Snagged from a newsletter from Jan Lundberg

 

According to airportbusiness.com:  "Airlines and oil companies are working on plans to supply jet fuel to at least ten U.S. airports that could be shut down due to a lack of jet fuel caused by refinery and pipeline shutdowns from hurricane Katrina."  The report from Aug. 31st makes clear these are not Gulf area airports hit by Katrina, and they include Atlanta and Washington Dulles”.

 

There is a lot of damage to bridges and ports in the area, as well as debris blocking narrow channels, further complicating efforts to get freight moving through this major hub. No doubt you’ve seen photos of the chemical fire. I wonder if “shock and awe” are appropriate for the stunned, angry and flabbergasted. Bush, who Thursday said this was “worse than 9/11” in terms of damage, says relief “not acceptable” but help is on the way. http://www.msnbc.msn.com/id/9157866/

 

Bush is no doubt sincere in his belated attentiveness but no doubt mindful that his father paid the price for seeming to be indifferent/slow to Hurricane Andrew in Florida, and that state voted Clinton in 1991.

 

For those who may not catch this from their news, many of the so-called stragglers who did not leave were welfare recipients, who on Aug. 29 when Katrina hit were out of money for gas, waiting for the Sept. 1st check. The state capital of Baton Rouge, overnight the new largest city in Louisiana, is overwhelmed with refugees, trying to reestablish contact with agencies. They are trying to consolidate into a “one-stop shop” and prepare for uprooted children to attend school next week. One terminal of an airport in NO is being used as a hospital, but is overwhelmed. LSU is being used as a way station, taking in those bused out for food, treatment and bathing, before being bused to Houston and San Antonio. Some people who got out have run out of funds already and are stranded.  Houston’s hotels were already full from those who fled Sunday, but many have run out of money now and are seeking shelter with the church groups, etc., who besides their own buildings, have people taking people into their own homes.

 

MoveOn.org launched a housing drive at www.hurricanehousing.org and Craigslist saw postings of offers to house Katrina refugees.

 

I am seeing some print now about rebuilding NO on higher ground, others suggesting it’s an opportunity to build a more sustainable and environmentally-safe city, but as Jan Lundberg (of the Lundberg report now at Culture Change) points out, if Katrina is the tipping point on the US economy to a recession and possible “superpeak” or petrocollapse, the idea of rebuilding anything more than a port may be aborted.

 

KwC

 

 

 

 

 

For those of you interested in the oil production damage report from Hurricane Katrina, here are four things of high interest. KwC

 

1. Coast Guard confirms 20 oil rigs gone. At least twenty offshore oil platforms have gone missing, sunk, or gone adrift, according to the Coast Guard [18]. One oil rig, in dock for repairs before the storm, broke loose and hit the Cochrane/Africatown USA road bridge over the Mobile River in Mobile, Alabama. Two others went adrift in the Gulf of Mexico, but were resecured [19]. One platform, originally located 12 miles off the Louisiana coast, has washed up onshore at Dauphin Island, Alabama. The Royal Dutch Shell MARS platform, producing around 147,000 barrels a day, has been severely damaged [20]. 

 

Note the source: From Wikipedia, an impressive comprehensive collection http://en.wikipedia.org/wiki/Hurricane_Katrina#Oil_industry,

 

2. Reuters: Storm may shut some refineries for months (not weeks) DOE confirms 9 refineries still shut down, 11% of capacity  http://www.alertnet.org/thenews/newsdesk/N01263206.htm

 

3. This is ominous. >From The Oil Drum: an insider reports anonymously that:

§         There are MANY production platforms missing (as in not visible from the air). This means they have been totally lost. I am talking about 10's of platforms, not single digit numbers. Each platform can have from 4 to 100+ wells on it. Most larger ones have 20-30 wells in this area, with numerous caisson wells. They are on their sides, on the bottom of the gulf - they will likely be left as reef material, provided we can get permission. MMS regulations require us to plug each of the wells that were on these platforms - HUGE cost now, as the platforms are gone... Hopefully, MMS will grant `abandon in place' status for these wiped out structures.

§         The jackup drilling rigs appear to be in various stages of damage, but most rode the storm out with minimal problems. However, each of them has shifted position.

When we jack the rig up, it is carefully positioned directly over the well slot where we are working. The derrick has rails that allow us to slide it in 4 directions to get the derrick directly over the well or slot. If the rig moves (right/left, or from level to uneven), it has to be jacked back down to the waterline and repositioned with tugboats, then jacked back up. After it is back up and level, the derrick is slid on the 2 sets of rails, and bolted into position over the well or slot again.

Thus we have to reset each of the drilling rigs, which requires getting OUT of the well, tugboats and a move, then getting back into the well. The open hole we have drilled (what is not enclosed in cemented casing) is likely to be lost, and if the wellhead or the casing is bent, then the well will have to be redrilled. This is an exploration setback of at least a month, but we don't yet know the boat situation.

§         Boats are usually brought into harbor to weather storms. We do not have a boat count yet, but from the initial reports, we may have lost or grounded 30% of the Gulf of Mexico fleet. This means everything will cost more, take longer - repairs, repositioning, everything.

 

In short, the Gulf area hit by the storm is basically in about the same shape as Biloxi. The damage numbers you have gotten from the government and analysts are, in my opinion, much too low. We are looking at YEARS to return to the production levels we had prior to the storm. The eastern Gulf of Mexico is primarily oil production...Loss of the MARS platform alone cost us 95,000 barrels a day for a year or maybe more.  YEARS, people. I know what this means - hope everyone else gets it too..

 

http://www.theoildrum.com/story/2005/8/31/83553/8973

 

4. After some reluctance, Foreign Aid for Katrina accepted: Australia, Canada, China, Colombia, the Dominican Republic, El Salvador, France, Germany, Greece, Honduras, Hungary, Israel, Jamaica, Japan, Mexico, the Netherlands, other members in NATO, the OAS, Russia, South Korea, Switzerland, the UAE, the UK, and Venezuela.  http://en.wikipedia.org/wiki/Hurricane_Katrina#Foreign_Response

 

Pres. Clinton in a noon hour interview with Pres. GHW Bush on CNN said that even Sri Lanka wanted to give something, as they recognized most of the worst-case victims were poor. But the most significant support the Bush administration is looking for comes from Saudi Arabia.

 

 

 

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