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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**September 17, 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>

1.  • Ivan is forecast to move to southwestern Virginia by this evening.
    Approximately 1.7 million customers in its wake (see chart below)
    remain without power; the number [increased]{.underline} from the
    last report chiefly because Alabama had not included some outages in
    its preliminary reporting. The fear is that flooding may cause both
    additional outages and hamper restoration activities in many States
    (such as Tennessee and North Carolina) now experiencing heavy rains
    or the impact of heavy rains in neighboring States.

# ELECTRIC INFORMATION 

### STATE OUTAGE DATA 

+-------------+----------+--------------+-----------------------------+
| **Utility** | **Cus    | **Total      | **% Customers w/o Power     |
|             | tomers** | Customers**  | from Ivan**                 |
|             |          |              |                             |
|             | **w/o    |              |                             |
|             | Power**  |              |                             |
+-------------+----------+--------------+-----------------------------+
| **Florida** | **3      | *            | **4.5%**                    |
|             | 99,094** | *8,877,905** |                             |
+-------------+----------+--------------+-----------------------------+
| **Alabama** | **9      | *            | **39%**                     |
|             | 12,063** | *2,317,229** |                             |
+-------------+----------+--------------+-----------------------------+
| **Mi        | **       | *            | **4.6%**                    |
| ssissippi** | 65,105** | *1,406,803** |                             |
+-------------+----------+--------------+-----------------------------+
| **          | *        | *            | **\<1%**                    |
| Louisiana** | *1,373** | *2,110,768** |                             |
+-------------+----------+--------------+-----------------------------+
| **Georgia** | **2      | *            | **5.4%**                    |
|             | 23,400** | *4,150,000** |                             |
+-------------+----------+--------------+-----------------------------+
| **          | **       | *            | **0.5%**                    |
| Tennessee** | 15,000** | *2,896,050** |                             |
+-------------+----------+--------------+-----------------------------+
| **North     | **       | *            | **1.9%**                    |
| Carolina**  | 84,900** | *4,315,789** |                             |
+-------------+----------+--------------+-----------------------------+
| **Total**   | **1,7    | **           | **6.5%**                    |
|             | 00,935** | 26,074,544** |                             |
+-------------+----------+--------------+-----------------------------+

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

####### 

**OIL AND GAS INFORMATION**

**Status of Refineries Following Hurricane Ivan (9/17/04)**

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

  **Shell Oil**         **Saraland, AL**   **85,000**    **Shut down -- no
                                                         update**

  **Chevron**           **Pascagoula, MS** **325,000**   **Remains shut down**

  **ExxonMobil**        **Chalmette, LA**  **182,500**   **Resuming operations**

  **Marathon**          **Garyville, LA**  **254,000**   **Normal operations**

  **ExxonMobil**        **Baton Rouge,     **493,500**   **Near normal
                        LA**                             operations**

  **Motiva**            **Convent, LA**    **235,000**   **Restarting- some
                                                         problems**

  **Motiva**            **Norco, LA**      **226,500**   **Resuming operations**

  **Murphy**            **Meraux, LA**     **120,000**   **Resuming operations**

  **Valero (Orion)**    **St. Charles,     **155,000**   **Resuming full
                        LA**                             operations by September
                                                         20**

  **Valero**            **Krotz Springs,   **78,000**    **Shut down -- no
                        LA**                             update**

  **Valero**            **Texas City, TX** **204,250**   **Reduced runs**

  **BP**                **Texas City, TX** **437,000**   **Reduced runs -- No
                                                         update**

  **Citgo**             **Lake Charles,    **324,300**   **Reduced runs -- No
                        LA**                             update**

  **Shell**             **St. Rose, LA**   **55,000**    **Shut down -- no
                                                         update**

  **ConocoPhillips**    **Belle Chasse,    **235,500**   **Resuming operations**
                        LA**                             

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

  **ConocoPhjllips**    **Borger, TX**     **145,800**   **Resuming operations**

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

**LA Offshore Oil Platform:** The LOOP is currently open. The LOOP
expects to receive an incoming vessel later today. This will help
refineries in Baton Rouge and Memphis with much needed crude supplies.

