After slamming ashore near the Texas city of Galveston on September 13 and later weakening to a tropical depression across western Arkansas the next day, Hurricane Ike’s financial devastation is now beginning to surface.

Risk Management Solutions says the damages from Hurricane Ike are expected to reach between $US7-12 billion ($9-15 billion). Insured losses include both onshore and offshore damages resulting from strong winds and storm surge.

What remains uncertain is how much of the onshore losses will be paid out under flood or wind policies.

The Texas Windstorm Insurance Association recently reported that anticipated claims will force it to use the entire $US370 million ($457 million) remainder of its catastrophe reserve trust fund. Property and casualty company assessments in Texas could also result in another $US430 million ($531 million) payout.

But the Texas Coalition for Affordable Insurance Solutions says this may not be enough to pay all of Ike’s associated claims, and additional funds could run to several billion dollars.

Hurricane Ike destroyed at least 49 offshore oil platforms and four oil-drilling rigs when it entered the Gulf of Mexico.

About 93% of the Gulf’s crude oil production remains shut down, as does 78% of its natural gas production.

The Energy Department reports 12 out of 31 refineries in Texas and Louisiana still remain closed.

More than 2.3 million people in six states are still without power due to flooding after heavy rain.