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

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

**ENERGY ASSURANCE DAILY**

**July 7, 2005**

**Highlights/Major Development**

# Update: Power Restored to 187,000 in Louisiana 

Entergy has restored power to 187,000 customers in Louisiana following
the outage caused by the passage of tropical storm Cindy through the
area on Tuesday. Entergy is working to restore power to 83,000 still
without electricity and anticipates that most should have power restored
by late Thursday.

Reuters 13:53, July 7, 2005.

**Gulf of Mexico Shut-in Production MMS release #3274**

Based on the latest data available from the Minerals Management Service,
6.59% of 819 manned platforms and 11.11% of 135 rigs currently operating
in the GOM have been evacuated. In terms of production, this represents
3.197% of daily production of oil and 3.662% of the daily gas
production.

This survey is reflective of 19 companies' reports as of 11:30 a.m.
Central Time.

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

  **Platforms     1           5           10              11          27          54
  Evacuated**                                                                     

  **Rigs          0           0           0               7           8           15
  Evacuated**                                                                     

                                                                                  

  **Oil, BOPD     0           1,325       12,293          11,399      22,940      47,957
  Shut-in**                                                                       

  **Gas, MMCF/D   0           14.73       55.02           134.19      162.28      366.22
  Shut-In**                                                                       
  --------------- ----------- ----------- --------------- ----------- ----------- -----------

This report provides the combined platform and rig evacuations and oil
and gas shut-in statistics for both Tropical Storm Cindy and Hurricane
Dennis to provide the public with the current status.   

<http://www.mms.gov/ooc/press/2005/press0707.htm>

**Dennis Reaches Hurricane Status; First of the Season**

U.S. forecasters downgraded tropical storm Cindy to a depression
yesterday but also upgraded Tropical Storm Dennis to a hurricane, with
winds near 80 mph by late Wednesday. Forecasters cannot yet predict with
certainty where Dennis, the first hurricane in the Atlantic for the 2005
season, will hit.

(See additional stories under Petroleum.)

<http://intelligencepress.com/>

<http://www.panews.com/articles/2005/07/07/news/04news.txt>

**Crude Falls from New Highs on Concern about London Attacks**

Crude oil briefly reached new all-time highs on concerns about storms
approaching the Gulf of Mexico. However, prices fell as much as \$4.00 a
barrel as markets reacted to the possibility of an economic downturn
following the bombing in London. Prices closed down about 50 cents on
the day at \$60.73.

Bloomberg, 13:08, July 7, 2005.

Reuters, 14.37, July 7, 2005.

Reuters, 14.32, July 7, 2005.

Reuters, 4:03, July 7, 2005.

<http://www.platts.com/Oil/News/2392324.xml?S=n>

**Electricity**

**New Southern California Transmission Line in Service a Year Ahead of
Schedule**

San Diego Gas and Electric has placed into service a year ahead of
schedule, a new 35-mile, 230,000-volt (230 kV) transmission line
extending from the southeast region of San Diego County to the Mission
Valley. The new line will relieve what was one of the most congested
areas in the California grid last year.

Bloomberg, 14:13, July 7, 2005.

**New Record Set for Summer Power Demand for Progress Energy**

Progress Energy set a new record for summer demand on Tuesday, as demand
reached nearly 9,000 MW. Nonetheless, the new record of 8,991 MW remains
well below the all-time peak for winter. Contrary to most areas, in
Florida, the greatest demand for electricity occurs in winter not in
summer. The winter record was set in January 2003 surpassing 10,000 MW.

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5784242>

**PG&E's 404MW Helms Unit 1 Hydro plant in California Shut July 7.**

Reuters 15:30, July 7, 2005.

######## Petroleum

**Transocean, Anadarko Evacuate Rigs as Hurricane Dennis Nears**

Transocean plans to evacuate all personnel from its platforms by Friday.
Anadarko Petroleum will evacuate some non-essential personnel beginning
on Friday morning.

Bloomberg, 12:50 July 7, 2005.

**Kerr-McGee to Evacuate Non-essential Personnel from Gulf.**

Kerr-McGee will evacuate non-essential workers from facilities in the
eastern Gulf of Mexico.

Bloomberg, 15:04, July 7, 2005.

**BP Evacuates Personnel from the Eastern Gulf**

BP has evacuated essential and non-essential personnel from the Eastern
Gulf of Mexico. BP stated that the evacuation does not apply to
operations in the western portion of the Gulf of Mexico and that there
has been no impact on production.

Bloomberg, 12:52, July 7, 2005.

Reuters, 12:38, July 7, 2005.

**Chevron to Evacuate Platforms**

Thursday morning, Chevron announced that it could begin evacuating
non-essential personnel from the Gulf of Mexico as early as Thursday
afternoon but does not anticipate any disruption of production on
Thursday.

Reuters, 9:41, July 7, 2005.

**Shell Deer Park Resumes Operation**

Shell has restarted a catalytic cracking unit shut last month for
maintenance. The unit was originally scheduled to resume operation on
July 2 but the restart was delayed because of circulation problems. The
unit is expected to reach normal levels of output early next week.

Bloomberg, 13:12, July 7, 2005.

**Natural Gas**

**Energy Transfer Partners Expanding its Pipeline System in Texas**

Energy Transfer Partners (ETP) is expanding its Texas intrastate
pipeline system by 264 miles, which will increase capacity by 1.6
billion cubic feet of gas per day. Growing natural gas production from
the Barnett Shale in North Texas and several East Texas fields prompts
the expansion.

<http://www.energyintel.com/PublicationHomePage.asp?publication_id=5>

######## Other News

### 

**Houston Ship Channel -- Normal Operations after London Attacks**

According to the Coast Guard, no additional security precautions have
been called for along the 53-mile channel.

Reuters, 9:38, July 7, 2005.

**Coast Guard Fleet Needs Upgrading to Protect U.S. Ports**

"Key members of Congress, maritime security experts and a former top
Homeland Security Department official" are expressing concern over
breakdown rates of the Coast Guard\'s ships, planes, and helicopters.
The group says that the record rates may threaten the Coast Guard's
ability to protect ports and waterways against terrorism and that plans
to replace the fleet need to be accelerated.

<http://www.dhs.gov/interweb/assetlibrary/DHS_IAIP_Daily_2005-07-07.pdf>

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (07       | Ago**     | Ago**      |
|                               | /07/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 60.73     | 56.50     | 39.18      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 7.62      | 7.07      | 6.27       |
|                               |           |           |            |
| **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/)