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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**September 16, 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/hurricane_ivan.html

-   As of 1:00 PM CDT 9/16 Hurricane Ivan's maximum sustained winds have
    decreased to near 70 mph with higher gusts and a continued gradual
    weakening is forecast over the next 24 hours. Tropical storm force
    winds extend outward up to 290 miles mainly to the southeast of the
    center. The eye of the storm is located approximately 45 miles
    west-northwest of Montgomery, AL, and is moving towards the
    north-northeast at about 14 mph. A gradual turn toward the northeast
    and decrease in forward speed are expected during the next 24 hours.
    Approximately 1.7 million customers in the Gulf Coast (see chart
    below) lost power during Hurricane Ivan. An image of the current
    storm path is available at:
    <http://www.nhc.noaa.gov/ftp/graphics/AT09/refresh/AL0904W+GIF/161503W.gif>

-   EA is also monitoring Hurricane Jeanne, which may impact the U.S.
    Eastern Seaboard. As of 2:00 PM ADT 9/16 Hurricane Jeanne's maximum
    winds are near 75 mph with higher gusts making it a Category 1
    storm. The center of Hurricane Jeanne was located inland about 65
    miles east-northeast of Santo Domingo in the Dominican Republic and
    is moving just north of due west at 7 mph. An image of the current
    storm path is available at:
    <http://www.nhc.noaa.gov/ftp/graphics/AT11/refresh/AL1104W+GIF/161503W.gif>

-   Hurricane Jeanne resulted in the loss of 1,529 MW of system firm
    load and has impacted 1.4 million customers. Total Puerto Rico
    Electric Power Authority capacity is 4,900 MW. The loss was
    triggered by several transmission line outages due to the storm and
    restoration may take "a few" days. (Source: 417 report 12:30 PM
    9/16).

**ELECTRIC INFORMATION**

### STATE OUTAGE DATA 

+------------------------+-----------+---------------+----------------+
| **Utility**            | **Cu      | **Total       | **% Customers  |
|                        | stomers** | Customers**   | w/o Power from |
|                        |           |               | Ivan**         |
|                        | **w/o     |               |                |
|                        | Power**   |               |                |
+------------------------+-----------+---------------+----------------+
| Florida                | 443,000   | 8,877,905     | 5%             |
+------------------------+-----------+---------------+----------------+
| Alabama                | 1,065,474 | 2,317,229     | 46%            |
+------------------------+-----------+---------------+----------------+
| Mississippi            | 160,000   | 1,406,803     | 11.4%          |
+------------------------+-----------+---------------+----------------+
| Louisiana              | 29,453    | 2,110,768     | 1.4%           |
+------------------------+-----------+---------------+----------------+
| Georgia                | None      |               |                |
|                        | reported  |               |                |
+------------------------+-----------+---------------+----------------+
| **Total**              | **1       | *             | **11.5%**      |
|                        | ,697927** | *14,712,705** |                |
+------------------------+-----------+---------------+----------------+

## Source: Total Customers -- EIA Electric Sales and Revenue 2002 and Florida EOC. Sources for Alabama, Florida, Louisiana, and Mississippi are from the State Emergency Operations Centers. 

####### State Outage Information

-   Florida -- 11 Florida counties have reported outages from Hurricane
    Ivan in the westernmost Florida Panhandle region, totaling 443,000
    customers. Remaining from the earlier Hurricane Frances, there are
    currently 31,525 Florida customers without power.

-   Alabama - Currently, an estimated 1.065 million Alabama customers
    are without power including Alabama Power with 787,000; cooperatives
    with 275,000; and TVA with 3,000.

-   Mississippi - Currently, an estimated 160,000 Mississippi customers
    are without power.

-   Louisiana - Currently, some 29,000 Louisiana customers are without
    power, down from 51,070 reported at 10:00 AM EST 9/16.

##### OIL AND GAS INFORMATION 

**Status of Refineries in Preparation for Hurricane Ivan**

  ------------------- -------------------- ------------- ---------------------
  **Refiner**         **Location**         **Capacity    **Status**
                                           (bbl/day)**   

  Shell Oil           Saraland, AL         85,000        Shut down

  Chevron             Pascagoula, MS       325,000       Shut down (No
                                                         significant damage)

  ExxonMobil          Chalmette, LA        182,500       Shut down

  Marathon            Garyville, LA        254,000       Reduced runs, in
                                                         process of resuming
                                                         full operation

