Gulf Oil Production Could Rebound by Late October

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.S. oil and natural gas production could be back at pre-Hurricane Katrina levels by the end of October but it will take even longer for that production to make it to market, Reuters reported Friday.

Offshore energy companies will be able to produce about 90% of pre-storm oil and gas output within in 30 to 40 days, Reuters said, citing a Minerals Management Service official.

The ability of the oil and gas to make it to wholesale markets could take three months due to pipeline problems and shutdowns of oil refineries and gas processing plants, MMS’ Johnnie Burton told reporters, Reuters said.

U.S. crude oil prices fell $1.75 to $63 a barrel on Friday on news that Katrina did not cause major damage to underwater pipelines in the Gulf. That was almost $8 below the record $70.85 set Aug. 30 following Katrina’s landfall near New Orleans.

As of Friday, more than 56% of crude production and 34% of gas output in the Gulf of Mexico remained off line, according to MMS, which is part of the Interior Department.