**Crude Oil and Gas Production**: According to the Department of
Interior's Mining and Mineral Service, the latest information shows 1.23
million barrels a day of shut-in oil production, a drop from yesterday's
1.41 million barrels per day. Shut-in is equivalent to 73% of daily
production of crude. Shut-in gas production remains at approximately
5.12 BCFPD, a drop from yesterday's 6.52 BCFPD. This equivalent to
roughly 42% of daily natural gas production.

**Port Status** (per Coast Guard, 9/17/04 AM)

o Panama City -- Closed

o Pensacola -- Closed

o Mobile -- Closed

o Gulfport -- Closed

o New Orleans - Lower Mississippi now open

o Morgan City -- Open

**Georgia Low Sulfur Gasoline Waiver** The State of Georgia
Environmental Protection Division has issued a letter exercising
enforcement discretion to allow gasoline distributors to supply gasoline
that does not meet the low sulfur gasoline standards in the
metro-Atlanta area, to the extent necessary to meet supply needs in the
area. The enforcement discretion is effective until midnight on
September 24, 2004. The US EPA has agreed to the waiver and will issue a
letter later today.

**Natural Gas Pipelines Status Following Hurricane Ivan (9/17/04)**

**Pipeline Company Supply Interruption Status**

+--------------+------------+------------------------------------------+
| **Pipeline   | **Supply   | **Status**                               |
| Company**    | Inte       |                                          |
|              | rruption** |                                          |
+--------------+------------+------------------------------------------+
| Florida Gas  | NA         | FGT repaired Compressor Station 12       |
| Transmission |            | Thursday night Repairs were made and     |
|              |            | Station 12 is currently running. For the |
|              |            | gas day of Friday, September 17, FGT     |
|              |            | will be scheduling up to normal capacity |
|              |            | into the Market Area.                    |
|              |            |                                          |
|              |            | Demand on the FGT system continues to be |
|              |            | high. Overage Alert Day for gas day      |
|              |            | 9/17/04-9/18/04 (2% tolerance).          |
+--------------+------------+------------------------------------------+
| Gulfstream   | NA         | Significant gas supply interruptions in  |
| Natural Gas  |            | Mississippi and Alabama (expected to     |
|              |            | grow to 800 MMcf/d).                     |
|              |            |                                          |
|              |            | Action Alert for gas day 15 issued; will |
|              |            | remain in effect until further notice.   |
+--------------+------------+------------------------------------------+
| Natural Gas  | NA         | Effective for gas day Friday, September  |
| Pipeline     |            | 17, 2004, and until further notice,      |
| (Kinder      |            | Segment 25 has capacity available for    |
| Morgan)      |            | eastbound transport volumes. Segment 25  |
|              |            | is located in the TX-OK-Gulf Coast Zone  |
|              |            | going eastbound from Station 302 in      |
|              |            | Montgomery County, Texas.                |
|              |            |                                          |
|              |            | Segments 23 and 24 have very limited     |
|              |            | capacity available for eastbound         |
|              |            | transport volumes. Segment 23 is located |
|              |            | in the Louisiana Zone going eastbound    |
|              |            | through Station 342 in Cameron Parish,   |
|              |            | Louisiana.                               |
|              |            |                                          |
|              |            | Florida -- Vermilion is at capacity for  |
|              |            | deliveries. Florida -Vermilion is        |
|              |            | located in Vermilion Parish, Louisiana   |
|              |            | (Segment 24) in Natural\'s Louisiana     |
|              |            | Zone going eastbound through Station 346 |
|              |            | in Cameron Parish, Louisiana.            |
+--------------+------------+------------------------------------------+

