Why Gas Will Go Up
In Jeff Masters’s current post he discusses Gustav’s potential impact on the oil and gas industry.
His map makes it obvious why, when a storm heads in anywhere West of Florida on the Gulf, the price of oil goes up. The companies shut down the platforms and bring the crews back to shore until the storm passes.
There are also a large number of the US refineries in this area and they have to be secured until the storm passes and power is restored.
August 28, 2008 4 Comments
Tropical Storm Hanna
Position: 21.1 N 60.6 W. [10 PM CDT]
Movement: West-Northwest [290°] near 7 mph.
Maximum sustained winds: 50 mph.
Wind Gusts: 65 mph.
Tropical Storm Wind Radius: 50 miles.
Minimum central pressure: 1000 mb.
It is about 260 miles Northeast of the northern Leeward Islands.
August 28, 2008 Comments Off on Tropical Storm Hanna
Tropical Storm Gustav
Position: 17.8 N 77.3 W. [10 PM CDT]
Movement: West [270°] near 7 mph.
Maximum sustained winds: 70 mph.
Wind Gusts: 85 mph.
Tropical Storm Wind Radius: 45 miles.
Minimum central pressure: 988 mb.
It is ashore on Jamaica and expected to weaken somewhat as it scours the island,
Gustav has been moving more to the South which is bad news for Jamaica and the Cayman Islands, but possibly good news for New Orleans. It is definitely bad news for Gulf oil production, as more platforms and facilities will be on the East side of the storm which is the most destructive. Expect increased gas prices, not due to speculation.
August 28, 2008 Comments Off on Tropical Storm Gustav
