Oil Rigs in Gulf Could Be In Trouble (again)

[gatorcane]

What do you all think about the oil rig threat with Rita?

Looks like I'll be topping off my tank sooner rather than later

From the UrbanSurvival Financial Newsletter:

"We won't reveal our sources on this, but we have just received an email from a source within the Gulf of Mexico Oil Industry that you need to be aware of:

Planning evac for the eastern Gulf tomorrow……just thought I’d give you a heads-up. That means production shut-ins start tomorrow evening if the storm stays heading westward, and even more evac next day if it strengthens. This means gas will be running back up once again this week. Your readers ought to gas up while it’s cheap if they see the storm getting stronger and heading into the Gulf of Mexico.

If it goes where they show on the predictive model, it will be tearing through the edge of the OCS (outer continental shelf), which is where all the deepwater stuff is, and the northern side (strongest) will impact the fixed platforms across the entire Gulf. If it makes landfall in Texas, it will be going through the part of the Gulf where natural gas production is more prevalent than oil. This may impact the winter fuel costs, especially if we lose any of these platforms. "

Source: http://urbansurvival.com/week.htm

[sponger]

Well the markets have spoken, oil price up 6.5% from Friday. I think it will be a disaster for a major to put more capacity off line.

[cjrciadt]

Look for yourself if it goes to S. Tex or W. LA.

[cycloneye]

Crude oil prices haved risen today over $4.50 to over $67.00 a barrell on concerns about Rita affecting the refinaries in Texas and Louisiana.

[gatorcane]

I'm not quite sure this country's economy could take another hit by a major GOM hurricane.

Certainly if gas prices climb higher than $3 a gallon it is going to really hurt our pocket books.

[cloud_galaxy]

From the UrbanSurvival Financial Newsletter:

"We won't reveal our sources on this, but we have just received an email from a source within the Gulf of Mexico Oil Industry that you need to be aware of:

Planning evac for the eastern Gulf tomorrow……just thought I’d give you a heads-up. That means production shut-ins start tomorrow evening if the storm stays heading westward, and even more evac next day if it strengthens. This means gas will be running back up once again this week. Your readers ought to gas up while it’s cheap if they see the storm getting stronger and heading into the Gulf of Mexico.

If it goes where they show on the predictive model, it will be tearing through the edge of the OCS (outer continental shelf), which is where all the deepwater stuff is, and the northern side (strongest) will impact the fixed platforms across the entire Gulf. If it makes landfall in Texas, it will be going through the part of the Gulf where natural gas production is more prevalent than oil. This may impact the winter fuel costs, especially if we lose any of these platforms. "

Source: http://urbansurvival.com/week.htm

[gatorcane]

I'm filling up today

[cjrciadt]

CNBC covering Rita more than the TWC!!!!!!! GOM evacs of rigs already starting by Shell and Chevron.

[Innotech]

this is gonna mess up Dupre gasoline transport operations even more. And I was so looking forward to dispatching normally gaain.

[canegrl04]

If Rita hits Texas,the price of natural gas will go up,as there are natural gas rigs out that way

[PBGator]

I'm not quite sure this country's economy could take another hit by a major GOM hurricane.

Certainly if gas prices climb higher than $3 a gallon it is going to really hurt our pocket books.

More speculative pilfering of the American consumer. The large oil companies are recording record profits and using the hurricanes as an excuse to steal from you. The oil oligopoly uses any excuse to raise the price of refined gasoline to the consumer through their wholesalers. Oil inventories are not particularly low and most experts do not understand the fundamentals of 67.00 dollar per barrel. We have greasy commodities traders here and over seas as well as the smarmy fund managers jumping in the speculative death spiral. Oil jumps 3 dollars a barrel and the large gas wholesalers overnight raise the prices and thus your local service station up a dime or 2. Nothing else in the US economy works this way, demand low. prices rise..demand high prices even higher. We need state run oil companies, higher CAFE standards, tar sand and coal to gas research and production, serious government oversight, and stop buying cheap junk from Wal-Mart and supporting the slave labor\oil slurping economies of Asia and India.

[gatorcane]

very well-said -

BTW I'm a 2000 UF grad. Go Gators!

[Innotech]

allow me to break down the approximate costs of gas.

According to my coworker htis is how it is laid out:

$1.25 - actual price of raw unrefined crude
$.36 - refining
$.20 - marketing
$. 15 - pipelines, wholesale, storage and tracking
$. 21 - retailers cover charge/profit
$. 44 - federal and state taxes
-----------------------------------
$2.61/gallon estimate

Thats the current market right now estimated. of course it might be a bit more or less but that shows you where the costs come from.

[tndefender]

If Rita hits Texas,the price of natural gas will go up,as there are natural gas rigs out that way

Yes, this is indeed bad news. The cost of natural gas this winter was already predicted to rise by up to 70% after Katrina. Frankly I do not know what lower income people are going to do this winter.

If there is a silver lining to this it might be that the short supply and higher prices finally forces a major change in enrgy consumption and lifestyle by Americans. And we would be well advised to begin making these changes now. Many experts have already postulated that the world supply of oil is nearing the "tipping point" after which demand will exceed supply.

[PBGator]

If Rita hits Texas,the price of natural gas will go up,as there are natural gas rigs out that way

Many experts have already postulated that the world supply of oil is nearing the "tipping point" after which demand will exceed supply.

Yes the burgeoning economies of Asia have created a huge demand for oil. This is creating a formula for true disaster and geo political problems rivaling the 1920-30's. The economy in China for example is growing in the double digits on the backs of the American consumer and politicians willing to sell our country down the river in the name of WTO member nation status and the "affordable" 1.79 straw broom as your local Mega-Price club. The gravy train for China will end and the thud will be deafening. With an anemic domestic demand for their products and their obsession with building up the PLA to a 100 Million army of automatons the Chinese economy will crash when the US gets real and starts insisting China play fair. Maybe that tipping point is when oil hits 100+ dollar a barrel and those drink umbrellas are just too damn expensive. The unpegging of the Yuan to the dollar and a new administration in 2008 will signal the end of the Chinese boom times. Then things get really interesting. Political unrest, Chinese Allentowns, workers on strike, wages falling from already serfdom like levels. Buy American! Lose the Ford Expedition and ride your damn bike once a while America!