With a third of domestic crude oil supply and 40% of US gas and oil production facilities located on the Gulf coast, we can expect severe disruptions to the flow of gasoline, natural gas and home heating oil as Katrina blows through the region.

I have little doubt that by the end of the next few weeks prices at the pump will be pushing an average of $3.00 per gallon if not higher. For the coming winter months, the northeast, which heavily relies on home heating oil, will see devastating increases in costs.

You can keep track of the average pump prices at AAA's Fuel Gauge Report.
US Department of Energy Gas & Diesel Report

All of this can, and probably will, have a hugely negative impact on the economy. Al Qaida will be pleased. So should Cindy Sheehan. Seems like she is rooting for the "freedom fighters" who killed her son Casey. And they are all for anything that causes damage to the United States.

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