Louisiana oil refineries largely untouched by Hurricane Isaac

The oil industry appears to have come through the recent hurricane in the Gulf of Mexico relatively unscathed, despite some flooding in parts of Louisiana, according to Reuters.

The upgraded levee system in New Orleans appears to have spared the city from the damages inflicted by Hurricane Katrina in 2005, but nearby Plaquemines Parish did experience some flooding, which many expected.

A power outage in the parish shut down the Phillips 66 Alliance oil refinery, though the plant has so far reported no serious damage and is isolated somewhat from the flooding. Several other oil refineries were also relatively untouched, while early indications are that the precautions taken by offshore oil rigs prevented any serious damage.

"The rigs offshore should be up in about a week," Kenneth Medlock, a fellow at Rice University's Baker Institute, told Reuters . "The offshore facilities should be OK with regard to major damage ... I would not expect a prolonged production outage."

The U.S. Energy Information Administration reports that the primary threat from the large, but comparatively slower, Hurricane Isaac was flooding, making the effectiveness of the new levees an important success.

PennEnergy's Research area offers oil production outlooks for Louisiana.

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