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

 

-- ExxonMobil is in the process of restarting its 348,500 b/d Beaumont, Texas, refinery, shut down last month before Hurricane Rita. The company said it is expected to take around two weeks to complete the restart of Beaumont.

-- Hurricane Wilma, the 12th hurricane of the 2005 Atlantic season, has strengthened slightly but was still a Category One hurricane on the Saffir-Simpson scale, the National Hurricane Center said in its latest advisory at 2 p.m. EDT. NHC said the storm "is expected to become a major hurricane during the next day or two."

-- Onshore and shallow-water oil and natural gas production in Louisiana picked up slightly on Oct 18, the state's Department of Natural Resources reported. DNR said estimated oil production increased to 55,756 bbls/d, or 27.5% of the pre-storm production level of 203,138 bbls/d. On Oct 18, the agency put restored oil production at 25.5% of the pre-storm total. Gas production increased by less than one-half of a percentage point over Oct 18, DNR said, with the state's wells producing 765,000 Mcf/d, or 34.2% of normal production of 2.235 Bcf/d.

-- The US Minerals Management Service said on Oct 18 in its daily production update in the wake of Katrina and Rita, that oil shutins were 982,011 b/d, or 65.47% of normal production of 1.5-mil b/d. On Oct 17, oil shut-ins were 996,291 b/d, or 66.42% of normal. MMS also said natural gas shut-ins as of Oct 18 stood at 5.346 Bcf/d, or 53.46% of normal output of 10 Bcf/d. On Oct 17, gas shut-ins were 5.498 Bcf/d, or 54.98% of normal. Cumulative oil production shut in since Aug 26 ahead of Katrina is now 61,629,198 bbl, equivalent to 11.256% of yearly US Gulf output of roughly 547.5-mil bbl. Cumulative gas shut-ins of 310.837 Bcf are equivalent to about 8.516% of yearly Gulf output of some 3.65 Tcf.

-- The US Department of Energy approved 13.2-mil bbl in crude loans from the Strategic Petroleum Reserve in the aftermath of Katrina, 6-mil bbl of which had been delivered as of Sep 28. Separately, DOE also sold 11-mil bbl of SPR crude as part of the International Energy Agency's 60-mil bbl stock release. The first lot of that sale—500,000 bbl to Marathon—has been delivered, with the balance of the crude to be delivered to buyers throughout October.

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