Storm May Shut Refineries For Months

WASHINGTON (Reuters) – The government warned on Thursday that some U.S. refineries shut by Hurricane Katrina may not resume processing oil for several months and a consumer group said such market conditions justified gasoline at $3 a gallon.

“Some refineries likely (will be) able to restart their operations within the next 1 to 2 weeks, while others will likely be down for a more extended period, possibly several months,” the Energy Information Administration said.
The Energy Department’s analytical arm said nine major oil refineries in Louisiana and Mississippi remained shut from the hurricane. Those refineries account for about 11 percent of total U.S. refining capacity.

“Unlike 2004’s Hurricane Ivan, which affected oil production facilities and had a lasting impact on crude oil production in the Gulf of Mexico, it appears that Hurricane Katrina may have a more lasting impact on refinery production and the distribution system,” the EIA said in its most recent update on the effects of the hurricane on the energy sector.

Reuters