Hurricane pounds Big Easy
New Orleans takes a hit, 1 million flee, oil prices soar
Tuesday • August 30, 2005
NEW ORLEANS — They feared the worst — and their fears appear to be coming true.
As the US Gulf Coast was hit by Hurricane Katrina's 240 km per hour winds late last night, crude prices soared, the US stock market was being tossed up and down and the power supply to New Orleans was knocked out — all this before the human cost was even assessed.
At press time, the authorities were hoping that the storm would be less potent than they had first feared. Even so, it was capable of claiming scores of lives and crippling the economy.
As a much weaker storm last week, Katrina had killed seven people in Florida. Since then, it has gathered speed, as it headed towards the Gulf Coast, officials braced for a disaster.
In an unprecedented exodus, more than 1 million of the 1.3 million population of the area around New Orleans — the city known as the Big Easy — was evacuated within hours.
Mayor Ray Nagin warned that the hurricane's storm surge of up to 8.5 million could topple the levees protecting the city and flood its historic French quarter.
"Ladies and gentlemen. I wish we had better news for you but we are facing the storm that most of us had feared. This is a threat we have never faced before," said Mr Nagin as he issued the compulsory evacuation order.
Some 10,000 people, unable or unwilling to flee, piled into the Louisiana Superdome, New Orleans' enclosed sports stadium.
The storm immediately tested the strength of their sanctuary as it blew away two parts of the stadium's roof. Rain started pouring into the stadium from these gaps though, at press time, the authorities were stressing that there was no danger to those huddled inside. Louisiana Governor Kathleen Blanco said that an engineer had checked the dome and found it sound.
America's oil and refinery operations, centred around the area, were hit even before the storm took dead aim at them.
Oil companies evacuated workers and shut down more than 600,000 barrels of daily production in the area. Refiners closed down more than one million barrels of refining output — and that amount could rise even further.
This drove oil prices past the US$70 per barrel mark — breaching a psychological barrier and threatening to severely hurt business activity. To ease fears of a meltdown, the US government indicated its readiness to tap into its emergency oil stockpile.
Insurance companies were preparing for the worst. The area in the path of the storm has more than US$150 billion ($251 billion) worth of insured property — and those who fled the city did not expect to find their homes intact when they returned.
Within minutes of the storm's arrival, eerie scenes were being played out. CNN reported that winds were howling through downtown New Orleans, known for its popular Mardi Gras parade, ripping away chunks of debris.
And from Gulfport, Mississippi, the news channel reported the streets were submerged under two metres of water. "We are watching these buildings deteriorate and break down before our eyes," said its correspondent.
Earlier, US President George W Bush declared a state of emergency that clears the way for federal aid to affected areas.
"We cannot stress enough the dangers this hurricane poses to Gulf Coast communities," Mr Bush said from his Texas ranch.
Heeding his warning, the city started to empty out at a rate of 18,000 cars an hour.
The town's residents will count the cost of the hurricane only after it blows over.
"New Orleans may never be the same again," warned National Hurricane Centre director Max Mayfield. — Agencies[/quoet]
http://todayonline.com.sg
Well. Here goes the price of OIL again
.
New Orleans takes a hit, 1 million flee, oil prices soar
Tuesday • August 30, 2005
NEW ORLEANS — They feared the worst — and their fears appear to be coming true.
As the US Gulf Coast was hit by Hurricane Katrina's 240 km per hour winds late last night, crude prices soared, the US stock market was being tossed up and down and the power supply to New Orleans was knocked out — all this before the human cost was even assessed.
At press time, the authorities were hoping that the storm would be less potent than they had first feared. Even so, it was capable of claiming scores of lives and crippling the economy.
As a much weaker storm last week, Katrina had killed seven people in Florida. Since then, it has gathered speed, as it headed towards the Gulf Coast, officials braced for a disaster.
In an unprecedented exodus, more than 1 million of the 1.3 million population of the area around New Orleans — the city known as the Big Easy — was evacuated within hours.
Mayor Ray Nagin warned that the hurricane's storm surge of up to 8.5 million could topple the levees protecting the city and flood its historic French quarter.
"Ladies and gentlemen. I wish we had better news for you but we are facing the storm that most of us had feared. This is a threat we have never faced before," said Mr Nagin as he issued the compulsory evacuation order.
Some 10,000 people, unable or unwilling to flee, piled into the Louisiana Superdome, New Orleans' enclosed sports stadium.
The storm immediately tested the strength of their sanctuary as it blew away two parts of the stadium's roof. Rain started pouring into the stadium from these gaps though, at press time, the authorities were stressing that there was no danger to those huddled inside. Louisiana Governor Kathleen Blanco said that an engineer had checked the dome and found it sound.
America's oil and refinery operations, centred around the area, were hit even before the storm took dead aim at them.
Oil companies evacuated workers and shut down more than 600,000 barrels of daily production in the area. Refiners closed down more than one million barrels of refining output — and that amount could rise even further.
This drove oil prices past the US$70 per barrel mark — breaching a psychological barrier and threatening to severely hurt business activity. To ease fears of a meltdown, the US government indicated its readiness to tap into its emergency oil stockpile.
Insurance companies were preparing for the worst. The area in the path of the storm has more than US$150 billion ($251 billion) worth of insured property — and those who fled the city did not expect to find their homes intact when they returned.
Within minutes of the storm's arrival, eerie scenes were being played out. CNN reported that winds were howling through downtown New Orleans, known for its popular Mardi Gras parade, ripping away chunks of debris.
And from Gulfport, Mississippi, the news channel reported the streets were submerged under two metres of water. "We are watching these buildings deteriorate and break down before our eyes," said its correspondent.
Earlier, US President George W Bush declared a state of emergency that clears the way for federal aid to affected areas.
"We cannot stress enough the dangers this hurricane poses to Gulf Coast communities," Mr Bush said from his Texas ranch.
Heeding his warning, the city started to empty out at a rate of 18,000 cars an hour.
The town's residents will count the cost of the hurricane only after it blows over.
"New Orleans may never be the same again," warned National Hurricane Centre director Max Mayfield. — Agencies[/quoet]
http://todayonline.com.sg
Well. Here goes the price of OIL again
.
