Gas price spike could be worse than post-Katrina

[rainbow4321]

If you haven't filled up the tank yet, you may wanna do so ASAP.


http://www.chron.com/cs/CDA/ssistory.mpl/special/05/rita/3362796


There are 10 refineries in the Houston area representing as much as 13 percent of the nation's refining capacity. These facilities and countless chemical plants, located on the bays and bayous in Harris and Galveston counties, are at risk from storm surges like those that came with Katrina.

One worst-case scenario modeled by Houston engineering firm Dodson & Associates predicts that a Category 5 storm coming ashore near Freeport could send a wind-driven surge of water up Galveston Bay and into the Ship Channel. Such a storm would swamp many of these facilities, according to the study. The city is home to the nation's largest refinery, Exxon Mobil's Baytown facility, which processes 557,000 barrels a day.

Hurricane Rita may not pack the same punch as the storm envisioned in the study, and Houston is not below sea level like most of New Orleans. But with four refineries still out because of damage from Katrina, any lost capacity could add to high gasoline prices.

"People think there was a national impact from Katrina," said Chris Johnson, president of Dodson & Assoc. "But if a storm that size hits here it will be a bigger deal."

[Skink]

1. Last night regular was 2.50 in San Antonio.

Gonna fill the whole tank right now.

[Loge23]

2. interesting scenario, but what's really driving prices?

Average price of unleaded regualr rose 45% in my market from Jan - Aug (pre-Katrina). Then, a 20% spike from Katrina (making it +73% Jan-Sept.). Now, after dramatic slippage by bush in the polls, prices have just as dramatically dropped 10% in the last 5 days!!
What happens next is anyone's guess.

[orwell]

6. Speculation

About 20% of the current high price is directly due to speculation in the commodities markets...so sayeth some oil commodity analysts.

They arrive at this figure by comparing relative supply/demand curves and refining capacity.

There is no doubt that speculation has added some premium to current world oil prices. How much is debatable. But 20% does not seem out of line.

[MadHound]

3. Whether or not Rita hits, prices are going to continue to climb

Slowly but surely, we're running out of oil. The oil companies, making their obscene profits, are going to ride this baby until it goes over the cliff. The government, being beholden to the oil industry, is going to do nothing to prevent the disaster. Thus it is up to you and me.

Conserve in what ever way you can. If you own your own home, then you had better start seriously thinking about installing a wood stove and solar panels, even a wind turbine if you've got the land for it. If you've got the space and place, start growning and preserving your own food next spring. Think about getting a really super efficient vehicle, a hybrid or better yet a motor scooter. Or perhaps buy a diesel vehicle and make your own biodiesel.

The mother of all energy crises is just around the corner, whether Rita hits or not, and the population in general is being left hung out to dry. Thus, you should be making what-ever preparations that you can make. For things are going to get quite ugly, and it could very well spell the end of the American empire.

[lastliberalintexas]

4. News said Texas coast responsible for 40%

of nation's refined gasoline. Houston/Baytown, Texas City, Bmt/Port Arthur, Corpus, Deer Park- the list goes on and on.

[Whoa_Nelly]

5. Here in Central CA reg. gas just went down to 2.99

I filled up yesterday. Should last me for about two weeks.

[Jeanette in FL]

7. Interesting link- Oil rigs in gulf

http://gom.rigzone.com/rita.asp

It shows all the fixed oil rigs, mobile oil rigs, refineries along the coastline. Very interesting.