View Full Version : Katrina could slow US economic expansion



PUGalicious
08-30-2005, 05:21 AM
From Reuters (http://reuters.myway.com/article/20050829/2005-08-29T232119Z_01_HO984075_RTRIDST_0_NEWS-ECONOMY-KATRINA-DC.html):


MIAMI (Reuters) - Hurricane Katrina may sting U.S. economic growth by choking energy supplies even as the damages caused by the storm spur massive rebuilding and emergency government spending. Economists, while emphasizing that few concrete damage assessments have yet been made, said the major hurricane that struck the country's key Louisiana energy gateway would help sustain high oil, gasoline and natural gas prices.

A seasonal downturn in demand expected after next weekend and a higher-than-usual build-up in inventories ahead of the North American winter had led to forecasts energy prices might ease in coming months.

Some economists said U.S. gross domestic growth had been already showing signs of easing and may now slow more rapidly if fallout from Katrina boosts oil to $100 a barrel for a month, or U.S. gasoline prices to $3.50 a gallon, for a few months.

>more (http://reuters.myway.com/article/20050829/2005-08-29T232119Z_01_HO984075_RTRIDST_0_NEWS-ECONOMY-KATRINA-DC.html)



In WKMG-TV6 (http://www.local6.com/news/4911219/detail.html) in Florida:


TALLAHASSEE, Fla. -- Gov. Jeb Bush warned Florida could see shortages of gasoline in coming days as a result of Hurricane Katrina. The hurricane roared through the nation's major gas refineries and shut down production of thousands of oil rigs in the Gulf of Mexico. Bush said Florida has worked with the U.S. Department of Energy and the Petroleum Industry to bring significant supplies of gasoline into the state's ports. But David Mica of the Florida Petroleum Council said it will take time before oil rigs and refineries are operating again. Bush blames oil companies for keeping lower inventories than they have in the past and that makes shortages more likely. But Mica says the oil industry has produced record amounts of petroleum each of the last three years and that global demand has also increased to record levels.


And from the OklahomaCityGasPrices.com (http://www.oklahomacitygasprices.com/index.aspx) message forum:


From: rheckard, Message Posted: 8/30/2005 5:37:46 AM

Several stations are reporting that they can not get gas from the Rack, and now have no gas.


Gas shortages, skyrocketing gas prices, slowing economy... sounds strangely familiar.