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

 

-- The US Energy Information Administration on Oct 13 reported that refinery utilization and crude imports rose last week as the country's energy sector continued its recovery from hurricanes Katrina and Rita. EIA, in a weekly data report, said refinery inputs averaged 12.6-mil b/d for the week ended Oct 7, up 868,000 b/d from the prior week. Refineries ran at 74.9% of their operable capacity during the week, up from 69.8%. Gasoline and distillate production rose as a result of increased refinery throughputs. Output of gasoline climbed to nearly 7.9-mil b/d from 7.5-mil b/d, while distillate production moved to 3.2-mil b/d from 3-mil b/d. Gasoline stocks dropped 2.7-mil bbl, putting them below the lower end of the average seasonal range. EIA also said total product supplied over the past four weeks has averaged more than 20-mil b/d, 2.8% less than the same period last year.

-- Canadian independent Nexen said it now has about 31,000 boe/d of its US Gulf of Mexico output back online, or 60% of the roughly 50,000 boe/d it was producing there before the hurricanes.

-- Oil and natural gas production from Louisiana onshore and shallow-water oil and natural gas wells continued to slowly inch up Oct 13 in the wake of Katrina and Rita, the state Dept of Natural Resources said. The agency estimated that restored oil production is 47,435 b/d in a 38-parish region in the state, an amount equivalent to about 23.5% of the region's pre-storm output of roughly 203,139 b/d. Restored natural gas production was put at 691,700 Mcf/d, or 30.9% of the region's total of about 2.235 Bcf/d before the two hurricanes struck the Gulf Coast. On Oct 12, DNR said operators had restored 46,174 b/d of oil production, or 22.7% of the area's pre-storm output and 686,800 Mcf/d of gas production, or 30.7% of the region's pre-storm output of 2.235 Bcf/d.

-- The loss of US Gulf of Mexico natural gas production because of Katrina and Rita likely will lead to "chronic" supply shortages this winter in New England that would "disproportionately" affect electricity generators in the region, which relies on gas to provide more than 40% of its power supply, ISO-New England said on Oct 13. A report on winter fuel supply adequacy and bulk power security found that hurricane damage to Gulf production will likely mean that at least 1 Bcf/d of supply will not be available this winter to pipelines serving the Atlantic seaboard.

-- While the report noted that New England has pipeline connections to Canadian gas supply and liquefied natural gas, the region "still depends on [Gulf of Mexico] supplies," which are carried into New England by Tennessee Gas Pipeline and the Algonquin Gas Transmission System. "In light of the uncertainty about the time needed to restore GOM natural gas production, there is a significant chance that chronic supply deficit will materialize" during the 2005-2006 heating season, the report said.

-- The US Minerals Management Service said on Oct 13 that oil shut-ins were roughly 1.031-mil b/d, or 68.75% of normal production of 1.5-mil b/d. On Oct 12, oil shut-ins were 1.046-mil b/d, or 69.76% of normal. MMS also said natural gas shutins as of Oct 13 stood at 5.670 Bcf/d, or 56.7% of normal output of 10 Bcf/d. On Oct 12, gas shut-ins were 5.919 Bcf/d, or 59.19% of normal.

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