Gustav Is Feared To Hit U.S. Oil Rigs In Gulf Harder Than Katrina, Rita

Havana, Cuba (AHN) - Hurricane Gustav is already a threat to property and infrastructure in the United States, but it may cause more damage to the economy if it destroys offshore oil and natural-gas production facilities.

After hurricanes Katrina and Rita impact on the oil industry three years ago, market analysts are speculating that hurricane Gustav might severely damage crude production and refining platforms in the U.S. Gulf of Mexico coast.

The reports said the oil output had already declined by three-quarters from the oil rigs in the region, which produces 25 percent (1.3 million barrels a day of oil) of the country's crude oil, as workers were evacuated.

While, 15 percent (7.4 billion cubic feet a day) of its natural gas is produced by the fields in the Gulf of Mexico.

The Gulf holds around 4,000 offshore oil and gas platforms, out of which almost 100 of them were severely damaged in 2005 by Katrina and Rita.

Major companies like BP Plc, Exxon Mobil and Royal Dutch Shell PLC, which is Europe's largest oil company, were forced to shut down wells, oil rigs and order staff evacuation.

The U.S. National Hurricane Center said that hurricane Gustav may become strongest and largest storm to hit the U.S. Gulf Coast.

The center has also indicated that the hurricane is likely to strengthen again to a Category 4 after dropping to a Cat 3 after it made landfall in western Cuba on Sunday morning, where its winds were estimated at 150 miles (240 kilometers) per hour.

The storm is expected to hit the U.S. coast by Monday before it enters Texas by Tuesday and almost two million people are at risk in the southern region of Louisiana.

A barrel of light sweet crude oil for October delivery finished lower on Friday by 13 cents to $115.46 a barrel, while London's Brent ended lower 12 cents to $114.05 a barrel.