+------------------+---+----------------------------------------------+
| Southern Natural | N | Due to damage to their facilities upstream   |
| Gas Company      | A | of Southern\'s Toca Compressor station from  |
|                  |   | Hurricane Ivan, Southern can not accept      |
|                  |   | nominations for receipts upstream of its     |
|                  |   | Toca Compressor Station until the            |
|                  |   | operational integrity of that part of        |
|                  |   | Southern\'s system can be assured.           |
+------------------+---+----------------------------------------------+
| Tennessee Gas    | N | Working on repairing a leak upstream of      |
| Pipeline         | A | Station 523. Operators and producers located |
|                  |   | on the 523M-2300 line (TTT) from Eugene      |
|                  |   | Island 365 to Ship Shoal 198, and operators  |
|                  |   | and producers located between Ship Shoal 198 |
|                  |   | and Cocodrie need to remain shut-in.         |
+------------------+---+----------------------------------------------+
| Texas Eastern    | N | Scheduled outage of the Vidor Compressor     |
| Transmission     | A | station starts 9/15/04 through month end.    |
|                  |   |                                              |
|                  |   | Cannot schedule any interruptible or         |
|                  |   | preferential firm out of the STX/ETX area.   |
+------------------+---+----------------------------------------------+
| Trunkline Gas    | N | Trunkline personnel have completed their     |
|                  | A | inspections of the pipeline facilities, and  |
|                  |   | started accepting Intra-day Nominations      |
+------------------+---+----------------------------------------------+
| Williams Gas     | N | Transco continues to expect the production   |
| Pipeline/TRANSCO | A | area supply to return to normal levels over  |
|                  |   | the next few days. Effective with the gas    |
|                  |   | day of September 17, 2004 Transco has        |
|                  |   | returned to its normal scheduling procedures |
|                  |   | and will not continue the Emergency Supply   |
|                  |   | Allocation procedures.                       |
+------------------+---+----------------------------------------------+

Information obtained from Company web sites.

3.  • EA continues to monitor Tropical Storm Jeanne, which may impact
    the U.S. Eastern Seaboard. As of 2:00 PM EDT 9/17, Tropical Storm
    Jeanne\'s maximum sustained winds are estimated near 50 mph. The
    National Weather Service indicates that it may gather strength and
    become a Category 1 hurricane \-- the projected path of the storm
    currently would take it into Florida around the Jacksonville area.
    The center of Jeanne is located just north of the coast of
    Hispaniola near the Dominican Republic/Haiti border and is moving
    west-northwest near 8 mph. An image of the current storm path is
    available at:
    <http://www.nhc.noaa.gov/ftp/graphics/AT11/refresh/AL1104W5+GIF/171508W5.gif>

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:

### Production Remains Off Line in the Gulf in Ivan\'s Aftermath

[http://cbs.marketwatch.com/news/story.asp?guid=%7B7ACE4390%2D8D55%2D4D84%2D8C96%2D4AB55528F149%7D&dist=rss&siteid=mktw](http://cbs.marketwatch.com/news/story.asp?guid={7ACE4390-8D55-4D84-8C96-4AB55528F149}&dist=rss&siteid=mktw)

**Ivan skirts Gulf\'s Oil \'Refinery Row\'**
<http://news.yahoo.com/news?tmpl=story&u=/usatoday/20040917/bs_usatoday/ivanskirtsgulfsoilrefineryrow>

**Oil Lifted 4 Percent by Ivan Supply Crimp**\
World oil prices surged nearly 4 percent on Friday on worries the U.S.
hurricane season would continue to hamper energy production and imports
in the Gulf of Mexico, delaying vital stock-building ahead of winter.
<http://biz.yahoo.com/rb/040917/markets_oil_6.html>

**Hurricane lifts Gas Prices  **\
Hurricane Ivan blew in an increase of 20 cents or more in the cost of a
gallon of gasoline at many stations yesterday in Louisville and the
region. And while the storm\'s effects on oil and gasoline production in
the Gulf of Mexico should be temporary, pump prices may remain high for
the next week or two.
<http://www.courierjournal.com/business/news2004/09/17/D1-gas17-4834.html>

**El Paso Declares Force Majeure on Southern Gas Line**

El Paso Corp. said Friday it declared force majeure on a portion of its
Southern Natural Gas pipeline damaged by Hurricane Ivan, but the impact
of the outage was expected to be minimal due to producer shut ins on the
line ahead of the storm.

