It's potentially a bigger threat than Katrina because there is more refining capacity in the Houston area. This is a double whammy for the industry it's an amazing thing to contemplate.

If there's significant damage done in the Gulf, there's going to be a supply impact on gasoline, diesel and natural gas.

These areas must follow the example of Louisiana and many other states in sharing these energy resources.

The ones that are not on yet are probably the ones that are going to require more time and attention. Now we are really getting into the tougher part of the job. I don't think that people really understand the magnitude of the damage that's been done.

What's happened can be explained by the higher cost of crude oil, the difficulties in building new refineries and the disaster that cut right through the heart of the industry.

Federal policies must fully consider the impact of environmental regulations on fuel supply.

The two worst-case scenarios for the impact on the refining industry would be what happened with Katrina and what looks like could happen with this one.