Why Did Katrina Damage the Economy So Much?
Hurricane Katrina affected 19% of U.S. oil production. Hurricanes Katrina, and previous Hurricane Rita, destroyed 113 offshore oil and gas platforms, damaged 457 oil and gas pipelines, and spilled nearly as much oil as the Exxon Valdez oil disaster. This caused oil prices to increase by $3 a barrel, and gas prices to nearly reach $5 a gallon. To stop the escalation in gas prices prices, the U.S. government released oil from its stockpile in the Strategic Petroleum Reserves. Here's how that compares to Historical Oil Prices.