Drudge has a round-up on the oil situation and the general disruption in power:
As half of the Gulf Coast refineries damaged by Hurricane Katrina begin to ramp up production this week, industry experts have this message: be patient.
“What you’ve got are a whole series of requirements and processes and that takes days, if not weeks,” said John Felmy, chief economist for the American Petroleum Institute.
The going is also slow for the restoration of offshore oil and gas production. Almost 70 percent of normal oil production and half of the natural gas output remains shut down, according to the U.S. Minerals Management Service, which said activity is slowly recovering.
Eight major refineries that produce gasoline, diesel and jet fuel and heating oil were knocked out of commission and the output at two others was cut by last week’s killer hurricane and the flooding that followed. That cut overall U.S. refining capacity by more than 10 percent and contributed to a surge in retail gasoline prices and spot shortages around the country.
With New York markets closed for the Labor Day public holiday, dealers reported only thin trading across many commodities in London yesterday.
Oil prices retreated to levels seen prior to the arrival of Hurricane Katrina as the release of emergency fuel stocks by industrialised nations soothed fears over a US energy crisis.
IPE Brent for October delivery fell $1.13 to $64.93 a barrel after the International Energy Association announced that its members would release 2m barrels of oil for thirty days to compensate for the loss of production and refining capacity cause by the impact of Katrina.
Dealers said futures prices were likely to continue their correction after WTI crude failed to break decisively through $70 a barrel last week, but said an aggressive sell-off appeared unlikely.
Other utilities are returning to service, as well:
Three utility companies that experience widespread Hurricane Katrina power outages reported progress Monday in restoring service to customers. But more than 800,000 customers still were without power, one week after Hurricane Katrina struck.
Entergy Corp. said it has restored service to more than half of the 1.1 million customers that lost power. Another 517,000 Entergy residential and business customers still have no power, mostly in Louisiana.
The Electric Power Association of Mississippi, a member-owned association akin to a credit union, said that more about 222,000 of its customers still remain in the dark.
Southern Co., whose utility subsidiaries serve customers in Mississippi, Alabama, and Georgia, said it restored power to about 44 percent of its Mississippi customers, leaving about 80,000 still to be reconnected.
Crews from more than 20 states and some Canadian provinces have joined local workers to bring power back to the hardest hit areas of Mississippi and Louisiana.
These are positive steps in the road back after this disaster.