Restore

Gulf of Mexico producers and drilling contractors, many still struggling to restore production and repair platforms and rigs in the wake of Hurricane Katrina, were moving quickly Monday to get their personnel out of the path of oncoming Tropical Storm Rita, which the National Hurricane Center (NHC) believes could be a major hurricane later this week with a current trajectory over the Central Gulf.

Royal Dutch Shell Co. expects to restore about 60% of its total upstream production to pre-Hurricane Katrina levels during the fourth quarter, or 270,000 boe/d compared to 450,000 boe/d, but warned remaining Gulf of Mexico oil and natural gas production, mainly from its prolific Mars platform, related Ursa unit and the Mensa and Cognac developments, “may not be feasible during the fourth quarter, depending on options available for recovery.” Shell’s output now stands at 160,000 boe/d.

To restore oil and natural gas production in the wake of Hurricane Katrina, the energy industry and federal government must focus on easing the plight of energy workers in Louisiana, Mississippi and Alabama, many of whose homes have been destroyed and/or are under water, so that they can return to platforms and drilling rigs, said a top official with a major pipeline group.

Northwest Pipeline expects to have a 111-mile portion of its idled 26-inch diameter line between Sumas and Washougal, WA, back in service by the end of this month providing an additional 131,000 Dth/d of much needed pipeline capacity. About 268 miles of the 1950s vintage pipeline was taken out of service last year after two ruptures occurred.

Northwest Pipeline expects to have a 111-mile portion of its idled 26-inch diameter line between Sumas and Washougal, WA, back in service by the end of this month providing an additional 131,000 Dth/d of much needed pipeline capacity. About 268 miles of the 1950s vintage pipeline was taken out of service last year after two ruptures occurred.

Fixing the current system of natural gas price reporting by trade publishers “has the greatest potential to restore confidence in the shortest period of time,” a report by Charles Schwab’s Washington Research Group concluded, but politicians, regulators, and a potential short-supply, high-price crisis could produce more drastic measures.

Fixing the current system of natural gas price reporting by trade publishers “has the greatest potential to restore confidence in the shortest period of time,” a report by Charles Schwab’s Washington Research Group concluded, but politicians, regulators, and a potential short-supply, high-price crisis could produce more drastic measures.

Northern Natural Gas was able to restore some compression Thursday evening at the Bushton (KS) Compressor Station in areas away from Building 3, which was damaged in an explosion and fire Tuesday morning (see Daily GPI, April 2), a spokesman said Friday. The station began accepting a portion of the normal outlet gas from an upstream Oneok processing plant and possibly would be able to handle full plant volumes again by Friday night, he said.

In an effort to restore price certainty in the markets, FERC at a minimum should implement standards requiring jurisdictional companies to show the agency that the natural gas price indexes referenced in their tariffs and contracts are reliable, said Commissioner William Massey last Wednesday.