Daily status report on the energy industry in the US Gulf

 

-- ConocoPhillips CEO Jim Mulva said on Oct 26 the company's 239,000 b/d refinery in Lake Charles, Louisiana, was expected to return to normal operations next week after it was idled ahead of Hurricane Rita in late September and damaged by the storm. Mulva, in the company's third-quarter earnings statement, also reiterated earlier guidance that the 247,000 b/d Alliance refinery in Belle Chasse, Louisiana, was due to restart partial operations in December and return to full rates in early 2006 after it was battered by Hurricane Katrina in August.

-- Damage to platforms by hurricanes Katrina and Rita has kept 40% of Murphy Oil's US Gulf production shut in, but output should improve over the next month as the company works to increase output by one-third before next year, company executives said on Oct 26 during a third quarter earnings call for financial analysts. Murphy late on Oct 25 also said its 125,000 b/d refinery in Meraux, Louisiana, would be idled through the first quarter of 2006 while repairs are made to damage caused by Katrina.

-- US crude imports and refinery inputs jumped significantly last week, giving further evidence that the country's energy infrastructure is recovering in the wake of back-to-back beatings from hurricanes Katrina and Rita, the US Energy Information Administration said on Oct 26.

-- The US Senate Environment Committee failed to pass a Republican-backed refinery and fuels bill on Oct 26, making passage of legislation this session to address soaring gasoline prices in the wake of recent Gulf hurricanes exceedingly unlikely.

-- Enterprise Product Partners on Oct 26 said one natural gas processing plant at its Toca facility in Chalmette, Louisiana, resumed operations on Oct 23 and currently is processing 280,000 Mcf/d. Enterprise also said it expects a second plant at the Toca facility to resume operations by mid-November. The facility was heavily damaged by Hurricane Katrina.

-- Crude and natural gas production shut-ins in the Gulf of Mexico have decreased slightly, the US Minerals Management Service said on Oct 26, after three straight days of rising disruptions due to Hurricane Wilma. The agency said oil shut-ins in the Gulf as of 11:30 a.m. CDT Oct 26 were 1,022,515 b/d, or 68.17% of normal production of 1.5-mil b/d. That compares with 1,033,621, or 68.91% on Oct 25. Gas shut-ins slipped to 5.563 Bcf/d, or 55.63% of typical production of 10 Bcf/d. On Oct 25, shut-ins were 5.582 Bcf/d, or 55.82%.

-- The following refineries are down in the wake of Rita: ConocoPhillips: Lake Charles, Louisiana, (239,000 b/d), said Oct 26 expects full operations restored week of Oct 31; BP: Texas City, Texas, (446,500 b/d), restart within a month, but may not produce until end of October due to regulatory scrutiny, sources told Platts; Calcasieu: Lake Charles, (30,000 b/d), power restored.

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