August 30, 2005
The realization is dawning that Hurricane Katrina is one of the greatest natural disasters ever to hit the United States. Hundreds are believed dead, entire cities and towns are in ruins and the oil rigs that dot the Gulf of Mexico are dead in the water, shutting down about one-third of the nation's energy production.
"The devastation is greater than our worst fears," Louisiana Governor Kathleen Blanco told a news conference. "It's totally overwhelming."
She spoke after an overnight breach in New Orleans' protective levee system allowed water from Lake Pontchartrain to flood most of the city. The water was reported still rising Tuesday afternoon.
New Orleans suburbs Jefferson Parish and Plaquemines Parish are under Martial Law. No one is being allowed into the city of New Orleans.
In Mississippi, hundreds may have been killed in Biloxi after being trapped in their homes when a giant storm surge came ashore. The death toll is "going to be in the hundreds," Biloxi spokesman Vincent Creel said.
Millions are without power, hundreds of thousands of evacuees have no idea when they will be able to return home. Huge swaths of New Orleans are under water. Rescuers are only beginning to make their way into the scene of the disaster.
President Bush cut short his Texas vacation to return to Washington. We've got a lot of work to do, he said.
Emergency Information
People trying to get information about loved ones in the hurricane zone should call the American Red Cross, at 1-866-GET-INFO (338-4636).
Damage Worse Than Expected
Insurance industry sources say damage so far has been worse than expected, possibly as much as $26 billion, prompting a new rise in oil prices to record levels and raising concerns about the cost of insurance for oil rigs in the Gulf of Mexico. That damage estimate would be as much as the total from all four hurricanes in the Gulf last year.
Financial analysts are reporting that insurance companies will either stop writing policies on Gulf oil rigs or raise premiums so high that insurance on the rigs is unaffordable.
Meanwhile, it's expected to take at least a week to restart refineries hit by the hurricane at a time when supplies already are tight in the U.S. Until the refineries, drilling platforms and offshore loading facilities are all fully operational, consumers can expect to pay stiffly higher prices for gasoline, natural gas, fuel oil and other oil-based products.
Local News Reports
News media in the area hit by the hurricane have been working from makeshift quarters. Some of the most up-to-the-minute coverage is on New Orleans' WWL-TV.
