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

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

**ENERGY ASSURANCE DAILY**

**October 27, 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>

# Energy Secretary Bodman Outlines Energy Restoration Efforts for Katrina and Rita

Energy Secretary Samuel Bodman, in Senate testimony this morning,
outlined a chronology of hurricane damage and highlighted some of the
Department of Energy's (DOE) restoration activities over the past two
months. He pointed out that DOE worked closely with other federal
agencies, with State and local governments, with industry officials, and
with first responders to try to expedite efforts to restore critical
infrastructure needed in order to produce and distribute energy to
consumers.

# [**http://energy.senate.gov/public/index.cfm?FuseAction=Hearings.Testimony&Hearing_ID=1512&Witness_ID=4301**](http://energy.senate.gov/public/index.cfm?FuseAction=Hearings.Testimony&Hearing_ID=1512&Witness_ID=4301)

### Interior Secretary Norton Discusses Hurricane Recovery and Energy Policy

Interior Secretary Gale Norton, in Senate testimony this morning,
described the Department of Interior's efforts to assess damage to Gulf
of Mexico offshore oil and gas production infrastructure from Gulf
hurricanes this year and the Department's efforts to aid the restoration
efforts; she also outlined the administration's goal of increased energy
development and diversification. While talking to reporters after the
hearings, Secretary Norton also indicated that it would probably be
March of 2006 before oil and natural gas production is back at
pre-hurricane levels in the Gulf of Mexico.

<http://energy.senate.gov/public/index.cfm?FuseAction=Hearings.Testimony&Hearing_ID=1512&Witness_ID=4302>

Reuters, 13:10 October 27, 2005

**Exxon Mobil Chalmette Refinery at Full Production by Year End**

Exxon Mobil hopes to have its Chalmette refinery at full production by
year-end. Officials said a "phased start-up of the refinery was
imminent." An exact date for restart or return to production was not
provided.

Reuters 11:59 October 27, 2005

### Lyondell Petrochemical Damage Assessment from Hurricane Rita

Hurricane Rita had a major negative impact on Lyondell Petrochemical\'s
facilities and hence on production. All of Lyondell\'s Gulf Coast sites
were shut down for the storm, and minor damage was sustained at several
sites. In addition to shutdown and start-up costs at these facilities,
the company experienced lost production during the down time. Compared
with nameplate capacity, estimated lost production for certain key
products during the third quarter was approximately:

\-- Ethylene - 200 million pounds

\-- Propylene oxide - 60 million pounds

\-- LCR crude processing - 2.4 million barrels

<http://www.lyondell.com/html/investor/frames/frameset_news.shtml>

**Lyondell-Citgo Houston Refinery at Reduced Rates Through November**

Lyondell Chemical and Citgo Petroleum's joint venture, 270,000 b/d
capacity refinery in Houston will operate at 30-50%, probably through
the end of November. The refinery had a fire in a cat cracker during
restart in mid-October. It had been shut in preparation for Hurricane
Rita.

Reuters 13:04 October 27, 2005

**Mars Field will Resume Output in Second Half of 2006**

Royal Dutch Shell said in an earnings statement today that more than
200,000 barrels per day of output in the Gulf of Mexico has been
restored since being shut from Hurricanes Katrina and Rita. Before the
storms output was averaging 450,000 barrels per day. Output from the
Mars field is expected to resume in the second half of 2006. Mars
production was about 140,000 barrels per day before the storms.

Bloomberg 10:32 October 27, 2005

**Marathon Current Gulf of Mexico Production more than 90 Percent of
Pre-Storm Levels**

Marathon lost 20,000 barrels of oil equivalent per day due to Hurricanes
Katrina and Rita.

Reuters 7:36 October 27, 2005

Reuters 7:37 October 27, 2005

**Apache Production in Gulf of Mexico to Remain Curtailed through the
First Half of 2006**

Damage to Apache facilities and third party pipelines after Hurricanes
Katrina and Rita caused production to fall.

