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

**Office of Electricity and\
Energy Assurance**

**ENERGY ASSURANCE DAILY**

**April 29, 2005**

######### Highlights / Major Developments

######### 

**Update: Tankers Delayed by Closure of Sabine Pass Ship Channel**

According to Coast Guard Reports, eleven oil-carrying vessels have been
delayed by the closure of the Sabine Ship Channel. A total of eight
inbound and three outbound ships (ten tankers and one barge) are
involved. As reported in EAD on April 28, the channel was shut at midday
on Thursday following a collision between an oil tanker and another
vessel that capsized. Four refineries served by tankers using the
channel account for about 6 percent of the crude oil refined daily in
the United States. The Coast Guard report indicates that the situation
is being evaluated but that the Channel remains closed to vessels
exceeding 100 feet in length.

Sources: Reuters 19:07, April 28, 2005

Oil Price Information Service, 10:30, April 29, 2005.

######### Electricity

**California ISO's Annual Report:\
Market Stable Last Year but More Transmission Capacity Needed**

The 2004 Annual Report on Market Issues and Performance, just issued by
the California Independent System Operator points to a stable market
functioning well. Nonetheless, the report calls for additional
transmission capacity to address the real-time transmission constraints,
brought about in part by new cheaper plants operating within the state
as well as increasing imports of electricity from outside the state.

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5631966>

**Sempra Focuses on Idaho Site for New 600 MW Plant**

Sempra Energy has selected a site in Jerome County, Idaho for the
construction of a 600 MW coal-fired generating plant. The company will
conduct a series of meetings in the area to discuss the project which is
anticipated to take three years to construct at a cost of \$1 billion.

Sources: Platts Electricity Alert

<http://www.platts.com/Coal/headlines.jsp>

Associated Press 10:13, April 28, 2005

<http://www.powermarketers.com/index.shtml>

TXU's 750 MW Coal-fired Unit 2 at its Martin Lake plant in Texas Shut
April 28 to Return to Service May 1

Reuters 15:04, April 29, 2005.

**Defective Fire Shields Could Shut Nuclear Plants**

The Nuclear Regulatory Commission (NRC) reports that a problem exists
with a fire shield at the Indian Point nuclear generating station. The
shield made from silicon and ceramic does not meet Commission standards
since it could shrink at temperatures of 800 degrees or more and leave
control cables exposed. The problem is not limited to Indian Point since
the material is in general use at nuclear plants. Although the NRC has
indicated that the risk is low, they require operators of plants using
the material to demonstrate why their plants should not be shut down
until the problem is fixed.

Sources: <http://www.ny1.com/ny1/content/index.jsp?stid=1&aid=50440>

Platts Petrochemical Alert

<http://www.platts.com/Oil/headlines.jsp>

**Clinton Nuclear Reactor Drops to 50 Percent of Capacity Production**

The 1,022 MW Clinton nuclear generating station of Exelon Corp. reduced
output to 50 percent of capacity by early Friday morning according to
the daily report of the Nuclear Regulatory Commission so that repairs to
turbine valve controls could be undertaken. According to the company,
the unit will remain at its current reduced output until the repairs are
completed and inspected.

Bloomberg 13:18, April 29, 2005.

**Work on ConEd Transmission Line Nears Completion**

Consolidated Edison Co of New York Inc. announced that it anticipates
completion of work on its transmission line between Westchester County
and New York City sometime on Saturday, April 30. The line was scheduled
to be upgraded beginning in December 2004, however, work was delayed
until early February 2005 by a fire at a New York City substation in
December.

Reuters 13:53, April 29, 2005.

######## 

######## Petroleum

**See also story on Sabine Channel closing above in Highlights.**

### Crude Oil Sinks on Signs of Economic Slowdown and Growing Stocks

Crude oil prices fell through the psychological support barrier of \$50
on Friday to reach the lowest level in 10 weeks. Analysts attributed the
drop to signs of slowing economic growth coupled with expanding crude
oil supplies in the United States. Crude closed at \$49.72 a barrel,
down more than 4 percent on the day. Crude prices have fallen by nearly
15 percent since reaching an all-time high of \$58.28 on April 4.

