Oil Rig ?

[WaryEye]

Local NBC news here in Toledo mentioned gas prices hiking then showed a pic of an oil rig in the GOM while stating that they have shut down and will restart when the storm passes. Am I missing something or are they? How possible is it that some of these rigs could be rendered useless after Katrina passes?

In another note, the governor of Louisiana warned that electricity will be out for a few days and that residents should stay away until then to avoid returning to no power. A few days ??? I bet the people in South Florida that got a taste of Katrina might beg to differ.....

[vbhoutex]

A hurricane this strong can severely damage the structure of one of these rigs. I know of 2 that have been rendered useless, basically destroyed in the last few years. They are built to withstand a lot, but when you have 160 mph winds slamming you for hours and waves up to 50 feet high slamming into you constantly, something is bound to break.

[Stratosphere747]

After briefly looking at the futures for oil and natural gas, you can expect a 5-15 cent increase in gas in the next few days.

The bigger question is how much damage that the refineries take from La to Miss.

[KLP124]

Normally they try to somewhat dismantle the rigs when there is a large storm approaching. They didn't have enough time in this case.

I would expect to see more than .05 to .15 in an increase. The rigs are a factor, but you also have to remember than any refinery on the coast in that area will have been completely shut down by now. So not only will you have higher oil prices, but you're also going to cut your gasoline supply by 1 million barrels per day (or at least that's the last estimate I heard).

[THead]

http://www.washingtonpost.com/wp-dyn/content/article/2005/08/28/AR2005082800598.html

In a nutshell......

Oil Tops $70 As Katrina Nears Louisiana

By JUSTIN BACHMAN
The Associated Press
Monday, August 29, 2005; 12:17 AM

NEW YORK -- Crude oil futures spiked to more than $70 a barrel for the first time as Hurricane Katrina took dead aim on America's oil and refinery operations Monday, shutting down an estimated 1 million barrels of refining capacity and sharply curbing offshore production in the region.

Light, sweet crude for October delivery on the New York Mercantile Exchange climbed as much as $4.67 a barrel in electronic after-hours trading in Singapore to hit a high of $70.80 a barrel. Gasoline traded at $2.14 a gallon, up 21 cents, while heating oil rose more than 17 cents to $2.01 a gallon...................................

Oil companies evacuated workers and shut down more than 600,000 barrels of daily production in the Gulf. Refiners closed down more than 1 million barrels of refining output by Sunday, but that amount could be higher because not every producer reports data, said Peter Beutel, an oil analyst with Cameron Hanover.

"This is the big one," he said. "This is unmitigated, bad news for consumers."

[Big-Iguana]

After briefly looking at the futures for oil and natural gas, you can expect a 5-15 cent increase in gas in the next few days.

The bigger question is how much damage that the refineries take from La to Miss.

Wholesale gas already rose 20 cents/gallon. Oil nearing $71/bbl.

[Florida_brit]

Also I watched a report that there are several oil refineries (think they mentioned 9?) in the area which haven't been mentioned yet which are on the southern coast in line for a hit from Katrina! With a combination of rigs and refineries being damaged it could have significant impact on the oil price!

[Stratosphere747]

After briefly looking at the futures for oil and natural gas, you can expect a 5-15 cent increase in gas in the next few days.

The bigger question is how much damage that the refineries take from La to Miss.

Wholesale gas already rose 20 cents/gallon. Oil nearing $71/bbl.

LOL, it was a "brief" look at the futures....

It should stabilize until the pictures start coming in. Kat has also caused the overseas markets to take a nosedive as well.