Wednesday, September 21, 2005

Sturm und Drang

My dystopian sensibilities were definitely piqued by CNN Money today.
Remember when gas spiked to $3-plus a gallon after Hurricane Katrina? By this time next week, that could seem like the good old days.

Weather and energy experts say that as bad as Hurricane Katrina hit the nation's supply of gasoline, Hurricane Rita could be worse.

Katrina damage was focused on offshore oil platforms and ports. Now the greater risk is to oil-refinery capacity, especially if Rita slams into Houston, Galveston and Port Arthur, Texas.

"We could be looking at gasoline lines and $4 gas, maybe even $5 gas, if this thing does the worst it could do," said energy analyst Peter Beutel of Cameron Hanover. "This storm is in the wrong place. And it's absolutely at the wrong time," said Beutel.

. . . "[Rita] could have a significant impact on supply and prices -- this really is a national disaster," Valero Energy (Research) CEO Bill Greehey in an interview with Reuters Tuesday evening.
Or how about Bloomberg's dystopians?
"Rita is developing into our worst-case scenario," said John Kilduff, vice president of risk management at Fimat USA in New York. "This is headed right into our other major refining center just after all the damage done to facilities in Louisiana. From an energy perspective it doesn't get any worse."
The week before Katrina hit, the national retail average for regular gasoline (all reformulations) was $2.612/gal., jumping 17.5% after the hurricane wiped out the Gulf Coast and knocked out 12.5% of national refining capacity. With Rita regular gasoline is already at a higher baseline -- $2.786/gal. -- and could knock out 15-20% of the country's refining capacity. With 5% of the US refining capacity still shut down due to Katrina and a market in which demand is constantly straining against supply, something could really snap this weekend.

I'm glad I filled the tank yesterday while Rita was still a nicely behaved tropical storm.

318 Comments:

At 7:20 PM, Anonymous peBird said...

Good to know inflation is under control.

 
At 1:19 AM, Anonymous Anonymous said...

But Colonel...

What're we gonna do if there's still a ton of oil left in Saudi Arabia 30-40 years from now as the UC Davis professor says there will be?

And what're we gonna do if the oil companies decide they can't get the natural gas out of central asia (because china beat us to it) and we have to uncap all the wells in the gulf that have been drilled and capped the last five years?

And what're we gonna do if people remember we're going to be importing more oil from Canada than anywhere else in the world if the Gulf rigs go down for awhile?

And what're we gonna do if Russia just keeps dumpin' oil on the global market so fast that Shell just has to keep closing down productive fields and refineries like those in Bakersfield?

And what're we gonna do if EVERY oil rig in the gulf gets shut down permanently and we take Iran and the supertankers start overwhelming the regassification terminals in the Grand Bahamas and the dang pipeline Jeb's daddy got laid from Grand Bahama to Florida just starts fillin' up all of them gas pipelines all over the eastern seaboard fasterin' you can shake a stick?

And what're we gonna do if UNOCAL supertankers from Indonesia just start off loading incredible amounts of LNG at the Ensenada regassification terminals and that gas just starts being piped all over California and the southwest?

And what're we gonna do when all of that dang LNG is regassified and pushed through all them pipes with practically free helium just "liberated" from America's strategic helium preserve?

And what're we gonna do in a century or two when all of that there natural gas runs out, if it ever does, and we have to start using Sandia Laboratories'handy little drill bit (the one they show on their web site) to punch down to 5200 feet to tap the geothermal energy that's there waiting to spin turbines till hell has a killin' frost (especially knowin' geothermal energy on each and every continent exists in quantities greater than all the fossil fuels that ever existed on the planet)?

Ah, mean, Colonel, what're we gonna do?

Best regards,
Corporal Glut

 
At 2:50 AM, Anonymous revolution2006 said...

Perhaps you're happy to have filled your tank before rita. On the other hand, once the US consumer gives in, oil may fall to the bottom.

 
At 1:24 PM, Anonymous peBird said...

As Corporal Glut implies - in the long run we are all dead anyway, so what difference does it make if there is a crisis or two (or three or four) until all these energy promises are fulfilled?

 
At 9:45 PM, Anonymous TM said...

"...once the US consumer gives in, oil may fall to the bottom."

Or not, if increases in demand continue to outstrip increases in supply. If oil gets more expensive, other countries have more dollars to pay for it than we do. Assuming, of course, that the Arabs keep taking dollars.

 
At 12:20 AM, Anonymous Anonymous said...

Um, energy promises? These is just plain energy facts. You want energy? I'll give ya energy. Whah thar's enuff goal gas energy under the great plains in a coal vein to keep the U.S. of A in the BTUs fer quite long darned time. It would messy to crack it with water injection, but it would work just fine. Shoot fire, and while we're takin' the next century or two burn off all of this damned excess energy, why we can be a massively replanting' forests on all the continents so's they kin: a) soak up all the darned CO2 that's warming our gol-darned planet; and b)then used for coarse fiber biodiesel production, if'n ya thinks human bein's are so dim that they can't figure out a better way to run cars and trucks than stinkin' diesel. these is all plum factual and easy to do and real headaches fer a derned Anglo-Amurrican ohl ah-low-gaw-poe-leeeee. why about fifty years from now we could start sustainable harvestin' that coarse fiber biodiesel and have more stinkin' diesel than china needs even if every chinese fella swaps his bike fer a derned Kenworth 18 wheeler. Shucks, energy, energy everywhere. It seems kinda like diamonds, diamonds, everywhere, until de Beers figured out how to buy up and close them diamond mines hither thither and yond. Whah, duh yew know that there's a derned diamond mine in Arkansas that de Beers bought and closed. Diamonds in Arkansas! Why that seems as wild as ohl in the straight between Florida and Cuba! Or off the coast of North Korea! Or what have yew! Whah do yew know that more solar energy hits the derned earth in lessin' a month than all the derned ohl'n'gas that have ever been burnt?

