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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 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

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 9/28/2005 9/27/2005 change Week Ago
9/21/2005
Year Ago
9/28/2004
  WTI Crude Oil ($/Bbl)
66.35
65.07
+1.28
66.80
49.90
  Gasoline (c/gal)
234.50
216.64
+17.86
205.31
135.79
  Heating Oil (c/gal)
214.11
206.86
+7.25
203.87
137.78
  Natural Gas ($/MMBtu)
13.91
12.66
+1.25
12.59
5.72


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.

 

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 (4/05)
1.562
5.488
28.5%
  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 (3/05)
10.4
54.1
19.2%

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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