With Rita bearing down on the Gulf of Mexico, poised to deliver another knock-out punch to a big chunk of our oil and gas production and distribution infrastructure, it looks like the winter of 2005-2006 will indeed be our winter of discontent.
How bad could things get?
Remember, oil and natural gas production in the Gulf is still down about 50% and 30% respectively, thanks to Katrina. Any more damage or loss is going to compound the mess we're already headed for. Natural gas prices are at around $12 per unit (up from about $5 per unit last year), and post-Katrina estimates by the Energy Information Administration (US Dept. of Energy) called for prices to go up another 50% or so this winter. And the price of gasoline? You don't even want to know.
For a preview of coming (economic) contractions, here's today's lead paragraph from Jim Kunstler's incomparable Clusterfuck Nation Chronicles:
"Take a good look at America around you now, because when we emerge from the winter of 2005 - 6, we're going to be another country. The reality-oblivious nation of mall hounds, bargain shoppers, happy motorists, Nascar fans, Red State war hawks, and born-again Krispy Kremers is headed into a werewolf-like transformation that will reveal to all the tragic monster we have become."
Check out Kunstler's full take on the brutal wake-up call to come here.
What do you think? Does the tag team of Katrina and Rite deliver the one-, two-punch that knocks some sense into our fossil-fuel addled brains? Or does the U.S. stagger to its feet next year and continue with business as usual (i.e., coersion, regime change and/or invasions in vulnerable oil- and gas-rich nations to pave the way for transnational oil companies to exploit resources.)?