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

 

-- US Senators Chuck Schumer (Democrat-New York) and Dick Durbin (Democrat-Illinois) said they intend to introduce legislation to create a strategic gasoline and jet fuel reserve to tap in times of fuel shortages. The plan comes in the wake of Hurricanes Katrina and Rita, which caused widespread refinery closures, spot shortages and price spikes of petroleum products.

-- Murphy Oil's 125,000 b/d refinery in Meraux, Louisiana, remains without power a month after Hurricane Katrina, but the company is "hopeful" it will have power restored in "the next couple weeks," a spokesman said.

-- Illinois gasoline marketers have been granted a state waiver to sell 13.5 RVP winter-grade gasoline three days ahead of schedule due to supply constraints following Rita, according to a letter from the Illinois Department of Agriculture.

-- Plains All American Pipelines said in a securities filing that preliminary damage assessments showed the extent of damage to its facilities in the Gulf of Mexico from Katrina and Rita was not significant.

-- Callon Petroleum said Rita had a minimal effect on its main production facilities in the US Gulf of Mexico, but said it was lowering its third and fourth quarter output estimates because of shut-ins due to Rita and Katrina.

-- ExxonMobil said storm damage to most of its facilities had been "limited" -- external grating, stairways and office space -- and that it had restarted production at several offshore and onshore facilities along the Gulf Coast. The company said shut-in production due to Rita and Katrina totaled about 65,000 b/d liquids and 710,000 Mcf/d gas, gross.

-- Sabine Pipeline's 131-mile pipeline system, which includes Henry Hub, remained shut down on Sep 29, one week after it declared force majeure ahead of Rita. In a notice late on Sep 28, Sabine said that although power remains out over most parts of its Erath, Louisiana-to-Port Arthur, Texas system, it has begun efforts to clean up and restore operations.

-- An Entergy spokeswoman said that while the utility does not directly supply electricity to Sabine Pipeline's Henry Hub in southern Louisiana, Entergy-owned substations critical to serving the site were flooded by Rita and cannot be operated. She said power to Henry Hub is supplied by a local cooperative utility, but Entergy operates substations leading into the plant.

-- Market Hub Partners' Egan Hub Storage and Moss Bluff facilities have returned to full operation, MHP parent Duke Energy Gas Transmission said. Egan and Moss Bluff together provide total storage capacity of 26 Bcf.

-- Entergy said 354,637 of its customers who lost power during Rita remained without power as of 8 a.m. CDT on Sep 29, down from a peak of more than 766,000. It said 230,532 of its customers in Texas are without service and 121,648 in Louisiana are still without service.

-- Entergy has told two electric cooperatives in south Louisiana that it will be two or three weeks before power can be restored to the area, a spokesman for the Assn of Louisiana Electric Cooperatives said. Hurricane Rita hit hard both Jeff Davis Electric Cooperative in Jennings, Louisiana, and Beauregard Electric Cooperative in Deritter, Louisiana. All customers of both cooperatives lost power.

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