Reuters, September 17, 2004, 1626

**Leak but No fire on Tennessee Natgas Line -El Paso**

El Paso Corp. said Thursday there was a leak, but no fire, on the Blue
Water part of the Tennessee Gas interstate natural gas pipeline. Though
there was no gas being fed into the line by producers due to shut-ins
from Hurricane Ivan, it was likely the fire was being fed by gas already
in the line, he said. Schoennagel said the fire would likely extinguish
itself once the gas was burned. The company was not sure when repairs to
the line would be complete since natural gas producers were just
beginning to enter the Gulf of Mexico to assess the extent of damages
from the hurricane.

Reuters, September 17, 2004, 1750

## Transocean & Diamond Offshore Drilling Say Rigs Show No Signs Of Damage

## [**http://www.click2houston.com/money/3739056/detail.html**](http://www.click2houston.com/money/3739056/detail.html) [**http://money.cnn.com/services/tickerheadlines/djh/200409161837DOWJONESDJONLINE001097.htm**](http://money.cnn.com/services/tickerheadlines/djh/200409161837DOWJONESDJONLINE001097.htm) [**http://www.oilonline.com/news/headlines/internet/20040917.Diamond\_.15868.asp**](http://www.oilonline.com/news/headlines/internet/20040917.Diamond_.15868.asp)

<http://biz.yahoo.com/prnews/040916/dath046_1.html>
<http://biz.yahoo.com/rb/040916/weather_ivan_rigs_1.html>

<http://biz.yahoo.com/prnews/040916/dath046_1.html>

<http://biz.yahoo.com/ap/040916/diamond_offshore_hurricane_1.html>

## Ivan Tears Oil, Gas Platforms From Anchors in Gulf 

Noble Energy Inc., a U.S. gas and oil producer with operations on five
continents, said it\'s looking for three production platforms that were
found to be missing late

yesterday.

### Bloomberg News, September 17, 2004, 1559

<http://biz.yahoo.com/ap/040917/hurricane_ivan_oil_2.html>

## Pride International Rig Suffers Damage

<http://biz.yahoo.com/ap/040917/pride_1.html>

**U.S. MMS Says Ivan Shut 5.15 Million Barrels Oil**

Reuters, September 17, 2004, 1415

**Exxon Gulf Production Still Shut, Workers Trickle Back**

Reuters, September 17, 2004, 1117

**Williams Transco Natgas Supply Rising after Ivan**

Reuters, September 17, 2004, 1042

**Shell Returns 89 of 850 Oil and Gas Workers to Gulf after Ivan**

Reuters, September 17, 2004, 1032

**Chevron Says No Restart Date for Miss. Refinery**

Reuters, September 17, 2004, 0912

**Electricity**

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

**FPL Hurricane Frances Restoration Expected to Be Completed Today**\
Nearly 2.8 Million Customers Restored in 12 Days by Florida Power and
Light. <http://biz.yahoo.com/bw/040917/175117_1.html>

**Progress Energy Has Restored Power to All Florida Customers Capable of
Receiving It After Hurricane Ivan**

<http://biz.yahoo.com/prnews/040917/clf083_1.html>

**FPL to Restart Nuke**

In Florida, FPL said on Friday that it expects to restart its
839-megawatt Saint Lucie 2 nuclear unit over the weekend. The unit was
shut on Sept. 4 before the winds of Hurricane Frances blew past the
plant site.

Reuters, September 17, 2004, 1327

**Update - Oyster Creek Nuke in NJ Remains Shut**

The plant remained shut on Friday as operators fixed a problem with a
steam valve. A company spokesman said they were in the process of
repairing the valve and no additional issues had emerged. Reuters,
September 17, 2004, 1327

**Farley 2 Nuclear Plant Reduced Power for Repair, Company Says**

Southern Co.'s 888 MW Farley 2 nuclear unit was down to 30% yesterday to
repair a generator voltage control system.

