1.449 Million bpd of Refining Capacity Closed Down

Seven southeast Louisiana refineries, with a combined daily refining capacity of 1.449 million barrels, were shut or shutting down on Sunday. All were to be closed by Sunday night.

The most vulnerable refineries appear to be the three located in Plaquemines and St. Bernard Parishes east of New Orleans.

St. Bernard Parish is home to Chalmette Refining LLC's 190,000 barrel per day (bpd) Chalmette, Louisiana, plant and Murphy Oil Corp.'s 120,000 bpd Meraux, Louisiana, refinery.

ConocoPhillips has a 247,000 bpd refinery located in Belle Chasse in Plaquemines Parish.

Katrina is expected to come ashore in those two parishes.

A storm surge of 18 to 20 feet is expected in St. Bernard Parish, said Jim Connor at the parish Emergency Operations Center. Residents there are bracing for flooding up to the rooftops of houses.

"We're preparing for something we've never seen before," Connor said.

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My wife and I both did so today. I wouldn't be surprised to see gasoline jump $0.20 per gallon this week.

I hope our Murphy refinery, and the other companies' refineries, survive. If not, I'm not sure the U.S. economy could survive the sustained increase in fuel prices without going into a recession.

Of course, even worse than that kind of physical destruction I fear that the human death toll might be in the thousands if the damage from Katrina is that severe.