![](media/image1.jpeg){width="8.5in" height="3.5027777777777778in"}U.S.
DEPARTMENT OF ENERGY

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**September 13, 2004**

**Highlights/Major Developments**

**Hurricane Update from The Office of Energy Assurance Situation
Report**

To read Office of Energy Assurance's (OEA) latest Hurricane Situation
Reports click the following link. Some highlights from the latest report
are included in this report.

<http://www.ea.doe.gov/pdfs/hurrfrances_sitrept_091304_1100.pdf>

# IVAN TRACK 

At 11:00AM EDT 9/13 Ivan remains an extremely dangerous category 5 storm
heading toward western Cuba and the Yucatan Channel. A tropical storm
watch remains in effect for the Florida Keys from the seven-mile bridge
westward to the dry Tortugas. AT 11 AM EDT the center of Hurricane Ivan
was located about 85 miles south-southeast of the western tip of Cuba
moving toward the northwest near 8 MPH. Maximum sustained winds are near
160 MPH. Hurricane winds extend outward up to 105 miles from the center
and tropical storm force winds extend outward up to 205 miles. Based on
the current track the U.S. mainland would begin to feel the effects of
the storm Wednesday afternoon 9/15.

Off shore platforms (oil and gas rigs) have evacuated non-essential
personnel in the eastern Gulf of Mexico. Refiners and petrochemical
companies in the Gulf are currently tracking the path of Ivan. It should
be noted that refiners and petrochemical companies have years of
experience in dealing with hurricanes and have detailed plans in place
on how to respond. Coastal refineries typically carry significant
amounts of crude oil and petroleum products, called "hurricane heel," in
their tanks to withstand severe flooding and wind. Extra inventory in
the tanks helps them continue operations after the storm in the event of
supply curtailments and deliveries. Refiners look at the probability
that a storm will impact their facilities and normally will begin the
process of shutting down about 2-3 days before predicted landfall.

An image of the current storm path is available at:
<http://www.nhc.noaa.gov/ftp/graphics/AT09/refresh/AL0904W+GIF/120853W.gif>

# HURRICANE FRANCES OUTAGE UPDATE

Florida utilities continue to make steady progress in restoring power
after Hurricane Frances. Currently, 217,747 Florida electricity
customers (4%) remain without power. (9/13/04 8:00 AM EDT) Florida
officials continue to express concerns that captains of vessels
containing gasoline may not risk landing in Florida due to Hurricane
Ivan's path, and they indicate some shortages exist on the western side
of the State near the Tampa area.

**ELECTRIC INFORMATION**

-   Florida Power and Light (FPL) reports that 191,800 of its customers,
    (5%), remain without power.

-   Progress Energy Florida reports that they have restored power to all
    of their customers.

-   Tampa Electric Company reports that they have restored power to all
    of their customers.

-   Municipal utilities report a total of 19,450 customers (2%) without
    power.

-   Cooperative utilities report a total of 6,497 customers (1%) without
    power.

-   See attached table for restoration estimates by county and utility.

# 

There are also many press reports on Hurricane Frances and Ivan related
news. Here are links to some of them. The information reported in the
Energy Assurance Daily above does not come from press reports, but comes
from information collected from the Florida State Emergency Operations
Center and by other Federal, State and local officials monitoring and
coordinating response and restoration efforts.

<http://biz.yahoo.com/prnews/040912/nysu025_1.html>

<http://biz.yahoo.com/bw/040913/135652_1.html>

<http://biz.yahoo.com/bw/040912/125034_1.html>

<http://biz.yahoo.com/prnews/040913/dam031_1.html>

**Electricity**

**See Highlights / Major Developments for details (and links to
additional articles) on outages related to Hurricane Frances.**

# 

**Sempra\'s Mexico Mexicali 1 Power Plant Shut**

Sempra Energy\'s 600-megawatt Thermoelectrica de Mexicali 1 gas-fired
power plant in Mexico shut for an unplanned outage by late Sunday,
according to a report by the California Independent System Operator. On
Friday, the unit was operating but with power output reduced by about 85
MW. Sempra Energy distributes natural gas to some 6.1 million customers
and electricity to 1.3 million customers through its Southern California
Gas and San Diego Gas & Electric utilities.

