Repercussions for people outside New Orleans

Most GOM production is natural gas not crude. Most of the "platforms" you
are referencing are actually drilling rigs not production platforms and I
haven't seen the number 20 "disappearing" anyway. Obviously this is all bad
stuff, but it is refined distillates and natural gas that are most affected.

Mike
MU-2





"sfb" wrote in message news:ZtGRe.31577$Uz2.21522@trnddc02...
Please explain how 20 platforms disappearing in the Gulf is only a modest
effect on production?

"Mike Rapoport" wrote in message
k.net...

"sfb" wrote in message
news:k0GRe.28079$Bc2.4142@trnddc06...
The post you cut says there is an excess of crude, but the price
increases over the last few months refute that unless the laws of supply
and demand have gone sour. Today's prices may be the lull before the
storm until the full extent of Kartina is known.

"N93332" wrote in message
...
"sfb" wrote in message
news:TEFRe.28069$Bc2.4672@trnddc06...
Really not sure who doesn't get it. When demand exceeds supply, prices
go up and the price of crude has been on a skyrocket.

But crude HASN'T skyrocketed. Watching CNBC shows that crude is
currently at 68.85 which isn't THAT much higher than it was last week.
Crude hasn't gone up (much), but the refining it has.




Yes, the price increase over the past few months is a function of global
supply/demand and the markets observation that higher prices aren't
changing consumers' behavior yet. The price action late last week and
early this week is a function of panic/speculation based on not knowing
what the affect of Katrina would be on production and refining. Now that
it looks like the affect on production will be modest and the effect of
refining will be significant, everything will start to readjust.

Mike
MU-2