In the aftermath of Hurricane Isaac, the Gulf Coast's oil and gas hub is slowly coming back to life as power is restored and floodwaters are cleared out at refineries.
Nearly 60 percent of production, or 800,000 barrels of oil per day, remains offline, according to the Bureau of Safety and Environmental Enforcement, but around 100,000 barrels per day of production was restored over the weekend. During the thick of the storm, 1.3 million barrels per day of oil was suspended out of the total 19 million barrels of petroleum the country consumes every day.
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Due to threat Isaac posed to the Gulf, the national average price of oil rose 11 cents last week, leveling off to just under $3.83 per gallon Friday and declining another two cents Monday—the highest price for gasoline on Labor Day in history.
The good news is analysts say prices should go down in the upcoming weeks as refineries ramp back up and an ending summer season drives refineries to switch to cheaper winter blends of gasoline.
Onshore pipelines, ports and terminals have re-opened for the most part, while several natural gas pipelines remain shut. The Energy Department anticipates that most operators will be back to full operating capacity over the next few days.