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

 

-- The Department of Energy has received no new requests for loans of crude oil from the Strategic Petroleum Reserve in the wake of Hurricane Rita, a DOE spokesman said.

-- US gasoline demand has fallen 200,000 b/d, or about 3%, in the past month amid near-record prices at the pump and as two hurricanes wrecked a large part of the Gulf Coast region, the head of the Energy Information Administration said on Oct 6.

-- The Louisiana Dept of Natural Resources on Oct 6 said operators of onshore and shallow-water wells in a 38-parish region have restored 38,053 b/d, or 18.7% of the region's oil production of 203,139 b/d before Katrina and Rita made landfall. The agency also said operators have restored 515,400 Mcf/d of gas production, or 23.1% of the region's pre-storm output of roughly 2.235 Bcf/d.

-- Royal Dutch/Shell is in the process of securing equipment and contracts necessary to execute recovery at its Mars tension leg platform, which was severely damaged by Katrina, the major said on Oct 6.

-- US contract driller Rowan plans to add nine land rigs to its fleet by the end of the second quarter as part of a program to recoup revenues lost to hurricane-damaged equipment, the company said on Oct 5. The company said Hurricane Rita apparently sunk three of its jack-up rigs while leaving a fourth severely damaged, costing Rowan revenues of $290,000/day.

-- Stone Energy lowered its expected third quarter production to 212,000 Mcfe/d and its full year production to 230,000- 245,000 Mcfe/d due to the effects of Katrina and Rita. Stone said it previous production guidance for both the third quarter and full year 2005 was 260,000-280,000 Mcfe/d.

-- Soaring natural gas prices have put the US chemical industry in jeopardy, and will likely push new investments overseas, Dow Chemical President Andrew Liveris told a US Senate hearing on the effects of Katrina and Rita on the energy market.

-- Enterprise Products Partners said the majority of its US Gulf of Mexico and Gulf Coast facilities affected by Katrina and Rita have restarted operations.

-- Shell Oil Products US and Motiva Enterprises on Oct 6 said that 41 Shell stations in the New Orleans area were open for business as of Oct 4 in the wake of Katrina and Rita. Shell said on Oct 5 it expects to restart the 275,000 b/d Motiva refinery in Port Arthur, Texas, this month.

-- Chevron has begun start-up procedures at its 325,000 b/d Pascagoula Mississippi refinery, and expects the facility could return to normal operations by the end of October. Katrina had damaged the refinery's marine terminal, cooling towers and other equipment, but a perimeter dike spared the facility from flooding.

-- Sabine Pipe Line said it will lift its force majeure declared after Rita at another pipeline interconnect with Henry Hub effective Friday, bringing the number of its operational interconnects at the hub to seven. In a notice to shippers, the company said it will end its force majeure on dhipments from Henry Hub to Jefferson Island. Sabine also said it will end its force majeure on Oct 7 at three interconnects--Lake Ronel, Louisiana Gas, and Texaco PL/Citgo--with its mainline in western Louisiana.

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