Mike Ruppert: "Rita May Be the Coup de Grace for the American Economy"

[delver]

http://www.fromthewilderness.com/free/ww3/092105_rita_storm.shtml





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RITA:
Storm May Be the Coup de Grace for the American Economy and Many of Us As Well


September 21st, 2005 1530 PST (FTW) – As I pack my bags to head to Washington for Congressional Black Caucus hearings on the September 11th attacks (to be conducted this Friday and Saturday) my inbox is being progressively flooded with emails from inside sources in the energy industry about what Hurricane Rita is now likely to accomplish – the near-complete destruction of an already teetering US economy.

Fully 30% of all US refining capacity is in the target zone. Perhaps most importantly, almost every refinery capable of producing diesel fuel is in immediate danger. This promises (especially in the wake of Katrina) a devastating and irreplaceable shortage of the diesel fuel needed to power America’s harvest of grain and food crops this month and next. Without diesel fuel to power the harvesters and combines, crops may be left to rot in the ground presenting a double whammy: food shortages (with prices that may treble or quadruple) and export defaults negatively impacting the financial markets and trade deficit.

Even before Rita strikes, fully 30% of all domestic natural gas production is shut in. The US cannot import natural gas from overseas like it can both crude and refined products. Repair work on infrastructure damaged by Katrina has been halted as crews have been evacuated. The remaining half of Gulf energy production undamaged by Katrina is directly in Rita’s crosshairs. Natural gas prices are up over 110% and home heating oil futures are up almost 70% before Rita even gets here. Since Katrina, US domestic oil production is down one million barrels per day (from 5Mbpd to 4 Mbpd). We were producing 9 Mbpd less than a decade ago.

Peak Oil has made replacement of losses almost impossible even as Saudi heavy-sour is being spurned as useless around the world, even with discounts of up to $10 and $12 per barrel.
....

[mom cat]

1. Depends of exactly where Rita hits, how hard, and just how well the

refineries were built to withstand such a blow.
I remember whenI was in Houston I had a friend who was a draftsman working on designing petrochemical plants. Even before George Bush the First was elected, he was told to start "erasing" safty features from plans since "they would not be needed anymore". I hope that Mike is going to be proven wrong on this, but I wouldn't bet any money on it. Does anyone here have a take on the possible structural problems with any of the facilities (not specific ones of course) but any idea about their age, etc. have the plants changed much in the 23 years that I have been gone?

[ender]

2. nothing is built to survive a cat 5

they're more powerful than the bombs we dropped on japan. no oil rig is going to stand a chance.

[Mr Rabble]

3. Lets hope he is uncharacteristically wrong.

Although I fear that will not be the case.

[more_pain_please]

4. Funny how those Haarpicaines strike oil

..and kill poor people, leaving FEMA the dirty job of cleaning up



It's a Suckers Paradise I suppose

[dbt]

9. APT turn of phrase, more_pain_please!

Y'seen Hutchison's S 517 legislation yet? Welcome to The DU!

Remember New Orleans

[Cessna Invesco Palin]

11. Go sell crazy somewhere else. n/t

[bluedawg12]

5. Diesel fule shortages will halt much of trucking industry

and trucks bring us goods, food, fruits and veggies. Pretty much everything will sky rocket in price.

But, it's good to be spending $1 billion/day in I-wreck.
Not that we could use that here.

[Laelth]

6. I appreciate realism ...

... but this is a little strong, don't you think?

barring divine intervention – the United States is finished; not only as a superpower, but possibly even as a single, unified nation with the arrival of Hurricane Rita.

-Laelth

[Mr Rabble]

7. Taken alone it is, yes.

However, he is merely saying that this is the final straw.

Katrina and Rita will finally remove the facade of our country.

[Cessna Invesco Palin]

10. I'll make him a bet.

If the US is still standing after hurricane Rita, he owes me a dollar. If it's not, he can have Minnesota in the coming breakup of the Union.

[Kagemusha]

8. Guy's overstating how much the US supplies the world...

Yeah, it provides a lot, because it provides a lot cheaper and subsidized and in mass quantities... sure it'll be unpleasant.. but the world going hungry, no.

Because those American exports are preventing substitutes from taking their place except in the case of um, well... this.

[Armstead]

12. Everything is the Apocalypse to him -- But he may be right this time