Posted On: August 29, 2008, 4:37 pm CDT

Posted By: Kent

You are correct about Katrina in regards to the damage it did in New Orleans. However, Katrina's high winds and storm surge laid waste to about everything east of New Orleans across coastal Mississippi to Mobile. One of the primary storm tracks on the NHC (National Hurricane Center) website shows Gustav starting to turn west before it hits the coast west of New Orleans and riding along the coastline until it enters Galveston Bay and hits Houston. This entire area is barely above sea level and even a small storm surge will put it underwater. That is why FEMA and the Texas DPS tried to evacuate 4 million people living between Beaumont and Houston when hurricane Rita hit after Katrina - all lanes coming out of Houston were one way going north or west. This could have a significant national inpact in that the world's largest concentration of petrochemical plants is in this area - particularly Galveston Bay. About 25% of the US crude oil production is in the gulf and about 35% of our refining capacity is between New Orleans and Houston - particulary Texas City in Galveston Bay. Refineries are very sturdy but, their operations may have to be shut down for weeks.

The Texas Windstorm Insurance Association recently purchased more reinsurance but, still doesn't have the capacity to pay for a hurricane like Katrina if makes landfall in Galveston Bay or Corpus Christi.