U.S. DEPARTMENT OF ENERGY

Office of Energy Assurance

ENERGY ASSURANCE DAILY

October 29, 2004

Electricity

Power Outage in San Jose, CA Area Knocks out 60,000 Customers PG&E believes that a transmission line may be to blame for a massive power outage Thursday. The outage hit 60,000 people in San Jose and Milpitas about 3:45pm, causing a number of problems, including trapping patients in wheelchairs on the upper floor of a medical building. All power was restored by about 6:45pm. The cause of the outage was still under investigation Friday. http://news.yahoo.com/news?tmpl=story&u=/kpix/20041029/lo_kpix/11673

Hope Creek Nuclear Unit Declares Unusual Event Due to Freon Leak in an HVAC Unit in Security Center No Injuries, No Release of Radiation, and No Impact on Security PSEG Nuclear said today that an unusual event was declared today at its Hope Creek generating station. The unusual event occurred at 10:03 a.m. due to a freon leak in an HVAC unit in the station security center. The leak resulted in restricted access to the second floor. Anytime access restrictions that impact routine plant operations are caused by an uncontrolled toxic gas release, the requirements for an unusual event are met. The unusual event was terminated at 1:16 p.m. http://biz.yahoo.com/prnews/041028/nyth203_1.html

Alliant's Duane Arnold Reactor in Iowa Returning to Service

Alliant Energy Corp.'s 565-megawatt Duane Arnold 1 nuclear unit in Palo, Iowa, is returning to service after shutting Oct. 25 to repair a condenser water-tube leak. The plant is currently operating at 35 percent of capacity on its way to full power. Bloomberg News, 0943 October 29, 2004

Constellation Increases Power at Calif. High Desert Plant

Baltimore-based Constellation Energy Group Inc.'s 830-megawatt High Desert natural gas-fired plant in California continued to increase power late Thursday, the California Independent System Operator said. Late Thursday, the unit was curtailed by 297 MW, down from 767 MW early Thursday. Reuters, 0738 October 29, 2004

Petroleum

Hurricane Ivan Oil Production Shut-in Statistics

Shut-in oil production is equivalent to 19.26% of daily production of oil in GOM, which is approximately 1.7 million BOPD. The 327,372 barrels per day that is currently shut-in is approximately 1.66% of the 19.7 million barrels consumed in the U.S. each day. The cumulative shut-in oil production for the period 9/11/04-10/29/04 is 26,116,171 bbls, which is equivalent to 4.317% of the yearly production of oil in the GOM which is approximately 605 million barrels.

http://www.mms.gov/ooc/press/2004/press1029.htm
EPA Weighs Implementing National Gasoline Standard
The US Environmental Protection Agency (EPA) is exploring the option of moving to a national or regional fuel standards to get around the boutique fuels problem and will likely reach a decision one year from now, Margo Oge, director of EPA's Office of Transportation and Air Quality, said Thursday. Oil Daily, October 29, 2004.

Crude Oil Gains as Labor Unrest in Nigeria Could Crimp Supplies

Crude oil in New York rose for the first day in three amid concern production from Nigeria could be curtailed by labor unrest. Nigeria's main labor body said a general strike seems inevitable after it rejected a government plan to quell anger over fuel prices in the country. Bloomberg News, 1434 October 29, 2004

Natural Gas

Hurricane Ivan Natural Gas Production Shut-in Statistics

Shut-in gas production is equivalent to 9.75% of the daily production of gas in the GOM, which is approximately 12.3 BCFPD. The 1,199.08 MMCF per day that is currently shut-in is approximately 1.99% of the 60.184 BCF consumed in the U.S. each day. The cumulative shut-in gas production 9/11/04-10/29/04 is 106.956 BCF, which is equivalent to 2.404% of the yearly production of gas in the GOM which is approximately 4.45 TCF.

http://www.mms.gov/ooc/press/2004/press1029.htm

El Paso Natural Gas Lifts Unauthorized Overpull Penalty Alert El Paso has lifted its overpull penalty which was put in effect Wednesday. Shippers had been prevented from taking more gas off the pipeline system than they had put into it. Bloomberg News, 1142 October 29, 2004

Exxon Gives Up on LNG Facility in Mobile Bay

ExxonMobil Corp. is abandoning its attempt to build a docking terminal on Mobile Bay for supertankers carrying liquefied natural gas, according to a Thursday statement from the company. The proposed $600 million facility would have unloaded superchilled natural gas, or LNG, from ships arriving from the Middle East. Mobile Register, October 29, 2004

Other News

LNG Plan Worries Nuke Plant in New Jersey

http://www.delawareonline.com/newsjournal/local/2004/10/28liquidgasplanwo.html

Energy Security Expert Warns of Oil, Gas Pipeline Attacks

http://pro.energycentral.com/professional/news/gas/news_article.cfm?id=5227994

All Nuclear Power Plants Meet NRC Deadline for Security Enhancements All of the 103 commercial nuclear power plants operating at 64 sites in 31 states have met the Nuclear Regulatory Commission's Oct. 29 deadline for implementing more stringent security measures. The NRC in April 2003 issued three security orders that included a requirement that the industry take measures to meet the agency's new description of the size and attributes of an attacking force against which the industry must be able to defend its facilities. The deadline for implementation of these measures -- the culmination of a series of five NRC security orders issued since February 2002 -- is Friday. To meet the NRC's security requirements, the nuclear power plants that provide electricity to one of every five U.S. homes and businesses have taken the following measures: * increased the size of their paramilitary security forces by 60 percent to a total of 8,000 officers; * made substantial physical improvements to provide additional protection against vehicle bombs and other potential terrorist assaults; * increased training for security officers; * established a rigorous "force on force" mock adversary exercise regime; * increased security patrols; * added more security posts; * increased vehicle standoff distances; * tightened access controls; and * enhanced coordination with state and local law enforcement. http://www.energycentral.com/centers/news/daily/article.cfm?aid=5227221

Energy Prices

Latest (10/29/04) / Week Ago / Year Ago
CRUDE OIL
West Texas Intermediate US
$/Barrel / 51.78 / 55.27 / 28.95
NATURAL GAS
Henry Hub
$/Million Btu / 6.43 / 7.42 /
4.51

Source: Reuters

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

http://tonto.eia.doe.gov/oog/info/twip/twip.asp

Updated on Wednesdays

Weekly Petroleum Status Report from EIA
http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html

Updated after 1:00pm (Eastern time) on Wednesdays

Natural Gas Weekly Update from EIA

http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp

Updated after 2:00 pm (Eastern time) on Thursdays