A SPECIAL report from the ARC Advisory Group says Hurricane Katrina will have "a huge and lasting impact" on the US refining and petrochemical industries, with many plants located in the heart of the Gulf Coast. Many automation companies have responded to the natural disaster with offers of help and support.

A US oil refinery flooded by Hurricane Katrina

• Siemens has arranged to send power generators, heart monitors and imaging equipment to hospitals in Houston and Louisiana, telecommunications equipment to emergency centres and key hubs, and its USFilter water treatment equipment to Gulf Coast areas. Siemens has also announced a 100% matching donation program for its 70,000 US employees.

• Schneider Electric has pledged $US1 million in addition to an employment contribution matching scheme that will be administered through the Square D Foundation. Square D will also provide support for electrical industry professionals as they repair damaged electrical structures and systems. The company has pledged to donate a percentage of revenues from related equipment sales to the American Red Cross to help bring relief and assistance to those in need.

• Honeywell has pledged $US500,000 in contributions through Honeywell Hometown Solutions. Honeywell's contribution will initially target its 525 employees in the area, with remaining funds used to support local fire and rescue squads. Honeywell has agreed to underwrite specific rebuilding projects in 'Honeywell communities' such as Baton Rouge. once the search for survivors is complete.

• Flowserve has made an initial donation of $US50,000 to the American Red Cross and is currently conducting a fundraising drive that will match dollar-for-dollar the first $50,000 donated by its employees.

• Johnson Controls and its subsidiary Automotive Systems have announced they will contribute $US1 million to relief efforts through the American Red Cross.

• KUKA has agreed to match contributions from its employees and contractors to the American Red Cross.

• Denso has pledged $US25,000 to the American Red Cross

While these contributions will make a difference to rebuilding the communities in the area, the ARC special report says the US oil and gas industries have little opportunity for recovery, as all of the refineries in the affected areas were operating at over 90%

Nine refineries are still shut down, representing a total capacity of about 1.8 million barrels per day of crude, or 11% of the total US refining capacity.

The US Government has approved the release of the Strategic Reserve, which will help refineries to recover from a shortage of crude, but this will have little impact upon the refineries facing pipeline outages, a problem that flows on to 'finished' products and industries.

The ARC report says the hurricane will have a direct impact on the automation market place as rebuilding efforts will require considerable capital investment in replacement products and related services. This investment will clearly extend beyond the oil and gas industries as manufacturing and critical infrastructure is rebuilt.

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