Precautionary

Transportation Notes

Stingray declared a force majeure after being notified of a potential leak in the vicinity of West Cameron Block 543, and as a precautionary measure has asked operators of the West Cameron 544 and High Island A260 platforms to shut in until further notice. Stingray said late Wednesday afternoon it had closed the valve downstream of its 16-inch diameter lateral until investigation of the potential leak is completed. Stingray earlier had asked all producers on its system to shut in until further notice because it was experiencing an excessive amount of liquids arriving onshore that exceeded its takeaway ability.

October 28, 2011

Shut-Ins No Match for Supply as Market Digests Bearish Storage Build

Hurricane Alex-inspired precautionary production shut-ins in the Gulf of Mexico last week proved inconsequential to U.S. natural gas supply as the Energy Information Administration (EIA) reported Thursday morning that a larger-than-expected 78 Bcf injection was made into storage for the week ending July 2. Natural gas futures values plunged on the news.

July 9, 2010

Dolly’s a Hurricane; Markets Discount Shut-In Impact

Dolly was promoted from a tropical storm to a full-fledged hurricane late Tuesday afternoon and precautionary measures — including shut-ins — continued during the day at exploration and production infrastructure off the lower Texas coast. But the markets were affirming a general belief that barring an unlikely turn to the north, the storm will have minimal impact on offshore operations. Cash gas fell at all points, accompanied by a futures plunge.

July 23, 2008