Oil Slick: Long Term Implications…Bullish? – Maverick Energy Consulting – Implement price risk management strategies for natural gas, diesel fuel, unleaded gasoline and electricity.

At least 3 rigs in the Gulf of Mexico have been shut-in as a safety precaution as the oil slick invades their waters. As much as 1/5^th of the Gulf’s platforms could be within the slick-field in another 2 days and also might be forced to shut-down in response. The growing concern about the slick today, above and beyond stopping it, is how traffic might be impaired through these shipping lanes. More than 25% of all the refining in the country takes place in this Delta region, and any shutdown of the channels would force inventory out of the SPR.

In short, while disruptions are not likely in the near-term…….long-term implications could be bullish, especially where it changes the offshore drilling debate. Do you believe that the current catastrophe will impair future off-shore drilling…should it be the case, and if so, how will prices react?