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

**Office of Electricity, Delivery and\
Energy Reliability**

**ENERGY ASSURANCE DAILY**

**July 15, 2005**

**Highlights/Major Development**

**Update: Hurricane Dennis**

**Gulf of Mexico Shut-in Production MMS release #3305**

The Minerals Management Service has released its final report on the
status of oil and gas operations in the Gulf of Mexico relating to
hurricane Dennis. Based on the latest data available from the MMS, all
819 manned platforms and 134 rigs currently operating in the GOM have
been remanned. Shut in oil production is equivalent to 2.03% of daily
production (down from 3.63% on Thursday), and shut-in gas is 0.65% of
daily production (down from 2.68% on Thursday). The cumulative shut-in
oil production for the period 7/8/05-7/15/05 is 5,297,404 bbls, which is
equivalent to 0.968% of the yearly production of oil in the GOM which is
approximately 547.5 million barrels. The cumulative shut-in gas
production 7/8/05-7/15/05 is 23.246 BCF, which is equivalent to 0.637%
of the yearly production of gas in the GOM which is approximately 3.65
TCF

**This survey is reflective of 4 companies' reports as of 11:00 a.m.
Central Time.**

  --------------- ----------- ----------- --------------- ----------- ----------- -----------
  **Districts**   **Lake      **Lake      **Lafayette**   **Houma**   **New       **Total**
                  Jackson**   Charles**                               Orleans**   

  **Platforms     0           0           0               0           0           0
  Evacuated**                                                                     

  **Rigs          0           0           0               0           0           0
  Evacuated**                                                                     

                                                                                  

  **Oil, BOPD     0           0           0               807         29,572      30,379
  Shut-in**                                                                       

  **Gas, MMCF/D   0           0           0               3.00        62.04       65.04
  Shut-In**                                                                       
  --------------- ----------- ----------- --------------- ----------- ----------- -----------

<http://www.mms.gov/ooc/press/2005/press0715.htm>

**Update: Hurricane Emily**

According to the National Weather Service latest advisory as of 2PM EDT
Friday, Hurricane Emily is a category 3 storm that has weakened as it
continues to move west across the central Caribbean Sea. No significant
change is anticipated in strength Friday.

<http://www.nhc.noaa.gov/text/refresh/MIATCPAT5+shtml/151749.shtml>

**Electricity**

**30,000 Niagara Mohawk Customers Without Power July 14**

1,500 customers remained without power Friday morning, down from the
30,000 who lost electricity at the height the storms on Thursday.\
<http://news10now.com/content/top_stories/default.asp?ArID=45605>

**Energy Northwest Proposing Construction of \$1 billion, 600 MW Coal
Plant**

The consortium Energy Northwest is considering two sites in Western
Washington for its proposal to build a \$1 billion, 600-megawatt power
plant fueled by gasified coal and coal-like petroleum coke.
<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5804060>

**Expanded Newport News Terminal to Receive Imports**

Alpha Natural Resources Inc., along with Arch Coal, Dominion Energy, and
Peabody Energy, plan to expand Dominion Terminal Associates' (DTA)
existing export terminal in Newport News, Virginia, into a coal import
facility. Permits have been obtained, and construction may begin in late
2005 with completion expected in early 2007.\
<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5804099>

Platts Coal Trader, July 15, 2005

**200 MW Wind Farm Planned for Greenbrier, West Virginia\
**A facility containing 133 electricity-generating wind turbines may be
built in Greenbrier County, West Virginia. The 200 megawatt facility,
called Beech Ridge Wind Farm, will be located south of the Monongahela
National Forest, including Beech Ridge, Big Ridge, Ellis Knob, Old
Field, Nunly Mountain, Rockcamp Ridge, Shellcamp Ridge and parts of Cold
Knob. Developer and operator Invenergy LLC plans to apply for a state
siting certificate this fall.\
<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5804970>\
<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5804970>

**DTE's Fermi Begins to Exit Outage**

DTE Energy's 1,111 MW Fermi nuclear generating station began to exit an
outage. DTE shut the unit on June 25 to repair a leak in a cooling unit.

Reuters 07:21, July 15, 2005.

**Turkey Point Unit 4 Returns to Service**

The 693 MW unit 4 at FPL's Turkey Point nuclear generating station had
ramped up to 30 percent of capacity by early Friday morning as it exited
an outage that began on June 27 following a transformer fire.

