Nov. 14, 2005: Hurricanes' Impact On Energy To Extend To Mid-2006
WASHINGTON - A prolonged recovery of oil and natural gas production in the Gulf of Mexico will continue to impact U.S. energy prices through mid-2006, according to the U.S. Department of Energy's (DOE's) Energy Information Administration (EIA).
The EIA's latest Short Term Energy Outlook states, "It now appears unlikely that anything close to complete recovery will occur before the end of the second quarter of 2006." The report projects a gradual increase of Gulf oil and natural gas production, reaching 87.4 percent and 79.4 percent of their pre-hurricane levels, respectively, by March 2006. As a result, the EIA expects supplies of gasoline and natural gas to remain tight at least through the winter.