At its height, Hurricane Katrina was Category 5 storm. However, it did most of its damage after it hit land on August 29, 2005, when it was reclassified to a Category 3. Most estimates put the economic loss from Hurricane Katrina at $125 billion, with $66 billion in insured losses. Half of these losses were a result of flooding in New Orleans. University of North Texas Profession Bernard Weinstein put the loss as high as $250 billion. (Source: Swiss Re, Hurricane Katrina, January 25, 2007)

Hurricane Katrina affected 19% of U.S. oil production and caused oil prices to raise $3 a barrel. Hurricanes Katrina and Rita destroyed 113 offshore oil and gas platforms, damaged 457 oil and gas pipelines, and spilled nearly as much oil as the Exxon Valdez. (Source: About.com U.S Politics, Gustav: Look For Gas Price Increase, August 31, 2008); CNN.com Gustav Sends Oil HigherAugust 31, 2008; About.com Environment, Hurricane Gustav: How Hurricanes Threaten Offshore Drilling and the Environment)

Katrina also struck the heart of Louisiana’s sugar industry, with an estimated $500 million annual crop value, according to the American Sugar Cane League. This area of Louisiana has 50 chemical plants, which produces 25% of the nation’s chemicals. The nearby Mississippi coast was home to 12 casinos, which take in $1.3 billion annually.