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

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

**ENERGY ASSURANCE DAILY**

**September 8, 2005**

## Highlights/Major Developments

**Update: Hurricane Katrina**

OFFICE OF ELECTRICITY DELIVERY AND ENERGY RELIABILITY (OE)

U.S. DEPARTMENT OF ENERGY

Hurricane Katrina Situation Report #28

**September 8, 2005 (4:00 PM EDT)**

######### HIGHLIGHTS

Currently, 689,185 customers remain without electric power in Louisiana
and Mississippi due to Hurricane Katrina. This is down by over 2 million
from a peak of 2.7 million customers that were without power after
Hurricane Katrina struck the region.

ESF #12 assisted in the termination of the natural gas supply to the
City of Pearlington, MS, because of reports of natural gas leaks
throughout the Pearlington natural gas system.

The Energy Information Administration (EIA) released its Short Term
Energy Outlook on 9/7/05 and estimated that normal to nearly normal
operations of oil and gas production and distribution would be achieved
by December 2005.

The LOOP expects to be operating at 100 percent within the next week,
when Fourchon becomes operational. Currently the LOOP is still operating
at 75 percent.

Natural gas transmission pipelines in the path of Katrina survived with
minimal damage. Four natural gas processing plants accounting for
roughly 5.5 billion cubic feet per day are currently not operating due
to hurricane-induced damage. These plants can potentially be bypassed
for a period of time while repairs are made with an acceptable impact on
natural gas specifications.

Mississippi Power now estimates that all customers [who can receive
power]{.underline} will have service restored by the end of the day
Sunday 9/11/05. Entergy also reports that most of its Mississippi
customers will have power restored by then as well.

According to coal analysts, it is estimated that Hurricane Katrina may
impact coal consumption this fall because coal-fired plants that
typically ramp down following the peak summer months may be required to
continue generating at high levels to make up for the gap caused by
damage to gas production.

NOAA observed one of the largest solar flares on record 9/7/05 which
could impact high frequency communications. Significant eruptions are
expected in the coming days. Agencies impacted by space weather storms
may experience disruptions over the next two weeks. These include
spacecraft operations, electric power systems, HF communications, and
low-frequency navigations systems. This could have an impact on
emergency personnel in the Gulf who make use of those frequencies.

NOAA reports that tropical storm Ophelia off the coast of Florida (about
70 miles east-northeast of Cape Canaveral) became a Category 1 hurricane
this afternoon. The storm is stationary and little overall movement is
expected today. Maximum sustained winds are currently 70 miles per hour
with higher gusts. Tropical storm winds extend outward up to 70 miles
from the center and rain bands with strong winds in squalls have been
spreading over portions of the Florida east coast in the tropical storm
warning area.
[[http://www.nhc.noaa.gov/]{.underline}](http://www.nhc.noaa.gov/)

**PETROLEUM AND GAS INFORMATION**

According to Thursday's MMS reports, 15.26 percent of 819 manned
platforms and 3.73 percent of 137 rigs remain evacuated in the Gulf of
Mexico (GOM). Yesterday\'s shut-in oil production was 901,726 BOPD. The
shut-in oil production is equivalent to 60.1 percent of the daily oil
production in the GOM, which is currently approximately 1.5 million
BOPD.  Tuesday\'s shut-in gas production was 4.020 BCFPD. This shut-in
gas production is equivalent to 40.2 percent of the daily gas production
in the GOM, which is currently approximately 10 BCFPD.

> **Improvement in GOM Shut-in Oil and Gas 8/30/05 -- 9/8/05**

  ---------------- ---------------------------- -------------------------
  **Date**         **Percent of GOM Oil         **Percent of GOM Gas
                   Shut-in**                    Shut-in**

  August 30        95.20                        87.99

  August 31        91.45                        83.46

  September 1      90.43                        78.66

  September 2      88.53                        72.48

  September 3      78.98                        57.80

  September 4      No data reported             No data reported

  September 5      69.57                        54.13

  September 6      58.02                        41.06

  September 7      57.37                        40.36

  September 8      60.12 \*                     40.20
  ---------------- ---------------------------- -------------------------

\*Oil Production Shut-ins continue to decline, despite the apparent rise
in the figures released by MMS. According to MMS, this rise in the
statistics occurred today because a company just reported a significant
amount of shut-in oil production today that has been shut-in since the
hurricane hit, but was not reported as such due to communications
problems.

