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

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

**ENERGY ASSURANCE DAILY**

**November 3, 2005**

## Highlights/Major Developments

**Update: Hurricanes Katrina, Rita, and Wilma**

For the latest damage assessment and restoration efforts concerning
hurricanes, see the latest Gulf Coast Hurricanes situation report from
the Office of Electricity Delivery and Energy Reliability (OE) of the
U.S. Department of Energy @
[[http://www.oe.netl.doe.gov]{.underline}](http://www.oe.netl.doe.gov/).
For the statistics on shut-in oil and gas production in the Gulf of
Mexico, please click on the following link:
[[http://www.mms.gov/]{.underline}](http://www.mms.gov/). For statistics
on shut-in oil and gas production and pipeline status in Louisiana,
please click on the following link:
<http://dnr.louisiana.gov/sec/execdiv/pubinfo/daily-onshore-prod.ssi>

######## Electricity

**Duke's 846 MW Oconee 3 Nuke Unit in SC Back at Full Power Nov 3**

Duke Energy Corp.\'s 846-megawatt unit 3 at the Oconee nuclear power
station in South Carolina returned to full power by early Thursday after
working on a problem with a cooling system for one of the transformers.
On Wednesday, the unit was operating at 50 percent of capacity due to a
problem with a heater drain pump.

Reuters, 07:24 November 3, 2005

**Duke's 1,100 MW McGuire 2 Nuke Unit in NC Dips to 56 Percent Power**

Duke Energy Corp.\'s 1,100 megawatt McGuire 2 nuclear unit in North
Carolina dipped to 56 percent of capacity by early Thursday, the U.S.
Nuclear Regulatory Commission said in a report. On Wednesday, the unit
was operating at full power. The unit reduced by early Thursday to work
on a problem with a cooling system for one of the transformers.

Reuters, 07:18 and 14:05 November 3, 2005\
\
**Entergy's 684 MW Pilgrim Nuke Unit in MA Dips to 56 Percent Power**

Entergy Corp.\'s 684-megawatt Pilgrim nuclear power station in
Massachusetts dipped to 56 percent of capacity by early Thursday to
clean the condenser. On Wednesday, the unit was operating at full power.

Reuters, 07:11 November 3, 2005

For information on damage and restoration efforts to the electricity
infrastructure and the number of power outages due to Hurricanes
Katrina, Rita, and Wilma, please see the Gulf Coast Hurricanes situation
report from the Office of Electricity Delivery and Energy Reliability
(OE) of the U.S. Department of Energy at the following link:
[http://www.oe.netl.doe.gov](http://www.oe.netl.doe.gov/)

######## Petroleum

**Explorer Shuts Midwest Fuel Pipeline Due to Leak**

Explorer Pipeline Co. said on Thursday it shut a 24-inch fuel pipeline
between Wood River, Illinois, and Hammond, Indiana, due to a \"pinhole\"
leak. An Explorer official said it was unclear how long the segment of
pipeline would be shut. Some market traders expected the pipeline to
restart within a day. Low sulfur diesel prices in the Group Three cash
market surged on concern over the outage, with differentials against the
NYMEX futures market rising 6.00 cents on the day to 12.00 cents over,
dealers said.

Reuters, 15:36 November 3, 2005

**Shell, Unions in Deal to End Refinery Strike, Avert Strike at NatGas
Facility**

Shell and trade unions have reached a deal to end a strike over pensions
that has hit production at Pernis, Europe\'s biggest refinery, a union
spokesman said on Thursday. Strikes at the NAM gas production facility
were avoided through the agreements.

Reuters, 14:49 November 3, 2005

Bloomberg News, 11:28 November 3, 2005

**Total Says Norway Offshore Field Production Begins**

French energy giant Total said on Thursday production had started at the
high-pressure and high-temperature Kristin offshore field in Norway. The
French group said the Kristin field, in which it holds a 6 percent stake
and is exploited with other oil companies, would produce around 220,000
barrels of oil equivalent per day.

