Will Katrina and Rita tip us past the point of no return?

Sharon September 22nd, 2005

Peak oil, is, again, not about how much oil is in the ground. It is about the price of oil, and its availability to ordinary people. That availability is about to change yet again - with the second nightmare hurricane in a month. Hurricane Rita, at category 4, is presently heading towards our main oil shipping lanes, 30% of our refinery capacity, all of our diesel refining capacity and a large portion of our natural gas production - the latter of which cannot be replaced by offshore inputs.

The loss of diesel refining capacity is particularly troublesome, since our trucking and agricultural industries depend almost entirely on diesel. So what we’re discussing are higher prices for gas - and every single other thing that people depend on. Heat. Food. Clothing. Power.

The economy has mostly absorbed $3 gallon gas, although with some pain, most of it to the poor, but some resonating through the economy (Walmart’s falling profits, etc…) But can it absorb $4 or $5 gas and heating oil, just as we enter the heating season. Can it absorb the loss of diesel production just as harvesting and food production is at its most intense across the nation? I guess we’ll see.

In the end, it may not matter how much oil the Saudis or the Russians have. If ordinary people can’t afford to buy heating oil, or drive to work, the cycle of collapse begins, long before the last drops come out of the ground.

Sharon

4 Responses to “Will Katrina and Rita tip us past the point of no return?”

  1. WellFancyThaton 14 Oct 2005 at 5:27 am

    Congratulations. You’ve made my visit worthwhile. I’ll certainly want to keep tabs on where this blog goes next. My interests include forklift platform and its a subject discussed in various articles that include forklift platform. Have a look see.

  2. Gordonon 25 Oct 2005 at 10:46 pm

    Just visited your blog, it’s great. I have a jobs seeking website which is informative and you can find info of different job natures, hope that it will be useful in your job seeking

  3. TheDevilIsInTheDetailson 07 Nov 2005 at 4:20 pm

    Be prepared for the next hurricane katrina line time or find another one that’s similar. As the Boy Scouts say: “Be Prepared”!

  4. Danielon 19 Nov 2005 at 10:13 pm

    Yours By Design Heating and Cooling is a full service Heating, Ventilation, and Air Conditioning (HVAC) contractor based in Blaine, MN
    installing residential heating and air and commercial heating and air.**Heating****Cooling**water filterwater filter

Trackback URI | Comments RSS

Leave a Reply