Well, it's not like it's a surprise. It's that time of year again. From Dow Jones Newswires.
"You're almost always going to see a price movement" in gasoline if storms impact refineries and pipelines, said Red Cavaney, president of the American Petroleum Institute.
Like it or not, when there's less of something, the price will go up.
Some numbers that might be of interest:
- The Gulf of Mexico is home to 47% of U.S. refining capacity. Before last year's hurricanes, the Gulf produced 20% of U.S. natural gas and 29% of crude oil production. The ports in the Gulf handle 60% of U.S. crude oil imports.
- Hurricanes that move into the Gulf of Mexico trigger an evacuation of workers from offshore drilling rigs, which halts production. Over 3,000 platforms and 33,000 miles of pipeline are located in the Gulf.
- The 2005 Category 5 hurricanes blasted the Gulf of Mexico and prompted the shutdown of offshore oil and gas production, refineries and gas plants. The storms also demolished critical electrical infrastructure and affected 21 refineries, according to the Energy Department.
- Earlier this month, the Mineral Management Service released a revised assessment of damage to offshore oil and gas infrastructure caused by Hurricanes Katrina and Rita. The number of pipelines damaged had risen to 457 and 115 platforms were destroyed, the agency said. Damage to larger pipelines rose to 101 with 32 returned to service.
- Two of the last year's worst storms - Hurricanes Katrina and Rita - curtailed 29% of domestic refining capacity.
According to industry observers, 10% of oil and natural gas production affected by last year's storms remain offline. And some are not expected to re-open.
Some sobering reminders of the power of nature to affect the lives of nearly everyone on the planet. Amazing.
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