Could someone please explain to me why the gulf shutting down is causing such drastic things to happen?
I know some of our gasoline comes from the off-shore drilling but I thought that surely there would be other sources to take up the slack during this time.
Does Alabama rely more heavily on gulf oil?
It’s the refining capacity. IIRC, at least 20 percent of the US refining capacity is in the path of the storm.
Its the refineries and distribution systems that are heavily concentrated down there that is the problem. Not the actual drilling in the gulf.
Because about a quarter of the entire US refining capacity got shut down for hurricane Ike less than two weeks after the Louisana refineries shut down for Gustav. It doesn't really matter whether the crude oil used is domestic or imported; if the refining capacity is shut down, here is a shortage of refined products available.