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States combat rising energy costs: reduced supplies and record demand push energy prices to record levels.

Publication: State News
Publication Date: 01-OCT-05
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Even before Hurricane Katrina, gasoline and diesel prices were setting record highs in the United States because of reduced crude oil supplies, a warm summer and increased demand worldwide for transportation fuels. The Gulf of Mexico, hit hardest by the storm, is a major supply source for oil...

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...and gas in the country. The region also serves as a major point for energy imports to the nation and is a nexus for pipeline infrastructure.

Hurricane Katrina caused significant damage to offshore rigs, refineries, pipelines and ports. According to the Minerals Management Service, oil production in the Gulf of Mexico was reduced by 57 percent, or 861,000 barrels per day, because of the storm. The MMS also reported that...

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