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Kat now a Cat 5

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The full extent of the damage wasn't known for days and the Gulf lost nearly 30 percent of production capacity for well over a month, which drove prices for oil up $12 a barrel within a few weeks. Prices for both oil and natural gas surged upward and stayed high for months.

That's the scary part. $12 at that time increased prices significantly...it would seem that we will be lucky if the price only increases by $12.

$67 a barrel plus (at least) $12 =$79 a barrel. And I believe that this is a best-case scenario.

Go fill your tanks...and lawnmowers...and whatever else will hold a gallon of gas.

With Natural Gas prices rising, it looks to be an expensive winter as well.
 
I dont wish this storm on ANYONE and pray that people make it out of there safe. THat said, I find the storm's relation to the oil industry ironic. Fossil fuel use = warmer waters = a larger number of strong storms each year.
 
Gas in the cars will be the least of our concerns, considering we all fly very thirsty little money-burners.
 
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Fingers are crossed for everyone in The Big Easy and SE LA. My thoughts are with you all. Good luck. Will be there afterwards to help cleanup and rebuild.
 
things getting worse by the minute...

Residents flee deadly cyclone
29aug05

NEW ORLEANS -- Residents rushed to escape Cyclone Katrina as the vicious storm threatened to hit New Orleans.

But at least 100,000 people in the city lack the transport to leave.
Coastal residents in the southeast jammed freeways and petrol stations, and a hurricane watch extended from Louisiana to the Florida Panhandle.

"Board up your homes, make sure you have enough medicine, make sure the car has enough gas," said New Orleans mayor Ray Nagin.

"Do all things you normally do for a hurricane but treat this one differently because it is pointed towards New Orleans."

But in the French Quarter, the revellers, street musicians and fortune teller carried on like it was any other weekend.

Bands were blaring on Bourbon St, the bar tables were packed and the drinks were flowing.


"The only dangerous hurricanes so far are the ones we've been drinking," said Fred Wilson of San Francisco, as he sipped on the famous drink at Pat O'Brien's Bar. "We can't get out, so we might as well have fun."

"I'll be here tomorrow, I'm not leaving," said trombonist Eddie "Doc" Lewis. "I've been through typhoons, monsoons, tornadoes, hurricanes and every other phoon, soon or storm. I'm not worried."

As Katrina whipped through the Gulf of Mexico towards New Orleans, some tourists were forced to stay because flights and rental cars were booked up. Others were lucky enough to change reservations early and leave town.

Katrina was a Category 4 storm with about 200km/h sustained wind yesterday, but the National Hurricane Centre said it was likely to gain force over the Gulf of Mexico, where warm surface water temperatures provide high-octane fuel for hurricanes.

It could reach at least 210km/h before reaching land tomorrow.

The storm formed in the Bahamas and ripped across South Florida on Thursday, causing seven deaths, before moving into the Gulf of Mexico.

Katrina could be especially devastating if it strikes New Orleans because the city sits below sea level and is dependent on levees and pumps to keep the water out.

A direct hit could submerge the city.

Louisiana and Mississippi made all lanes northbound on interstate highways. Mississippi declared a state of emergency and Alabama offered help to its neighbours.

New Orleans' worst cyclone disaster happened 40 years ago, when Hurricane Betsy blasted the Gulf Coast.
 
Katrina targeting U.S. oil operations
By JUSTIN BACHMAN
AP BUSINESS WRITER
[font=Arial,Helvetica][/font]NEW YORK -- With crude oil prices already at record levels, a hurricane targeted the heart of America's oil and refinery operations Sunday, shutting down an estimated 1 million barrels of daily production and threatening to curtail refining activity in the region.

Katrina, a Category 5 storm expected to strike near New Orleans early Monday, was churning through the Gulf of Mexico. The area is crucial to the nation's energy infrastructure - offshore oil and gas production, import terminals, pipeline networks and numerous refining operations throughout southern Louisiana and Mississippi.

The hurricane followed a path similar to the one taken last September by Ivan, which caused heavy damage and reduced the region's output for months. Yet Katrina's 175-mph wind was fiercer.

