There has been a lot of talk about the effects on small businesses, but I started researching some of the larger effects a natural disaster can have. So I looked into how they can affect oil and gas production. Hurricane Katrina for example had quite an effect on the oil and gas production in the Gulf of Mexico. The normal production in the Gulf of Mexico is 547.5 million barrels of oil and 3 trillion cubic feet of gas annually. After Hurricane Katrina Oil production fell by 1.4 million barrels a day, which accounted for 95% of the daily production. And 34% of production of natural gas was decreased. Along with decrease in production, they were also loosing oil, from the oil spills that were equivalent to almost 4 million gallons of oil. And on top of that there were an approximate total of 109 oil platforms and 5 drilling rigs that were either damaged or destroyed due to the hurricane. Clearly this natural disaster had a negative effect on oil production and businesses dealing with the production of gas and oil. This information along with more pictures of the effect of Hurricane Katina can be found at:
http://srb.stanford.edu/nur/GP200A%20Papers/jolene_mccaskill.pdf
After doing further research on this topic I realized that this greatly affected more than just those in the production of gas and oil. Because of the severe decrease in production they tried to make up their loss by increasing the prices of gas and oil. So companies, like gas stations or trucking companies who were the buyers of the gas and oil, even if not directly affected by the hurricane were greatly affected by the price increase.
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ReplyDeleteYes i agree with nadine on the effects of hurrican Katrina. There were at least 44 oil spills ranging from several hundred gallons to almost 4 millions gallons of oil. The Coast Guard estimates more than 7 million gallons of oil were spilled from industrial plants, storage depots and other facilities around southeast Louisiana.These oil spills are
ReplyDeletescattered at sites throughout southeast Louisiana. The earthenberms contained most of the oil that leaked into the Mississippi River. The oil that did leak into the river flowed inland away from the river levees.
for more info http://srb.stanford.edu/nur/GP200A%20Papers/jolene_mccaskill.pdf
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