Bloomberg News, September 17, 2004, 1027

**Petroleum**

See the Highlights / Major Developments section for details on the
impact of Hurricane Ivan on petroleum production and refined products
infrastructure.

**Norway Oil Rig Workers to Expand Strike**

Reuters, September 17, 2004, 1159

**Oil Supplies at 7-Month Low**\
Oil and gas production in the Gulf of Mexico remains off line and
tankers continued to sit idle offshore Friday, raising questions about
how much further the nation\'s crude inventories will be depleted
following Hurricane Ivan**.** Moreover, it set the market up for a
classic supply-driven price squeeze. On Wednesday, the Energy Department
reported a 7.1-million barrel drawdown in oil supplies for the week
ended Sept. 10. As of the latest report, oil supplies stood at a
seven-month low. Tankers are still waiting to offload supplies at the
Louisiana Offshore Oil Port, shut down for much of this week in
anticipation of Ivan, because strong currents are preventing their
arrival to shore at least until Saturday, Flynn said.
[http://cbs.marketwatch.com/news/story.asp?guid=%7B7ACE4390%2D8D55%2D4D84%2D8C96%2D4AB55528F149%7D&dist=rss&siteid=mktw](http://cbs.marketwatch.com/news/story.asp?guid={7ACE4390-8D55-4D84-8C96-4AB55528F149}&dist=rss&siteid=mktw)

**Energy Watchdog Sees Price Spike Despite Robust Supplies** The United
States has plenty of fuel in storage for winter heating thanks to near
full-throttle refinery production, but household energy bills are still
likely to be up sharply, the head of the U.S. Energy Information
Administration (EIA) said on Friday. We don\'t expect a winter supply
crunch,\" said EIA head Guy Caruso on the sidelines of the OPEC
International Seminar industry conference. \"But distillate prices are
up and that will translate into higher heating bills.\" U.S. heating oil
supplies have grown to 53.1 million barrels, up 1.2 million from last
year, while natural gas storage has risen to 2.874 trillion cubic feet,
up 225 billion cubic feet from last year, according to the most recent
government data. \"Refiners have built up stocks nicely before
turnarounds,\" Caruso said, referring to planned refinery maintenance
that could slow fuel production. Refineries have been operating above 90
percent of capacity since spring. The EIA predicts that the average cost
to a U.S. household using heating oil this winter will total \$1,114, up
from last year\'s average of \$991, while households using natural gas
will pay \$1,010, up from last year\'s \$863.
<http://www.msnbc.msn.com/id/6027213/>

**Natural Gas**

## See the Highlights / Major Developments section for details impact of Hurricane Ivan on natural gas infrastructure.

## 

**TransColorado Test Market for 300,000 Dth/d Northbound Expansion**\
Increasing Piceance Basin production in Colorado and new takeaway
capacity out of the Rockies to Midwestern markets have prompted
TransColorado Gas Transmission to test market interest in a 300,000
Dth/d expansion of its system. Natural Gas Intelligence, September 16,
2004 @
[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZjqqopnnVTkh%27%40%3E%20bfej%5Bv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZjqqopnnVTkh'@> bfej%5Bv)

**Federal Regulators Asked to Coordinate LNG Project Reviews**

<http://pro.energycentral.com/professional/news/gas/news_article.cfm?id=5122469>

**ExxonMobil Applies for Permit to Build LNG Terminal Along Gulf Coast**

<http://pro.energycentral.com/professional/news/gas/news_article.cfm?id=5124647>

**Other News**

Nothing to report.

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (9        | Ago**     | Ago**      |
|                               | /17/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 45.63     | 42.84     | 27.00      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 4.95      | 4.57      | 4.61       |
|                               |           |           |            |
| **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