Reuters, September 13, 2004, 08:50

## Transformer Mishap Threatens Part of the SoCal Edison System 

Although it is localized to portions of Ventura County and a small
suburban portion of northwest Los Angeles County, Southern California
Edison Co. Monday was girding against the need for limited rolling
blackouts for a total of 77,000 customers as the result of two
transformers malfunctioning over the weekend at a substation in the area
about 30 miles northwest of downtown Los Angeles.

NGI\'s Power Market Today, September 13, 2004

[*http://intelligencepress.com/subscribers/power/news/story.emb?REF=30514*](http://intelligencepress.com/subscribers/power/news/story.emb?REF=30514)

# San Onofre 3 Nuclear Plant at 100% After Repair, Company Says

The 1,120 megawatt Unit 3 of the San Onofre nuclear generating station
of Southern California Edison has returned to full capacity following a
reduction to 85 percent to repair a condenser tube leak. The plant is
located in San Clemente, California.

Bloomberg September 13,2004 12:33.

# Crystal River 3 Nuke Plant at 100% After Repairs, Company Says

The 834 megawatt Crystal River nuclear generating station unit 3

Returned to full capacity. The unit automatically shut down early last
week when a power line was downed. The plant located in Red Level,
Florida, resumed full power on Sunday according to a representative of
the owner Progress Energy.

Bloomberg September 13, 2004, 10:37

# Oyster Creek 1 Nuclear Power Plant Reduced Power

The 630 megawatt unit 1 of the Oyster Creek nuclear generating station
located in Forked River, New Jersey is operating at 40 percent of
capacity. According to a representative of the owner AmerGen Power
Company, the plant has been operating at reduced capacity since Friday
to investigate a malfunctioning steam generator value.

Bloomberg September 13, 2004, 10:11

**Petroleum**

# 

**Gulf Producers Begin Evacuations as Ivan Approaches**\
With Hurricane Ivan\'s latest path putting it on an unobstructed
collision course with the Eastern and Central Gulf of Mexico, Producers
have been put on high alert. Most Gulf producers have begun to evacuate
some non-essential employees, while Shell has already shut in a portion
of its production in the area. (
[more](http://intelligencepress.com/subscribers/daily/news/story.emb?REF=30512)
)\
[NGI\'s Daily Gas Price
Index](http://intelligencepress.com/subscribers/daily/), September 13,
2004

# Hurricane Ivan Trims Daily Oil Output in Gulf by 5.9 Percent

Hurricane Ivan prompted oil and natural-gas companies to reduce
production as they evacuated workers from the Gulf of Mexico. Oil
production was reduced by the equivalent of 99,529 barrels a day, or 5.9
percent of daily Gulf output, and gas production was curtailed by 266
million cubic feet, or 2.2 percent of daily output according to a survey
of 15 energy companies active in the Gulf conducted by the U.S. Minerals
Management Service. Companies evacuated 54 production platforms, or 7.1
percent

of the 764 manned platforms in the Gulf, the agency said. Fifteen
drilling rigs, or 13 percent of those currently operating in the Gulf,
were evacuated.

Bloomberg September 13, 2004, 15:01.

# Apache Evacuates Some Workers From Eastern Gulf Before Storm

Apache Corp. evacuated 140 workers from platforms in the eastern Gulf of
Mexico as Hurricane Ivan appraoched the region with 160 mile-per-hour
winds. According to a company spokesman skeleton crews are in place on
Apache\'s as far east as Mobile Bay, off Alabama.

Bloomberg September 13, 2004, 14:51.

# Ensco Evacuating 20 Rigs in U.S. Gulf as Hurricane Approaches

Ensco International Inc., a U.S. oil and natural-gas driller, ordered
the evacuation of 20 rigs in the Gulf of Mexico because of Hurricane
Ivan. About 1,000 employees will leave the rigs by Tuesday according to
a company representative for the Dallas-based company.

Bloomberg September 13, 2004, 11:31.

