Looks like Rita did a number on the Gulf oil:
Hurricane Rita has caused more damage to oil rigs than any other storm in history and will force companies to delay drilling for oil in the US and as far away as the Middle East, initial damage assessments show.
With prices going up, one would hope our consumption would change. However, this story on Slate about gas prices and the American consumer is quite revealing. Our gas consumption is not affected by price swings because our consumption is locked in by major purchases. Houses in the suburbs and big cars are not things that we change quickly or easily.
“Practically speaking, the only hope of changing America’s driving habits is a hefty price increase that lasts. For, oh, five years. The data show that after that long, even the response of American drivers to higher prices can be pretty sizable. Five years gives people the time to come up with substitutes. Higher commuting costs over that many years could induce you to buy a smaller car, move closer to work, find a car pool for your kids. Of course, that’s why Hurricane Katrina is not likely to have a lasting impact on gasoline use. It’s a big blip, but only a transitory one. Which means it’s exactly what consumers don’t change their behavior for.”
Of course, some would like to argue that the real energy crisis this winter will be natural gas. With 3.5 million cubic feet of Gulf of Mexico natural gas production off-line, and not returning before Christmas, the midwest could be in for a huge shortfall.
