The Guardian (UK): Energy firms prepare for storm damage: “More than a quarter of US oil-refining capacity is situated along the Texas and Louisiana coast. At least 15 refineries have closed, including plants owned by BP, Shell and ConocoPhillips, raising the prospect of a squeeze on petrol supply. This is on top of four refineries not back in operation after Katrina.”: Saturday September 24, 2005
David Teather and Mark Milner in New York
The US oil industry, still reeling from Hurricane Katrina, was bracing itself for a second blow to production and refinery capacity yesterday. Energy firms were ordering staff to evacuate offshore platforms and refineries thought to be in Hurricane Rita's path.
More than a quarter of US oil-refining capacity is situated along the Texas and Louisiana coast. At least 15 refineries have closed, including plants owned by BP, Shell and ConocoPhillips, raising the prospect of a squeeze on petrol supply. This is on top of four refineries not back in operation after Katrina.
The government said the total amount of refining capacity shut down - even before Rita arrives - amounted to nearly five million barrels a day. Jet fuel, diesel and natural gas production have also been lost. About 90% of offshore oil production has been shut in the Gulf of Mexico.
The American Petroleum Institute urged consumers to conserve petrol, as environmentalists warned of the danger of a toxic spill from the 87 chemical plants used in the refineries. The Texas governor, Rick Perry, said state officials had contacted the plants to ensure they were "taking appropriate procedures to safeguard their facilities".
Oil prices remained close to record highs, but eased slightly as traders speculated that much of the industry might be spared the worst. In London, Brent crude slid 59 cents to $64.01 (£30.38). Prices peaked at $70.85 a barrel last month, but could be forced higher if damage is severe. Oil markets, including the International Petroleum Exchange in London, will open at the weekend because of the hurricane's potential impact on prices.
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