The Perfect Oil Price Storm?

RBC Capital put out a report on the hurricane season that officially starts June 1. The estimates for this year are that there will be 14 named storms, 7 will be hurricanes and 3 of those will be category 3 or better. The long term average for hurricanes in the Gulf of Mexico is 11 named storms, 6 hurricanes and 3 of category 3 intensity or higher. The Gulf accounts for a quarter of U.S. crude oil production and 14% of natural gas. That works out to be 1.3 million barrels of oil a day and 8 bcf of gas. Also, about a third of domestic refinery capacity is located along the Gulf.

If this report is right, $4 gas may look cheap.

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0 Responses to The Perfect Oil Price Storm?

  1. Morgan Warstler says:

    We should be drilling off the western coast – rig after rig after rig.

  2. Rick Turner says:

    We should be putting solar hot water heaters on every roof, roof after roof after roof.

  3. Mark Murphy says:

    We should be encouraging telecommuting, in firm after firm after firm.

  4. Morgan Warstler says:

    YES to all 3!

  5. gage says:

    We’ve known for all time that we were relentlessly staking the future on a finite resource. Time to act like adults.

  6. Terry McCall says:

    @gage: Wah! But I don’t wanna!!!

    I feel less and less like a prick for hating on Super-Sized Excursions & Expeditions and ilk, mostly because more and more, citizen ev’ryday is feeling the same way.

    Now whether if it comes from some sense of entitlement for cheap gasoline, I dunno. Nonetheless, its nice that people are FINALLY (in the US) understanding their own responsibilities, and their own contributions to the problem. Is it too late?

    And regarding telecommuting:

    Here at UCSD, the US Open is happening during finals week, and many non-essential staff have been asked to telecommute to ease up traffic load. In one of my classes, guest lecturers are Skyped in to talk about their work, instead of flying cross-country/world.

    This would have been outrageous a few years ago… I think that thanks to this perfect storm, broadband penetration (among other things), it will only be a matter of time before Webpresense becomes standard practice. Hopefully it’ll end up better than Gold Farming in World of Warcraft though.

  7. ChemGuy says:

    Cars account for a very small amount of our energy consumption. Its not your cars that we need to worry about; Its our homes, the stuff we buy like plastics, electricity! Start pushing your local governments to encourage less energy consumption on the manufacturing level.

  8. Duncan Murray says:

    The picture shown is the BP Thunderhorse located in the Gulf of Mexico,it may well suit BP that most people believe the near disaster was caused by hurricane Catriona..but actual fact was human error that caused this to happen.

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