GOM Production to Resume Soon

While U.S. officials expect 90 percent of the Gulf oil and gas production facilities damaged by Hurricane Katrina to be back on line in less than a month, gas prices will most likely remain elevated for some time as the supply rebuilds, according to a UPI report. The story quotes Assistant Secretary for Land and Minerals Management Rebecca Watson as saying 'Although Hurricane Katrina moved through a core area of offshore operations and damaged many production and exploration facilities, early reports indicate that the vast majority of facilities could be ready to come back on line in days and weeks, rather than months.” Four producing refineries accounting for approximately 5% of total capacity are expected to remain off line for several months, the Energy Department said. Supplies from the Gulf of Mexico provide 29 percent of U.S. domestic oil production and 21 percent of U.S. domestic gas production.