As of Wednesday, September 28, 4:00 pm

Shut-in Status

Date	Shut-in Oil (bbl/d)	% of Total Federal GOM	Shut-in Gas (mmcf/d)	% of Total Federal GOM
9/28/2005	1,511,715	96.8%	8,072	77.2%
9/27/2005	1,512,937	96.9%	7,857	75.5%
9/26/2005	1,527,630	97.8%	7,843	75.4%
9/25/2005	1,501,863	96.2%	8,047	77.4%
9/24/2005	1,500,898	96.1%	7,488	72.0%
9/23/2005	1,486,877	95.2%	7,204	69.3%
9/22/2005	1,379,000	88.3%	6,595	63.4%

source: Minerals Management Service


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Prices

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Petroleum
As Hurricane Rita approached, 16 refineries along the Gulf Coast shut down as a precautionary measure and to allow employees to evacuate. As of today, 8 remain completely shutdown, 2 are attempting to restart and 6 have restarted. In sum, there are 4 refineries still shut down in the New Orleans area following Hurricane Katrina, 7 shut down in the Port Arthur and Lake Charles areas, and 3 shut down or attempting to restart in the Houston/Texas City/Galveston refining area, amounting to a total of over 3.5 million barrels per day that is currently offline. This accounts for over 1.5 million barrels per day of gasoline, over 800,000 barrels per day of distillate fuel, and over 400,000 barrels per day of jet fuel that is not being produced as long as these refineries remain shutdown.

On September 26, EIA released the weekly Gasoline and Diesel Fuel Update. As of September 25, the average weekly retail gasoline price increased to 280.3 cents per gallon (up 1.7 cents from the previous week). Diesel fuel prices increased 6.6 cents to 279.8 cents per gallon.

According to EIA's Weekly Petroleum Status Report for the week ending September 23 (released today), U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) dropped by 2.4 million barrels from the previous week. At 305.7 million barrels, U.S. crude oil inventories remain above the upper end of the average range for this time of year. Total motor gasoline inventories jumped by 4.4 million barrels last week, putting them in the middle of the average range. Distillate fuel inventories decreased by 0.5 million barrels last week, and are just above the upper end of the average range for this time of year. Total commercial petroleum inventories rose by 2.5 million barrels last week, and are at the upper end of the average range for this time of year.

Natural Gas
Texas Eastern announced that the company would restore mainline capacity to pre-Hurricane Rita levels effective Wednesday (September 28). However, several Gulf Coast compressor stations are on emergency backup generators as commercial power is unavailable, and until the electric grid is restored, Texas Eastern is operating without its standard reserve power.

Southern Union Company conducted a preliminary assessment of its interstate natural gas transmission systems located in the Gulf Coast area and identified minimal damage from Hurricane Rita. These systems include Trunkline LNG, Florida Gas Transmission, Trunkline Gas Company and Sea Robin Pipeline. Additional damage assessments of both on shore and offshore facilities will continue over the next several days. Trunkline LNG, located in Lake Charles, La., suffered only minor damage. The terminal will remain shut down pending further inspection. The facility will return to full operation once commercial power is restored and the agencies with authority over marine navigation have reopened the Calcasieu Ship Channel. Trunkline LNG first suspended ship unloading and send-out at the LNG terminal on September 22.

Sabine Pipeline, operator of the Henry Hub, is continuing its Force Majeure until further notice (see September 27 Report).

Tennessee Gas Pipeline has sustained supply losses of approximately 900,000 MMBtu/d on the 800 line and 500 line, not including the 650,000 MMBtu/d that has remained shut in as a result of Hurricane Katrina. Tennessee has confirmed a leak on the 524G-100 line from Bay Marchand 5 to Leeville. During a flight over the Grand Chenier area, pipeline company officials said initial damage assessments revealed moderate damage to the Starks, La., compressor (Station 820) and the Johnson Bayou Dehydration Plant. The company has however lifted a Force Majeure for Station 32 in Jasper, TX.