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

 

-- President George W Bush said on Sep 26 the US would use the Strategic Petroleum Reserve, if necessary, to mitigate any crude shortfalls in the wake of Rita. Bush, in a briefing on Rita's impact to the energy industry, also said the US would extend post-Katrina EPA waivers to make more gasoline and diesel fuel available, called for an expansion of US refining capacity, and said he would visit the Port Arthur/Beaumont, Texas, area on Tuesday.

-- Total said on Sep 26 that its 240,000 b/d refinery in Port Arthur, Texas, will be closed for an "extended period of time" after sustaining damage during Hurricane Rita. A statement from Philippe Guy, the refinery's general manager, also said Total has declared a force majeure on product deliveries from the plant.

-- The Louisiana Offshore Oil Port is aiming to resume crude offloading operations the afternoon of Sep 26 after completing pressure tests on some pipelines at the facility after the passing of Hurricane Rita, a company spokesman said.

-- ConocoPhillips' 239,000 b/d refinery in Lake Charles, Louisiana, suffered wind damage during Hurricane Rita and is without power, the company said, adding that it did not have an immediate timetable for the plant's restart.

-- Chevron on Sep 26 said an initial assessment has found that its Typhoon tension leg platform in the deepwater Gulf of Mexico was severed from its mooring during Hurricane Rita and sustained "severe" damage as a result.

-- Royal Dutch/Shell plans to restart its 333,700 b/d refinery in Deer Park, Texas, "in the next few days," a company spokesman said on Sep 26.

-- Contract driller Diamond Offshore said on Sep 26 that two of its rigs broke from their moorings during Hurricane Rita and went adrift in the Gulf of Mexico before grounding about 100 miles from their original location.

-- Explorer Pipeline said on Sep 26 that its Houston-Pasadena product pipeline in Texas resumed operations Monday and was running at 50% of rates.

-- The International Energy Agency is ready to ask its members to release more oil from emergency stocks if Hurricane Rita turns out to have had a damaging effect on the US oil industry, IEA Executive Director Claude Mandil said on Sep 26.

-- Sabine Pipe Line says the force majeure it declared Sep 22 ahead of Rita at its Henry Hub in southern Louisiana will remain in effect until further notice. The company said Vermilion Parish officials have reported "an apparent breach of facilities in the vicinity" of Henry Hub. Sabine added that its personnel had located and secured two gas releases, with neither sourced from the pipeline.

-- IntercontinentalExchange on Sep 26 said spot natural gas transactions were being executed as usual for Tuesday flow. The company said it doesn't anticipate trading at the Henry Hub due to the force majeure there, but said all other cash points are trading as normal.

For a complete report, download the pdf version of this fact sheet.

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