Washington (Platts)--30May2007

The US oil and natural gas industry is better prepared than ever for the
upcoming Atlantic hurricane season, which begins June 1, government and
industry officials said at a Washington news conference on Wednesday.

     "MMS has significantly improved the protection of oil and gas production
in the Gulf [of Mexico] from destruction during this [upcoming] hurricane
season," said US Minerals Management Service Deputy Director Walter
Cruickshank.

     He said the agency, a division of the US Department of Interior, has or
is in the process of implementing seven "operational enhancements" to clarify
and beef up engineering practices and reporting procedures used by offshore
operators.

     MMS also has set up a hurricane information website that will begin
operating on June 1.

     For the oil and gas industry, refiners and marketers are working with
federal and state authorities to clarify priorities for power restoration
critical to restarting operations, said American Petroleum Institute President
Red Cavaney. Cavaney noted that where possible, refineries and marketers will
provide their own emergency power to avoid "significant disruptions to fuel
delivery and distribution."

     Following hurricanes Katrina and Rita in 2005, a number of key petroleum
pipelines, though undamaged by the storms, were idled because of widespread
power outages, preventing product from reaching markets.

     Cavaney also noted that liquids pipelines operating in or near the near
Gulf have taken a number of steps to stave off operational issues should a
hurricane hit, including installing onsite backup electric power generation. 

		--Cathy Landry, cathy_landry@platts.com