Tuesday, September 27, 2005

Rita causes record damage to oil rigs

Via Drudge:

Sub-headline should read ...

"Americans screwed out of tax dollars AND at the pump while insurance companies skate to excess profits with oil companies"

Hurricane Rita has caused more damage to oil rigs than any other storm in history and will force companies to delay drilling for oil in the US and as far away as the Middle East, initial damage assessments show.

ODS-Petrodata, which provides market intelligence to the offshore oil and natural gas industry, said it expected a shortage of rigs in the US Gulf this year.

“Based on what we have right now, it appears that drilling contractors and rig owners took a big hit from Rita,” said Tom Marsh of ODS-Petrodata. “The path Katrina took was through the mature areas of the US Gulf where there are mainly oil [production] platforms. Rita came to the west where there is a lot of [exploratory] rig activity.”

Ken Sill of Credit Suisse First Boston said: “Early reports indicate numerous rigs are missing, destroyed or have suffered serious damage and several companies have yet to report. Rita may set an all-time record.”

yada yada blah blah, and not one mention of what the insurance companies are paying out, but instead plenty of excuses to raise crude prices and what we pay at the pump.

I have a small older vehicle, a simple 6 cylinder sedan. Today it cost me $50 bleeping bucks to fill up. A year ago for the same fill up would have been $30. To put that in terms that will hit home to those that think little of that $20 extra ...

A person making $10 per hour, working 8 hours a day last year spent 3 hours of the day making a tank of gas ($30). Today he works 3 hours per day for what he gets to use on other bills ($30 - $50).

(by the way ... I personally have to use out of my own pocket 3 tanks of gas a week work related/commuting - non-reinbursed job expense ... $20 additional per tank times 3 per week = an additional $60 per week expense. Times that by the average 4 weeks per month = $240 per month additional expense).

I don't know about those making record profits at the oil companies, but I am still making the same amount of money per month to distribute to my bills as I was making last year.

Maybe if I had a $3120 per year raise I'd break even ... yes ... I said $3120 ... thats the $60 more per week times 52 weeks per year ... )

No word on what the oil companies will be doing with those insurance checks we're not hearing about ...

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