Hurricane Ike Messes With Texas: Part 2 September 17, 2008
Posted by Bryan Connelly in : ARDA, General, News & Events, silverleaf, Timeshare Rental, Timeshare Resale, Timeshare Resource, Travel, Uncategorized , trackbackVacationers have had a tough week due to the relentless hurricane Ike. The entire United States may be feeling the affect at the pump however. With 25% of the country’s fuel production at a stand still, gasoline prices seem to be the only thing rising in the aftermath. Hurricane Ike, with its abusive run up the Texas coast, left people stranded, properties destroyed, and many companies struggling to stay afloat.
In preparation for the imminent hurricane, 15 offshore platforms and coastal refineries were shut down and evacuated, including the Exxon Mobil Corp refineries in Baytown and Beaumont. Another in Louisiana remains shut down in the wake of the recent Hurricane Gustav two weeks ago. Together these refineries make up 25% of the U.S. fuel production, and as Ike slammed the coast it severely damaged the Houston energy hub and all crude production in the Gulf of Mexico. This was the biggest hit to the U.S. oil sector since hurricane Katrina and Rita in 2005. Oil companies aid they were flying workers back offshore to check for damage and restart operations.
In response to the coastal devastation, gasoline prices at the pump are rising steadily. Richard Newell, a Gendell associate professor of energy and environmental economics at the Nicholas School of the Environment at Duke University explains that “although hurricanes have a short-term effect on gas prices, the long-term trend depends on the world price of crude oil.†Newell explains “Although gasoline prices will likely average above $3.50 per gallon through 2009, they should eventually come back down to the $2.30-$2.50 range within a few years.â€
Comments»
no comments yet - be the first?