Entergy crews in Louisiana will assess the relaying at the BP Alliance
34.5kV substation tonight, 9/8/05.  This will provide service to the
ConocoPhillips (Belle Chasse) refinery. Additional assessments of the
substations that connect to the ExxonMobil/PDVSA (Chalmette) and Murphy
(Meraux) refineries will also continue today.

Entergy has 17 generating units in the New Orleans area that are fueled
by natural gas and/or oil. Nine of those units have been returned to
service, with one more expected to return late this week. Currently,
generation capacity is sufficient to meet load, and their fuel supplies
are adequate.

The lower Mississippi is open during daylight hours only to traffic with
drafts of at least 39 feet. The Gulf Intracoastal Waterway (GIWW) was
opened to traffic across areas of Louisiana Tuesday, with the exception
of the Inner Harbor Navigational Canal (IHNC) which remains closed.
Vessels may access the east of the IHNC via the Baptiste Collette
alternate route. There is a draft limitation of 9.5 feet in the Baptiste
Collette route.

The Port of New Orleans now reports that its headquarters building has
power. The port is not open to commercial traffic; however, officials
have set a goal by September 14 to allow commercial cargo ships enter
the port. The Port is currently berthing military and relief vessels.

The Tables below show, as of 9/8/05, the current status of the
refineries impacted by Hurricane Katrina. Improvements continue in the
Southeast refinery complex.

# Table 1. Shutdown Refineries

+------------+----------+-----+----------+----------------------------+
| **         | **Lo     | **S | **Ca     | **Current Status**         |
| Refinery** | cation** | tat | pacity** |                            |
|            |          | e** |          |                            |
|            |          |     | **(bb    |                            |
|            |          |     | l/day)** |                            |
+------------+----------+-----+----------+----------------------------+
| Conoco     | Belle    | LA  | 247,000  | No power - major damage    |
| Phillips\* | Chasse   |     |          |                            |
+------------+----------+-----+----------+----------------------------+
| ExxonMobil | C        | LA  | 187,200  | No power - water damage    |
|            | halmette |     |          |                            |
+------------+----------+-----+----------+----------------------------+
| Motiva     | Norco    | LA  | 226,500  | Limited damage, continue   |
| (Shell)    |          |     |          | to make repairs --         |
|            |          |     |          | expecting to restart later |
|            |          |     |          | this week                  |
+------------+----------+-----+----------+----------------------------+
| Murphy     | Meraux   | LA  | 120,000  | No power -- water is       |
|            |          |     |          | starting to recede,        |
|            |          |     |          | currently making           |
|            |          |     |          | assessment of damage,      |
|            |          |     |          | leaking crude oil tank     |
|            |          |     |          | repaired                   |
+------------+----------+-----+----------+----------------------------+
| Shell      | St Rose  | LA  | 55,000   | Awaiting Norco restart     |
| Chemical   |          |     |          |                            |
+------------+----------+-----+----------+----------------------------+
| Chevr      | Pa       | MS  | 325,000  | Damage unknown --          |
| onTexaco\* | scagoula |     |          | assessment being made      |
+------------+----------+-----+----------+----------------------------+

# Table 2. Refineries with Reduced Runs

+-------------+---------+-----+---------+----------------------------+
| *           | **Loc   | **S | **Cap   | **Current Status**         |
| *Refinery** | ation** | tat | acity** |                            |
|             |         | e** |         |                            |
|             |         |     | **(bbl  |                            |
|             |         |     | /day)** |                            |
+-------------+---------+-----+---------+----------------------------+
| Marathon    | Ga      | LA  | 245,000 | Restarted -- expecting     |
|             | ryville |     |         | full operation by the end  |
|             |         |     |         | of today                   |
+-------------+---------+-----+---------+----------------------------+
| Motiva      | Convent | LA  | 235,000 | Restarted -- operating at  |
| (Shell)     |         |     |         | 75 percent rate expect     |
|             |         |     |         | full production later this |
|             |         |     |         | week.                      |
+-------------+---------+-----+---------+----------------------------+
| Valero      | Krotz   | LA  | 80,000  | Close to 100 percent -     |
|             | Springs |     |         | receiving SPR              |
+-------------+---------+-----+---------+----------------------------+
| Valero      | St.     | LA  | 185,000 | Restarting -- expecting to |
|             | Charles |     |         | be fully operational       |
|             |         |     |         | within one week.           |
+-------------+---------+-----+---------+----------------------------+

