Gas/Oil Companies damage from hurricanes minimal

[Dover]

Cimarex Energy Says Gas Production Remains Shut-in
Wednesday, September 28, 2005

Of total remaining shut-in volumes, approximately 65 MMcfe/d is from Gulf of Mexico fields and 60 MMcfe/d is from wells located in Vermilion Parish, Louisiana, Liberty County, Texas and other areas along the Texas Gulf Coast. Included in the total amount of shut-in offshore volumes is 14 MMcfe/d that was initially curtailed on August 28 because of Hurricane Katrina.
Preliminary inspections of operated facilities and reports from other operators indicate little to no apparent damage to affected production facilities. As such, current general expectations are that the bulk of the Hurricane Rita related curtailments should be back online within two weeks. However, because of extensive flooding and the requisite start-up of downstream trucking operations, gas transportation pipelines, gas processing plants and offshore production facilities managed by others, the exact timing of the resumption of output is still being assessed and may change.>>

http://www.rigzone.com/news/article.asp?a_id=25612

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Helmerich & Payne Sees No Significant Damage from Hurricane Rita
Monday, September 26, 2005

Helmerich & Payne does not expect any significant damage to its offshore platform rigs as a result of Hurricane Rita. Furthermore, the Company's onshore rigs, construction operations and facilities in the area impacted by the hurricane appear to have suffered little damage. Since Company personnel were evacuated from offshore platforms and other onshore areas in Rita's projected impact zone, no personal injuries were sustained. >>

http://www.rigzone.com/news/article.asp?a_id=25552
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Whittier Energy Escapes Hurricane Rita Damage
Wednesday, September 28, 2005


Whittier Energy says that none of its major oil and gas fields suffered any significant physical damage from either Hurricane Katrina or Hurricane Rita. However, as a result of power outages, limited access, and the inability of some oil and gas marketers to take delivery of production in affected areas, approximately 3.2 million cubic feet of gas equivalent ("Mmcfe") per day, or 20%, of Whittier's daily net production is currently shut-in. The Company anticipates that the majority of its shut-in production will be restored over the next few weeks and does not expect any materially adverse impact on its operations. >>

http://www.rigzone.com/news/article.asp?a_id=25606
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Crimson Exploration Effects of Hurricane Rita Minimal
Wednesday, September 28, 2005


Crimson Exploration has preliminary assessments of physical damage from Hurricane Rita on its south Louisiana and Texas gulf coast properties appears to be minimal. Production, however, remains shut-in pending restoration of electrical power to, and the commencement of operations by, the operators of sales lines through which the Company delivers its production. Details of those estimated effects are as follows: >>

http://www.rigzone.com/news/article.asp?a_id=25619

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http://www.rigzone.com/

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Oil Drops as Texas Refining Center Escapes Damage From Rita

Sept. 25 (Bloomberg) -- Crude oil fell to its lowest in almost two weeks in London and dropped in New York after the U.S. refining center near Houston escaped a direct hit from Hurricane Rita, easing concern of a shock to strained fuel supplies.

Saudi Arabia's oil minister, Ali al-Naimi, today said he was ``relieved'' after only three U.S. refineries reported damage when Rita came ashore yesterday in Louisiana, near the Texas border. The storm was downgraded to a tropical depression late yesterday. At least two of the eight Houston-area plants that account for 12 percent of U.S. refining capacity may resume production this week.

``The panic is over,'' said Rob Laughlin, a senior broker at Man Financial, a unit of the world's largest hedge-fund company, in London. ``The U.S. oil-products market should start balancing out in coming days, allowing crude to easily come down through $60 a barrel.''

Brent crude for November settlement fell 95 cents, or 1.5 percent, to $61.49 a barrel on London's International Petroleum Exchange, the lowest since Sept. 13. November crude on the New York Mercantile Exchange dropped as much as $1.19, or 1.9 percent, to $63, the lowest since Sept. 16, as trading began at 10:00 a.m. Both exchanges opened for special Sunday sessions because of Rita.

Crude futures in New York have declined 11 percent since touching a record $70.85 a barrel on Aug. 30, the day after Hurricane Katrina struck Louisiana. That storm became the most expensive natural disaster in U.S. history, costing insurers as much as $60 billion.

Rita Claims

Rita, in contrast, may lead to claims of up to $6 billion, according to Eqecat Inc., a storm modeler. Katrina struck land before the Labor Day weekend, the end of the peak season for gasoline demand. Refiners now are preparing to meet heating-fuel demand in the fourth quarter, while replenishing gasoline supplies.

Al-Naimi, in Johannesburg for the World Petroleum Congress, said none of Saudi Arabia's customers in the Gulf of Mexico was affected by Hurricane Rita. The kingdom is the world's largest oil exporter.

At least 15 refineries in Texas and Louisiana, accounting for about 24 percent of U.S. capacity, shut as Rita approached. Valero Energy Corp. said its Houston and Texas City plants may restore processing within seven days. Another 5 percent of the nation's refining capacity remains closed from Katrina, with four plants scheduled to resume output in November or December. ...

http://www.bloomberg.com/apps/news?pid=10000102&sid=aTQX9XnqievI&refer=uk

[CitrusLib]

1. Well then. I guess that explains why gas jumped 15 cents over night .

[ClintonTyree]

2. Effect on Americans' pocketbooks, maximal.

Big Energy is going to ream us in the rear anyway, so you might as well just bend over and enjoy it.

[havocmom]

3. Shhh! Don't tell truth; they won't be able to use hurricanes as an excuse!

That 9-11 thing was getting pretty tired as the excuse for everything they wanted to loot. Don't go spoiling the new excuse da jour for them!

[spanone]

4. Let's see how 'minimal' the price gouging will be.

n/t

[lastliberalintexas]

5. Very different from what I've been told by people down there

From what I understand, there are still a few plants in Port Arthur and Lake Charles that are under water, and quite a few in the area did sustain quite a bit of damage. I think this is the same kind of crap the media did immediately after Katrina- "It's not so bad. No one needs to worry."

Well, when they're saying that it could be 2 or 3 months before the Bmt/PA/LC plants are all fully operational, I'd say that's a HUGE problem. Don't believe the media spin- it really is that bad down here.

[Norquist Nemesis]

6. And it's not what they were saying yesterday either

CNN and CNBC were reporting major damage to rigs in the gulf from Rita. I'm in the midwest and they said my area is possibly going to be adversely affected for at least three months due to pipeline/distribution problems from the hurricane.

They also were showing one rig that was blown something like 100 miles from its location. The majority are still down, a majority a severely damaged, and it's going to affect us being able to accept shipments and manage refining. (*shrug* not an expert, but what the *cough*news*cough* is reporting ain't good.)

[YapiYapo]

7. The market doesn't seem to be so confident

Crude oil 66.65 $ +0.45%
Natural Gas 14.7 $ +0.793%¨

http://www.nymex.com/index.aspx