Early Warning: Big Gasoline Price Increases Expected

Hurricane Ivan destroyed 7 platforms and 100 piplines and 0 rigs.

Katrina & Rita destroyed (so far) 90 platforms and (who knows) pipelines and 100+ rigs.

There are typically around 130 rigs working in the Gulf. Today, there are 23.

There will be virtually no new exploration in the Gulf for the next year or so, assuming everything stays the way it is right now. Plus, with the rigs left in operation, there are several countries bidding to have them work in their waters. Guess who wins? Highest bidder.

It's not only bad, it's very bad.

(a couple of oil insiders in an email.)