Nigeria Pipeline Disaster 2006

For whatever reason, the instability of Nigeria - one of the world's biggest oil producers, and by some distance the biggest producer in Africa - never gets the same attention as instability in the Middle East or Latin America. Perhaps this will change that. There are pipeline disasters in Nigeria all the time, but this one is impacting an already sky-high oil price.

Comments

[Kevin]

Is it socially acceptable to notice the Bee Gees reference? After all, it is early, pre-cheese Bee Gees.

[Brian]

Why did Jebus put all the awl in all the bad places? I wouldn't mind one of those dunking guys in my backyard.

[David Weigel]

Boy, it had better be socially acceptable. Kudos for catching the reference.

[VM]

Please, David, say you DIDN'T send them money to fix this problem....

[Jeff P]

Yay! Actual News!
With Oil stocks dropping again today I expect some coverage of this.

[Pro Libertate]

Brian,

The United States is home to mucho oil, too. I think we're the third largest producer. Of course, we're also the number one consumer of oil, which mucks things up.

Some would say that just proves your point, but I still think we're mostly a good place 🙂

[mediageek]

"Why did Jebus put all the awl in all the bad places?"

Because he's got a righteously sick sense of humor.

[just asking]

Pretty a mees, of course, but how would this one impacting an already sky-high oil price?

[SR]

"Pretty a mees, of course, but how would this one impacting an already sky-high oil price?"

Jar-Jar Binks?

[sage +P]

Thanks for the first laugh of the day, SR.

[rhywun]

Because he's got a righteously sick sense of humor.

And when I die, I expect to find him laughing.

[Jeff P]

How is it that Hollywood has yet to make a comedy about Nigerian magnate's son/daughter/widow who discovers that they can inherit billions of dollars, but needs to find an accomplice in the US. Of course, no one takes up the offer...

[VM]

Nice SR!

Rhywun - that's just a blasphemous rumor...

[Ruthless]

Why did Jebus put all the awl in all the bad places? I wouldn't mind one of those dunking guys in my backyard.

Brian,
Many of those places were "good" places... before awl was discovered. 'Twer the awl that made 'em bad. Pennsylvania and Texas are just a couple of examples.

[aaron]

A question I have is how can we isolate risk? It seems strange that oil prices would be up due to the possibility that supplies might be cut off, especially in the same places where supplies may be cut off. The price increases should only be happening for the counties where supplies are sure to continue. And, only the futures price should be higher.

Increased risk should only increase the spread between the Futures and Current price. Current Prices should only go up so much as buyers are able to move their future purchase into the present (by increasing physical storage). Instability so often attributed to price increases?