Bloomberg News tells us that oil is spiking due to the fact that a tropical storm in the Gulf has disrupted oil shipments.
Really?
They must mean oil coming in to the largest US oil I.V. drip, the Louisiana Offshore Oil Port (LOOP), which has been in operation since 1981. Well, there have been many storms that were much worse -- hurricanes, in fact -- since the LOOP began operating.
And how do gas prices compare to some truly major hurricanes, as opposed to the current tropical storm?
Flip it for details and a look at next months gas prices.
I looked at two months prior to the hurricane and two months after. Each of these hurricanes are significantly more powerful and disruptive than the storm heading toward the Gulf now, and all were in the range of the LOOP, thus all could have held up oil imports.
The Bloomberg article only mentions Hurricane Ivan as a comparison in which oil platforms were actually damaged. Gas prices spiked 7.4 percent in the month after. Are you ready to be gouged at $2.45+ per gallon of gasoline next month?
HURRICANE ANDREW
August 24, 1992
Category 5 at landfall
Month: June 1992; Dollars per gallon: $1.18.
Month: July 1992; Dollars per gallon: $1.18.
Month: August 1992; Dollars per gallon: $1.16.
Month: September 1992; Dollars per gallon: $1.16.
Month: October 1992; Dollars per gallon: $1.15.
HURRICANE OPAL
October 4, 1995
Category 3 at landfall
Month: August 1995; Dollars per gallon: $1.16.
Month: September 1995; Dollars per gallon: $1.15.
Month: October 1995; Dollars per gallon: $1.13.
Month: November 1995; Dollars per gallon: $1.10.
Month: December 1995; Dollars per gallon: $1.10.
HURRICANE CHARLEY
August 13, 2004
Category 4 at landfall
Month: June 2004; Dollars per gallon: $2.04.
Month: July 2004; Dollars per gallon: $1.94.
Month: August 2004; Dollars per gallon: $1.90.
Month: September 2004; Dollars per gallon: $1.89.
Month: October 2004; Dollars per gallon: $2.03.
HURRICANE FRANCES
September 5, 2004
Category 2 at landfall
Month: July 2004; Dollars per gallon: $1.94.
Month: August 2004; Dollars per gallon: $1.90.
Month: September 2004; Dollars per gallon: $1.89.
Month: October 2004; Dollars per gallon: $2.03.
Month: November 2004; Dollars per gallon: $2.01.
HURRICANE IVAN
September 16, 2004
Category 3 at landfall
Month: July 2004; Dollars per gallon: $1.94.
Month: August 2004; Dollars per gallon: $1.90.
Month: September 2004; Dollars per gallon: $1.89.
Month: October 2004; Dollars per gallon: $2.03.
Month: November 2004; Dollars per gallon: $2.01.
Considering that Ashland Inc., Marathon Ashland Pipe Line LLC, Murphy Oil Corporation, and Shell Oil Company are LOOP's owners, it shouldn't surprise that it leads back to Bush.
- Ashland is connected to Carlyle, daddy Bush's money maker. Ashland also was a large contributor to BC04.
- Shell was a major contributor to BC00 and BC04.
Essentially, three of the worst hurricanes in a span of about 33 days last year contributed to an increase in gas prices of 7.4 percent per gallon, but a tropical storm that hasn't even made landfall yet this year has traders bidding prices even higher.
Yeah, that's the way to do it: if someone tries to gouge you, pay more.