Importance of Processing Plant Information

1. Importance of Processing Plant Information Gas Processors Association 88th Annual Convention March 8-11, 2009 Barbara Mariner-Volpe Barbara.MarinerVolpe@eia.doe.gov 202.586.5878 www.eia.doe.gov

2. Energy Information Administration Areas of Focus: • Data • Analysis • Forecasts • Emergency monitoring Mission: “EIA is a leader in providing high quality, policy-independent energy information to meet the requirements of Government, industry, and the public in a manner that promotes sound policymaking, efficient markets, and public understanding”

3. 2008 Hurricanes Tropical Storm Edouard: landfall near the Texas/Louisiana border, causing offshore production and ports to shut. Tropical Storm Hanna:landfall at the North Carolina-South Carolina border, resulting in electricity outages. August 5, 2008 September 6, 2008 H u r r i c a n e S e a s o n 2 0 0 8 July 23, 2008 September 1, 2008 September 13, 2008 Hurricane Gustav: landfall as a Category 2 Hurricane near Morgan City, Louisiana. The flooding through Louisiana and impacts to petroleum, natural gas, and electricity infrastructure in Louisiana and Mississippi were significant. Hurricane Ike: landfall near Houston, Texas, M EDT as a strong Category 2 hurricane, resulting in devastating shutdowns of oil & gas assets, electricity outages, and the evacuation of Houston. Hurricane Dolly: landfall near the Texas-Mexico border as a Category 2 hurricane .

4. Path of 2008 Hurricane Gustav and Hurricane Ike Hurricane Gustav Hurricane Ike Source: National Hurricane Center, NOAA

5. Natural Gas Production Shut-ins in the Gulf of Mexico Resulting from Hurricanes Gustav and Ike Gustav Gustav & Ike Source: Minerals Management Service, U.S. Department of the Interior

6. Natural Gas Processing Capacity Shut-insResulting from Hurricanes Gustav and Ike Gustav & Ike Gustav Source: Energy Information Administration

7. Gas Processing Plants with Capacity greater than 100 MMcf/d Located along the Western Portion of the Gulf of Mexico = Gas Processing Plants Note: MMcf/d = miliion cubic feet per day. Source: Energy Information Administration, Gas Transportation Information System

8. Most Processing Plant Capacity is Located in the Gulf Region Natural Gas Processing Plants by Capacity Level million cubic feet per day (number) (9) 1,200+ 800 to 1,199 (7) 500 to 799 (13) 200 to 499 (56) 100 to 199 (65) 0 to 99 (390) Note: Eight Alaska plants not displayed, but count is reflected in the legend. Source: Energy Information Administration, Gas Transportation Information System.

9. Natural Gas Outages Hurricanes Gustav and Ike Source: Energy Information Administration

10. EIA’s Natural Gas Monitoring During Energy Emergencies • Primary responsibility for monitoring natural gas processing plants (Inter-Agency Emergency Task Force) • Provide assessments for EIA and DOE information products • Information sources include: • Monitoring pipeline EBBs • Company press releases • Surveying processing plant operators (Form EIA-757, Schedule B)

11. EIA Reports on Energy Impacts During an Emergency Source: Energy Information Administration

12. Department of Energy Situation Reports During an Energy Emergency Source: U.S. Department of Energy, Office of Electricity Delivery and Energy Reliability

13. Why Survey Natural Gas Processing Plants? Processing plants are a key element in the natural gas supply chain If processing plants are affected by a natural disaster or man-made event, their ability to perform can become a significant bottleneck affecting available supplies. There is no public source of information available on a timely basis

14. Form EIA-757 Survey of Natural Gas Processing Plant Operators Schedule A: Baseline, Census Survey every 3 years Schedule B: Emergency Status, Sample Survey, as needed

15. Information Collected on Form EIA-757

16. Data Requirements • Characteristics of the processing plant – including capacity and pre-event operations • Description of current plant status – operating levels, physical damage sustained, internal or external constraints on operations. • Estimated restoration timeline

17. Gas Market Information is Needed By... Information Aggregators Trade Press and Media Government OPERATORS Producers Pipelines Processors Storage LDCs Refineries FINANCIAL Risk Managers Investors Marketers Brokers Traders Market Stake-holders CONSUMERS

18. “Natural Gas Processing is The Crucial Link Between Natural Gas Production and Its Transportation to Market” EIA

19. Recurring Publications: Annual Energy Outlook 2009, December 2008 (early release) Short-Term Energy Outlook, monthly Weekly Natural Gas Storage Report, weekly Weekly Natural Gas Update, weekly U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves 2007, February 2009 Special Reports: Impact of the 2008 Hurricane Season on the Natural Gas Industry, January 2009 U.S. Natural Gas Imports and Exports: Issues and Trends 2007, January 2009 Additions to Capacity on the U.S. Natural Gas Pipeline Network 2007, July 2008 Underground Natural Gas Storage Developments: 1998-2005, October 2006 Barbara Mariner-Volpe Energy Information Administration Barbara.MarinerVolpe@eia.doe.gov