Katrina's Effect on Oil, US Economy

1 September 2005 - 1:00pm

Disruption of gulf oil production due to Katrina may lead to a national "gas crisis".

"The impact of Hurricane Katrina on U.S. oil production may be worse than initial reports estimated and could lead to a national gas crisis in the short run, analysts warned Tuesday.

"'The story is all about oil,' said Michael Englund, chief economist with Action Economics. 'This is still a fluid situation but we have enough information to feel comfortable lowering our economic growth estimate even further.'

"Consumers have been absorbing the sticker shock at the pump for months already without greatly altering their spending habits. However, analysts cautioned that if gas prices reach $3 a gallon, it could force consumers to make noticeable changes to their budgets. And if spending slows, that in turn threatens to dampen economic growth since consumer spending fuels two-thirds of the economy."

Full Story: Gas crisis looms
Source: CNNMoney, August 31, 2005
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So, what can planners do to make best use of the ACS without succumbing to its pitfalls? We need to become more sophisticated communicators of the quality of the data we present, not just its apparent meaning.