Hurricane Ike A Menace As Oil, Gas Output Rises In US Gulf

Energy companies in and around the U.S. Gulf of Mexico continued to ratchet up operations, although there are early signs crude oil and natural gas output could once again be disrupted by a hurricane.

More than 20% of oil output and about 30% of natural-gas production in the U.S. Gulf of Mexico had been restored as of Sunday, according to official data. Virtually all hydrocarbons output in the U.S. Gulf was shut in ahead of Hurricane Gustav.

All but four oil refineries were either producing gasoline and diesel or were readying equipment for processing. Most pipelines resumed flows after power was restored. Meanwhile, Hurricane Ike is forecast to move near or over eastern Cuba later Sunday barreling toward Cuba as a Category 4 storm.

Whether Ike becomes a menace to energy infrastructure in the Gulf of Mexico - and a force pressuring prices upward - depends on how the storm changes over Cuba and how developing weather systems steer it.

FULL STORY AT CATTLENETWORK.COM