The Peak Oil Crisis: Hurricanes and Meltdowns

Earlier this week Hurricane Dean slammed into the Yucatan peninsula and crossed over into the Bay of Campeche where some 1.5 million of the 10 million barrels the U.S. imports every day are produced. While it is too early for a full damage assessment, at best a few days of production will be lost and possibly quite a bit more if any of the production platforms, pipeline systems and nitrogen injection facilities have been damaged.

This suggests that U.S. imports will be less than normal over the next few weeks. While some of these imports might be made up by increased shipments from other countries, the tight overall oil market suggests that this will be difficult.

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