Reports said that offshore oil facilities, which were closed ahead of the storm, escaped damage but around two million people who had fled in the face of the oncoming calamity were in doubt as to whether they would have houses to go back to.
The facilities provide about a quarter of the country's supplies. The storm has led to seven deaths in the US, with four people dead in traffic accidents while three from falling trees.
Even as Gustav was weakening, officials were
closely watching a fourth hurricane of the season Hanna, which they predict might be nearing the southeastern coast of the United States by Friday.
They were worried their warnings might not be taken seriously next time as Gustav did not live up to original forecast that it would strengthen to highest Category five storm. Weather experts say that the Hanna could hit somewhere between Miami and North Carolina if the current models of its course hold.
Once the weather improves, the officials would start assessing the damage to rural and fishing communities which bore the wrath of the storm after it struck Louisiana coast about 110 kilometres from New Orleans. A major fear is erosion which could wipe out some of the villages forever.