# Anadarko Evacuates Workers From Production Platforms in Gulf

Anadarko Petroleum Corp., a U.S. oil and natural-gas producer, evacuated
non-critical workers from production platforms in the eastern Gulf of
Mexico in preparation for Hurricane Ivan, said Mark Pease, senior vice
president of exploration and production. The evacuations haven\'t
affected production at any of its facilities in the Gulf. The company
will determine whether or not to shut down production by early Tuesday
at the latest. Anadarko, based near Houston, produces about 530,000
barrels of oil equivalent a day in the Gulf.

Bloomberg September 13, 2004, 11:05.

# Devon Removes Some Gulf Workers, Idles Output on Hurricane Ivan

Devon Energy Corp., a U.S. oil and natural-gas producer, said it idled
some production at fields in the Gulf of Mexico and plans to start
evacuating workers as Hurricane Ivan approaches the region. The company
has shut down the equivalent of 3,000 barrels of

daily oil output, according to a spokesman for Oklahoma City-based
company.

Bloomberg September 13, 2004, 10:51.

# Hess to Idle Most Deepwater Gulf Output as Hurricane Approaches

Amerada Hess Corp., the fifth-largest U.S. oil company, is shutting down
most of its

deepwater production facilities in the Gulf of Mexico as Hurricane Ivan
approaches the region. The company's representative declined to specify
how much production will be

affected or how many workers are being evacuated.

Bloomberg September 13, 2004, 15:07.

# Petroleos Venezuela\'s Isla Refinery Restarts Units

Petroleos de Venezuela SA, the state oil company, said its La Isla
refinery in Curacao, which was partially closed as a safety precaution
during the passing of Hurricane Ivan, resumed normal operations. The
refinery is processing about 212,000 barrels a day, after all of its
idled units were successfully restarted, and according to a company
representatives shipments are also proceeding normally. The refinery
exports most of its products to the U.S. and Caribbean countries.

Bloomberg September 13, 2004, 14:11

**Conoco Evacuating Workers From Gulf Ahead of Ivan**

ConocoPhillips is evacuating non-essential workers from the Gulf of
Mexico, but has not shut any production ahead of Hurricane Ivan, a
spokesman said on Monday. Evacuations began on Sunday and were
continuing through Monday, said spokesman Jeff Callender. The total
number of workers taken from the Gulf was not immediately available. The
fierce Category 5 storm\'s winds strengthened to 160 mph (260 kph) on
Monday as it neared western Cuba.

Reuters, September 12, 2004, 13:59

**ChevronTexaco Shutting in Gulf Due to Ivan**

ChevronTexaco Corp. has begun shutting in production in the Gulf of
Mexico ahead of Hurricane Ivan, a company spokesman said on Monday. The
amount of shut production was not immediately available, said spokesman
Matt Carmichael. As of Monday morning, Chevron had evacuated 667
nonessential workers from the central and eastern Gulf of Mexico,
Carmichael said.

Reuters, September 13, 2004, 13:24

**Exxon Removes 110 Workers From Gulf, Output Not Hit**

U.S. oil major Exxon Mobil Corp. said Monday it was removing 110
\"non-essential\" workers from the central and eastern Gulf of Mexico
ahead of Hurricane Ivan, a rare category 5 hurricane. Exxon spokeswoman
Susan Reeves said production was not hit. Exxon normally produces 80,000
b/d of oil and 1.2 billion cubic feet of gas per day in the Gulf of
Mexico.

Reuters, September 13, 2004, 12:22

**Shell Shuts in 272,000 b/d of Oil Ahead of Ivan**

Shell Oil Co. is shutting 272,000 barrels per day of oil production by
the end of the day ahead of Hurricane Ivan in the eastern Gulf of Mexico
and will evacuate workers from the central U.S. Gulf by Wednesday, the
company said on Monday. Shell will also shut 880 million cubic feet of
natural gas production from the eastern Gulf by the end of the day, the
company said on its Web site.

