Saturday, May 12, 2007
Mommy, What's a Klotzbach??
The name Klotzbach may become a household name by the end of fall. I refer to Philip Klotzbach, a Colorado State University hurricane forecaster. With, Andrea, the first named storm of the season coming 3 weeks before hurricane season starts my antenna are already up wondering how a potentially active Atlantic basin hurricane season could impact energy assets along the Gulf coast. Last year, the forecasters were wrong about a repeat of the devestating 2005 season. Storm prediction months in advance even tougher than stock market predicting, but forecasters this year are already concerned: More Active 2007 Atlantic Hurricane Season Predicted. $4 or $5 gasoline at the pump, $18 natural gas futures would be reality if a 'cane made its way toward something like the Houston Ship Channel, or any of a number of 'sticking out like a sore thumb targets' in the Gulf. Let's hope that doesn't happen. Even if we don't get a doom cane and track, rumors of canes and early guesses about tracks will cause tremendous volatility in the energy markets. Look for a fascinating summer ahead in the energy pits if the storm activity does indeed pick up.