Reuters, 12:37 November 3, 2005

For information on damage and restoration efforts to the electricity
infrastructure and the number of power outages due to Hurricanes
Katrina, Rita, and Wilma, please see the Gulf Coast Hurricanes situation
report from the Office of Electricity Delivery and Energy Reliability
(OE) of the U.S. Department of Energy at the following link:
[http://www.oe.netl.doe.gov](http://www.oe.netl.doe.gov/)

######## 

######## Natural Gas

**FERC Issues Certificate for New 12 Bcf Storage Facility in West
Virginia**\
FERC on Tuesday issued a certificate to allow Hardy Storage Co. LLC to
develop and operate a new 12.4 Bcf underground natural gas storage
facility in two partially depleted gas production fields in West
Virginia. The Commission also approved a companion request by Columbia
Gas Transmission Corp. to construct and operate transmission facilities
to deliver the gas to parts of West Virginia, Maryland and Virginia
(Docket No. CP05-144-000).

<http://intelligencepress.com/subscribers/daily/news/d20051103e.html>

[http://www.platts.com/Natural%20Gas/News/133117.xml?S=n](http://www.platts.com/Natural Gas/News/133117.xml?S=n)

**Peabody Energy and ArcLight Partner for Coal-to-Natural Gas Project in
Illinois\
**On November 2, Peabody Energy and ArcLight Capital Partners, LLC
announced their memorandum of understanding (MOU) to proceed with
development of a project in Illinois that would transform coal into
pipeline-quality synthetic natural gas. Using ConocoPhillips
\"E-Gas(TM)\" Technology, the project will feature an oxygen-blown
gasification system. The plant, which will be located in Illinois, will
be one of the largest coal-to-natural-gas plants in the United States.\
<http://www.energycentral.com/centers/news/daily/article.cfm?aid=6066392>

**Hurricanes\' Lesson for Gulf LNG? Onsite Electricity**\
The experience of existing U.S. liquefied natural gas (LNG) facilities
during the recent Gulf of Mexico hurricanes has supported the designs
for new terminals and demonstrated that onsite power generation is
probably the single most important added consideration for the new
projects, according to Sempra Energy COO Donald Felsinger.

<http://intelligencepress.com/subscribers/daily/news/d20051103f.html>

**Statoil\'s Kristin Gas Field on Stream after Delay**

Norwegian energy group Statoil\'s Kristin gas and condensate field off
Norway began producing on Thursday after a one-month delay and should
reach plateau production in mid-2006, Statoil said. \"The Kristin
platform can produce 18 million cubic meters of gas and 126,000 barrels
of condensate per day,\" Statoil said in a statement.

Reuters, 11:04 November 3, 2005

######## For information on damage and restoration efforts to the electricity infrastructure and the number of power outages due to Hurricanes Katrina, Rita, and Wilma, please see the Gulf Coast Hurricanes situation report from the Office of Electricity Delivery and Energy Reliability (OE) of the U.S. Department of Energy at the following link: [**http://www.oe.netl.doe.gov**](http://www.oe.netl.doe.gov/) 

######## Other News

**Wind Power Seen Reducing Need for U.S. Natgas**

Growth in U.S. wind power could reduce the amount of natural gas used to
produce electricity by up to 5 percent at the end of the year, which
could provide some relief to consumers from near record prices for the
fossil fuel, an industry group said. The Washington, D.C. based-American
Wind Energy Association said about 2,500 megawatts (MW) of new wind
power capacity will be installed this year, bringing total U.S. wind
capacity to more than 9,200 MW. The cumulative total is enough power to
supply 2.4 million average U.S. homes, AWEA said. When additional wind
power capacity comes on line it generally replaces the highest priced
fuel, natural gas, rather than other sources of power like coal, oil and
nuclear, said AWEA spokeswoman Christine Real de Azua.

Reuters, 14:35 November 3, 2005

######## 

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (11       | Ago**     | Ago**      |
|                               | /03/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 61.70     | 61.09     | 50.90      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 10.79     | 13.90     | 7.25       |
|                               |           |           |            |
| **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*