Oil companies have evacuated workers and closed at about 1 million barrels of daily production in the Gulf, but that amount could be higher because not every producer reports data, said Peter Beutel, an oil analyst with Cameron Hanover.

"It's not looking real friendly here. This is unmitigated, bad news for consumers," he said.

Gasoline prices could see the largest spikes because so many refineries in the region could be shut down by flooding, power outages, or both, energy analysts said.

The U.S. has ample crude oil supplies, even if major hurricane destruction trims Gulf oil output and foreign imports, but refining capacity is extraordinarily tight. As a result, prices for gasoline, heating oil, jet fuel and other products have flirted with records and could go even higher this week.

"If this thing knocks out significant quantities of refining capacity ... we're going to be in deep, dark trouble," said Ed Silliere, vice president of risk management at Energy Merchant LLC in New York.

The market has been on edge for months, with traders and speculators buying on the slightest fear. With Katrina, all those fears could be realized, Beutel said.

"Basically I could spill a can of oil at my local gas station and you'd see the price of crude go up by $1 per barrel," he said, predicting futures would likely top $70 per barrel in coming sessions.

Crude settled at $66.13 a barrel Friday on the New York Mercantile Exchange, down $1.36 after hitting $68 last week.

In many ways, Katrina was expected to be inconsequential to the energy industry, with many traders selling on Friday as the storm moved across Florida and was seen as moving north and striking the Florida Panhandle as a tropical storm with little impact. That all changed Saturday, when the system gained power and charged west, directly into areas of offshore oil production.

ChevronTexaco Corp. completed evacuations of all workers in the eastern and central Gulf of Mexico and nonessential workers in the western Gulf late Saturday, company spokesman Matt Carmichael said.

Chevron has about 2,100 employees and contractors working in the Gulf, Carmichael said. Chevron will continue to produce 90 percent of its normal production by remote as long as weather cooperates, he said.

The Louisiana Offshore Oil Port, which processes loads from tankers too large for mainland ports, evacuated all workers and stopped unloading ships on Saturday morning said Mark Bugg, the terminal's manager of scheduling. The LOOP, 20 miles offshore, is the nation's largest oil import terminal and handles 11 percent of U.S. oil imports.

Royal Dutch-Shell Group evacuated more than 1,000 offshore workers by Saturday. Only those in the far west remained, the company said on its Web site. BP PLC and ExxonMobil Corp. also brought workers ashore Saturday.

Shell estimated 420,000 barrels of oil and 1.35 million cubic feet of gas per day will be shut in at its central and eastern Gulf facilities. Exxon Mobil said it has ceased daily production of 3,000 barrels of oil and 50 million cubic feet of gas.

Valero Energy Corp. evacuated all but a few workers at its 260,000-barrel-a-day St. Charles refinery on Saturday. Murphy Oil Corp. also shut down its 120,000-barrel-a-day Meraux, La., refinery, and Exxon Mobil Corp. planned to shut down its 183,000-barrel-a-day refinery in Chalmette, La.

Motiva Enterprises, a joint venture of Royal Dutch Shell PLC and state-owned Saudi Arabian Oil Co., began implementing hurricane contingency plans at its 225,000-barrel-a-day Norco refinery on Saturday. Motiva also was exploring contingencies for its 235,000-barrel-a-day Convent refinery, about 45 miles west of New Orleans, Dow Jones Newswires reported.

hdivider.gif
 
OIL HAS ALREADY PASSED $70.00/Barrel. Let's all pray for the people in Louisiana, Mississippi and Alabama.

From: http://home.peoplepc.com/psp/newsstory.asp?cat=news&referrer=welcome&id=20050828/431136c0_3ca6_15526200508281741967876
Katrina Targeting U.S. Oil Operations
Sunday, August 28, 2005

NEW YORK - With crude oil prices near record levels, a hurricane targeted the heart of America's oil and refinery operations Sunday, shutting down an estimated 1 million barrels of refining capacity and sharply curbing offshore production throughout the region.

