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October 3, 2005

The Effects Of Katrina & Rita On Your Internet Business

The effects of Katrina & Rita have been well documented on the news media. The horrifying pictures have resounded in the consciousness of all of us and my writing skills are certainly inadequate to express my feelings about the heart rending scenes we've all witnessed.

Instead, I'd like to muse about a less emotional topic - the effects of these two storms on Internet business, yours and mine. These two storms have devastated our oil refineries and we're going to feel the effects for months and possibly years to come. Getting oil isn't the problem - getting refined oil is the problem.

Here in Atlanta we're feeling the gas crunch. Metro Atlanta uses 90+% of the refined gasoline we normally get. Currently, we're only receiving 60% of our normal supply, up from 40% only a couple of weeks ago. For a time, that wasn't a problem because the state used its reserves. But those are gone now, and there are many stations here in metro Atlanta that have no gas at all. Rationing is almost certain to follow and, according to the news, it might be a year or more before we receive the allotments we used to get. Diesel fuel is in even shorter supply - the diesel fuel necessary for such organizations as the public school system.

The shortages and the escalating prices of each gallon will have a strong effect on our economy. Inflation and increased prices - very increased prices - on many commodities is certain.

The Internet will most likely increase its share of the consumer dollar. As folks travel less, they will be turning to the Net to buy and have goods delivered directly to their home. Shipping products will cost more, but the individual gas savings will make up for this.

Hopefully, this will increase public demand for alternative sources of energy, something that has been possible for a long time but has never received the support it deserves.

There has been a ripple of uneasiness in the consciousness of Atlantans, and it is a tangible thing. These storms have revealed a vulnerability that we weren't aware of before. It's uncomfortable. And maybe that's a good thing. Being shaken out of complacency often leads to giant growth spurts.

Posted by SydneyJohnston at October 3, 2005 10:49 AM

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