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

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

**ENERGY ASSURANCE DAILY**

**August 17, 2005**

######## Electricity

**TEP\'s 380-MW Coal-fired Unit 2 at Springerville Generating Station in
Arizona Out of Service**

Tucson Electric Power (TEP) states that the unplanned outage of its Unit
2 at Springerville Generating Station may last between three and six
weeks. The unit was shut down August 11 due to a control system
malfunction and subsequent mechanical problem with the turbine. TEP
assures that adequate power will be purchased to replace the output of
the 380-MW coal-fired unit to avoid a disruption to TEP\'s customers.

### [**http://biz.yahoo.com/bw/050816/166068.html?.v=1**](http://biz.yahoo.com/bw/050816/166068.html?.v=1)

# LAPG's 231 MW Gas-fired La Paloma 3 in California Shut August 17

Reuters 14:45, August 17, 2005

### 

######## Petroleum

# Oil Closes Down Nearly \$3 on Economy Worries

U.S. crude ended down 4.4 percent on Wednesday on signs that high oil
prices have begun to hurt the economy. The latest EIA inventory report
also showed that crude oil supplies rose last week helping to drag
prices down.

Reuters 14:51, August 17, 2005

# U.S. Chemical Hazard Board Urges BP to Form Independent Safety Panel

The U.S. Chemical Safety and Hazard Investigation Board issued an urgent
recommendation on Wednesday for BP to create an independent panel to
review safety programs at the company's five U.S. refineries. The
board's investigation of the March 23^rd^ blast at the company's Texas
City refinery found "systematic lapses in organizational
decision-making, safety oversight and safety culture".

Reuters 11:00, August 17, 2005

# Nigerian Protests Shut 14,000 Barrels of Shell Oil Output

The protests began on Tuesday due to a breakdown of talks between Shell
and community leaders in Rukpokwu, in southeastern Rivers state, over
compensation for a 2003 oil spill. There was no immediate estimate of
when the shut-in output would return.

Reuters 09:26, August 17, 2005

# OPEC Increases Forecast for 2006 Oil Demand Growth

OPEC now expects world oil demand to grow by 1.57 million barrels per
day in 2006, an upward revision of 30,000 barrels per day.

Reuters 06:58, August 17, 2005

**Natural Gas**

### 

Federal Judge Prohibits Drilling Off Central California Coast\
Last Friday, a federal judge in California prohibited exploratory
drilling off California's coast, spanning from Oxnard to San Luis
Obispo, until additional extensive environmental risk assessments are
completed.

from [**NGI\'s Daily Gas Price
Index**](http://intelligencepress.com/subscribers/daily/)  August 16,
2005

[**http://intelligencepress.com/**](http://intelligencepress.com/)

Kinder Morgan and Sempra Agree to Develop \$3 Billion Natural Gas
Pipeline\
A proposed 1,500-mile interstate natural gas pipeline connecting the
Wamsutter Hub in Wyoming to eastern Ohio will be jointly developed by
Kinder Morgan Energy Partners LP and Sempra Pipelines & Storage. The
proposed pipeline would have capacity to move up to 2 billion cubic feet
of natural gas per day.

<http://biz.yahoo.com/bizj/050817/1151030.html?.v=1>

# New Jersey to Contest Delaware's Block of LNG Terminal

New Jersey is asking the U.S. Supreme Court to let it overrule
Delaware's decision to block the construction of an LNG terminal on the
Delaware River. The \$500 million terminal would be built by BP.

Bloomberg News 10:14, August 17, 2005

######## Other News

Nothing to Report

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (08       | Ago**     | Ago**      |
|                               | /17/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 63.31     | 64.80     | 47.36      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 9.99      | 8.82      | 5.36       |
|                               |           |           |            |
| **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/)