Reuters 16:17, April 29, 2005.

**Algerian Oil Minister Sees Market Oversupplied, No Need for OPEC to
Boost Production**

At an energy meeting on Wednesday, the Algerian oil minister stated that
the market is oversupplied and consequently there is no need for OPEC to
increase production.

Oil Daily April 29, 2005

**Investigators Cite Multiple Explosions in the BP Texas City Disaster**

On Thursday, investigators reported that as many as five explosions in
rapid succession caused the disaster. One explosion apparently occurred
just outside a trailer where a staff meeting was taking place. A total
of 15 workers were killed in the explosions and fire. Another of the
explosions considered to be the root cause took place in the
isomerization unit being restarted at the time.

Sources:

<http://www.platts.com/Oil/headlines.jsp>

http://www.reuters.com/newsArticle.jhtml?type=domesticNews&s
toryID=8335105

**Iraq's Northern Crude Line Tested but No Oil Flowing As Yet**

Iraqi Oil officials conducted a test of the northern pipeline to Turkey
on Friday. However after a short time, pumping was stopped. The pipeline
has been idle most of the time since December. It is unclear when the
line will be restored to service.

Reuters 5:31, April 29, 2005.

**Natural Gas**

**OPEC-Style LNG Cartel Seen As Unlikely**

Although officials from a number of leading LNG producers met in
Trinidad to discuss setting prices for LNG, market observers believe
that there is little chance of success in developing an OPEC-like
cartel.

Source: Natural Gas Intelligence, April 28, 2005.

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZmnmqpns%5BUnjt9K%22bfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZmnmqpns%5BUnjt9K"bfek\v)

**EnergySouth's Bay Gas to Begin 3^rd^ Storage Cavern Work**

EnergySouth's subsidiary Bay Gas Storage Co. LTD is to start work on the
development of a third underground natural gas storage cavern next
month. The new facility will hold 5 Bcf of working gas. Bay Gas expects
the unit to operational by summer of 2007. The new facility will join
Bay Gas\'s two existing storage caverns that have a combined capacity of
approximately 6.0 Bcf.

Bloomberg 14:30, April 29, 2005.

**Australia and East Timor Agreement Opens Way for Huge Gas Field
Development**

The agreement puts aside the establishment of a permanent boundary
between Australia and East Timor. In exchange for revenue from yet-to-be
developed offshore gas fields East Timor agreed on Friday to postpone
establishment of a border across the Timor Sea for up to 60 years. This
sets the stage for the development of the Greater Sunrise gas field and
the eventual shipment of LNG to California and Mexico.

Reuters 5:40, April 29, 2005.

Other News

**Final Approval for Suncor's New Ethanol Plant in Ontario**

On Tuesday, Suncor announced that it had received final approval for its
planned 200 million liter per year ethanol plant. Construction will
begin immediately on the plant located in St Clair in Ontario Canada.
The facility will process 20 million bushels of corn annually and is
anticipated to be operational by the middle of 2006.

<http://www.platts.com/Petrochemicals/headlines.jsp>

**Bill to Boost Coal Use Passed in Oklahoma**

A bill that encourages the use of coal by any utility operating in the
state passed both houses of the Oklahoma legislature on Tuesday and is
expected to move to a conference committee.

Source: Oklahoma City Journal Record, April 27,
2005.![](media/image2.png){width="4.1666666666666664e-2in"
height="4.1666666666666664e-2in"}

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5631338>

**Commuter Rail Line Halted By Car Crash**

The Long Island Rail Road's Ronkoma branch line was out of service
during part of the Friday morning rush hour following an accident that
knocked out a third rail feeder line. A car hit a small power station
building containing the cable and once the source of the problem was
located, repair crews had the line back in service by about 6:30 a.m.

<http://www.wnbc.com/traffic/4430438/detail.html?rss=ny&psp=news>

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (04       | Ago**     | Ago**      |
|                               | /29/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 49.20     | 54.16     | 37.31      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 6.64      | 7.06      | 5.81       |
|                               |           |           |            |
| **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/)