Energy companies on Monday prepared for the worst storm to hit the U.S. oil sector since 2005, but Hurricane Gustav appeared unlikely to cause the same damage that Hurricanes Katrina and Rita did three years ago. Most of the oil and natural-gas production in the Gulf of Mexico and about 12 percent of U.S. refining capacity was shut as a precaution by the time Gustav hit land west of New Orleans on Monday morning. But energy experts foresee only limited damage from the storm after it weakened into a Category 2 hurricane before hitting the Gulf coast. U.S. crude-oil futures fell as much as $4.83 a barrel, and natural-gas futures were down nearly 7 percent at their lowest point Monday in electronic trading. Forecasters warned that Gustav will bring an “extremely dangerous storm surge” of up to three meters that could test levees in low-lying areas. But a storm surge of that size would be only half of that caused by Katrina, which flooded New Orleans. Gustav is the biggest threat to the oil sector since Katrina and Rita destroyed over 100 offshore oil platforms in 2005 and closed several large refineries for months.
