Posted: Jan 31, 2011 10:13 PM by Shawn Kline
Updated: Jan 31, 2011 10:26 PM
The political unrest in Egypt is already being felt right here in Acadiana
Oil prices are on the rise and experts say a coup would only raise those prices more.
Egypt produces around 600-thousand barrels of oil every day- compare that to the near 10-million barrels Saudi Arabia puts-out and it may not sound like much on the global scale, but the country's influence on the global economy has oil companies concerned."
"If things don't get cooled off a little bit, it could cause problems over there," Andy Simon of Crown Drilling said.
Simon says uprisings in Egypt could lead to new regimes; all struggling for power in an already unstable economy.
"We certainly wouldn't want to see a disruption that wouldn't allow cargo or oil tankers to not be able to pass through the canal," Congressman Jeff Landry (LA district 3) said.
He's talking about the Suez Canal. It's a global hub for cargo, including oil.
Landry says if cargo stops going through the canal, the US will stop getting oil.
That's why he's writing a letter to the President- urging him to re-open the Gulf.
"Our economy should not be held hostage to these kinds of disruptions," Landry said.
"Anything that increases the costs of shipping the oil and anything that reduces the production of oil is going to lead to higher prices at the pump," Dr. Linus Wilson said.
Wilson keeps a close eye on the global economy at Ul's College of Business.
He says higher prices at the pump would result in higher costs for drilling- an effect that hits close to home here in the oil hub.
"I want the price of oil to be stable at a decent level." Simon says, "this type of stuff just drives it through the roof."
It's not just the oil companies nervous over political unrest. Travel agencies, financial firms and even automobile stocks all dropped in the global market- pressured by Egyptian turmoil.