[bazanster2]

BG


On Wednesday night, forecasters said Rita had become the third most
powerful hurricane recorded in the Atlantic Basin, based on its central pressure.

Katrina damage was focused on offshore oil platforms and ports.
Now the greater risk is to oil-refinery capacity, especially if Rita slams into
Houston, Galveston and Port Arthur, Texas.

"We could be looking at gasoline lines and $4 gas

"If the storm maintains its intensity, Rita "could be worse than Katrina"....
Max Mayfield (Director of National Hurricane Center)


When Katrina hit, 15 refineries, nearly all in Louisiana and Mississippi,
with a combined capacity of about 3.3 million barrels a day were shut down or damaged,
according to the Energy Department. That represented almost 20 percent of U.S. refining capacity.

Within a week, almost two-thirds of that damaged capacity had resumed some operations,
according to the department. But four refineries with nearly 900,000 barrels a day of
capacity are still basically shut down.

If Rita hits both the Houston-Galveston area, as well as the Port Arthur-Beaumont region
near the Texas-Louisiana border, that could take out more than 3 million barrels of capacity a day.

"We're already in uncharted territory now.
We can't project what happens from another shot the size of Katrina or worse."

Part of the problem is that skilled crews needed to make refinery repairs are
already busy trying to fix the Katrina damage. That would extend recovery time from Rita.

"[Rita] could have a significant impact on supply and prices -- this really is a national disaster,"
Valero Energy (Research) CEO Bill Greehey in an interview with Reuters Tuesday evening.

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Trader uncertainty as to the full impact of Hurricane Rita should put the pressure on the Bulls.
Looking for a sell off.
Going with DOWN on Thursday.

gl,

baz