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November 2004                                                                            Volume 7 - Number 2

    

 

Hurricane Update...

     

 

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Ivan’s Terrible Impact

By Elza McGowan

           

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<>            Weeks after Hurricane Ivan ravaged the Caribbean and the eastern half of the United States over a 20-day period – killing more than 122 people and causing billions of dollars in damage in the process – the most powerful hurricane of 2004 has heavily contributed to a historic spike in oil prices that will affect the world economy for months.

            Ivan developed as a tropical depression off the western African coast in early September and built into a hurricane that carried sustained winds of as high as 160 mph. The winds, rain and storm surge generated by Ivan destroyed homes, roads and businesses from Grenada to Pennsylvania, forced the evacuation of hundreds of thousands of people and cut power to millions.

            The economic impact of Ivan is its most lasting effect. Since mid-September when Ivan tore through the Gulf of Mexico before slamming into Alabama coast and the Florida panhandle with 130 mph winds, the price for a barrel of oil has risen by more than $11 to nearly $54. The price spike has been attributed in part to the extensive damage to oil platforms in the gulf.

            The United States relies on one-quarter of its domestic supply from the gulf, and as of Oct. 22, daily oil production there is still short by more than 400,000 barrels. Analysts expect the continued shortage to keep gasoline and heating oil prices high throughout the winter.

            In addition, the tourism industry in Grenada, Jamaica and the Grand Caymans – a major economic driver for these Caribbean islands – has suffered greatly as these countries attempt to recover. Many damaged resorts will not re-open or be at full capacity for months. Grenada alone sustained an estimated $1 billion in damage – the equivalent to the country’s gross domestic product for two years – when the eye of Ivan passed over the island on Sept. 7. About 90 percent of the island's homes and public buildings were devastated.

            Ivan made landfall on the United States on Sept. 16 on the heels of two other hurricanes that directly struck Florida within a few weeks. The collective impact of Charley, Frances and Ivan has made the task of disaster officials assessing the damage from just Ivan difficult to ascertain, although estimates range from $5 billion to $15 billion due to Ivan.

            Agriculture was also impacted as damage to domestic crops exacerbated the destruction from Charley and Frances. Much of the peanut and cotton crops in Alabama have been lost because of rain and 100-plus mph winds. Ivan dropped between two and eight inches of rain as it tracked over the southeastern United States, further perpetuating a surge in soil and beach erosion. Flooding also created an environmental crisis on the waterways through the Eastern Seaboard, littering rivers with dead trees, pieces of demolished houses, paint cans, car tires and assorted household chemicals. Some of these obstacles inhibited fishing and recreational boat traffic in the Chesapeake Bay for more than two weeks.

 

For further information:

Bloomberg News http://www.bloomberg.com

The New York Times http://www.nytimes.com

The Houston Chronicle http://www.houstonchronicle.com

The Toronto Star http://www.thestar.com

The Dallas Morning News http://www.dallasnews.com

The Atlanta Journal-Constitution http://www.ajc.com

The Miami Herald http://www.herald.com

The Baltimore Sun http://www.baltimoresun.com

The Washington Post http://www.washingtonpost.com

The Palm Beach Post http://www.pbpost.com

http://en.wikipedia.org/wiki/Hurricane_Ivan_(2004)