Oil Production Proving Hard to Fix

Getting offshore oil and natural gas production back up and running after Hurricane Rita is proving more difficult than expected. The main problems that are being experienced are a lack of sufficient workers, equipment, and helicopters. The federal Minerals Management Service reported that 99% of the gulf’s oil production is shut down and 80% of the natural gas production is still shut down. The storm also did significant damage to oil rigs, seriously damaging or sinking thirteen. It is also proving difficult to restart the oil refineries. However, the main problem with the refineries is a lack of reliable electricity. It is estimated that slightly more than 20% of the US’s refining capacity is still out of service. The end result of all this is that energy prices will continue to rise, crimping the incomes of many.