Katrina, a Category 5 storm expected to strike New Orleans early Monday, was churning through the Gulf of Mexico. The area is crucial to the nation's energy infrastructure - offshore oil and gas production, import terminals, pipeline networks and numerous refining operations throughout southern Louisiana and Mississippi.

The impact was immediate Sunday night when electronic trading resumed on the New York Mercantile Exchange, as crude oil futures spiked $4.50 per barrel, putting the cost above $70 for the first time since oil began trading there in 1983.

The hurricane followed a path similar to the one taken last September by Ivan, which caused heavy damage and reduced the region's output for months. Yet Katrina's 165-mph wind was fiercer.

Oil companies have evacuated workers and shut down more than 600,000 barrels of daily production in the Gulf. Refiners closed down more than 1 million barrels of refining output by Sunday, but that amount could be higher because not every producer reports data, said Peter Beutel, an oil analyst with Cameron Hanover.

"We're shutting down all kinds of everything. This is the big one," he said. "This is unmitigated, bad news for consumers."

Gasoline futures soared more than 20 cents per gallon, above $2.12 per gallon, and natural gas was up $2.20 per 1,000 cubic feet in the opening minutes of trade. The "out of control" buying is spurred by the prospect that the region's numerous refineries could be idled for weeks by flooding, power outages, or both, Beutel said.

The U.S. has ample crude oil supplies, even if major hurricane destruction trims Gulf oil output and foreign imports, but refining capacity is extraordinarily tight. As a result, prices for gasoline, heating oil, jet fuel and other products have flirted with records and could go even higher this week.

"If this thing knocks out significant quantities of refining capacity ... we're going to be in deep, dark trouble," said Ed Silliere, vice president of risk management at Energy Merchant LLC in New York.

The market has been on edge for months, with traders and speculators buying on the slightest fear. With Katrina, all those fears could be realized, Beutel said.

"Basically I could spill a can of oil at my local gas station and you'd see the price of crude go up by $1 per barrel," he said.

Crude settled at $66.13 a barrel Friday on the New York Mercantile Exchange, down $1.36 after hitting $68 last week.

In many ways, Katrina was expected to be inconsequential to the energy industry, with many traders selling on Friday as the storm moved across Florida and was seen as moving north and striking the Florida Panhandle as a tropical storm with little impact. That all changed Saturday, when the system gained power and charged west, directly into areas of offshore oil production.

ChevronTexaco Corp. completed evacuations of all workers in the eastern and central Gulf of Mexico and nonessential workers in the western Gulf late Saturday, company spokesman Matt Carmichael said.

Chevron has about 2,100 employees and contractors working in the Gulf, Carmichael said. Chevron will continue to produce 90 percent of its normal production by remote as long as weather cooperates, he said.

The Louisiana Offshore Oil Port, which processes loads from tankers too large for mainland ports, evacuated all workers and stopped unloading ships on Saturday morning said Mark Bugg, the terminal's manager of scheduling. The LOOP, 20 miles offshore, is the nation's largest oil import terminal and handles 11 percent of U.S. oil imports.

Royal Dutch-Shell Group evacuated more than 1,000 offshore workers by Saturday. Only those in the far west remained, the company said on its Web site. BP PLC and ExxonMobil Corp. also brought workers ashore Saturday.

Shell estimated 420,000 barrels of oil and 1.35 million cubic feet of gas per day will be shut in at its central and eastern Gulf facilities. Exxon Mobil said it has ceased daily production of 3,000 barrels of oil and 50 million cubic feet of gas.

Valero Energy Corp. evacuated all but a few workers at its 260,000-barrel-a-day St. Charles refinery on Saturday. Murphy Oil Corp. also shut down its 120,000-barrel-a-day Meraux, La., refinery, and Exxon Mobil Corp. planned to shut down its 183,000-barrel-a-day refinery in Chalmette, La.

Motiva Enterprises, a joint venture of Royal Dutch Shell PLC and state-owned Saudi Arabian Oil Co., began implementing hurricane contingency plans at its 225,000-barrel-a-day Norco refinery on Saturday. Motiva also was exploring contingencies for its 235,000-barrel-a-day Convent refinery, about 45 miles west of New Orleans, Dow Jones Newswires reported.
 
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