Hurricane Ida and Gasoline

Here are some Sunday headlines out of the Gulf of Mexico regarding hurricane Ida and oil platforms in the Gulf.

“* BP, Marathon shut production in Gulf of Mexico
* Louisiana Offshore Oil Port stops tanker offloading
* Chevron, Anadarko evacuating workers, no output shut
* Exxon preparing for possible shutdowns (Adds BP, Marathon output shut, Exxon preparing for possible shutdowns, helicopter company comments, double byline)”

In the interest of full disclosure, I have nothing against the oil companies accept for their penchant for greed.

There is a hurricane heading to the oil patch in the Gulf of Mexico. It is described and predicted by the Weather Service to be a category two hurricane. UPDATE: As of this morning - Monday - Ida is a category ONE hurricane

One and Two's are elatively small compared to the maximum force of five. The winds will probably be around 100-miles per hour. Strong? Yes, but generally not destructive enough to harm or destroy oil platforms. Wave height is another factor in the design of these deep-sea rigs.

Most of the rigs have been through stronger hurricanes in the past and survived.

What I am suggesting is that by shutting down the oil production, even though Ida is not a strong hurricane, is a ploy to raise gasoline prices.

I’ll bet we see a four to six cents a gallon increase in gasoline in the next two to three weeks. The oil companies will blame hurricane Ida even though the shutting down those platforms for a few days may not really affect their cost per barrel of oil.

It happens over and over and we take it.