![](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 24, 2005**

## Highlights/Major Developments

**Update: Hurricane Rita and Hurricane Katrina**

For the latest damage assessment and restoration efforts concerning
hurricanes Rita and Katrina see the latest Gulf Coast Hurricane
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](http://www.oe.netl.doe.gov/). Starting with
September 24^th^, a combined Hurricane Rita /Katrina situation report
has been prepared called the Gulf Coast Hurricane situation report.
Prior Hurricane Rita and Hurricane Katrina situation reports can be
found at that link as well.

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/*](http://www.mms.gov/)

**Deliveries of Crude from SPR to Continue into November**

Nearly half of the 11 million barrels of crude sold from the Strategic
Petroleum Reserve has been delivered. Deliveries were supposed to be
completed in October, but were delayed due to Hurricane Rita. Deliveries
will continue into November.

Reuters 11:42 October 24, 2005

**Louisiana Crude Production at 32.4 Percent, Natural Gas at 39.2
Percent**

According to the Louisiana Department of Natural Resources, onshore
crude production in southern Louisiana reached 65,782 barrels per day,
or 32.4 percent of capacity. Natural gas production has reached 885
million cubit feet or 39.6 percent. This includes onshore production and
offshore production up to 3 miles from the coast, it does not include
Federal offshore production.

Reuters 14:29 October 24, 2005

**Hurricane Wilma**

**Three Quarters of FPL Customers without Power**

The Florida Power and Light electrical grid suffered major damage from
Hurricane Wilma. Three quarters of FPL customers lost power, and it
could takes weeks to restore it.

Reuters 15:26 October 24, 2005

**FPL's 839 MW St Lucie Unit 2 Nuke in FL Shut October 24**

The unit was shut a little after midnight in anticipation of Hurricane
Wilma.

Reuters 14:49 October 24, 2005

Bloomberg 9:23 October 24, 2005

**FPL's 693 MW Turkey Point 3 and 693 MW Turkey Point 4 Nukes in FL Shut
October 24**

The units were shut a little after 7 a.m. Eastern time today in
anticipation of Hurricane Wilma.

Reuters 14:49 October 24, 2005

Bloomberg 9:23 October 24, 2005

######## Electricity

**Progress Energy Inc's 900 MW Unit 2 at the Brunswick Nuke in North
Carolina Down to 57 Percent October 24**

Reuters 7:57 October 24, 2005

Reuters 14:49 October 24, 2005

**TXU's 750 MW Coal-fired Martin Lake Unit 1 in Texas Shut October 23**

It was shut to repair a boiler tube leak. The unit is expected to be
back up on October 25.

Reuters 9:49 October 24, 2005

**NRG/Dynegy's 335 MW Gas-fired El Segundo Unit 4 in CA Shut October
24**

Reuters 15:51 October 24, 2005

**SCE's 402 MW Gas-fired Mountanview Unit in CA Shut October 24**

Reuters 15:51 October 24, 2005

**Update: Exelon's 1,162 MW Byron 2 Nuke in IL Back at Full Power**

The unit was at 75% on Friday, and was shut on October 19 due to the
shutdown of a condensate booster pump.

Reuters 14:49 October 24, 2005

Reuters 8:20 October 24, 2005

For information on damage and restoration efforts to the electricity
infrastructure and the number of power outages due to Hurricanes 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

**Iraqi Oil Exports Stopped by Sabotage**

Four separate explosions hit oil wells and a major gathering center
cuting off all oil exports from Iraq. Officials estimate that it could
take a month before the repairs can be completed.

Reuters 5:58, October 24, 2005.

**Oil Drops as Threat of Hurricane Wilma Subsides**

Prices on the NYMEX for crude oil futures closed at \$60.32 as concern
about Hurricane Wilma faded as the storm bypassed oil and gas operations
in the Gulf of Mexico.

Reuters 15:07, October 24, 2005.

**Fire at Venezuelan Refinery: No Impact on Shipments**

A small fire at the Cardon refinery in Venezuela shut down a 14,000 b/d
alkylation unit but had no impact on shipments from the refinery
according to an official with PDVSA.

