $3.699. As I recall gasoline was at about $1.859 just before Katrina struck. Within 14 days after Katrina had done her worst, gasoline went to $3.239. So, given Dr. Master's forecast, I think there is a chance that all of us just might see gasoline crack the $5.00 mark. I guess we'll all personally feel and know the impact in the next 10 to 14 days.
I'd recommend you all party hardy and really blow your wad during this Labor Day holiday 'cause it's likely to be the last chance you'll get for a long time to come.
"Gustav's potential impact on the oil and gas industry
The price of U.S. crude oil has jumped about 2%, and the price of U.S. natural gas has increased 11% in the past two days, in anticipation that Gustav might rip through the oil and gas production areas of the Gulf of Mexico. About 25% of U.S. crude oil and 15% of its natural gas are produced in the Gulf of Mexico. As seen in Figure 3, the oil production areas are concentrated along the Louisiana and Texas coast. If Gustav makes a landfall on the right side of its cone of uncertainty, in Alabama or the Florida Panhandle, the oil and gas infrastructure might not be significantly affected. However, most of the cone of uncertainty lies in the major oil and gas producing areas, and I give a 60% chance that Gustav will significantly hurt oil and gas production in the Gulf."
______________________
60% chance folks! That's real liberal for a cautious meteorologist. That's fitting. No matter what, it looks like a rough ride for the folks around New Orleans (the current storm prediction track puts Gustav there or near there by Monday, September 1). If he holds course it could very well be a Black Monday for the residents of the Big Easy who are still not recovered from Katrina and a Black Monday for the rest of our oil addicted nation.
Hmmm - I wonder if my guess at $4.50 per gallon as a post-Gustav impact was low? Gasoline around here is at about $3.699. As I recall gasoline was at about $1.859 just before Katrina struck. Within 14 days after Katrina had done her worst, gasoline went to $3.239. So, given Dr. Master's forecast, I think there is a chance that all of us just might see gasoline crack the $5.00 mark. I guess we'll all personally feel and know the impact in the next 10 to 14 days.
I'd recommend you all party hardy and really blow your wad during this Labor Day holiday 'cause it's likely to be the last chance you'll get for a long time to come.
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