  ExxonMobil          Baton Rouge, LA      493,500       Reduced runs

  Motiva              Convent, LA          235,000       Restarting

  Motiva              Norco, LA            226,500       Restarting

  Murphy              Meraux, LA           120,000       Shut down

  Valero (Orion)      St. Charles, LA      155,000       Reduced runs

  Valero              Krotz Springs, LA    78,000        Shut down

  Valero              Texas City, TX       204,250       Reduced runs

  BP                  Texas City, TX       437,000       Reduced runs

  Citgo               Lake Charles, LA     324,300       Reduced runs

  Shell               St. Rose, LA         55,000        Shut down

  ConocoPhillips      Belle Chasse, LA     235,500       Shut down

  ConocoPhilllips     Wood River, IL (PADD 288,300       Reduced runs
                      II)                                

  ConocoPhillips      Borger, TX           145,800       Reduced runs

  Premcor             Memphis, TN (PADD    180,000       Reduced runs
                      II)                                
  ------------------- -------------------- ------------- ---------------------

-   **LA Offshore Oil Platform:** The LOOP reports that it expects to be
    in service by noon tomorrow, 9/17/04.

-   **Pipelines:** Capline pipeline has resumed operations as of noon
    today at a rate of 720,000 barrels per day. This will get needed
    supplies to the Premcor Memphis and ConocoPhillips Woodriver
    refineries.

-   **Crude Oil and Gas Production**: Minerals Management Service has
    said that it\'s too soon to evaluate offshore infrastructure for
    possible damage.

    -   The latest information shows 1.41 million barrels a day of
        shut-in oil production or 83% of daily production of crude oil.

    -   Shut-in gas production is currently at 6.52 BCFPD or 53% of
        daily natural gas production.** ** The cumulative
        (9/13/04-9/16/04) shut-in oil production is 3,916,347 barrels,
        equivalent to 0.65 percent of the yearly production of oil,
        which is approximately 605 million barrels.

    -   The cumulative (9/13/04-9/16/04) shut-in gas production is
        17.731 BCF, equivalent to 0.40 percent of the yearly production
        of gas, which is approximately 4.45 TCF.

    -   Louisiana officials estimate report that no steps will be taking
        to survey rigs or other facilities offshore until late tomorrow
        or Saturday at the earliest.

-   **Strategic Petroleum Reserve:** All hurricane alerts have been
    suspended at the SPR facilities. Facilities have resumed normal
    operations. SPR reports no damage to sites or buildings.

# An image of the current storm path is available at: 

<http://www.nhc.noaa.gov/refresh/graphics_astorm9+shtml/151453.shtml>?

As of 4:00 PM, Ivan had been downgraded to a tropical storm. For details
clicking on the following link.

<http://www.nhc.noaa.gov/text/refresh/MIATCPAT4+shtml/152041.shtml>?

The information reported in the Energy Assurance Daily above 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. (Gulf of Mexico
assessments conducted collaboratively by Fossil Energy\'s SPR office and
EA) There are also many press reports on Hurricane Ivan and related
news. Here are links to some of them:

**Main Developments with Hurricane Ivan**
<http://www.newsday.com/news/nationworld/wire/sns-ap-hurricane-developments,0,1643620.story?coll=sns-ap-nationworld-headlines>

***Oil Companies Tally Ivan Damage***
[http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B8C4929FD%2D4922%2D4A3D%2D9B2A%2DF704AB699385%7D](http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid={8C4929FD-4922-4A3D-9B2A-F704AB699385})

Bloomberg News, September 16, 2004,16:43

Bloomberg News, September 16, 2004, 14:49

**Diamond Offshore Rigs Avoid Damage**\
<http://biz.yahoo.com/ap/040916/diamond_offshore_hurricane_1.html>

**Hurricane Ivan Impact on Oil Industry**\
<http://biz.yahoo.com/rb/040916/markets_oil_6.html>
<http://biz.yahoo.com/ap/040916/oil_prices_3.html>

**Ivan Downgraded to Tropical Storm Floods Southeast**
<http://www.cnn.com/2004/WEATHER/09/16/hurricane.ivan/index.html>

**Electricity**

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

**Dominion Dedicates Newest Power Station in Bucks County, PA**\
Dominion dedicated its newest power station Thursday, the 1,180 MW
Fairless Energy LLC power station in Bucks County, northeast of
Philadelphia. The Fairless station consists of two combined-cycle,
natural gas-fired and steam-driven turbine units that generate about 590
megawatts each into the Mid-Atlantic energy marketplace. Construction on
Fairless began in April 2002 and the units began commercial operation
this summer. <http://biz.yahoo.com/prnews/040916/dcth039_1.html>

