Originally Posted by wikinews

Hurricane Katrina is now over the U.S. mainland and has caused more than US$12 billion of damage. Some estimates are as high as $30 billion.

New Orleans was spared the most intense winds as the hurricane weakened as it made landfall, and its track turned slightly east, away from the city. However, the area was still subjected to sustained winds of more than 100mph, and rainfall as heavy as six inches per hour.

Future prices of crude oil rose above $70/barrel in the U.S. on Monday in the wake of Katrina’s surge through oil and refinery processing facilities in the Gulf of Mexico. The storm forced operators to shut down an estimated 1 million barrels of daily refining capacity in the region that accounts for nearly a quarter of total domestic production.

A U.S. spokesman for the Bush administration said the government will consider releasing crude oil from the Strategic Petroleum Reserve if requested by refiners. OPEC has pledged to blunt the impact by increasing production to compensate.

White House spokesman Scott McClellan told reporters that Michael Brown, the director of the Federal Emergency Management Agency (FEMA), briefed Mr. Bush before he left his Texas ranch for Arizona where he will deliver a speech on Medicare. Brown said it would take time before an assessment is possible for when refineries could resume activity.

President Bush authorized loans from the strategic reserve to help make up for missing supplies when Hurricane Ivan struck in 2004.

Originally Posted by wikinews

A state of emergency has been enacted in New Orleans in the U.S. state of Louisiana today, after the devastating Hurricane Katrina made landfall on Monday. There were earlier erroneous reports by the news media that martial law had been imposed.

Looters are roaming the city and have already ransacked the city's upscale shopping district on Canal Street. They have been seen on news reports carrying huge bags of stolen goods. Governor Kathleen Blanco announced plans to completely shut down New Orleans and move everybody left there out of the area.
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Ex- Mayor, Mark Morial, summed up his view by saying; "We've lost our city, I fear it's potentially like Pompeii."

Two of the city's levees on Lake Ponchartrain failed; one with a football-field size breech. Emergency workers dropped sandbags from helicopters into the levee's breeches, but the water kept coming.

"It appears that now the bowl is beginning to fill -- not rapidly but slowly," said Walter Maestri, an emergency operations manager. New floods swept through the center of New Orleans and water now covers 80 percent of the city with broken gas lines feeding raging fires. In some locations the water is now at a depth of 20 feet (six meters).

The famous French Quarter finally succombed to the floods shortly after one woman outside Johnny White's Bar on Bourbon Street yelled out, "The levee broke!"

"Get out of town if you can." said Ed Freytag, a city worker at the temporary City Hall complex. "We're damn close right now to that worst-case scenario," said Dave Cohen, a local radio host.

During War of 1812, General Andrew Jackson imposed martial law after liberating the encampment of New Orleans.