Economic impact 2005 Atlantic hurricane season

hurricane rita @ landfall, along location of several refineries

the damage had far-reaching economic consequences due vulnerability of both oil extracting , refining capacity in gulf of mexico, storms led speculative spikes in price of crude oil whereas, damage refinery capacity in united states caused gasoline soar record prices (even adjusted inflation). governments in europe , united states tapped strategic reserves of gasoline , petroleum, , shortages reported in days after katrina in areas heavily dependent on gulf of mexico refined gasoline. weeks after storm, prices remained elevated shortage in production remained on 1 million barrels (160,000 m) per day.

rita damaged wells in western gulf of mexico exploratory, leading concerns future production damped time come. additionally, storm churned in gulf, forecasters predicted strike houston, texas, location of many major oil refineries survived katrina, leading additional spikes in oil prices before predictions changed. in georgia, governor sonny perdue declared snow days on september 26 , september 27, 2005, @ georgia public schools conserve fuel school buses in anticipation of rita s impact. however, storm veered away houston shortly before landfall, damage refining capacity not great feared.

agriculture in multiple countries hard hit extremely heavy rains severe storms during season. in season, hurricane dennis caused significant damage various citrus , vegetable crops in cuba, though damage not crippling. in central america, hurricane stan , associated nontropical storms dropped upwards of 20 inches (500 mm) of rain, causing, in addition severe flash floods , mud slides, heavy damage crops, banana , coffee crops, ready harvested. caused significant economic disruption in guatemala , surrounding nations, rural economies highly dependent on coffee , banana crops. when hurricane beta struck nicaragua later in season, caused heavy damage banana crop, harvests had ended, mitigating economic disruption.

katrina had significant political consequences, president george w. bush, louisiana governor kathleen blanco, , new orleans mayor ray nagin came under heavy criticism considered sluggish or inappropriate responses hurricane katrina. on december 14, 2005, congressional hearings began investigate whether these claims had merit. in addition, michael brown, head of united states federal emergency management agency (fema), forced resign post after organization came under fire perceived insufficient response katrina.