Reuters 8:48 October 27, 2005

## Update -- Many Gasoline Stations in Florida Still Cannot Pump Gasoline As Florida Power & Light Co. turned on power for more customers, more stations began pumping, and the region\'s biggest utility said gas stations now would be a priority for its workers. [**http://www.palmbeachpost.com/storm/content/business/epaper/2005/10/27/m1a_gas_1027.html**](http://www.palmbeachpost.com/storm/content/business/epaper/2005/10/27/m1a_gas_1027.html)

**ConocoPhillips Lake Charles Refinery in LA Expects to be at Capacity
Next Week**

<http://www.platts.com/Resources/specialreport/index.xml>

**ConocoPhillips Bell Chasse Refinery in LA Plans to restart in
December**

<http://www.platts.com/Resources/specialreport/index.xml>

**Murphy Oil's Gulf Production Approximately 40 Percent Shut-in**

<http://www.platts.com/Resources/specialreport/index.xml>

**Murphy Oil's Mereux Refinery in LA will be Idle through First Quarter
of 2006**

<http://www.platts.com/Resources/specialreport/index.xml>

**BP Says its Texas City, Texas Refinery Should Restart in Days**

<http://www.platts.com/Resources/specialreport/index.xml>

**Enterprise Product Partners Repairs Natural Gas Processing Plants**

Enterprise Products reports that one natural gas processing plant at its
Toca facility in Chalmette, Louisiana, resumed operations on Oct 23 and
currently is processing 280,000 Mcf/d. The company also reports that a
second plant at the Toca facility is expected to resume operations by
mid-November. <http://www.platts.com/Resources/specialreport/index.xml>

######## Electricity

**Specter of Winter Blackouts Spooks Maine**

The Public Utilities Commission of Maine will be asking consumers to cut
back on electricity use during the coldest evenings this winter to help
preserve New England\'s power system. Tight supplies of natural gas,
which fuels as much as 40 percent of the region\'s generating capacity,
could make some power plants unavailable during periods of peak demand.

http://pressherald.mainetoday.com/news/state/051026power.sht ml

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=6046018>

**First Snow Leaves 36,000 without Power in Vermont**

A heavy wet snow, the first of the season, blanketed much of the state
with up to 14 inches. As the snow fell on branches still burdened with
leaves, the branches bent then broke under the load. As they fell they
took out power lines causing more than 36,000 customers of Central
Vermont Electric, Vermont Electric Cooperative, Green Mountain Power and
Washington Electric Cooperative to lose power.

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=6046069>

**Update -- Over 200,000 Allegheny Power Customers Lost Power Oct 25**\
As of last evening, 13,818 Western Pennsylvania customers were still
without power and some of them will not get power restored until
Friday.\
<http://pittsburghlive.com/x/tribune-review/s_388310.html>\
<http://kdka.com/local/local_story_299223520.html>

**About 40,000 Central Vermont Public Service Customers Lose Power**\
The storm set a new record for the most CVPS customers having lost power
in October. By midmorning yesterday, Vermont Electric Cooperative also
reported 7,600 customers without power and about 2,000 Lyndonville
Electric customers lost power starting around 8:30 Tuesday night. In the
North Country of New Hampshire, about 2,600 Public Service of New
Hampshire customers were still without power at mid-day Wednesday,
according to PSNH community relations manager Kathleen Lewis.\
<http://www.caledonianrecord.com/pages/top_news/story/c2742da7d>

**32,000 Customers in Rhode Island Lose Power**

<http://www.warwickonline.com/news/searchnews.asp?ID=8911>

**Over 16,000 Customers in Maine Lose Power**

Central Maine Power Co. said Wednesday that about 5,600 customers
remained without service in its coverage area with the Dover-Foxcroft,
Farmington and Skowhegan districts hit the hardest.\
Maine Public Service Co. lost 11,000 at one point when a transmission
line was lost. At 2 p.m. Wednesday, 1,900 customers still were without
power.

<http://www.bangornews.com/news/templates/?a=122652>

**Over 11,000 Customers Lose Power in Connecticut Tuesday\
**Over 8,000 customers were still without power last night in Manchester
and Bolton after a transmission line went out at a substation in the
area of Olcott and Spencer.

<http://www.wtnh.com/global/story.asp?s=4034477>

**OPG's 535 MW Coal-fired Unit 1 at its Lambton Plant in Ontario Back in
Service October 27**

Reuters 14:32, October 27, 2005.

