Precast Consulting Service
Finance, Marketing &
Winter Costs, Lower Spring Supplies
For complete analysis of
Katrina and Rita on the Precast Industry click here.
On the Saturday and Sunday
after Rita made landfall, oil and gas producers seemed to breathe a collective
sigh of relief, as their worst fears had been avoided. However, as the
inspection reports come in, it appears that the industry has taken several
significant blows, which if confirmed and extended by subsequent reporting,
could show that Rita has had or will have an impact on Gulf of Mexico oil
and gas output roughly the equivalent to Katrina.
The impact of Katrina was
enough to send prices skyrocketing:
Will the "Rita effect" exacerbate
the winter price impacts and/or extend them further into 2006? Lost rigs,
diverted manpower, and equipment shortages may be setting the stage for
high prices through much of 2006.
Natural gas prices at Henry
Hub were expected to be double the level of last winter, and homeowners
will be paying $14-16 per mmbtu, a 40% increase over last winter's rates
and a 65% increase over 2003's price.
Heating oil prices this winter
are expected to be $2.25/gallon or 24% higher than last year, and 65% over
Electricity prices are rising
rapidly as several utilities have already filed for rate increases and
others are passing higher fuel costs through to consumers.
This outlook is from GlobaLInshight, an international economic consulting
firm. They do excellent work, and I have confidence in them.
Here is a link to their public Katrina page.
Impact of Hurricane Katrina
to Global Insight Weekly Newsletter (free) click here
for the Precast Industry