posted on Sep, 1 2005 @ 09:31 PM
US refineries, as you can see, are not concentrated around New Orleans.
Additionally, here is a pretty good overall damage assessment available in the media.
Its also notable that the Louisiana Offshore Oil Port was not significantly damaged and has returned to limited operation.
About 20 oil rigs have been lost, out of nearly 5,000. Some will certainly need varying degrees of repair. Of the nine major refineries shut,
three or four are reporting light damage and plan to become operational within a matter of days to a couple of weeks. The three major pipelines out
of LA have begun functioning again in a limited capacity. As the highest priced market in the world right now, we can also expect an influx of
imported crude and refined oil products in the coming days and weeks, which will put downward pressure on prices. We got hit pretty hard, but all
in all, it appears that its not nearly as bad and as dire as it could have been.
The result of all of this, I think, will be an emergency refining system complimenting the SPR, something that should have been done a long time
ago. We'll probably also see one or two new major refineries built by the oil industry, as regulations, rules and red tape regarding refinery
construction will likely be relaxed. There will be a push for nuclear plants to replace coal, oil and natural gas fired units. Coal gasification
and liquifaction are going to get a lot of attention. Oil shale may as well. In the short term, you can also expect some oil demand destruction
due to people trading in the gas guzzlers and driving a little less, but more importantly from a weakening in the world economy and a drop in
This was the wakeup call for America and I think people are going to have to listen this time.