We are a nation, which is motivated by the fuel, which drives us around, without the fuel America stops. It has only been three weeks since Hurricane Katrina hit the Gulf Coast, which damaged some of our oil production but temporarily shut down 30% due to mandatory evacuations of the Oil Rigs.

It now appears that there were 46 oil platforms destroyed and approximately 20 with heavy damage. The US MMS Minerals Management Service indicated that 52% of the Gulfs production and one-third of natural gas production is already out of service. This means extremely high natural gas prices this winter, which amounts to massive job losses and costs go thru the roof for manufacturers. On the oil side of things there are also three Louisiana Oil refineries out, which process about half a million barrels per day.

The Port at New Orleans was also shut down for two-weeks which did not help things meanwhile as if the average diesel price in the nation at $2.50 per gallon was not enough, gasoline prices went over $3.00 per gallon and the price for a barrel of oil had its largest US History gain of $4.00 per barrel on news that Hurricane Rita might be headed to the Texas Gulf Coast this time.

As Category V Plus Super Hurricane Rita roars towards Houston it will go right over the largest accumulation of production Oil Rigs in the Gulf of Mexico and Hurricane winds will have a swath of not 120 miles like Hurricane Katrina but 210 miles. It is much larger and more powerful and one buoy sent in information of 175 mile per hour winds, before it was dislodged and learned to fly away.

What does all this mean to you and I? It means higher prices at the pump, as in temporary spike of $.60 to $1.00 or $4.00 per gallon. But it also means that there will be what appears to be an additional tax on goods and services. Everything you buy is delivered by train, truck, aircraft and ship all of which use fuel to move around and these higher fuel prices will add cost to everything you buy from now to Christmas, although you may have already noticed prices rising recently anyway.

The US oil infrastructure and natural gas production will be halted and some will be gone, this will limit supply, which is already being limited, that means price spikes and that is bad for the economy and could throw us into an early business cycle. This double whammy of two back-to-back Category V Hurricanes is going to take its toll on our Energy needs and we are in for a World of Hurt. Think on this.