Daily status report on energy industry recovery efforts in the US Gulf

 

-- The Louisiana Dept of Natural Resources on Oct 4 said 710, or 11.9%, of the 5,949 onshore and shallow water oil and natural gas wells in a 38-parish region have been restored to production in the aftermath of Katrina and Rita.

-- All Mexico's crude-loading ports on the Gulf of Mexico were closed to shipping early on Oct 4 as Hurricane Stan whipped up high winds and heavy seas, the Ministry of Communications and Transportation reported. The shutdowns halted the bulk of Mexico's 1.7-mil b/d of crude exports.

-- BP, the world's second-largest listed oil company, said storms that hit the US Gulf of Mexico would cut third-quarter profit by over $700-mil and leave the company unable to meet a full-year production target.

-- US President George W. Bush called on Congress to move forward with legislation to expand the nation's refining capacity, saying hurricanes Katrina and Rita should have made the need apparent to all Americans.

-- Teppco Partners said its refined products pipelines, which run from the US Gulf Coast to the Mid-Continent, are continuing to increase operating rates in the aftermath of Hurricane Rita. Teppco, in a statement, said its twin 110,000 b/d pipelines, which primarily deliver gasoline and distillates, were pumping at roughly 75% of capacity from the company's terminal in Baytown, Texas. The 230,000 b/d line was operating at 60%, while the Centennial Pipeline, which Teppco owns jointly with Marathon Oil, has resumed normal operations.

-- Colonial Pipeline is currently running at 86% of its average 100-mil gal/d operational capacity, a spokeswoman said on Oct 4. Colonial volumes dropped after Hurricane Rita swept through its Gulf Coast origin, knocking out power and shutting in several refineries.

-- Lyondell-Citgo Refining on said Oct 4 that its 268,000 b/d joint venture Houston refinery is running at only 50% of capacity because of "equipment problems" associated with its restart following Hurricane Rita.

-- NYMEX is to lift the force majeure condition it declared Sept 23 for both September and October 2005 natural gas futures contract delivery obligations, effective for Oct 5th's gas day. The exchange made its move shortly after Sabine Pipe Line, which operates the Henry Hub delivery point for the contract, reopened part of its South Louisiana system after a 12-day shutdown caused by Rita. Sabine is allowing nominations for flow between Columbia Gulf Transmission and Gulf South Pipeline beginning on Oct 4.

-- One unit at Entergy Corp's Sabine Power Plant in Bridge City, Texas, is operational and another will be in the near future, Joe Domino, president of Entergy's operation in Texas said. The company lost 12 of its 14 generating units in the wake of Rita. Domino said the utility is working to restore power to the refineries in Port Arthur, Texas. The remaining refineries are Total Petrochemicals, Motiva and Valero. Entergy has no estimate when power will be restored the Louisiana refineries it serves: Calcasieu, Citgo and Conoco/Phillips, all in Lake Charles. The company early Tuesday reported that 181,706 of its customers in Louisiana and Texas without power, down from a peak of more than 766,000 immediately after the storm.

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