Maybe this kind of stuff has been happening all the time, but hasn’t been a big deal until the Deep Water Horizon incident.
An oil platform about 100 miles offshore in the Gulf of Mexico exploded this morning. All 13 people aboard were rescued.
No oil in the water, but the company was ready for it if it had happened. Not clear what caused the blast.
A fellow blogger over at oilprice.com speculates that oil prices may be going as high as $100/barrel by the end of the year.
…the fundamental assumptions of the oil industry upside down, and that sharply higher oil prices were in the cards, probably $100/barrel by year end.
Major oil companies with deep pockets at risk were rushing to offload their existing offshore leases and partnerships in producing wells to avoid BP’s potential $30 billion hickey.
While we feel $100/barrel is particularly high, it’s nearly impossible to overstress the importance of potential new federal regulations on gulf oil production. Consumers and fleet managers beware.
Thank goodness BP is making such good progress on stopping the leaking well, because hurricanes are coming!
June and July did not live up to predictions by the National Weather Service’s Climate Prediction Center, but conditions in the Atlantic’s main hurricane -forming region are now ripe.
The CPC says 70% chance of 14-20 named storms, 8-10 hurricanes and 4-6 major hurricanes.
Warm ocean temps & La Nina, yikes! Mid-August is the time when the action revs up.
Colorado State’s forecast calls for 18 named storms (which include Alex and Bonnie), 10 hurricanes, and five major hurricanes.
Unlike the CPC, the university team, led by atmospheric scientist Phil Koltzbach, produces broad forecasts for landfalling storms. The entire US East Coast, including the Florida Peninsula, faces a 50 percent chance of at least one storm making landfall there, compared with a long-term average of 31 percent. The Gulf Coast, which is still working to mop up after the BP oil rig blowout, faces a 49 percent chance of at least one storm striking, compared with a long-term average of 30 percent, Dr. Klotzbach’s outlook indicates
CPC sees a 90% chance of at least one hurricane making landfall on the Atlantic Coast, and 80% chance of one strike on the Gulf Coast
The Associated Press reports that a market rally on crude oil has Americans paying more at the pump this week.
The national average for a gallon of regular unleaded rose 2.1 cents to $2.747 a gallon, according to AAA, Wright Express and Oil Price Information Service. Oil has traded above $82 for two straight days. It was around $77 a week ago.
Motorists are paying about 2.3 cents more than a month ago and 18.6 cents more than a year ago.
In addition to this rally, commercial oil reserves are steadily depleting. This will likely translate into higher gas prices at the pump throughout the summer. Naturally, this will add extra costs to fleet managers and the average consumer alike.
The AFP Reports:
World oil prices were higher on Thursday, winning support from firmer equities and the weaker dollar after recent falls that were sparked by downbeat news in key consumer the United States.
New York’s main contract, light sweet crude for delivery in September, climbed 29 cents to 77.28 dollars a barrel.
Brent North Sea crude for September gained 28 cents to 76.34 dollars in early afternoon London deals.
Analysts said the weaker dollar spurred some buying because oil is traded in the US currency, making the commodity cheaper for holders of stronger units
These higher prices contributed in part to Exxon-Mobil’s stellar earnings report: “Exxon reported a profit of $7.56 billion, or $1.60 a share, up from $3.95 billion, or 81 cents, a year earlier. Revenue rose 24% to $92.48 billion. Analysts polled by Thomson Reuters most recently forecast earnings of $1.46 on revenue of $98.49 billion.”