As a result of Katrina, we’ve lost over 20 major oil production rigs so far (confirmed).

This means that we have a significant dip in oil production.

Gas prices in my town were $2.59 per gallon in the morning, $2.69 at noon, and $2.79 by five pm–all at the same gas station. Elsewhere it had already jumped to $2.89.

It’s almost a virtual certainty that we’ll need to dip into our national oil reserves. Even so, we’re looking at an instant recession. The formerly looming threat is now reality.

Here’s more on the oil rig story–they literally can’t find the rigs from the air searches. They’re gone.

From the article:

“We are looking at YEARS to return to the production levels we had prior to the storm. The eastern Gulf of Mexico is primarily oil production…
Loss of the MARS platform alone cost us 95,000 barrels a day for a year or maybe more.
YEARS, people. I know what this means – hope everyone else gets it too…”

And from the comments at the above webpage:

“In Hazleton, PA…There was panic buying in progress when I passed on my way home. Vehicles were lined up at 10-deep to access the two pump islands. Of course, the gas being pumped there was the same that sold a day before for $2.55. An immediate tight supply driving the price hikes? Or just jitters?”

Most of you are too young to remember the gas rationing in ’74. Think we’ll go back to odd and even license plate days? “Sorry, sir–only odd-numbered plates can buy gas today.” My Uncle Alfred was in a (typically) long line for gas then and watched a fistfight break out ahead of him in line.