NVDL: I don't understand how you can have shortages on the ground, and oil prices going up. That's implyhing the laws of economics are temporarily suspended, so that when supply decreases, so does demand. Er...it's not going to happen.
The storm idled about 99 % of crude oil production and 98,5% of natural gas output in the Gulf of Mexico, the US Minerals Management Service said on Saturday. - Business Day
Gulf fields produce 1,3-million barrels of oil a day, about a quarter of US output, and 7,4-billion cubic feet of gas, 14% of the total, government data showed. A pair of drilling rigs were adrift in the Gulf yesterday, said the Minerals Management Service - Business Day
Almost 20% of the US’s oil refining capacity was shut, limiting fuel deliveries and prompting the energy department to release 309000 barrels from its strategic reserves yesterday. A fuel shortage is expected in the next few days.
The oil price fell to a five-month low and petrol futures dropped amid signs that refineries along the Gulf of Mexico escaped major damage.
Texas Governor Rick Perry noted “very heavy damage” to the power grid. In Beaumont, Texas, authorities said damage was so extensive that it could be more than a month before power was restored.
At least 13 refineries in Texas, including plants operated by Exxon Mobil , Valero Energy and Royal Dutch Shell , shut 3,64-million barrels a day of refining capacity as Ike approached .
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