FT: Rita causes record damage to oil rigs
Posted by Prof. Goose on September 27, 2005 - 7:16pm
http://news.ft.com/cms/s/034a384e-2f8a-11da-8b51-00000e2511c8.html
Hurricane Rita has caused more damage to oil rigs than any other storm in history and will force companies to delay drilling for oil in the US and as far away as the Middle East, initial damage assessments show.Update [2005-9-27 21:8:6 by Prof. Goose]:Here's another interesting piece of the puzzle. (thanks Murray)
Technorati Tags: peak oil, oil, Rita, Hurricane Rita, gas prices
http://www.latimes.com/news/nationworld/iraq/complete/la-fg-oil26sep26,1,5000603.story?coll=la-iraq- complete&ctrack=1&cset=true
The failure to rebuild key components of Iraq's petroleum industry has impeded oil production and may have permanently damaged the largest of the country's vast oil fields, American and Iraqi experts say.
The deficiencies have deprived Iraq of hundreds of millions of dollars in potential revenue needed for national rebuilding efforts and kept millions of barrels of oil off the world market at a time of growing demand.
Engineering mistakes, poor leadership and shifting priorities have delayed or led to the cancellation of several projects critical to restoring Iraq's oil industry, according to interviews with more than two dozen current and former U.S. and Iraqi officials and industry experts.
Rick
Also notice that it was the UN embargo that caused this "failure."
Well, regarding the latter, how about a sensible increase in prices to reflect scarcity so that people will go about adjusting their energy usage where possible? Not that I think there is much elasticity in the system but there is some. This tapping the SPR crap is a small-time short-lived adjustment. OK, there was some profit-taking in the market and demand is down right now. But it's hard to escape the conclusion that as of now, in the US, the market traders have their collective heads up their ass.
``I've never seen anything like it,'' said Drew Laughlin, an energy consultant who has spent almost three decades in the refining business and used to work for Valero. It will likely take more than two weeks for the refineries in Rita's path to begin recovering, Lauglin said. ``I can't even see them getting the power on in two weeks.''
http://www.bloomberg.com/apps/news?pid=specialreport_index2&sid=aPA8S9ctFiLs&refer=news
The data found in that report has already been released by the MMS and the OED&ER, of course (yet another day of 100% GOM Crude shutin -- now up to nearly 7% of annual production lost) but maybe they're all burning the midnight oil at the EIA to get the inventory data out tomorrow?
"here" is 100 miles NW of Houston.
Have reports and assessments really improved so much in the last few hours, or do you think there could be some kind of temporary skew in the current batch of media reports? I'm a bit confused by this...
Check: http://news.google.ca/news?hl=en&ned=ca&q=Rita+damage&btnG=Search+News