#  

# Table 3. Refineries at Normal Production

+-------------+---------+-----+---------+-----------------------------+
| *           | **Loc   | **S | **Cap   | **Current Status**          |
| *Refinery** | ation** | tat | acity** |                             |
|             |         | e** |         |                             |
|             |         |     | **(bbl  |                             |
|             |         |     | /day)** |                             |
+-------------+---------+-----+---------+-----------------------------+
| Shell       | S       | AL  | 80,000  | Operating at full rate for  |
| Chemical    | araland |     |         | gasoline and reduced rate   |
|             |         |     |         | for chemicals and other     |
|             |         |     |         | products                    |
+-------------+---------+-----+---------+-----------------------------+
| Con         | Wood    | IL  | 306,000 | OK                          |
| ocoPhillips | River   |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| E           | Joliet  | IL  | 238,000 | OK                          |
| xxonMobil\* |         |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| PDV Midwest | Lemont  | IL  | 160,000 | OK                          |
+-------------+---------+-----+---------+-----------------------------+
| Marathon    | R       | IL  | 192,000 | OK                          |
|             | obinson |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| BP          | Whiting | IN  | 410,000 | OK -- receiving SPR         |
+-------------+---------+-----+---------+-----------------------------+
| Marathon    | Catle   | KY  | 222,000 | OK                          |
|             | ttsburg |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Citgo\*     | Lake    | LA  | 324,300 | OK                          |
|             | Charles |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Conoc       | Lake    | LA  | 239,400 | OK                          |
| oPhillips\* | Charles |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| E           | Baton   | LA  | 493,500 | OK -- receiving SPR         |
| xxonMobil\* | Rouge   |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Placid      | Port    | LA  | 48,500  | OK -- receiving SPR         |
| Oil\*       | Allen   |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Marathon    | Detroit | MI  | 74,000  | OK                          |
+-------------+---------+-----+---------+-----------------------------+
| BP          | Toledo  | OH  | 160,000 | OK -- receiving SPR         |
+-------------+---------+-----+---------+-----------------------------+
| Marathon    | Canton  | OH  | 73,000  | OK                          |
+-------------+---------+-----+---------+-----------------------------+
| Premcor     | Lima    | OH  | 158,400 | OK -- receiving SPR         |
+-------------+---------+-----+---------+-----------------------------+
| Premcor\*   | Memphis | TN  | 180,000 | OK -- receiving SPR         |
+-------------+---------+-----+---------+-----------------------------+
| E           | B       | TX  | 348,500 | OK                          |
| xxonMobil\* | eaumont |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Motiva      | Port    | TX  | 285,000 | OK                          |
| (Shell)\*   | Arthur  |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Premcor     | Port    | TX  | 247,000 | OK                          |
|             | Arthur  |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Total\*     | Port    | TX  | 211,500 | OK - receiving SPR          |
|             | Arthur  |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+

\* Refineries with company owned and operated on-site power generation.

**ELECTRICITY INFORMATION**

### STATE OUTAGE DATA 

+---------------------+--------------------+---------------------------+
| **Utility**         | **Customers w/o    | **% Customers w/o Power** |
|                     | Power**            |                           |
|                     |                    | **from Katrina**          |
+---------------------+--------------------+---------------------------+
| Louisiana\*         | 459,534            | 42%                       |
+---------------------+--------------------+---------------------------+
| Mississippi         | 229,651            | 16%                       |
+---------------------+--------------------+---------------------------+

\*Louisiana data is reported by the Louisiana Public Service Commission
and their percentage outage numbers are used in calculating the
percentage of total outage.

**STATE REPORTS**

####### Mississippi and Louisiana 

In Louisiana 459,534 customers remain without power, as reported by the
Louisiana Public Service Commission (LAPSC) (12:00 PM 9/8/05).

Louisiana Outage Data by Parish (12:00 PM 9/8/05)

  ------------------------------------- ------------- -------------------
  **UTILITY**                           **OUTAGES**   **% customers w/o
                                                      power**

  **Jefferson**                         131,826       63%

  **Lafourche**                         1,925         3%

  **Livingston**                        2,544         5%

  **Orleans**                           182,152       89%

  **Plaquemines**                       3,013         32%

  **St. Bernard**                       28,308        99%

  **St. Tammany**                       77,467        74%

  **Tangipahoa**                        12,835        23%

  **Washington**                        17,986        69%
  ------------------------------------- ------------- -------------------

\*Louisiana data and percentages are reported by the Louisiana Public
Service Commission.

