Oil industry preps for Gulf storm season

[jpak]

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-17011051.htm

HOUSTON (AP) - If you think gasoline prices are high now, consider the eye-popping possibilities if another monster storm pummels the Gulf of Mexico this hurricane season, the way Katrina and Rita battered the petroleum-rich waters in 2005.

The petroleum industry has spent nearly two years trying to repair the damage from those historic Gulf hurricanes, rebuilding the complex web of platforms, pipelines and refineries in a region that produces roughly 25 percent of the nation's oil and 15 percent of its natural gas.

The National Oceanic and Atmospheric Administration said this week it expects a busy hurricane season, forecasting 13 to 17 tropical storms, up to 10 of which could become hurricanes. That's higher than the 10 or so storms and hurricanes that form in an average year.

Already this spring, gasoline prices have climbed even higher than post-Katrina-and-Rita prices. Analysts say prices are certain to shoot higher -- $4 a gallon, perhaps -- if and when the season's first storm enters the Gulf of Mexico.

<more>

[Captain Angry]

1. The only prep they're doing is installing new vaults.

Because they're sure not spending the money on hardening oil platforms, designing new methods for transporting fuel in a safer manner, reducing waste, or increasing refining capacity.

Notice, those are all ideas that any business would do.

There are all of the obvious things they should be spending money on, but they reduce profits. Pollution controls, safety, etc. But we know how that goes.

The ones I listed all maintain or increase profits. They won't do that because the nature of the business is that if there are accidents or disasters, they will see even higher profits. And may even be paid to clean it up without having to spend their own money.