Reuters, September 13, 2004, 10:28

**LOOP Offloads Last Tanker Before Shutting for Ivan**

The Louisiana Offshore Oil Port was offloading one final crude tanker on
Monday before shutting marine operations as Hurricane Ivan approached
the Gulf of Mexico, a company spokeswoman said. LOOP will continue to
deliver crude oil to refineries from its underground storage caverns,
LOOP LLC spokeswoman Barb Hestermann said on Monday morning. She did
note that storage was at lower-than-normal levels. Hestermann said any
reopening of the offshore port would depend on the erratic trajectory of
Hurricane Ivan. LOOP is the only U.S. offshore oil port, unloading about
900,000 b/d of imported crude oil from tankers in the Gulf of Mexico
offshore Louisiana and about 500,000 b/d of domestically produced crude
oil from the offshore Mars platform in the Gulf.

Reuters, September 13, 2004, 10:37

# Rowan Cos. Evacuates 23 Rigs in U.S. Gulf as Hurricane Nears

Rowan Cos., a U.S. oil and natural-gas driller, ordered the evacuation
of its 23 rigs in the Gulf of Mexico because of Hurricane Ivan. About
1,610 employees were covered by the order, which went out at 7 a.m. New
York time. According to the company representative, none of the rigs was
producing oil or natural gas.

Bloomberg September 13, 2004, 10:44.

**Oil Up a Dollar As Hurricane Ivan Threatens**

World oil prices shot higher on Monday as companies operating in the
U.S. Gulf of Mexico braced for output disruptions from powerful
Hurricane Ivan. U.S. light crude jumped \$1.27 to \$44.08 a barrel and
London Brent added \$1.03 to \$41.23 a barrel. Ivan, a rare category 5
hurricane, is expected to cross the western edge of Cuba on Monday and
enter the Gulf of Mexico on Tuesday having veered west from its previous
path towards Florida.

Reuters, September 13, 2004, 13:35

**Natural Gas**

## See the Petroleum section for details about evacuation of offshore production units and the impact on production due to Hurricane Ivan.

## 

## ANR Pipeline Compressor Outage in Indiana Reduces Capacity

ANR Pipeline confirms that an outage occurred on Saturday at the St John
compressor station in Indiana. The problem reduced capacity on the
pipeline by 11 million cubic feet a day to 1.19 billion cubic feet per
day. As a result, the company may curtail some interruptible and
secondary firm transportation.

Bloomberg September 13 2004, 11:06

[**Fearing Attack, Pipelines Keep Mum on Operations,
Facilities**](http://www.energyintel.com/DocumentDetail.asp?document_id=130144)\
A high-ranking Russian diplomat was questioned recently after a 911
caller alerted police that he was taking pictures of a LNG plant on the
Maryland shore. He was released when police learned he had merely been
taking pictures of wildlife. Still, the incident highlights the fear
that natural gas pipelines, gas mains and LNG terminals could make
enticing targets for terrorists.

Natural Gas Week**, **September 13, 2004

**Interstate Pipes Find Fault with Proposal to Post Daily Storage
Levels**\
A FERC rule that would require only interstate pipeline storage
operators to electronically post their daily storage inventory levels is
\"unlikely\" to make the gas market more transparent, said a major
pipeline group. [NGI\'s Daily Gas Price
Index](http://intelligencepress.com/subscribers/daily/)**,** September
13, 2004 (
[more](http://intelligencepress.com/subscribers/daily/news/story.emb?REF=30513)
)

**Other News**

Nothing to report

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (9        | Ago**     | Ago**      |
|                               | /13/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 43.87     | 43.18     | 28.26      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 5.13      | 4.32      | 4.66       |
|                               |           |           |            |
| **Henry Hub**                 |           |           |            |
|                               |           |           |            |
| \$/Million Btu                |           |           |            |
+-------------------------------+-----------+-----------+------------+

> Source: Reuters

**This Week in Petroleum** from the Energy Information Administration
(EIA)

[*http://tonto.eia.doe.gov/oog/info/twip/twip.asp*](http://tonto.eia.doe.gov/oog/info/twip/twip.asp)

Updated on Wednesdays

**Weekly Petroleum Status Report** from EIA**\
**[*http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html*](http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html)

Updated after 1:00pm (Eastern time) on Wednesdays

**Natural Gas Weekly Update** from EIA

[*http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp*](http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp)

Updated after 2:00 pm (Eastern time) on Thursdays