**Entergy Cuts Output at Pilgrim to Clean a Condenser**

Entergy reduced output at the 684 MW Pilgrim nuclear generating station
in Massachusetts in order to clean a condenser according to the daily
report of the Nuclear Regulatroy commission. The plant was operating at
approximately 63 percent of capacity early morning on October 27.

Reuters 7:37, October 27, 2005.

Reuters 14:32, October 27, 2005.

For information on damage and restoration efforts to the electricity
infrastructure and the number of power outages due to Hurricanes Wilma,
Rita and Katrina, please see the Gulf Coast Hurricane 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

**Marathon Plans \$2.2 Billion Expansion of Garyville Refinery**

On October 27, Marathon announced that it would undertake an expansion
project at its Garyville refinery in Louisiana that would nearly double
the capacity of the facility. Marathon plans to increase capacity from
245,000 b/d to 425,000 b/d. Marathon expects that the project will cost
approximately \$2.2 billion and anticipates that work could be completed
as early as the fourth quarter of 2009.

Reuters 8:32, October 27, 2005.

<http://www.marathon.com/News_Center/Press_Releases/2005_News_Releases/?releaseid=774046>

**Safety Board Says Problems at BP's Texas City Refinery Seen as
"Normal"**

At a briefing on October 27, the U.S. Chemical Safety and Hazard
Investigation Board, said that so many abnormal startup occurred at the
Texas City refinery that BP personnel came to view them as normal.
Sinc4e there were no serious consequences. The Board said that a flare
system could have prevented the explosion that occurred on March 23
killing 15 workers and injuring another 170. BP indicated that it
disagreed with some of the findings but did not elaborate.

Reuters 14:45, October 27, 2005.

**Bush Administration Considering Refined Product Stockpile**

Energy Secretary Bodman said that the administration is considering
creating an emergency stockpile of gasoline and other refined products
to guard against supply disruptions. The secretary said "the mechanics
of doing it is a formidable challenge."

Reuters 13:04 October 27, 2005

**Marathon Detroit Refinery to Restart in Mid November**

Crude processing capacity will be at 100,000 barrels per day when the
refinery is restarted in mid-November.

Reuters, 7:39 October 27, 2005

For information on damage and restoration efforts to the petroleum
infrastructure due to Hurricanes Wilma, Rita and Katrina, please see the
Gulf Coast Hurricane 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

**Bearish 77 Bcf Storage Injection Allows Futures to Ease Lower**\
The Energy Information Administration (EIA) reported Thursday morning
that 77 Bcf was injected into underground storage for the week ended
Oct. 21, a number that was seen by the market as bearish when compared
to expectations and to historical data for the week.\
<http://intelligencepress.com/>

**Natural Gas Production Drops in Texas**

According to the latest data available from the Texas Railroad
Commission, production of natural gas in the state fell by approximately
four percent (130Bcf) during the first four months of this year compared
to the same period in 2004.

<http://www.dfw.com/mld/dfw/business/12990896.htm>

**Inergy Announces Open Season for Gas Storage Expansion Project**

Inergy, LP announced on October 25 that its subsidiary Central New York
Oil and Gas Company, LLC. will conduct on open season beginning in
November for Phase II of its expansion project at the Stagecoach gas
storage facility. Once all regulatory approvals are in hand, the company
plans to begin construction on the 12 to 13 Bcf expansion in 2006 and
have the facility on-line in 2007. As part of the project the company
proposes to, make various improvements, construct a gathering system and
construct a pipeline connection with the proposed Millennium pipeline in
northern Tioga County, New York

<http://pro.energycentral.com/professional/news/gas/news_article.cfm?id=6045586>

For information on damage and restoration efforts to the natural gas
infrastructure due to Hurricanes Wilma, Rita and Katrina, please see the
Gulf Coast Hurricane 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

**Husky to Replace Aging Ethanol Plant**

Husky announced on October 27 that it would construct a new ethanol
plant to replace a 25 year old plant in Manitoba. The new facility
scheduled to come on-line in 2007 will cost approximately \$123 million
and have a capacity of some 34 million gallons per year more than 10
times the capacity of the existing plant.

Reuters 8:37, October 27, 2005

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (10       | Ago**     | Ago**      |
|                               | /27/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 61.09     | 60.04     | 50.95      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 13.90     | 13.24     | 6.80       |
|                               |           |           |            |
| **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