As of Thursday, November 10, 3:00 pm

Shut-in Status

Date	Shut-in Oil (bbl/d)	% of Total Federal GOM	Shut-in Gas (mmcf/d)	% of Total Federal GOM
11/10/2005	736,279	46.7%	4,016	39.8%
11/9/2005	737,136	46.8%	4,033	39.9%
11/8/2005	738,617	44.9%	4,123	40.8%
11/7/2005	773,097	49.0%	4,451	44.0%
11/4/2005	780,633	49.5%	4,569	45.2%
11/3/2005	790,610	50.2%	4,727	46.8%
11/2/2005	957,978	60.8%	5,043	49.9%
11/1/2005	1,000,092	63.5%	5,269	52.2%
10/31/2005	1,015,859	64.5%	5,427	53.7%
10/28/2005	1,017,551	64.6%	5,504	54.5%
10/27/2005	1,022,313	64.9%	5,559	55.0%

source: Minerals Management Service


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Prices

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Short-Term Energy Outlook
On November 8, the Energy Information Administration (EIA) released the monthly Short-Term Energy Outlook (STEO) which projects that total energy demand is likely to respond to higher prices and hurricane-related destruction by showing relatively flat growth between 2004 and 2005, compared with 1.5-percent growth between 2003 and 2004. Energy demand is expected to recover in 2006 at a rate of about 2 percent. Prices for crude oil, petroleum products, and natural gas are projected to remain high during the remainder of 2005 and through 2006 because of tight international supplies and hurricane-induced supply losses. The price of West Texas Intermediate (WTI) crude oil is expected to average $57 per barrel in 2005 and $64-$65 per barrel in 2006. Retail regular gasoline prices are expected to average $2.29 per gallon in 2005 and $2.43 in 2006. Henry Hub natural gas prices are expected to average $9.15 per thousand cubic feet (mcf) in 2005 and $9.00 per mcf in 2006. Recovery of production facilities and other infrastructure in the Gulf region is expected to continue, but it now appears unlikely that anything close to complete recovery will occur before the end of the second quarter of 2006. This extends the recovery period by about 3 months beyond what was assumed in the previous Outlook.

Petroleum
Refinery shutdowns in the Gulf of Mexico region total 804,000 bbl/d as of November 9, 2005. Please consult the Office of Electricity Delivery and Energy Reliability's Situation Report for specific information on the refineries.

According to EIA's Weekly Petroleum Status Report for the week ending November 4 (released November 10), U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) rose by 4.5 million barrels from the previous week. At 323.6 million barrels, U.S. crude oil inventories remain well above the upper end of the average range for this time of year. Total motor gasoline inventories increased by 4.2 million barrels last week, putting them in the upper half of the average range. Distillate fuel inventories inched lower by 0.1 million barrels last week, and are at the lower end of the average range for this time of year. A decline in high-sulfur (heating oil) distillate fuel more than compensated for an increase in low-sulfur (diesel fuel) distillate fuel. Total commercial petroleum inventories increased by 11.6 million barrels last week, and are near the upper end of the average range for this time of year.

Natural Gas
According to EIA's Weekly Natural Gas Storage Report for the week ending Friday, November 4 (released November 11), working gas in storage increased to 3,229 Bcf, which is 4 percent above the 5-year average inventory level. The net addition to storage was 61 Bcf, which is more than three times the 5-year average net injection of 17 Bcf and about 72 percent above the net injection of 35 Bcf during the report week last year. Reported working gas volumes for the week ended November 4, 2005 included reclassifications of 10 billion cubic feet from base gas to working gas.

Hurricanes Katrina and Rita damaged a number of natural gas processing facilities on the Gulf Coast. The loss has and will continue to delay recovery of natural gas production in the area. Even if platforms and pipelines are either unaffected or readily restored to service, the gas often can't flow to market without treatment. In 2003 (the latest year with complete data), almost three-fourths of total U.S. marketed gas production was processed prior to delivery to market. A number of processing plants in Louisiana and Texas, with capacities equal to or greater than 100 million cubic feet per day, are not active. These plants have an aggregate capacity of 7.35 billion cubic feet per day (Bcf/d), and they had a total pre-hurricane flow volume of 4.28 Bcf/d. A number of non-operating plants with a total capacity of 0.90 Bcf/d are operational, but are not active owing to upstream or downstream infrastructure problems or supplies being unavailable. These plants had flowed 0.28 Bcf/d before the hurricanes. A number of the inactive plants are expected to be operating within 2 weeks. Based on updated data, the incremental available capacity at that time would be 2.30 Bcf/d with pre-hurricane flow of 1.06 Bcf/d. Based on updated company information, pre-hurricane flow volumes indicate that the average utilization of the non-operating plants was roughly 58 percent.

The Louisiana Office of Conservation is addressing the operating status of producing wells in a thirty-eight (38) parish region for information. As of November 10, the Office has received reports indicating 1,223.9 million cubic feet per day (MMcf/d) of onshore and offshore (in State waters only) natural gas production has been restored, which is 54.8 percent of total production before the hurricanes. Overall, 2,629 oil and gas wells, or 44.2 percent of the wells in the region, reportedly remain shut-in. However, the Office has not received information on approximately 12.6 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.