Hurricane Gustav: How Much Damage to Oil Production?

Hurricane Gustav has closed the Gulf of Mexico's key oil and natural gas facilities as it slammed into the coast - eerily three years following the devastation of Katrina.

It will be several days before an assessment of damage to the area can be conducted, but major oil and gas facilities took a direct hit.

Damage to homes and businesses may pass $10 billion according to preliminary estimates.

If energy facilities, including production and distribution, are shut down for more than several days, it will likely result in higher gasoline prices.

That would be the short-term impact. Long term, look for even higher prices in fuel oil as refineries shift from gasoline to heating oil.

It looks to be an expensive winter for northern climates.