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190 comments on Hurricane Gustav, Landfall, Energy Infrastructure and Updated Damage Models -- Thread #5 (Updated 9/1 21:00 EDT)

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the_rage on September 1, 2008 - 11:27am Permalink | Subthread | Parent | Comments top

The DOE also announced this morning that they're ready to tap the SPR if needed, so that has a psychological effect. Before Gustav, we were in a bearish trend anyway. Gustav's storm surge is a lot less than Katrina's, so the selloff makes sense. It'll be interesting to see if the $110 price floor will be breached this week.

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Gwydion on September 1, 2008 - 5:01pm Permalink | Subthread | Parent | Comments top

Louisiana Seeks Strategic Petroleum Reserve Release

Sept. 1 (Bloomberg) -- Louisiana asked the federal government to release fuel from the Strategic Petroleum Reserve in the aftermath of disruptions from Hurricane Gustav.

``We made the request this morning,'' Governor Bobby Jindal said at a press conference in Baton Rouge today. ``We know we are going to need it in the next 48 hours.''

About 85 percent of South Louisiana service stations don't have fuel in their tanks, the governor said. The state's refineries have three days of supplies in storage. The state will make it a priority to resupply stations after the storm, Jindal said.

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Subkommander Dred on September 1, 2008 - 6:47pm Permalink | Subthread | Parent | Comments top

Good afternoon, folks. Long time since I've posted, but like always, I remain obsessively addicted to TOD and always appreciate the perspective and insight this community is able to share. That being the case, I have a question for any who is up to aswer it: It is my understanding that the SPR contains crude oil only, not distilled products such as gasoline and diesel. That being the case, I don't quite understand how the release of that stock would be of any benefit in the next week or so, if indeed, it turns out that there has been significant refinery damage (not known at present). If the gasoline stations in southern Louisiana have to wait for shipments of refined products to arrive from other regions or countries, I would think they may be waiting a while. Am I wrong?

Dred

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Gwydion on September 1, 2008 - 7:12pm Permalink | Subthread | Parent | Comments top

Nope, precisely right. :) See westexas' and memmel's comments in this thread.

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PolR on September 1, 2008 - 7:50pm Permalink | Subthread | Parent | Comments top

But the mayor might not know that much. He may just think the SPR is there in case of shortages and there is a shortage in LA, therefore it is time to release it.

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enemy of state on September 1, 2008 - 10:51pm Permalink | Subthread | Parent | Comments top

Actually he's the guvnur. My guess is he is ignorant of the facts. Of course I think it highly likely that some SPR oil will be released, assuming there is more working refinery capability than crude to supply them. I don't think anyone could argue that a short term release to cover a temprary weather related shortfall is a misuse of the SPR. But even if absolutely no physical damage happened, the shutdown, evacuate, evaluate, startup delays will mean product shortfalls are in the pipeline.

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AlanfromBigEasy on September 1, 2008 - 11:52pm Permalink | Subthread | Parent | Comments top

My read is a quid pro quo to GWB & Cheney.

LA Governor calls for SPR release just before election, (unlike evil, irresponsible Democrats who alos called for pre-election SPR releases). GWB wisely does so, in excess of any production shortfall.

Alan

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190 comments on Hurricane Gustav, Landfall, Energy Infrastructure and Updated Damage Models -- Thread #5 (Updated 9/1 21:00 EDT)

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