# Xcel Receives Approval for Wind Power Transmission Line

Xcel Energy Inc. said it can increase its use of wind energy because it
has received permission to build a build a new high power transmission
line to connect a group of wind-driven power generators to its
electricity grid. The Minneapolis-based electric utility stated in a
press release the Minnesota Environmental Quality Board approved a
request to build a new 26-mile, 161-kilovolt transmission line
connecting a substation near Lakefield with one near Sherburn. The line
will run along I-90 for most of its route. Xcel first filed for
permission to build the line in November 2003. In addition to the
just-approved project, Xcel has proposed three other major new
transmission lines and the complete rebuilding of 19 other lines.
Together the lines will triple the capacity of the transmission system
in the area and allow Xcel to tap additional energy generated by
windmills along Buffalo Ridge. Up to 825 megawatts of wind-generated
power could then be transmitted to Xcel customers in the Twin Cities and
other areas in the upper Midwest.
<http://twincities.bizjournals.com/twincities/stories/2004/09/13/daily40.html>

# 

# Santa Fe County, N.M., approves line upgrade by utility PNM 

The Santa Fe County Commission on Tuesday unanimously approved a Public
Service Company of New Mexico proposal to upgrade transmission lines.
Under PNM\'s plan \-- dubbed Project Power \-- new lines will follow a
13-mile path of existing power lines that run across city, county and
federal land.

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5118639>

**St. Lucie 1 Nuclear Power Plant Reaches Full Power**

The 839 MW unit 1 of the St Lucie nuclear generating station increased
production to full power according to Florida Power & Light. The plant
located on Hutchinson Island, Florida completed a gradual ramping up
after Hurricane Francis.

Bloomberg, September 16, 2004, 9:03

**Oyster Creek 1 Nuke Shut For Unplanned Repair, Company Says**

The 839MW Oyster Creek unit 1 is shut down as it undergoes unplanned
maintenance. According to AmerGen Power Company owner of the plant
located in Forked River, New Jersey, the plant was shut to repair a
steam valve malfunction.

Bloomberg, September 16, 2004, 11:23

**Petroleum**

**Amerada Hess Expects Hovensa Coker Back By Weekend**

The 58,000 barrels per day (bpd) coker at Hovensa\'s oil refinery in St.
Croix, U.S. Virgin Islands, is expected back up by the weekend.

Reuters, September 16, 2004, 16:20.

**Chalmette Refining Restarting Louisiana Plant Thursday**

Chalmette Refining LLC is beginning its restart of its 190,000 barrel
per day (bpd) oil refinery in Chalmette, Louisiana, on Thursday after no
damage or flooding occurred as a result of Hurricane Ivan

Reuters, September 16, 2004, 14:07 16Sep2004 RTRS-

**LOOP LLC Sees Marine Oil Operations Back Up Friday**

The Louisiana Offshore Oil Port LLC expects to have its marine
operations offloading oil tankers back up around midday on Friday. LOOP
is the only U.S. offshore oil port, unloading about 900,000 barrels per
day of imported crude oil from tankers in the Gulf of Mexico offshore
Louisiana and about 500,000 bpd of domestically produced crude oil from
the offshore Mars platform in the Gulf.

Reuters, September 16, 2004, 13:52

**US Coast Guard Says Mississippi Open Above Mile 45**

The Mississippi River north of mile 45 was opened on Thursday to cargo
traffic after being shut by Hurricane Ivan, said a Coast Guard official
in New Orleans. River traffic had been restricted between miles 35 and
106 on Wednesday. New Orleans is at about mile 85.

Reuters, September 16, 2004, 13:32

**Valero Says No Date on Krotz Springs Plant Restart**

Valero Energy Corp. said on Thursday no time has been set to restart its
85,000 barrel per day (bpd) refinery in Krotz Springs, Louisiana, which
was shut on Wednesday when Hurricane Ivan cut its crude oil supply. The
company also said it will return its 245,000 bpd St. Charles, Louisiana,
refinery to full production by Monday and did not know when the 243,000
bpd Texas City, Texas, refinery would return to full production. Valero
shut the Krotz Springs refinery on Wednesday when the stoppage of
pipelines and shipping due to the approach of Hurricane Ivan cut crude
oil deliveries into the refinery, which is located 40 miles east of
Baton Rouge, Louisiana. The St. Charles refinery, located in Norco,
Louisiana, 25 miles west of New Orleans, reduced production to 90,000
bpd on Wednesday and had minimum staffing while Ivan threatened
Louisiana. Production at the Texas City refinery was reduced by 43,000
bpd when offloading of crude oil in the Gulf of Mexico was suspended,
Valero said.

