Katrina's Financial Impact

Several components of Katrina's invasion of the northern Gulf coast on August 29th, 2005 make for the worst of all possible situations. The financial impact of this storm will affect the entire nation far beyond the life of this tropical storm.

The United States' dependence on New Orleans as an international port, with trade of many types of goods continuing up the Mississippi River, have become instantly wraught with the havoc of destruction. Anything imported by ship through New Orleans will be slower arriving and more expensive, the outcome of American supply and demand. New Orleans is the sixth largest port in the world, and the third in the United States.

The oil rigs in Katrina's path in the Gulf of Mexico must be shut down and evacuted until the seas in the Gulf become safe again for staff to work. Destruction and damage to the rigs must be reapired after the storm. Approximately one quarter of domestic oil production has been affected by Katrina in the Gulf of Mexico. Electronic trading Sunday evening before the arrival of the storm placed the price of a barrel of oil at $69.58, with an immediate increase expected on Monday. This will affect the price at the pump for at lest the immediate future, until some damage is repaired and routes flow easily again.

Even embedded metal oil rigs, tied by 18 foot steel cable to the depths of the Gulf, faced damage and destruction, which will take the time of private company professionals to repair.

The many refineries based on shore in New Orleans, in both the west and east sections of the city, face similar but exacerbated problems. Before returning to pre-hurricane production levels, Professor Ivor Von Heerden, of Louisiana State University estimates that as many as three months, 90 days, may pass before the city is able to drain the sea water and chemical "bowl of industrial brew" remaining when the tidal surge came, and the several levies holding the city intact below sea level broke.

New Orleans may be lost underwater for an extended period of time. This storm may destroy beyond rebuilding. The French Quarter, one of the oldest and lowest locations in the New Orleans area may be marine history. One wonders if Mardi Gras will never be the same.

Other locations along the path of the hurricane, as well as the path of supply and demand, will be overwhelmed. Not only the repair of water routes, but the rebuilding of business and residential property, and restoring the routine of life of families who live and work along the path of Hurricane Katrina in late August of 2005. Before slashing onshore, Aaron Brown of CNN called the category 5 hurricane the largest, most powerful, and most potentially destructive hurricane of our lifetime. The worst has come to pass. Donations for the Red Cross are being accepted at 1-800-HELP-NOW. All Americans are called to do what they can to help the evacues resettle into a new life.