What'er we gonna do, General? Whah there's not only over production of ohl hauntin' the world (those pesky danged ruskies, venezuela-uskies, and chinese-uskies are pumpin' and dumpin' the stuff so fast we cain't hardly keep price the ohl-lee goo in our fiat dollars, now kin we? Ah mean, General, Anglo-Amurrican oil refinin' oligopolistas is shuttin' down and not buildin' oil refineries fasterin' kansas farmers is not growin' wheat. whah, katrina couldn't much hurt BP gulf port refineries cuz they'd already been torched awhile back. And it don't matter how much gas goes up, or how many derned Gulf oil rigs down, or how much Caspian oil, EYE-Raq oil and EYE-ran gas they can't get, Shell just ain'ta gonna reopen that profitable refinery and that productive gas field. they just aren't, general...not until they get the price raised up to the price they want and until they can do one of them induced scarcity deals like that there de Beers pulled for about a century.

Ah mean, what're we gonna doooo, General?

 
At 10:40 AM, Blogger calmo said...

awleegoppoelee is slightly misspelled, anony, but the messausage is bangon. Speaking of bangers, I liked the NPR clip of the Dodge Dakota driver crawling along with the rest of the exiting pack with the cans of gas strapped to the roof. Might as well show off your intelligence to your lesser motorists who are pushing their cars along.
Hard to imagine a more pitiful image of the American consumer, but here it is: the reason the can was on top was that the back seats were full of guns should they be needed to protect his private property from looting should the lessers motorists turn nasty and want some of his supplies.

 
At 3:58 PM, Anonymous Anonymous said...

Thankee kindly, Mr. calmo. Rahght nayburly of ya. Seein' mah Amurrican kinfolks actin' like a pack a scahred dogs makes mah heart double heavy, eh-specially when them darned Britishers keep'a dressin' up like AY-rabs in EYE-raq and disruptin' the EYE-raqi ohl flow and society buildin'. Thuh neeews says, they is a-pretendin' tah be terroristas blowin' up the danged ohl pipelines we spent almost two thousand decent amurrican service men's lives on a-tryin' tah take from Saddam (plus the danged 6 or so thousand other poor fellas the Penteeegon al-ledgedleee declared dead on the plane flights up to EWE-rope--ah guess so's they don't have tuh have'em show up on thuh evenin' news corpse count).

plum hard for a corporal lahk me ta figure why them preeetend terroristas and them reeeeal terroristas (ah reckonz they'z both kinds thahr now, cuz it's a neocon free enterprize zone ya know...lahk N'Arluns'll be ah reckon) is so blamed head strong 'bout blowin' up ohl faciliteees in the north, but ain'ta botherin' the pipelahn through Jurdan ta Haifer that's a-being re-ha-billy-tated. Ya know the one. It's that one that that there Mr. Netanyayhoo fella is'a preeedictin'll be'a working a'fore long. But Ah've digressed...

Yuh know, calmo, ahm real glad them folks is gittin' outta EWE-ston and GALV-eston. such EE-vacu-AY-shuns ahre nevur tahdy and neat (ah reversed them wurds so's i wouldn't be a-makin' a cleeee-shay) and so's we shouldn't be uh expectin' too much more of them scahred, tired folks.

Whut Ahm reeeal worried about though, is that this bunch of hurricane-bowl Texans--that's whut some uh mah friends is callin' this deeemocratic diaspora--may wahnd up a-bein' pro-tected bah some bunch uh neoPinkerton's lahk that there Blaackadder, er, Blaackwahtter Suh-CUE-reety furm. Yuh knows them fellas. Thayz the ones that rolled out thuh unwelcome wagon fer them poor devils that got abandoned, starved, and drown-ded tuh death in N'Arluns. Piteefull. Jest piteeefull.

But, calmo, reeegardless, ah gotta keep'a sayin' tuh thuh General: General, what'ur we gonna dooo? Energy, energy, ever'whahr, but now maybe 50 percent less fer Amurrican folks...at least till the unit price is right and the ohl awleegopoleee gives thumbs up to lettin' the juice move again. Don't seem crickett, does it? Whatta we gotta do tuh git a fahr shake: bow and scrape and take tea and crumpets with the Queen'a BP herseff? Just plain mystifyin' to a yardbird like me.

Best reeegards,
Corporal Glut

 
At 9:33 PM, Blogger calmo said...

diaspora, so surprisingly unmisspelled, has stunned the last wit out of me, Corporal.
But I shall recover. And make the necessary adjustments. Ah mean ahjusmints.
Irregardless o meye recovry, Corpral, you figger we got tuns of enhrgee, but nun fer us ordanaree folk? U figger itzall a bunch of maniphewlashun?

Ovah an owht.

 
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