Reuters 7:20, July 15, 2005.

**Reliant's 215 Gas-fired Mandalay Unit in California Shut July 15**

Reuters 7:19, July 15, 2005

**Duke's 354 Gas-fired Moss Landing Unit 6 in California Shut July 15**

Reuters 7:19, July 15, 2005

**Mirant's 342 MW Gas-fired Pittsburg Unit 7 in California Shut July
15**

Reuters 7:19, July 15, 2005

######## Petroleum

**See Update above in Highlights/Major Developments**

### 

**Update: BP Makes Slow Progress in Righting Thunder Horse**

BP has made some slight progress in its efforts to right the listing
Thunder Horse platform. The cause of the problem remains unknown and BP
is uncertain if the problem was brought about by the hurricane or
resulted from some undetermined cause. Thunder Horse was slated to begin
production before the end of this year, but at this point, the company
has not made a determination if the start-up will be delayed.

Reuters 13:08, July 15, 2005.

**Output Unaffected by Fire at Valero's Houston Refinery**

According to Valero, a small fire at its 85,000 b/d Houston refinery has
not impacted production. Valero's fire crew extinguished the fire around
5:15 on Thursday afternoon shortly after it was discovered. No injuries
were reported.

Reuters 12:19, July 15, 2005.

Reuters 22:47, July 14, 2005.

**Despite Weakening, Concerns About Emily Drive Oil Prices Up**

Despite the absence of any impact on Venezuelan production and only
minor delays in the flow of exports from Venezuela, crude oil closed
above \$58 on concerns that the eventual path of hurricane Emily could
impact U.S. oil and gas offshore facilities in the Gulf of Mexico, as
well as refinery production on the mainland.

Reuters 15:21, July 15, 2005.

Reuters 15:26, July 15, 2005.

Reuters 12:04, July 15, 2005.

Reuters 11:44, July 15, 2005.

Reuters 11:24, July 15, 2005.

**Natural Gas**

**See Update above in Highlights/Major Developments**

**FERC Approval Needed for Trunkline to Begin Additional LNG
Deliveries**

Trunkline LNG is ready to send out expected LNG deliveries at its Lake
Charles, Louisiana facility. Trunkline asked FERC "to authorize start-up
and an interim tariff by July 20."

Source: Natural Gas Intelligence (July 14, 2005)

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BechjipoRTif%7DGJ%7Bbfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BechjipoRTif}GJ{bfek\v)

**Leaking Colorado Gas Well Capped\
**A leaking natural gas well in rural San Miguel County in Colorado led
local authorities to evacuate the area in a three mile ring surrounding
the well and also led the Federal Aviation Administration to impose a
\"no fly zone,\" which closed airspace in a 15-mile radius up to 10,000
feet to prevent the possibility of gas being ignited by passing
aircraft. The well owned by EnCana Oil and Gas has been successfully
capped.

<http://pro.energycentral.com/professional/news/gas/news_article.cfm?id=5803111>

<http://www.telluridenews.com/articles/2005/07/15/news/top_stories/news02.txt>

<http://telluridegateway.com/articles/2005/07/14/news/top_stories/news02.txt>

######## Other News

### Rail Problems Plaguing Coal Could Imperil Electricity Supply

Arch Coal and Massey Energy, two large producers of coal warned that
rail disruptions could lead to shortages of coal needed for the
generation of electricity. Although the warnings came primarily in terms
of the negative impact on company earnings, both companies are
experiencing a shortfall in shipments. Inventories are accumulating at
the mines as stocks at power plants are being drawn down.

Reuters 11:58, July 15, 2005.

**Florida Legislators Seek to Ban Oil and Natural Gas Off Florida
Coastline**

Nineteen Florida lawmakers introduced legislation this week, seeking to
permanently ban oil and natural gas off the Florida coastline.

Source: Natural Gas Intelligence (July 14, 2005)

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BechjipoRTif%7DGJ%7Bbfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BechjipoRTif}GJ{bfek\v)

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (07       | Ago**     | Ago**      |
|                               | /15/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 58.36     | 59.71     | 40.70      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 8.02      | 7.87      | 5.92       |
|                               |           |           |            |
| **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

**ENSEC threat awareness blog site** from Energy Assurance

[*http://ensec.blogspot.com*](http://ensec.blogspot.com/)