Reuters 8:25, October 24, 2005.

**Massachusetts Considers Easing Air Quality Regulations to Allow More
Oil Use**

Massachusetts officials concerned about the availability of natural gas
are considering the possibility of relaxing state air quality standards
in an effort to circumvent a shortfall of generation and potential for
blackouts. If adopted, the state standards would give way to federal
standards that would allow for four existing oil-fired plants to operate
from twenty to fifty percent longer per year. The plan could be
available for the coming winter heating season.

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=6040138>

**Tight Jet Fuel Market Spreading West**

As airlines attempt to take advantage of lower prices, the already tight
jet fuel market is becoming tighter in some markets in the west.
Airlines are filling at airports in the west to avoid the more expensive
fuel from the Gulf Coast and that practice has pushed demand beyond
forecasts and resulted in tightening an already constrained supply.

Source: Jet Fuel Intelligence, October 24, 2005.

<http://www.energyintel.com/PublicationHomePage.asp?publication_id=7>

**France's Largest Refinery Restarted Others to Follow as Strike
Suspended**

Total announced that it has restarted the 328,000 b/d Gonfreville
refinery, the company expects the refinery to be fully operational
within a week. The Gonfreville refinery and other Total refineries were
shut by striking workers. The workers have agreed to suspend the labor
action.

Reuters 11:21, October 24, 2005.

Bloomberg 12:59, October 24, 2005.

**Nigerian Strike Ends -- Exports Resume at 240,000 b/d Terminal**

The 240,000 b/d Brass River export terminal resumed operations following
a deal between the principal unions representing oil workers in Nigerian
and Agip, a unit of Italian energy company ENI.

Reuters 6:05, October 24, 2005.

**Oil Tanker Hijacked by Somali Pirates**

According to an official of the International Maritime Bureau, pirates
from Somalia have hijacked an oil tanker and possibly another ship. The
tanker, a 30,000 deadweight ton vessel of Maltese registration was
seized on Thursday. The number of hijacking incidents has surged this
year, thus far there have been 27 incidents.

Reuters 9:49, October 24, 2005.

For information on damage and restoration efforts to the petroleum
infrastructure due to Hurricanes 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

**Proposed Alaska Pipeline Agreement Reached -- But Legality
Questioned**

On October 21, the Governor of Alaska announced that the State had
reached an agreement with ConocoPhillips on terms for the construction
of the proposed natural gas pipeline designed to bring gas from Alaska
through Canada to Midwestern markets in the contiguous 48 states.
Although the agreement is an important step in the development of the
pipeline, other hurdles remain, including plans by rival companies, the
need to reduce anticipated costs and approval by Canadian regulators. In
addition, a memo from the Alaska Department of Natural Resources raises
the possibility that the negotiations may not be lawful. The agreement
was developed under the provisions of the Stranded Gas Act and with gas
prices at current levels the Department has raised the question as to
whether any of the gas is uneconomic.

<http://pro.energycentral.com/professional/news/gas/news_article.cfm?id=6039625>

<http://www.cbc.ca/cp/business/051021/b1021100.html>

<http://www.ktuu.com/cms/templates/master.asp?articleid=1048&zoneid=1>

**Pipeline Replacement Project Gets Environmental Approval**

Northwest Pipeline Corp, under a federal order to replace portions of a
natural gas pipeline in Whatcom County, Washington, received
environmental approval from the state to proceed. The project must be
completed by December 2006.

Source: The Bellingham Herald, October 20, 2005

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp%5E%5BelurnntZUgc%23%3A%40%24bfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp^%5BelurnntZUgc%23%3A@$bfek\v)

For information on damage and restoration efforts to the natural gas
infrastructure due to Hurricanes 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

### 

**Ground Broken for New Ethanol Plant in South Dakota**

Prairie Ethanol has broken ground on a new \$88 million ethanol plant in
South Dakota.

Reuters, 8:08, October 24, 2005.

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (10       | Ago**     | Ago**      |
|                               | /24/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 60.93     | 64.26     | 55.52      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 12.95     | 13.89     | 7.75       |
|                               |           |           |            |
| **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/)