An Oil Panic in Plain Sight

By Sean Brodrick

- Hurricane Katrina smashes 'Energy Alley,' a concentrated
area of oil production in Gulf of Mexico that supplies
about 35% of America's domestic oil.

- White House says oil will get cheaper, but makes hush-
hush plans to increase the Strategic Petroleum Reserve by
42% to ONE BILLION barrels of crude. Why are they so eager
to add to the SPR when oil prices are high?

- Saudis reveal they won't be able to meet oil demand ...
first time EVER they've admitted the awful truth
Hurricane Katrina delivered a devastating blow to America
even before it slammed into Louisiana. The Massive storm
smashed through 'Energy Alley,' a concentrated area of oil
rigs off the coast that supply about 35% of America's
domestic oil production and 20% of its natural gas. It
damaged much of our nation's oil production.

At the same time, workers rushed to shut down the offshore
Louisiana Offshore Oil Port, which processes loads from
tankers too large for mainland ports. The LOOP is the
nation's largest oil import terminal, handling 11% of U.S.
imports. And refiners shut down more than a million barrels
a day of production as they braced for the impact from the
monster storm. Those refineries will probably be out for at
least two weeks, setting the stage for a potential gasoline
shortage.

Panicked oil traders are pushing oil prices over $70 per
barrel. And now for the really scary part. A devastating
hurricane strike at America's oil and gas operations in the
Gulf of Mexico is just one of the major forces that could
send oil to $80 ... $100 ... $150 a barrel. Other forces
that could send oil prices surging are potentially much
more serious...and permanent!"

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