(Via Professor Gorvett’s blog) Insurance News Net points to an A.M. Best report discussing what the impact could be of a major storm hitting the gas-producing region of the Gulf this year:
A Category 5 storm moving on Houston through the northern Gulf would dwarf energy industry disruptions from Katrina and Rita. Forty percent of U.S. refinery production could be shut, as well as nearly all offshore production facilities. In the short term, a spike in gasoline prices proportionate to that seen as Katrina targeted the Gulf and made landfall would take the national average for all grades within striking range of $5 a gallon. In a protracted disruption to supplies, $6 a gallon or more would not be out of the question.
Of course this news would come at a time where I’m expecting to have to do a bit more driving than usual, due to developments at home and at work.
Oh well. These are just happy thoughts to have when we’re just over a week away from the official start of Atlantic hurricane season 2007.