Wednesday, September 17, 2008

Production Between Storms

Well -- the price of oil is dropping... The LA Times calls it a "swan dive" the Chicago Tribune said "free fall" ...
I haven't even looked at the Times today --

This all in the wake of the news that Ike did extensive damage to platforms and pipelines in the Gulf.

According to the AP:

Mr. Herbst said the aerial inspections showed Ike damaged several large pipelines, but the extent of the damage was not known.

Since just before Gustav's arrival two weeks ago, nearly 100 percent of Gulf Coast crude production had stopped, or about 1.3 million barrels per day. About 98 percent of all natural gas production is on hold.

There was limited production between storms, but that ended as Ike approached.

Word that Ike did more damage than Gustav left open the question about how high gas prices would go, and how long they would remain there.

A gallon of regular gas soared past $5 per gallon in some areas, notably in regions that rely directly on a link to the mass of Gulf refineries that usually produce millions of gallons of gasoline each day.

More than half of Texas' refineries have been shut down because of Ike, according to the U.S. Department of Energy.

So -- kings were anointed with oil.

I think this is the beginning of a beautiful tangent...

The Anointing of David, from the Paris Psalter, 10th century (Bibliotheque Nationale, Paris).


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