Katrina raised gas prices higher than ever

Sunday, September 11, 2005

The retail price of gasoline has risen higher than ever in the wake of Hurricane Katrina. The losses from the deadly hurricane include the destruction of oil refineries all around the Mexican Gulf area, and resulted in a cut of nearly 11 percent of U.S. refining capacity.

It is estimated that 897,605 barrels of oil production has been curtailed, an amount which accounts for nearly 59.8% percent of the Gulf of Mexico's total daily output. Since Katrina, 17.1 million barrels have not been produced. There were 122 oil platforms shut down, out of 819 platforms in the Gulf.

The national average retail price for gas was $3.04 on Sunday. This exceeds the previous inflation-adjusted record of $3.03, set in March of 1981.

The survey was published by Trilby Lundberg, who publishes such surveys semi-monthly.

These prices are all "thanks to Katrina," said Lundberg.

Lundberg also says that prices could drop in the next few weeks, as the hurricane damaged areas are repaired, and less gas is being purchased nationwide because of lowered demand due to higher prices.

Sources

Jeremiah Marquez, Associated Press writer. "Retail Gas Prices Hit All-Time Highs" — Yahoo!, September 11, 2005
"U.S. Gasoline Rises to a Record $3.01 a Gallon, Lundberg Says" — Bloomberg, September 11, 2005
Associated Press. "Many Oil, Gas Platforms Still Down; Production Off 60%" — LA Times, September 11, 2005

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