Some energy sector analyst warned after Katrina that we might see $5/gal by June next year.
Now with 73% of refineries in Gulf of Mexico come to a halt because of Rita, the $5/gal across the N. Amercia is just a matter of one week. That could stay there for three weeks if there were no major damage to the 18 out of 26 refineries that are in Rita’s path in Texas. But if they are left non-functional by the ruthless hurricane than this gas prices episode will be prolonged to a year period. God Forbid! :crying:
In GTA its $1.04 per litre but it is $1.79 in Chattam and the latest news is that Sudbury seeing gas price at $3/L which is a dollar more than the predicted price for next June.
India & China etc unforeseen energy demand increase dramatically
Hurricanes keep visiting(you don't give women their rights...so the female hurricanes are turning out to more devastating...lol)
Militants attacks on oil installations...anywhere...
Earth quakes taking place in areas the oil and gas is pumped...because when you pump oil and gas...the inner part of earth becomes hollow...so the neighoring earth has to collapse to fill the gap...hmmmmmmm
^ If that were to happen, then I think it'll be time to polish and prep bicycles.
Worst case scenarios are aplenty. I doubt any government will allow gas prices to go so high in a short period of time. If it happens over a number of years, then its fine, as we all get accustomed to it with corresponding increases in purchasing power.
According to Donald Trump "the Sawdis" are giving America the raw end of the bargain, and that he should be sent over to negotiate. How much of America's oil comes from the Middle East?
And why doesn't the US use its kazillion barrels of reserve oil in times like these?
You are smart catty, so I will give you an indirect answer
Halliburton stock price in Septermber of 2002 =$9.00
Halliburton stock price in March of 2003 = $20.00 (Iraq War)
Halliburton stock price in September of 2005 =$65.21
The current oil shortage is a little different from the oil shortage in the 70s. That was a supply side shortage, artificially imposed by the OPEC cartel. This one is a demand-driven oil shortage. India and china are consuming too much, and driving up the price.
But then high oil price is really an illusion. If you compare todays price, inflation-adjusted, with the price in the 1970s, you will wont notice much change.
From the chart you can see that Iraq's oil is not helping much.
The stock price of halliburton was just to show how local oil companies are also doing their share of price gouging by not tapping into reserves.
which is a dollar more than the predicted price for next June.
