(From
SoapBlox/Chicago)
All the progress in restoring oil and gas production from the gulf after Katrina was lost to Rita. Indeed oil production is now worse than after Katrina. More worrisome is the fact that production is not returning like it did after Katrina. Almost immediately after Katrina production began to return and after about a week it was about half restored. Repairs then hit a plateau.
Then Rita hit and still after nearly a week there has been practically no progress in restarting production. This is not looking good. If you go to the market price graph you will see a new spike in gas prices yesterday and today. Gas is now 100% higher than in June.
Shut-In Oil and Gas Market Gas Prices
Click image to enlarge.
Here are
the the latest Shut-in graph and
natural natural gas price graph. The Shut-in data represents the progress that is being made in the Gulf of Mexico on repair of rigs and platforms that produce oil and gas for Illinos and midwest refineries and gas companies. Shut-in means non-producing. Down or 0 on the graph is good and means that production has returned to pre-Katrina levels.
Gas in Illinois is already 41% higher in cost than last September and warnings of 71% increase this year over last were being made by the Federal Government. But those government predictions were before Rita.