Tuesday, August 30, 2005

Katrina and Katrina

Whoa. The Oil Drum says that Katrina will affect US oil prices for months to come, unless we cut consumption by 5%. Like that's going to happen. The theory is that Katrina will cause the loss of one million barrels per day. The US uses 20 million per day. Obviously, if you don't cut consumption, oil becomes more dear and costs a buttload more than it already does.

Buttload would be the technical financial term used in the industry to describe oil costs.

The NYT says that last year, Hurricane Ivan, a lesser storm, caused a 7% cut in oil production in that area, as well as extensively damaging the underground pipelines. We really aren't going to know just how Katrina will affect us (and US) until, as the Times notes, the workers can out to the platforms and eyeball it all.

Anyway, our friends over at The Oil Drum even dropped possible numbers like $4 per gallon. Lovely. Good thing I've been getting my large rear-end used to my bike, because it looks like I'll be riding it around town a whole lot more.

Just heard on the radio that the levees that held through the hurricane are now leaking in NOLA. Crap. There's a big honking leak from Lake Pontchartrain. 80% of the city underwater and some areas up to 20 feet deep? Good lord.

Off to pick up the 8th grader.


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