Rita could equal $5 gas

[gmsickofan]

Rita could equal $5 gas
The timing and strength of the latest storm could cause worse spike at the pumps than Katrina did.
September 21, 2005: 2:43 PM EDT
By Chris Isidore, CNN/Money senior writer

NEW YORK (CNN/Money) - Remember when gas spiked to $3-plus a gallon after Hurricane Katrina? By this time next week, that could seem like the good old days.

Weather and energy experts say that as bad as Hurricane Katrina hit the nation's supply of gasoline, Hurricane Rita could be worse.

Katrina damage was focused on offshore oil platforms and ports. Now the greater risk is to oil-refinery capacity, especially if Rita slams into Houston, Galveston and Port Arthur, Texas.

"We could be looking at gasoline lines and $4 gas, maybe even $5 gas, if this thing does the worst it could do," said energy analyst Peter Beutel of Cameron Hanover. "This storm is in the wrong place. And it's absolutely at the wrong time," said Beutel.

Michael Schlacter, chief meteorologist at Weather 2000, said Rita now appears most likely to hit between Port Arthur and Corpus Christi, Texas, sometime between Friday afternoon and Saturday morning.

Just about all of Texas's refinery capacity lies in that at-risk zone. (For a look at CNN.com's coverage of Hurricane Rita, click here.)

"There is no lucky 7-10 split scenario to use a bowling analogy," he said. "If you're [a refiner] within 200 miles, you're going to feel the effect."
Compounding Katrina's impact

When Katrina hit, 15 refineries, nearly all in Louisiana and Mississippi, with a combined capacity of about 3.3 million barrels a day were shut down or damaged, according to the Energy Department. That represented almost 20 percent of U.S. refining capacity.

Within a week, almost two-thirds of that damaged capacity had resumed some operations, according to the department. But four refineries with nearly 900,000 barrels a day of capacity are still basically shut down.

If Rita hits both the Houston-Galveston area, as well as the Port Arthur-Beaumont region near the Texas-Louisiana border, that could take out more than 3 million barrels of capacity a day, according to Bob Tippee, editor of the industry trade journal Oil & Gas Journal in Houston.

"Before Katrina, the system was already so tight that the worst-case scenario was for a disruption that took 250,000 barrels of capacity out of the picture. That would have been considered a major jolt," said Tippee.

"We're already in uncharted territory now. We can't project what happens from another shot the size of Katrina or worse."

Part of the problem is that skilled crews needed to make refinery repairs are already busy trying to fix the Katrina damage. That would extend recovery time from Rita.

"[Rita] could have a significant impact on supply and prices -- this really is a national disaster," Valero Energy (Research) CEO Bill Greehey in an interview with Reuters Tuesday evening.

http://money.cnn.com/2005/09/21/news...y/rita_threat/

[460ford]

Are you ****************ing kidding me? What the **************** is this ****************ing bull ****************ing ****************? **************** this!

[chickenkicker]

Originally Posted by 460ford

Are you ****************ing kidding me? What the **************** is this ****************ing bull ****************ing ****************? **************** this!

I couldn't have said it better myself. Who's bright idea was it to put the majority of our oil production facilities in hurricane prone areas anyway? I allready spend over $80 a week on gas, this will just be ridiculous.

[moman]

Originally Posted by 460ford

Are you ****************ing kidding me? What the **************** is this ****************ing bull ****************ing ****************? **************** this!

Gotta love it. I'm nominating you for post of the year.

[Joevette]

That is complete bull**************** They are just raping this whole disaster stuff into a moneymaking scheem im glad I lost my license so I don't have to pay for gas anemone

[86fleet]

If gas reaches $5 a gallon, I'm all for government intervention and the breaking up of those money-whores we call energy companies.
By the way, I still doubt it will reach $5 a gallon away from the affected area. Remeber, they said this about Katrina

[cyboexpo2002]

of course its VALERO, an OIL COMPANY saying this

"[Rita] could have a significant impact on supply and prices -- this really is a national disaster"

[desmo9]

Originally Posted by chickenkicker

I couldn't have said it better myself. Who's bright idea was it to put the majority of our oil production facilities in hurricane prone areas anyway?

It's not like the dinosaurs chose to die there

"Hey, Rex, let's hurry up and go south before the asteroid hits ... I've always wanted to visit Padre Island."

[Buick61]

Bring it on!!!!!! I want to see the mass-hysteria that ensues. Maybe then people will stop driving Sequoia's, Land Cruisers, Armadas, Expeditions, Yukons, etc, when a G6, Altima, Accord, Malibu, Impala, 300, or Five Hundred would get the job done.

[460ford]

Originally Posted by Buick61

Bring it on!!!!!! I want to see the mass-hysteria that ensues. Maybe then people will stop driving Sequoia's, Land Cruisers, Armadas, Expeditions, Yukons, etc, when a G6, Altima, Accord, Malibu, Impala, 300, or Five Hundred would get the job done.

Are you insane? Rising gas prices effect more than just people's automobile buying trends, The whole economy is affected by it. Also it's not just people with SUV's that will/do endure hardships from these ridiculous gas prices.

[mjd1001]

Originally Posted by 86fleet

If gas reaches $5 a gallon, I'm all for government intervention and the breaking up of those money-whores we call energy companies.
By the way, I still doubt it will reach $5 a gallon away from the affected area. Remeber, they said this about Katrina

Government intervention into a private industry??? I don't like high gas prices, but the last thing I want is the government getting too involved. Either they would put price caps on things and that would simply lead to shortages. Or even worse, if the Goverment stepped in and tried to run energy companies....I can't even imagine how inneficient they would become.

[86fleet]

Originally Posted by mjd1001

Government intervention into a private industry??? I don't like high gas prices, but the last thing I want is the government getting too involved. Either they would put price caps on things and that would simply lead to shortages. Or even worse, if the Goverment stepped in and tried to run energy companies....I can't even imagine how inneficient they would become.

I don't mean caps or take-overs, I mean anti-trust lawsuits. Today's oil companies are too large to provide competition. Much like Standard Oil was way back when

[ElmerMCR]

Originally Posted by 460ford

Are you ****************ing kidding me? What the **************** is this ****************ing bull ****************ing ****************? **************** this!

Do not worry. Gas will not reach 5.00 per gallon. If it does, because of Rita, I'll send you 500 dollars through PayPal.



No I won't, but I am just getting a point accross..

[Buick61]

Originally Posted by 460ford

Are you insane? Rising gas prices effect more than just people's automobile buying trends, The whole economy is affected by it. Also it's not just people with SUV's that will/do endure hardships from these ridiculous gas prices.

Less SUVs = Less gas demand = lower prices for all

[desmo9]

Originally Posted by 460ford

Are you insane? Rising gas prices effect more than just people's automobile buying trends, The whole economy is affected by it. Also it's not just people with SUV's that will/do endure hardships from these ridiculous gas prices.

Yes, but a mass change of vehicular choice is what could single-handedly transfer energy consumption in this country. Energy prices would henceforth stabilize and make it easier to get affordable home heating, groceries, stuff made of plastic, etc. etc.

We're robbing Peter to pay Paul right now. For every Suburban transporting one scrawny a$$ to and from the office, there's a granny in a Minnesota January forced to keep the thermostat below 60.