U



U.S. DEPARTMENT OF ENERGY

Office of Energy Assurance

ENERGY ASSURANCE DAILY

October 19, 2004

Electricity

Storm Leaves 30,000 Without Power

A storm passing through the Bay Area Tuesday morning left more than 30,000 customers without power throughout the Bay Area, a Pacific Gas & Electric Co. spokeswoman said today. The storm has knocked out power to 30,043 from the North Bay to South Bay with the hardest hit areas on the Peninsula, according to PG&E spokeswoman Claudia Mendoza. Foster City and Redwood Shores have a power outage affecting 3,868 customers, said Mendoza. The outage was reported at 11:15 a.m. and there is no estimated time for repair. In San Bruno there are outages all along Skyline Boulevard with the largest affecting 3,400 customers who are expected to be without power until 1:20 p.m. Outages in San Jose have been reduced to 970 customers in the area of McKee and White roads, said Mendoza. In the North Bay, 1,656 customers in Bodega Bay have been without power since 7:35 a.m. because of the storm and there is no estimated time of restoration, Mendoza said



Cooper 1 Nuclear Unit in Nebraska Shut for Inspection

Nebraska Public Power District shut its 780-megawatt Cooper 1 nuclear unit in Brownsville, Nebraska,

at 5:28 p.m. yesterday to investigate the cause of turbine vibrations.

Bloomberg News, 0946 October 19, 2004

Reliant's Calif. Ormond Beach 1 Gas Unit Back

Houston-based Reliant Energy Inc.'s 750-megawatt Ormond Beach 1 gas-fired power plant in southern California returned to service by late Monday, the California Independent System Operator said in a report. Both 750 MW units 1 and 2 shut on Oct. 17 due to unplanned outages. Unit 2 however, remained shut late Monday.

Reuters, 0729 October 19, 2004

Constellation's N.Y. Ginna Nuke Back at Full Power

Baltimore-based Constellation Energy Group Inc.'s 470-megawatt Ginna nuclear unit in New York returned to full power by early Tuesday following weekend repairs, the U.S. Nuclear Regulatory Commission said in its daily reactor status report. On Monday, the unit was operating at 3 percent of capacity after exiting a repair outage to fix a check valve.

Reuters, 0705 October 19, 2004

Two Canadians Power Plants Come Back On-line

In Ontario, OPG's Lakeview 1 coal-fired unit and its Lower Notch hydropower station both returned to service by early Tuesday from short outages.

Reuters, 1402 October 19, 2004

Petroleum

Hurricane Ivan Oil Production Shut-in Statistics The shut-in oil production is equivalent to 25.24% of the daily production of oil in the GOM, which is approximately 1.7 million BOPD. The cumulative (9/11/04-10/19/04) shut-in oils production is 22,136,598 bbls which is equivalent to 3.659% of the yearly production of oil in the GOM which is approximately 605,000,000 bbls.

US SPR Crude Oil Inventory, Delivery Schedule

The U.S. Department of Energy updated its Strategic Petroleum Reserve (SPR) data on Tuesday to reflect a 500,000 barrel increase in sweet crude oil stocks and an increase of 500,000 barrels in total oil inventories. The government has loaned a total of 5.4 million barrels of crude oil from the emergency stockpile to five refiners to offset supplies disrupted by Hurricane Ivan in mid-September.

Reuters, 1502 October 19, 2004



Murphy Oil Resumes Production at Medusa Field

Murphy Oil Corp. on Tuesday said it had resumed production at the Medusa field following disruption by Hurricane Ivan. Production was 30,000 barrels per day of oil and 30 million cubic feet of natural gas, ramping up to pre-storm levels of 34,000 bpd and 34 million cubic feet of gas.

Reuters, 1614 October 19, 2004

Iraq Oil Exports Continue After Attack on Pipeline

Iraqi oil exports kept flowing to Turkey after a sabotage attack on the country's twin northern pipeline on Tuesday, an oil official at the scene said. "Exports are going through the other part of the twin pipeline," said the official, who declined to reveal volumes.

Reuters, 0051 October 19, 2004

OPEC Report Highlights Problems with Refining and Downstream Operations

OPEC’s latest Monthly Oil Market Report (published Monday) showed that many factors have lead to the high oil prices, but the report highlighted the significance of inadequate refining capacity, particularly in the United States, and the inability of many U.S. refiners to use sour crude. The report reiterated what it said back in February 2004, which was that the persistent shortage of refining capacity in the USA and limited upgrading capacity in Asia leaves the market vulnerable to increased price volatility. In addition, U.S. refineries, operating at 92%, are running near maximum operational capacity.



Natural Gas

Hurricane Ivan Gas Production Shut-in Statistics The shut-in gas production is equivalent to 12.55% of the daily production of gas in the GOM, which is approximately 12.3 BCFPD. The cumulative (9/11/04-10/19/04) shut-in gas production is 92.544 BCF which is equivalent to 2.080% of the yearly production of gas in the GOM which is approximately 4.45 TCF.



Centerpoint Energy Seeks Line AD Expansion in Oklahoma

Centerpoint Energy Gas Transmission (CEGT) has filed for a 112,900 Dth/d compression expansion of its Line AD in Oklahoma to increase west-to-east capacity for gas coming out of the Rocky Mountains. Natural Gas Intelligence, October 18, 2004

Natgas Prices Up Sharply

NYMEX natural gas futures ended up sharply on Tuesday, driven early by record heat in Texas and cool Northeast weather that firmed the cash, then later by technical buying when resistance was breached, trade sources said. November futures rallied 31.7 cents, or 5 percent, to close at $7.123 per million British thermal units (BTUs). Henry Hub cash surged almost 9 percent today on the heat in Texas and cool Northeast temperatures. In Opal, Wyoming, prices added 41 cents, or 8.3 percent, to $5.35 per million BTUs. In Waha, Texas, gas surged 60 cents, or 12 percent, to $5.57 per million BTUs. Reuters, 1526 October 19, 2004 Bloomberg, 1535 October 19, 2004

Other News

Nothing to report.

Energy Prices

| |Latest (10/19/04) |Week Ago |Year Ago |

|CRUDE OIL | | | |

|West Texas Intermediate US |53.28 |52.51 |30.61 |

|$/Barrel | | | |

|NATURAL GAS | | | |

|Henry Hub |6.13 |5.79 |4.53 |

|$/Million Btu | | | |

Source: Reuters

This Week in Petroleum from the Energy Information Administration (EIA)



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