U.S. DEPARTMENT OF ENERGY

Office of Electricity, Delivery and
Energy Reliability

ENERGY ASSURANCE DAILY

July 18, 2005

Highlights/Major Development

Update: Hurricane Emily

Gulf of Mexico Shut-in Production MMS release #3306

The Minerals Management Service has released its first report on the status of oil and gas operations in the Gulf of Mexico relating to Hurricane Emily. Based on the latest data available from the MMS, 3.66% of 819 manned platforms and 8.76% of 137 rigs currently operating in the GOM have been evacuated. Shut in oil production is equivalent to .86% of daily production, and shut-in gas is 0.59% of daily production.

This survey is reflective of 12 companies’ reports as of 11:30 a.m. Central Time.

Districts / Lake Jackson / Lake Charles / Lafayette / Houma / New Orleans / Total
Platforms Evacuated / 13 / 1 / 4 / 7 / 5 / 30
Rigs Evacuated / 3 / 2 / 2 / 4 / 1 / 12
Oil, BOPD Shut-in / 851 / 0 / 12,000 / 0 / 0 / 12,851
Gas, MMCF/D Shut-In / 19.65 / 4.00 / 35.00 / 0 / 0 / 58.65

http://www.mms.gov/ooc/press/2005/press0718.htm

Other Sources

Hurricane Emily Public Advisory Number 32

Hurricane Emily, at Category One status due to a loss of intensity over Yucatan, is expected to re-strengthen before landfall. At 4 pm CDT the center of Emily was located about 480 miles east southeast of Brownsville, Texas. A turn to the west-northwest is expected during the next 24 hours. On the forecast track, the center of Emily will be reaching Northeast Mexico late Tuesday. Maximum sustained winds are near 75 mph.

http://www.nhc.noaa.gov/text/refresh/miahpcat4+shtml/111504.shtml


Update - Thunder Horse Platform in Gulf Reduced from 20° to 5° Listing

BP reduced the tilt of the Thunder Horse oil and gas platform in the Gulf of Mexico in its effort to stabilize the rig after Hurricane Dennis last week. The platform’s angle has been reduced from 20 degrees after last week’s storm to the current 5 degrees, with adjustments continuing.

Bloomberg News 05:48, July 18, 2005

Electricity

Coal Supply Reduction for Wisconsin Energy

Union Pacific Corporation notified Wisconsin Electric Power Company that maintenance work will be performed on its rail lines, resulting in a reduction of coal deliveries from the Powder River basin until November. Wisconsin Electric is evaluating ways to ensure continued power generation.

http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5809577

Midwest Governors Agree to Plan Transmission Expansion and Upgrades

Several governors of Midwest states signed a protocol this past Saturday, agreeing to work cooperatively in expanding and upgrading the region's electricity transmission grid. The group, including governors of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin, along with the premier of Manitoba, Canada, met in Iowa to discuss, among other issues, curtailments of scheduled transmission transactions, which more than tripled from 2000 to 2004.
http://www.platts.com/Electric%20Power/News/4584660.xml?S=n

APS’ 740 MW Coal-fired Unit 4 at Four Corners in New Mexico Shut July 17

Unit 4 at Arizona Public Service’s Four Corners coal-fired power station in New Mexico shut over the weekend for tube leak repairs. The unit is expected to return to service by mid-week.
Reuters 12:21, July 18, 2005

Texas Genco’s 836 MW Coal-fired Unit 1 at Limestone in Texas Shut July 17

Texas Genco LLC's unit 1 at the Limestone coal-fired power station in Texas has shut from July 17-20 due to boiler feed pump control problems.

Reuters 08:40, July 18, 2005

Update - DTE’s 1,111 MW Fermi Unit 2 Nuke Returns to 100% July 18

DTE Energy Company’s Unit 2 at the Fermi nuclear power station in Michigan exited an outage and returned to full power early today after closing June 25 to for repairs on a non-radioactive leak in the containment in one of 14 drywell cooling units.

Reuters 07:18, July 18, 2005

LAPG’s 232 MW Gas-fired La Paloma Unit 3 in California Shut July 18

Reuters 14:21, July 18, 2005

Duke’s 336 MW Gas-fired Morro Bay Unit 4 in California Shut July 18

Reuters 14:21, July 18, 2005

Duke’s 260 MW Gas-fired Moss Landing Unit 2 in California Shut July 18

Reuters 14:21, July 18, 2005

Calpine’s 285 MW Gas-fired Pastoria Unit in California Shut July 18

Reuters 14:21, July 18, 2005


Petroleum

See Update above in Highlights/Major Developments

Crude Prices Fall as Emily Weakens
As Hurricane Emily was downgraded to a Category 2 from a Category 4 storm, and more evidence has surfaced pointing to declining worldwide energy demand, oil prices fell on Nymex Monday.
http://www.thestreet.com/_yahoo/stocks/elinorarbel/10232955.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Natural Gas

See Update above in Highlights/Major Developments

Rhode Island Chamber Votes Against 2 Proposed LNG Terminals
The Newport County Chamber of Commerce board of directors voted last week to oppose two proposals for liquefied natural gas terminals in Providence and Fall River, Rhode Island. The vote comes nearly two weeks after the Federal Energy Regulatory Commission approved Weaver's Cove Energy LNG’s plan to build a terminal in Fall River but rejected KeySpan LNG's plan to upgrade an existing terminal in Providence. Key approvals from state agencies in Rhode Island and Massachusetts are needed for the Weaver's Cove project.
http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp%5E%5BechrxrqYTjg%7DGJ%7Bbfek%5Cv

Other News

Nothing to report.

Energy Prices

Latest (07/18/05) / Week Ago / Year Ago
CRUDE OIL
West Texas Intermediate US
$/Barrel / 57.32 / 59.23 / 41.55
NATURAL GAS
Henry Hub
$/Million Btu / 8.03 / 7.35 / 5.75

Source: Reuters


This Week in Petroleum from the Energy Information Administration (EIA)

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

Updated after 1:00pm (Eastern time) on Wednesdays

Natural Gas Weekly Update from EIA

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

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