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Here's the problem. The main pipelines in the area are shut down, as are several big refineries. We are now producing significantly less gasoline than we need for current demand.

Anyone who understands free markets understands what that will do.

I offered a fairly rosy assessment yesterday about the status of the offshore rigs and platforms yesterday based on my company's aerial assessment. All the deepwater facilities look to be okay from the air although a final assessment can't be made until we put crews back on deck.

Shell's Mars platform is significantly damaged, though, and that's a big piece of Gulf production. It will take months to restore that. In the meantime, none of the production is coming ashore until pipeline integrity can be assured. The offshore oil terminal for foreign imports looks to have only minor damage, but since it has no power, it's out of action.

Then word came late today that seven of my company's platforms can't be assessed for damage because they can't be found at all. They're gone. These are NOT the kind that float away. They're the kind that sink when knocked off their foundation.

I don't know how much production they were making. It's probable that they won't be replaced if the cost of doing so exceeds the value of the oil and gas remaining under them.

So we're going to have a shortage for awhile. Worse at first, but getting better over time.

In the meantime, the market is doing what it does best, allocating resources based on cost.

You wouldn't pay $5,000 for a diamond if you could dig around in your garden and find one if you wanted to get a little sweaty. If they were priced at 50 cents, the jewelry stores would all run out and those who wanted one could find one. The market figures this out.

That's why there will be enough gas at $3 or even $4 to get us through the time of shortage. Enough people won't buy gas at those prices to make it available to those who choose to buy it.

I heard earlier today that the Colonial Pipeline was going back on line this weekend at something like thirty percent on portable generators. This is a lot better than nothing and at least a week earlier than previously anticipated.

The energy markets at all levels seemed to have gotten it consistently wrong this week. Yesterday was probably the day for a retail panic.

If LOOP gets power, how hard do you think it will be to get it operating given that Port Fourchan's land access has been severed and its other infrastructure hit in a major way?