Only Parishes with outages of more than 1,000 customers are shown

Louisiana Outage Data by Utility (12:00 PM 9/8/05)

  ------------------------------------- ------------- -------------------
  **UTILITY**                           **OUTAGES**   **% customers w/o
                                                      power**

  **Entergy Louisiana**                 180,810       38%

  **Entergy Gulf States**               0             0%

  **Entergy New Orleans**               182,152       89%

  **DEMCO**                             1,533         2%

  **SLECA**                             362           2%

  **Wash-St. Tammany**                  40,650        90%

  **CLECO**                             54,027        68%

  **Total**                             **459,534**   **42%**
  ------------------------------------- ------------- -------------------

\*Louisiana data and percentages are reported by the Louisiana Public
Service Commission.

As of 1:30 PM Thursday 9/8/05, Mississippi has 229,651 customers without
power, which represents 16 percent of customers in the state, including
17,751 Entergy customers, 84,530 Mississippi Power customers, and
127,370 customers of the Electric Power Associations of Mississippi
(EPAOFMS). Both Mississippi Power and Entergy predict that most
customers will have power restored by 9/11/05. EPAOFMS estimates
restoration will not occur until later next week.

Entergy is making inoculations for diphtheria and tetanus available to
field crews working in flooded areas around New Orleans. The
inoculations are on a voluntary basis.

At this time, the fact that the Waterford 3 nuclear power plant is
offline is not causing problems or concerns with regard to Entergy\'s
ability to meet load demands. Entergy plans to restart Waterford 3 and
is going through the procedures and steps that are required to do so.

Entergy reports that at its worst point, the company had a total of 660
transmission line-miles, 263 substations and 1,560 distribution feeders
out of service; currently, 42 transmission lines and 34 substations are
out of service. In Mississippi, all substations are now restored and
transmission lines continue to be energized.

Cleco Corp., a Co-op servicing Louisiana, estimated on 9/7/05 that it
will have power restored to 80 percent of its customers who can take
electricity within the next two weeks.

Mississippi Power lost all of its systems, including telecommunications,
and suffered extensive facilities damage, including the use of all
generating units at Plant Watson in Gulfport. Restoration crews totaled
9,200 on 9/6/05. Current restoration goals are:

September 8: Bay St. Louis, Long Beach, Wiggins/Saucier\
September 9: Pascagoula/Moss Point, Pass Christian, DeLisle\
September 10: Hattiesburg, Laurel\
September 11: Biloxi, Gulfport, Picayune, Poplarville

The EPAOFMS reports that all 25 electric power associations suffered
some loss of service during the storm. Fifteen of those co-ops have
completely restored power. Coast Electric Power Association in Bay St.
Louis and Southern Pine Electric Power Association in Taylorsville are
currently reporting the most customers are without power. More than
7,605 co-op crew members from Mississippi and 14 other states as far
away as Pennsylvania are assisting in restoration in the state.

**Florida**

The Florida Reliability Coordinating Council (FRCC) State Capacity
Emergency Coordinator has discontinued all Generating Capacity
Advisories and Alerts associated with the impacts of Hurricane Katrina
on fuel supplies to electric generating facilities within the FRCC as of
Thursday, September 8th, 2005. 

**Additional Information**

**Hurricane Katrina\
Evacuation and Production Shut-in Statistics Report\
as of Thursday, September 8, 2005**

Next Report will be issued on Friday, September 9, 2005 at 1:00 PM CDT.\
For information concerning the storm click on
**[www.mms.gov](http://www.mms.gov/)**

**This survey reflects 56 companies' reports as of 11:30 a.m. Central
Daily Time.**

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

  **Platforms     0           0           0               7           118         125
  Evacuated**                                                                     

  **Rigs          0           0           0               1           4           5
  Evacuated**                                                                     

  ** **                                                                            

  **Oil, BOPD     294         2,633       7,971           109,859     780,939     901,726
  Shut-in**                                                                       

  **Gas, MMCF/D   27.00       42.26       29.62           605.38      3,316.20    4,020.46
  Shut-In**                                                                       
  --------------- ----------- ----------- --------------- ----------- ----------- -----------

<http://www.mms.gov/ooc/press/2005/press0906.htm>

These cumulative numbers reflect updated production numbers from all
previous reports.  The reports only represent input received by 11:30
a.m. CDT.  If a company does not report by 11:30 a.m. it is not included
in the special information release, but it is included in the cumulative
shut-in production. This may result in an apparent increase in the
cumulative report amount.

######## Electricity

# Grid Improvements in California Reducing Congestion

According to the president of the California Independent System Operator
(Cal ISO) improvements that have been made to the system are showing
results in the elimination of bottlenecks and reduced congestion, which
have in turn led to lower costs.

