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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

###### July 30, 2004

**Highlights / Major Developments**

**Oil Hits Fresh Highs on Supply Fears**\
U.S. oil prices hit fresh record highs on Friday on fears of a
disruption in supplies from world number two exporter Russia and doubts
over oil cartel OPEC\'s ability to make up for any shortfalls. OPEC is
pumping at more than 95 percent of capacity, the highest for a quarter
of a century, giving it little room for maneuver in an emergency. U.S.
light crude (CLc1) struck \$43.34 a barrel, the highest in its 21-year
history on the New York Mercantile Exchange. It was last trading at
\$43.20, up 45 cents.
<http://biz.yahoo.com/rb/040730/markets_oil_5.html>

**US West Coast-ANS Rises on Supply Worries** Alaska North Slope crude
prices jumped \$1.03 per barrel in the U.S. West Coast spot oil market
on Friday as benchmark cash crude West Texas Intermediate/Cushing leaped
by the same amount on fears of supply interruptions. Reuters, 1713 July
30, 2004

#### Heating Oil Surges to 17-Month High With Record Crude Prices

Heating oil in New York soared to a 17-month high for the second time
this week as oil prices in New York reached a record amid concern about
supply disruptions among the world\'s largest exporters. Heating oil for
August delivery rose 2.40 cents, or 2.1 percent, to \$1.1568 a gallon at
the close on the New York Mercantile Exchange. The price reached
\$1.1615, the highest since February 2003. The settled contract advanced
45 percent from a year ago. The more active September contract rose 2.31
cents, or

2 percent, to \$1.1693 a gallon.

Bloomberg News, 1550 July 30, 2004

**Electricity**

# 

**Wash. State Columbia Nuke Plant Trips Off-line**

Energy Northwest said on Friday it taken the 1,158 megawatt Columbia
Generating Station nuclear plant in Washington state off-line. Energy
Northwest spokeswoman Laura Dovey said operators received a scram signal
to shut down the plant around 9.23 a.m. on Friday morning, adding that
the cause is under investigation. She noted that two of the control
rods, which are designed to shut down the unit automatically in such
circumstances, were not fully inserted and had to be manually inserted.
As a result an emergency was declared. \"It is now shut down and
stable,\" she said. Reuters, 1609 July 30, 2004

**Brunswick 2 in NC Shut Down For Unplanned Maintenance, Company Says**
Progress Energy's 811 Megawatt Brunswick 2 nuclear unit was shut down
Thursday afternoon, following a malfunction with a vacuum breaker.
Bloomberg News, 1204 July 30, 2004

**Two More West Coast Power Plant Outages**

The 317 MW Unit 6 at the Pittsburg gas-fired plant and the 215 MW Unit 1
at the Mandalay gas-fired plant were reported as outages today. Total
outages in the west are shown in the table below:

WEST COAST OUTAGES

  ------------ ------------ --------- --------- ------- --------- ----------
  Unit         Operator     MW        Fuel      State   Shut      Restart

  Big Creek    SCE          207       hydro     CA      July 29   unknown

  Columbia     Energy       1,158     nuclear   WA      July 30   unknown
               Northwest                                          

  El Segundo 3 NRG/Dynegy   335       gas       CA      July 29   unknown

  Etiwanda 3   Reliant      320       gas       CA      July 1    unknown

  Mandalay 1   Reliant      215       gas       CA      July 30   unknown

  Mohave 2     SCE          790       coal      NV      July 28   unknown

  Pittsburg 6  Mirant       317       gas       CA      July 30   unknown

  San Luis     CDWR         248       hydro     CA      July 29   unknown
  ------------ ------------ --------- --------- ------- --------- ----------

Reuters, 1432 July 30, 2004

Reuters, 1609 July 30, 2004

**Two Major Coal Fired Plants in Ontario Out for Week**

The 494 MW Lambton 3 and the 490 MW Nanticoke 6 units of Ontario Power
were shut Friday. They are expected to return to service on August 6.
Reuters, July 30, 2004

**Calif. Grid Agency Approves Wind Energy Project**\
The California Independent System Operator, which manages the state\'s
power grid, on Thursday approved a project to expand development of wind
energy in Southern California. The agency endorsed a high-voltage power
line to carry electricity from wind turbine generators in the Tehachapi
and Antelope Valley areas north of Los Angeles to electricity customers
throughout the state. Utility Southern California Edison, a unit of
Edison International, plans to apply to utility regulators for final
permission to build a 25-mile line estimated to cost about \$94 million,
the ISO said. The line could be in service by the end of 2007. The
Tehachapi area has more than 600 megawatts of wind generation and 1,100
megawatts of new wind projects are planned.
<http://biz.yahoo.com/rc/040729/utilities_california_1.html>

**Petroleum**

**See Highlights above for stories on record-breaking prices.**

**Marathon Plans 70,000 bpd Norway Oilfield**\
Independent U.S. energy group Marathon has filed a plan for developing
the Alvheim oilfield off Norway and expects it to produce over 70,000
barrels per day after a 2007 start-up, officials and the company said on
Friday. . <http://biz.yahoo.com/rc/040730/energy_norway_marathon_3.html>

#### Norwegian Oil-Rig Workers, Employers Fail to Resolve Strike

A Norwegian oil-workers\' union and employer representatives failed to
resolve a conflict that is delaying drilling of production and
exploration wells when they met with a mediator today, the employers\'
organization said. About 175 Transocean workers halted work on July 2
after talks with employers broke down. A week later, OFS stepped up the
strike, causing 27 members to cease work at Odfjell ASA\'s Deepsea Delta
platform. Of Transocean\'s rigs, the Polar Pioneer and the Transocean
Searcher completed shutdown procedures yesterday, while Transocean
Leader was set to close today, according to OFS. Bloomberg News, 0954
July 330, 2004

# Natural Gas

#### 

#### Main Pass Energy Hub LNG Deepwater Port License Application Moving Forward

The U.S. Coast Guard and the Maritime Administration announce that the
Coast Guard intends to prepare an environmental impact statement as part
of the environmental review of the license application for the proposed
Main Pass Energy Hub deepwater port, to be located approximately 16
miles southeast of Venice, Louisiana with its associated onshore and
offshore components.
<http://pro.energycentral.com/professional/news/gas/news_article.cfm?id=5020854>

**Other**

Nothing to report.

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (7        | Ago**     | Ago**      |
|                               | /30/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 43.72     | 41.83     | 30.69      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 6.03      | 5.98      | 4.68       |
|                               |           |           |            |
| **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