A growing oil slick in the Gulf of Mexico well in the Gulf of Mexico could hamper production, shipping and refining of oil and natural gas in Mississippi, Alabama and Louisiana, Bloomberg reported Monday.
The leak, which stems from an April 20 explosion at a BP Plc oil rig in the gulf, could affect the capacity of those three states, which account for about 19% of U.S. refining capacity, Bloomberg said, citing the Department of Energy.
The spill, which could drift west toward New Orleans, has the potential to hinder ships entering and leaving the Mississippi River and deliveries to and from the Louisiana Offshore Oil Port, Andy Lipow, president of Houston-based Lipow Oil Associates, told Bloomberg.
Crude futures, which closed near an 18-month high over $86 a barrel on Friday on the New York Mercantile Exchange, rose 39 cents Monday to $86.54 a barrel on the Nymex, Bloomberg said.
President Obama, who has mobilized federal resources to help deal with the crisis, called the leak a “massive and potentially unprecedented” disaster that could affect the economy of the Gulf states and the jobs of those who depend on the Gulf for their livelihood, Bloomberg reported.
