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Gulf oil production still on hold
 U.S. President Bush inspected oil rigs in the Gulf earlier this week. SPECIAL REPORTYOUR E-MAIL ALERTS(CNN) -- Oil production in the hard-hit areas of the Gulf of Mexico remains shut down as oil companies continue to inspect their rigs and platforms following Hurricane Rita. Rita made landfall near seven refineries, which account for 10 percent of the U.S. refinery capacity or roughly 1.7 million barrels per day. "Damage to some of these refineries, and the lack of electrical power supply to others, is preventing their immediate return to service," the U.S. Energy Department said in its weekly analysis of the petroleum market on Wednesday. "Combined with the 5 percent of refinery capacity near the New Orleans area that was still out following Hurricane Katrina, as much as 15 percent of U.S. refinery capacity could be out for at least another couple of weeks," it said. According to oil research firm ODS-Petrodata, preliminary reports show Rita caused more damage to offshore drilling rigs than Hurricane Katrina and last year's Hurricane Ivan. Up to four oil rigs may be missing and many more are showing signs of damage. However, oil traders say the damaged rigs will have little impact on the price of oil, because the supply can be made up from imports and the nation's emergency strategic petroleum reserve. The Energy Department said higher prices would also lessen the demand. The agency also said that while Rita has caused significant damage to the oil industry, the storm "did not deliver the knockout punch that some had feared" because it veered east of the Houston-Galveston area, where 12 percent of the nation's refinery capacity is located. Oil trader Phil Flynn, of Alaron Trading, said oil markets are betting that damage to Gulf production facilities was minimal. "People seem to think Rita was not that bad, it missed the major refineries," he said. Gasoline prices hit a record high following Hurricane Katrina, topping out at an average of nearly $3.06 a gallon, according to AAA. Prices have since declined about 25 cents a gallon, despite a near complete shutdown of Gulf refining capacity. Crude oil prices climbed above $66 a barrel Wednesday, after a government report said crude oil stocks fell by more than expected. 
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