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5933211>

### Update-Duke's 846 MW Unit 3 at it Oconee Nuclear Station Ramps Up to 91 Percent September 8, 2005

The unit shut on August 31 during a routine test.

Reuters 7:56, September 8, 2005

### TXU's 553 MW Sandow Coal-fired Unit 4 in Texas Shut September 8, 2005

The unit was shut to repair a boiler tube leak, according to a report
filed with Texas regulators.

Reuters 9:03, September 8, 2005

### Bruce Power's 750 MW Unit 3 at the Bruce A Nuke in Ontario Shut September 7

The unit was shut to repair the reactor's regulating system, according
to a company release. The unit will return to service in the "coming
days."

Reuters 9:29, September 8, 2005

# Southern Company's 1,100 MW Watson Power Plant Shut for Up to 3 Months

Southern CFO expects the plant to be shut for six weeks to three months
due to flooding and damage from Hurricane Katrina.

Reuters 9:58 September 8, 2005

# Clover Bar to be decommissioned by EPCOR 

On September 6, EPCOR announced that on October first, it would
decommission its 660 MW Clover Bar Generating Station in Alberta. The
decommissioning process will take up to two years to complete.

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5930708>

# AES's 335 MW Gas-fired Alamitos Unit 4 in California Shut September 8

Reuters 15:29 September 8, 2005

# SCE's 790 MW Coal-fired Mohave Unit 1 in Nevada Shut September 8

Reuters 15:29 September 8, 2005

# Mirant's 312 MW Gas-fired Pittsburg Unit 5 in California Shut September 8

Reuters 15:29 September 8, 2005

# Mirant's 317 MW Gas-fired Pittsburg Unit 6 in California Shut September 8

Reuters 15:29 September 8, 2005

######## Petroleum

**Florida Ends Conservation Request**

Florida ended its request for customers to conserve electricity now that
natural gas supplies have stabilized following Hurricane Katrina's
impact on the Gulf Coast.

<http://biz.yahoo.com/prnews/050908/clth041.html?.v=23>

**OPEC to Propose 500,000 Barrel per day Increase**

OPEC's president will propose a 500,000 barrel per day increase in crude
production at the cartel's next meeting in September, though the
Venezuelan Energy Minister indicated that an OPEC increase will not
dampen crude prices.

Reuters 13:09 September 8, 2005

**Venezuela Diverting Four Gasoline Shipments to US**

According to a government statement, \"four additional shipments of
gasoline, totaling over 960,000 barrels, taken from storage and diverted
from other customers, will be sent to and distributed by PDVSA\'s
wholly-owned U.S. subsidiary, CITGO Petroleum Corp. (CITGO)\" this
month.

Reuters 18:05 September 7, 2005

**Alaska Governor Asks Companies to Produce More Oil**

Alaska Governor Frank Murkowski asked the 4 North Slope oil producing
companies to do everything possible to produce more oil to make up for
losses in the Gulf due to Hurricane Katrina. Both ConocoPhillips and BP
indicated that they were producing at full capacity already. However,
within the next week, BP plans to reopen its Badami field, shut 2 years
ago due to low output. Production was about 1,800 barrels per day when
it was shut.

Reuters 21:57 September 7, 2005

**TECO Resumes Coal Shipments to Tampa Electric**

Utilizing floating cranes at an alternate location upriver, TECO
Transport discharged 23,000 tons of coal from its vessels and loaded the
coal onto a TECO Ocean Shipping vessel. The coal will be shipped to
TECO's sister company, Tampa Electric, via the Gulf of Mexico for
delivery on Sept. 9.

<http://biz.yahoo.com/bizj/050908/1161213.html?.v=1>

**DOE- Refiners to Delay Routine Maintenance**

According to Energy Secretary Samuel Bodman, officials with U.S. oil
refineries will delay routine maintenance in order to produce more
gasoline in the wake of Hurricane Katrina. Secretary Bodman also
indicated that sales from the Strategic Petroleum Reserve could surpass
30 million barrels if it is deemed necessary.

Reuters 13:55 September 8, 2005

**Iraqi Oil Exports Suspended**

Oil exports have been temporarily suspended at the Basra Oil Terminal in
the south and at the Ceyhan terminal on Turkey\'s Mediterranean coast
due to bad weather and sabotage. The suspension could sharply reduce
Iraqi oil exports for September.

