Rusting of the Chemical Corridor

Numerous locational advantages spurred and sustained several decades of industrial development along the lower reaches of the Mississippi River in Louisiana. In recent years, some of the attractive features of the region have lost their luster and decline has set in. Much of the industrial growth occurred when abundant oil and natural gas reserved existed both on shore and in the Gulf of Mexico and during lulls in extreme weather events such, most notably hurricanes. Yet declining reserves and the shift of production to outer continental shelf locations have made production more susceptible to disruption due to storms. Increasing costs associated with environmental regulation and cleaning up past disposal sites has reduced the region's lure. Sharp spikes in natural gas prices have caused the closure of several plants using that resource as a raw material. In 2005, hurricanes Katrina and Rita followed a series of tropical storms in previous years causing major disruptions to oil and gas production, along with petrochemical processing. These related factors are producing the early signs of rust on the chemical corridor.