Bizzy’s Business Briefs (100605)
Hurricane Damage to Oil and Natural Gas Production: Short-Term Rough, Longer Term Better
The details:
Hurricanes Katrina and Rita destroyed 108 oil and natural-gas offshore platforms in the Gulf of Mexico, and another 53 might not be repaired until next year, according to press reports of assessments by the Department of the Interior.
The destroyed platforms accounted for about 1.7 percent of Gulf oil production and 0.9 percent of natural-gas output, Interior Secretary Gail Norton reportedly stated. Norton added, however, that fully 90 percent of production of Gulf oil and 72 percent of natural gas remain unavailable because of damage to platforms, pipelines, refineries, and processing plants. According to Reuters, 12 oil refineries and 21 gas processing plants remain offline.
….. More than 300 offshore platforms that were evacuated as the storms approached still remain unstaffed, she added, reported Reuters. According to the wire service, Norton added that the destroyed platforms would probably not be rebuilt; that repairs to the most heavily damaged platforms might not be completed until next year; but that restaffing evacuated but undamaged platforms might be completed 10 days.
Imagine That: Oil Conumers Respond to Higher Prices by Using Less
Funny how supply and demand come back into line (bolds are mine):
The price of oil fell to its lowest level in two months on Wednesday as evidence builds that the high cost of gasoline and other fuels is sapping demand.
New data from the Energy Department show that fuel consumption over the past month declined by almost 3 percent compared with last year. Analysts attributed the trend to soaring pump prices and a slowdown in economic activity, particularly among Gulf Coast states that were affected by Hurricanes Katrina and Rita.
“Maybe there is some elasticity to petroleum demand after all,” said analyst Andrew Lebow of Man Financial Inc. in New York. The decline in oil prices coincided with an even more pronounced selloff of gasoline futures, which Lebow attributed in part to momentum trading.
It is too soon to tell whether the dropoff in demand will hold or was a short-term phenomenon, analysts said. But it definitely has the market’s attention for the moment, overshadowing government data that show crude oil and gasoline supplies are shrinking.
Light sweet crude for November delivery fell $1.11 to settle at $62.79 per barrel on the New York Mercantile Exchange, its lowest level since the Aug. 5 close of $62.31. Oil is now 10 percent below the Sept. 1 record close of $69.47.
Update: Oil is below $62 at mid-morning.
The Playstation Workout
Maybe video games won’t only be for couch potatoes (link requires subscription):
The PlayStation Workout: Videogames That Get Kids To Jump, Kick and Sweat
Videogames have long been blamed for creating couch potatoes. Yet several new games are actually getting kids to break a sweat.
The new videogames, known as “exer-games,” come with special equipment to replace the traditional hand-held joystick — including pads kids can jump and dance on, isometric equipment that requires muscle to control a game and cameras that put kids in the center of kung-fu and skateboarding action. Some games even include calorie counters.
The games are so popular that some gyms, schools and teen centers have begun using them for fitness programs. Sony Computer Entertainment America is even betting that gamers will want to use their PlayStation consoles for an entire workout. Next month the company is launching Kinetic, a personal-training program with game-like graphics and elements of yoga, kick-boxing and other exercises.
The push into exer-games is part of a broader change in thinking about the potential of videogames to improve health and fitness rather than detract from it. Last month, a special Games for Health conference highlighted the use of videogames to improve patient health and train doctors. One recent study shows using videogames can help children better cope with pain — the games appear to distract the brain in a way that increases pain tolerance.
When the doctors start saying “Get at least a half-hour a day of video gaming three days a week for heart health,” I’ll be convinced.