Source: Energy Intelligence Briefing** **(Wednesday, September 07, 2005,
19:15 GMT)

<http://www.energyintel.com/>

### Company Damage Assessment Reports

**ATP Restored Production at All but Seven of its Gulf Properties**

ATP Oil & Gas Corporation reported September 8 that production has been
restored at all but seven of its Gulf of Mexico properties, which were
impacted by Hurricane Katrina. Production output now stands at more than
80 percent of pre-hurricane levels. The remaining Gulf properties are
expected to be restored by the end of the year.

<http://biz.yahoo.com/ap/050908/atp_oil_gas_katrina.html?.v=1>

**BHP Billiton Ltd. /Plc - Damage Assessment**

All production in the Gulf of Mexico with the exception of the Boris and
Mad Dog fields is back on line, according to a company spokesman.

Reuters 20:29, September 7, 2005

### Burlington Resources - Damage Assessment

Burlington Resources Inc. announced on September 7 that its facilities
in Louisiana sustained no major damage from the hurricane. The company
has restored approximately 60 million cfe/d of production that had been
shut-in and has some 65 million cfe/d of production that remains
shut-in.

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5931950>

**Capline Pipeline - Damage Assessment**

Capline has been running at nearly 90 percent since Saturday, and
meeting scheduled nominations according to operator Shell Oil Corp.

Reuters 18:30 September 7, 2005

**Dynegy -- Damage Assessment**

The Venice and Yscloskey gas processing facilities in Louisiana have
both sustained damage from Hurricane Katrina. There was no information
on when repairs would be complete.

Reuters 17:45 September 7, 2005

**Update - Motiva -- Convent at 75%, Norco Soon**

According to the company web site, the Convent refinery is at 75% and
should be at full production over the next few days, restart at Norco
should begin in the next several days.

Bloomberg, 10:35 September 8, 2005

**Update - Shell -- Damage Assessment**

By September 8, Shell Gulf of Mexico oil and gas production is about 36
percent of average first half 2005 production. Shells Gulf of Mexico
production is currently about 160,000 barrels of oil equivalent per day,
according to a company statement. The deepwater Mars platform was
damaged, but no estimate was given as to when it would return to
service.

Reuters 10:28 September 8, 2005

For additional information on petroleum, see Highlights/Major
Developments

**Natural Gas**

**Atmos Expects Gas Service Restoration to Take a Year**

Louisiana and Mississippi's largest natural gas distributor, Atmos
Energy Corporation, hopes that 70% of its gas service will be restored
within six months and 90% within a year.

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BehomhpyZSki%27%40%3E%20bfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BehomhpyZSki'@> bfek\v)

**Production Improves but Infrastructure Progress Uncertain**

With several offshore rigs back in service and production output
improving after Hurricane Katrina, the progress of natural gas
infrastructure remains uncertain. Until floodwaters recede and power is
restored, several key natural gas pipelines, onshore natural gas
processing units, and compressor stations, especially in Louisiana, may
be idled, leading to gas shortages this winter.

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BehomhpyZSki%27%40%3E%20bfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BehomhpyZSki'@> bfek\v)

Source: [NGI\'s Daily Gas Price
Index](http://intelligencepress.com/subscribers/daily/)* * September 08,
2005

<http://intelligencepress.com/>

### Update - El Paso Corp - Damage Assessment

Two El Paso Corp natural gas pipelines in the Gulf of Mexico sustained
damage from Hurricane Katrina and are operating below normal capacity. A
leak was found on the Tennessee gas pipeline, reducing flow by 700
million cubic feet per day. Flooding at pumping stations caused a
reduction of 550 million cubic feet per day on the Southern Natural Gas
Pipeline.

Bloomberg, 13:47 September 8, 2005

For additional information on natural gas, see Highlights/Major
Developments

######## Other News

**Coal Ships Now Able to Unload at Alabama State Port Authority\
**The Alabama State Port Authority reopened Saturday, September 3,
allowing vessels with drafts up to 43 feet to travel through the Mobile
Ship Channel open to the McDuffie Coal Terminal. One coal ship was due
to unload at the terminal September 7^th^; the other, September 9^th^. A
Port Authority representative said that "Canadian National Railway, BNSF
Railway, Norfolk Southern Railroad, Kansas City Southern Railroad and
CSX Corp. had all resumed service to the port by Tuesday afternoon."\
<http://www.platts.com/Coal/News/6078242.xml?S=n>

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (09       | Ago**     | Ago**      |
|                               | /08/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 64.80     | 69.50     | 42.77      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 10.92     | 11.36     | 4.69       |
|                               |           |           |            |
| **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/)