Katrina, Rita Complicate Already Contentious Picture In U.S. Natural Gas Market

摘要

Washington-Few events have the potential to profoundly reshape the energy industry. Hurricane Kalrina, however, was just such an event. And Rita, another massive hurricane that swept through production infrastructure offshore in the Gulf of Mexico, followed on Katrina's destructive heels less than one month later. Even before Katrina struck. U.S. energy prices had risen to record levels. The West Texas Intermediate crude oil benchmark price was nearing $70 a barrel, and Henry Hub natural gas prices in the day-ahead market had spiked above $10 an MMBtu for the first time ever during summer months. As a direct result, wholesale electricity prices had climbed to levels generally not seen since the California energy crisis in 2000. Furthermore, the amount of working gas in storage had already fallen below year-ago levels, with the gap between current storage and year-ago levels expanding every week. Katrina. therefore, could hardly have come at a worse time.