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Gustav forces millions to evacuate, halts oil production
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Oil facilities halted

Facing Gustav's threat, energy companies have raced to stop their operation in the region likely to be hit by the hurricane.

Over 96 percent of oil production and 82 percent of natural gas output in the U.S. Gulf region had been closed as of Sunday afternoon, according to the U.S. Minerals Management Service.

At least nine refineries, whose combined production accounted for about 15 percent of the country's total refining capacity, have been shut down before Gustav's arrival. They belong to such companies as Exxon Mobil Corp., Royal Dutch Shell PLC and Valero Energy Corp.

So far, all offshore oil production in the region has also been halted.

The Louisiana Offshore Oil Port, the U.S. port which handles about 12 percent of the nation's total crude imports and is tied by pipeline to about half of the total U.S. refining capacity, has shut down operation too as it is in the storm's direct path.

Amid worries that Gustav would boost the oil prices on market, the New York Mercantile Exchange opened its electronic trading platform earlier than normal on Sunday to allow traders to change their positions. Crude oil futures were increased by 1.54 U.S. dollars to 116.97 a barrel as of 2351 GMT.

Schedule for Republican Convention changes

Republican John McCain on Sunday ordered political speeches canceled for his Republican nominating convention on Monday.

U.S. President George W. Bush and Vice President Dick Cheney have earlier canceled their speeches planned for the opening of the four-day Republican Convention, which was to conclude on Thursday in Minnesota's St. Paul with McCain's formal acceptance of the party's nomination for the upcoming presidential race.

McCain's campaign manager Rick Davis said the Republican Party would decide on how to proceed with schedules for the rest of the gathering on a day-to-day basis, leaving open the possibilities that other activities may be canceled.

He told reporters that the opening program of the convention slated for Monday would be "business only and will refrain from political rhetoric."

Republican governors from Louisiana, Mississippi and Texas were unable to attend the gathering.

Sources of the party said McCain, who visited Jackson, the capital city of Mississippi on Sunday, may address Republicans from the Gulf area.

(Xinhua News Agency September 1, 2008)

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