Reuters, September 16, 2004, 13:38

**Shell Says Capline Crude Duct Back Thursday**

The 1.14 million barrels per day crude duct Capline, which takes oil
from the U.S. Gulf of Mexico to Illinois, restarted on Thursday, Shell
Pipe Co. said.

Reuters, September 16, 2004, 12:56

**ChevronTexaco to Start Returning Gulf Oil Workers**

ChevronTexaco started a helicopter remobilization of workers to its
western Gulf of Mexico oil and natural gas leases Thursday morning and
expects to start sending workers back to the central Gulf Thursday
afternoon, a company spokesman said.

Reuters, September 16, 2004, 11:41

**Exxon Gulf of Mexico Oil, Gas Production Still Out**

Exxon Mobil Corp. said Thursday its Gulf of Mexico oil and gas
production remained shut as the company waited for power to return to
platforms. Exxon had shut in 55,000 bpd of oil and 740 mmcfd of natural
gas production ahead of Hurricane Ivan, which hit Alabama early
Thursday. \"All of our production, including Mobile Bay remains out.
When power returns we will be able to assess if there was any damage to
platforms,\" said Exxon spokeswoman Susan Reeves.

Reuters, September 16, 2004, 11:39

**Murphy Restarting Meraux, LA Refinery**

Murphy Oil Corp. is restarting its 125,000 barrel per day refinery in
Meraux, Louisiana, sources familiar with refinery operations said on
Thursday. The refinery was shut down by Wednesday morning as Hurricane
Ivan approached the Gulf of Mexico coast, potentially threatening the
plant. The sources said the company hopes to have the refinery in
operation by Friday.

Reuters, September 16, 2004, 11:21

**Anadarko Sees No Damage to Gulf Platform from Ivan**

Anadarko Petroleum Corp. said Thursday its largest oil and gas
production platform in the U.S. Gulf was not damaged by Hurricane Ivan
and was restarting. The Marco Polo platform was producing 31,500 barrels
per day of oil and 26,000 million cubic feet of gas before it was shut
down as a precaution as Ivan neared, a spokeswoman said. Anadarko crews
checking out other platforms in the Gulf have so far found no damage,
she added.

Reuters, September 16, 2004, 11:14

**Motiva says 240,00 bpd Norco, LA, Oil Refinery Up**

Motiva Enterprises LLC said Thursday it was re-starting its 240,000
barrel per day refinery in Norco, Louisiana, after Hurricane Ivan swept
east of the state.

Reuters, September 16, 2004, 10:49

**Conoco Says Alliance, LA Plant Not Damaged by Ivan**

ConocoPhillips said Thursday an initial assessment showed that its
250,000 barrel per day (bpd) Alliance oil refinery in Belle Chasse,
Louisiana, sustained no damage from Hurricane Ivan and could begin
returning to operations as early as today, according to a company
spokesman.

Reuters, September 16, 2004, 10:25

**Garyville, LA, Plant Returning to Full Operations**

Marathon Ashland Petroleum\'s 245,000 barrel per day (bpd) oil refinery
that had cut an undisclosed amount of crude runs because of the threat
of Hurricane Ivan will begin returning to full operations on Thursday,
company spokeswoman Linda Casey said.

Reuters, September 16, 2004 09:41

**Motiva Says Restarting Convent, LA Oil Refinery**

Motiva Enterprises said Thursday it will restart its 225,000 barrel per
day (bpd) oil refinery in Convent, Louisiana, and that it will take
several days before the plant is back at full operation after it dodged
any impact from Hurricane Ivan.

Reuters, September 16, 2004 09:25

**Tesoro Refinery in CA Operational after Fire**

An early-morning tank fire at Tesoro's Golden Eagle refinery in the Bay\
area had no impact on gasoline supplies, according to sources. OPIS
Price Watch Alert, September 16, 2004

## 

## Senate Defeats SPR Oil Sale

The Senate on Tuesday defeated a proposal to suspend crude oil
deliveries in to

the Strategic Petroleum Reserve (SPR) and make available to the market
some 19

million barrels of oil in fiscal year 2005 beginning in Oct. 1.

Oil Daily, September 16, 2004

**Natural Gas**

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

## 

Nothing else to report.

## 

**Other News**

Nothing to report.

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (9        | Ago**     | Ago**      |
|                               | /16/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 44.03     | 44.61     | 27.60      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 4.82      | 4.58      | 4.67       |
|                               |           |           |            |
| **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