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Daily Report on Hurricane Impacts on U.S. Energy           


Hurricane Impacts on the U.S. Oil and Natural Gas Markets


As of Tuesday, October 11, 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
  10/11/2005
1,062,530
67.4%
6,042
59.8%
  10/7/2005
1,162,913
73.8%
6,441
63.8%
  10/6/2005
1,202,364
76.3%
6,628
65.6%
  10/5/2005
1,299,928
82.5%
6,895
68.3%
  10/4/2005
1,349,617
85.6%
7,170
71.0%
  10/3/2005
1,391,926
88.3%
7,495
74.2%
  9/30/2005
1,467,577
93.1%
7,941
78.6%
  9/29/2005
1,478,780
93.8%
7,980
79.0%
  9/28/2005
1,511,715
96.8%
8,072
77.2%
  9/27/2005
1,512,937
96.9%
7,857
75.5%
source: Minerals Management Service

graph of shut-in oil & natural gas production comparison of hurricanes Katrina & Ivan
figure data

Prices
graph of oil and gas prices
figure data

graph of nymex futures for gasoline & deisel
figure data

NYMEX Futures Prices 10/11/2005 10/10/2005
change
Week Ago
10/4/2005
Year Ago
10/11/2004
  WTI Crude Oil ($/Bbl)
63.53
61.80
+1.73
63.90
53.64
  Gasoline (c/gal)
183.32
180.06
+3.26
201.57
140.50
  Heating Oil (c/gal)
201.79
197.18
+4.61
204.97
147.07
  Natural Gas ($/MMBtu)
13.52
12.98
+0.54
14.22
6.99


Petroleum
As Hurricane Rita approached, 16 refineries along the Gulf Coast shut down as a precautionary measure and to allow employees to evacuate, and as today, 5 are completely shutdown. In sum, there are 3 refineries still shut down in the New Orleans area following Hurricane Katrina, 4 shut down in the Port Arthur and Lake Charles areas, and 1 shut down in the Houston/Texas City/Galveston refining area, amounting to a total of about 2.1 million barrels per day of refining capacity that is currently offline. This accounts for about 900,000 barrels per day of gasoline, about 500,000 barrels per day of distillate fuel, and about 200,000 barrels per day of jet fuel that is not being produced as long as these refineries remain shutdown. Please consult the Office of Electricity Delivery and Energy Reliability's Situation Report for specific information on the refineries.

Natural Gas
For the first time since Hurricane Rita made landfall, a spot price quote at the Henry Hub was available today (October 7) from the Intercontinental Exchange, an online trading platform. The Henry Hub spot price was $13.68 per MMBtu, while prices at other points in the Gulf region averaged $12.95. The overall average price for the Lower 48 was $12.19 per MMBtu, 78 cents lower than on October 6. Sabine Pipeline, operator of the Henry Hub, has now lifted its force majeure for gas flows at 12 pipeline interconnects at the hub, but still notes it will continue its force majeure for all remaining points until further notice. There are 14 pipelines with interconnections at the Henry Hub. As a result of these changes at the Henry Hub, the New York Mercantile Exchange (NYMEX), where futures contracts are traded for delivery to the Henry Hub, has lifted the force majeure condition for both September and October 2005 natural gas futures contract delivery obligations, effective for gas day October 5. NYMEX said that all participants who have outstanding obligations for these delivery months should commence nomination procedures in conformance with prescribed practices.

In an attempt to assess the effects of Hurricanes Katrina and Rita on oil and gas production, the Louisiana Office of Conservation is addressing the operating status of producing wells in a thirty-eight (38) parish region for information. On October 7, the Office said it has received reports indicating 535.7 million cubic feet per day (MMcf/d) of onshore and offshore (in State waters only) natural gas production has been restored, while 42.9 percent of the wells reportedly remain shut-in. However, the Office has not received information on approximately 38.5 percent of the oil and gas wells in the region. The daily gas production capacity of the 38 parish region is estimated to be approximately 2,235 MMcf/d, based on the average production reported to the Office for the period January 2005 to May 2005.

There are 20 natural gas processing plants, with capacities equal to or greater than 100 million cubic feet per day, in Texas, Louisiana, and Mississippi that are not active. A number of non-operating plants with a total capacity of 4.76 billion cubic feet per day (Bcf/d) are operational, but are not active owing to upstream or downstream infrastructure or supplies being unavailable. These plants had flowed 2.29 Bcf/d before the hurricanes. A number of the inactive plants are expected to be operating within 4 weeks. Based on updated data, these plants have capacity of 2.87 Bcf/d and pre-hurricane flow of 1.62 Bcf/d. Based on updated company information, pre-hurricane flow volumes indicate that the average utilization of the non-operating plants was roughly 56 percent. Based on updated data on estimated pre-hurricane flow volumes, the non-operating processing plants represent about 7.30 Bcf/d.

 

Map of Hurricane Katrina's Path showing oil rigs & refineries.                                           Click to see larger version.
                                                map courtesy of iMapData Inc.

Gulf of Mexico Oil & Natural Gas Facts
Energy Information Administration
Data as of June 2005 unless otherwise noted.

Gulf of Mexico
Total U.S.
% from
Gulf of Mexico
Oil (million barrels per day)
  Federal Offshore Crude Oil Production (5/05)
1.576
5.494
28.7%
  Total Gulf Coast Region Refinery Capacity (as of 1/1/05) 
8.068
17.006
47.4%
  Total Gulf Coast Region Crude Oil Imports
6.490
10.753
60.4%
    - of which into ports in LA, MS and AL
2.524
10.753
23.5%
    - of which into LOOP
0.906
10.753
8.5%
Natural Gas (billion cubic feet per day)
  Federal Offshore Marketed Production (5/05)
10.1
50.58
20.0%

News & Recent Reports
DOE Office of Electricity Delivery & Energy Reliability hurricane situation reports
Department of Interior Minerals Management Service

Related EIA Data Releases
Weekly Petroleum Status Report Released after 10:30 a.m. (Eastern time) on Wednesdays except on holiday weeks (release delayed one day).
U.S. Gasoline and Diesel Prices Released after 5:00 p.m. (Eastern time) on Mondays except on holiday weeks (released on Tuesday).
Weekly Natural Gas Storage Report Released between 10:30 a.m. and 10:40 a.m., (Eastern time) on Thursdays.
Short Term Energy Outlook
Next release, October 12, 2005, 12:00 p.m. Noon (Eastern time).


References
Alabama Oil Profile
Alabama Natural Gas Summary
Louisiana Oil Profile
Louisiana Natural Gas Summary
Mississippi Oil Profile
Mississippi Natural Gas Summary
Texas Oil Profile
Texas Natural Gas Summary


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