Tuesday, 25 September 2007

One Hurricane away from Energy Crisis

Shell Oil President, John Hofmeister, quoted in an interview at New Orleans had this to say:
"We are one hurricane away from energy scarcity and volatile, high prices... We are so tight on the demand-supply relationship... We have seen our country pass, in my opinion, a tipping point of energy supply keeping up with demand."
While at the same time crude oil price has hit a new record high, UAE is saying they will have to reduce production in November for maintenance, Mexico is feeling harder declines than expected, Venezuela export capacity appears to be falling, Iraqi production is suffering from new attacks on the infrastructure, Gulf of Mexico is getting an unusual number of tropical storms this year, all while the worldwide demand keeps going up.

It is a struggle to find new ways of saying the same thing all over again: the other shoe has dropped, the cat's out of the bag, devil's playing the banjo and we seem to be going about our business as usual.

Other than that... it's a very nice weather outside today. Never mind that pesky energy business, it's not like our life is dependent on cheap oil and gas, is it?