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Friday, September 23, 2005

Peak Oil

If Forbes is right, we may soon have a taste...
Analysts say that refineries rarely suffer catastrophic wind damage and that the real danger is flooding. The refineries in Texas are on higher ground than those in Louisiana and therefore are better able to withstand a hurricane. Extensive flooding in Port Arthur, Tex., or Lake Charles, La., would cause prices to spike, possibly as high as $6 or $7 a gallon, doubling the widespread assumptions of $3-a-gallon gas that are expected in the aftermath.
Keep in mind, we won't just pay more at the pump, but there will be inflated prices for any product that requires shipping. In other words, it will trickle into every nook and cranny of our economy.

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