Gustav hits oil output

HOUSTON: US energy companies shut nearly all offshore oil production and were racing to bring down flood-prone Louisiana refineries yesterday ahead of Hurricane Gustav’s landfall, which could rival the wrath of 2005’s Hurricane Katrina.

Gustav is expected to be a dangerous Category 4 hurricane with wind speeds up to 155 mph when it hits the Louisiana coast today in the first major test of the US energy industry’s preparedness since the devastating 2005 hurricane season.

Just over 96 percent of US Gulf oil production was turned off and 82 percent of natural gas output had been closed as of yesterday afternoon.