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You think gas prices are high now? They are, but wait until Louisiana’s oil industry is devastated by Katrina, as presently seems nearly certain.
Oil-platform production in the Gulf of Mexico has been basically shut down already, and 12 platforms have been evacuated.
New Orleans ands other nearby ports are major petroleum transshipment points; one news report I heard this afternoon said that 25 percent of the country’s petroleum passes through the New Orleans area. Louisiana is itself one of the most important oil-producing states,
Petroleum infrastructure is extensive with a large network of crude oil, product, and liquefied petroleum gas (LPG) pipelines and storage facilities. Louisiana is also home to two of the four Strategic Petroleum Reserve (SPR) storage facilities: West Hackberry in Cameron Parish and Bayou Choctaw in Iberville Parish, Louisiana. Other infrastructure include 17 petroleum refineries with a combined crude oil distillation capacity of nearly 2.8 million barrels per calendar day, the second highest in the nation after Texas.
The capacity of Lousisiana’s Gulf oil ports is critical for the rest of the country.
Situated right on the Gulf Coast, Port Fourchon is exposed to the worst that hurricanes and tropical storms can muster. Continued wetlands loss in the area will only increase the potential for damage.
Less than 20 miles southeast of Port Fourchon is the Louisiana Offshore Oil Port (LOOP), built by a group of major oil and pipeline companies. It serves as the central unloading and distribution port for all incoming supertankers to the Gulf region. The supertankers offload crude oil into LOOP’s offshore pipeline continuously. The oil is then piped north to Lafourche Parish where it is stored and piped to markets all over the country.
But not only oil flows through Louisiana.
Louisiana was the leading state in total waterborne commerce with almost 516 million tons shipped and received. Of this amount, almost 108 million tons were exported. Grain (mostly corn, soybeans and wheat) was about 84 million tons of the exports. Almost all of the grain originated in the Upper Mississippi basin, moved by shallow draft barge to Louisiana docks which eventually loaded the grain to ships. Domestic shipments to other states totaled over 111 million tons with gasoline, fuel oils and other petroleum products making up more than a third.
It’s impossible accurately to predict right now what effect the hurricane will have on the rest of the country’s economy, but there seems little doubt that pump prices will jump quickly.
More information here, especially about the importance and vulnerability of Port Fourchon.
(Listed on the Beltway Sunday Drive.) See also my post on the potential damage to New Orleans.
Update: A talking head expert on TV just said pump prices will rise 20 cents per gallon by Labor Day.
Comments policy
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August 28th, 2005 at 2:14 pm
[…] or A (Non) Blogging Friend Top Off Your Gas Tank Now I just read this post at One Hand Clapping about Hurricane Katrina […]
August 28th, 2005 at 8:27 pm
More on Katrina
Jeep Hurricane Concept CarThe inestimable Reverend Sensing has severla hurricane related posts up, inlcuding a reasoned look at the potential damage to the oil refining infrastructure and the toxic aftermath of the storm.
As regarding the oil situation
August 29th, 2005 at 11:41 am
[…] sly consider releasing oil from the nation’s strategic reserve to compensate for the loss of supply because of Hurricane Katrina. “ […]
August 30th, 2005 at 9:34 am
[…] d under General, Economy/Economics, Current events/news, Hurricanes
I posted here and here on the potential impact that Katrina wil […]
August 30th, 2005 at 12:34 pm
I have cited your post on Katrina in a Special Edition of my Weekly BlogScan at Blogcritics.org. The special edition, titled “Blogging Katrina” can be read at http://blogcritics.org/archives/2005/08/30/123719.php
September 1st, 2005 at 8:55 pm
Taxes will be raised possibly to help recovery, gas is partly taxes, yikes… But if it helps the surviving victims of the terrible storm, then we should just bite our tounges…
September 3rd, 2005 at 2:31 pm
I found this funny t shirt about high gas prices:
http://funnytshirt.org
September 15th, 2005 at 5:49 pm
I found a website that is mapping the gas prices around Texas. www.mapgasprices.com
September 28th, 2005 at 11:43 am
I don’t know all the facts about how much damage and loss happened with the hurricane but I find it interesting the 25% of the countrys gas goes through new orleans. personally if we don’t want the prices on gas to raise we need decide how high they have to raise before we make changes in our own driving habits. basically there is little supply and lots of demand. this will only continue unless we make changes. cut back. the only way prices are going to drop down again is if we lower the demand and increase the competition between gas companys. its sounds simple but we no its not, thats why prices won’t drop. we’ll complain but ultimately pay the price we are complaining about. eventually no one will be able to afford gas and I guess that could be on of the signs of the times in the last days.