Importance of Processing Plant Information Gas Processors Association 88 th Annual Convention March 8-11, 2009 Barbara Mariner-Volpe

Energy Information Administration “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” Areas of Focus: – Data – Analysis – Forecasts – Emergency monitoring Mission:

2008 Hurricanes Hurricane Dolly : landfall near the Texas- Mexico border as a Category 2 hurricane. July 23, 2008September 1, 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. August 5, 2008 Tropical Storm Edouard : landfall near the Texas/Louisiana border, causing offshore production and ports to shut. 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. September 13, 2008 September 6, 2008 Tropical Storm Hanna : landfall at the North Carolina-South Carolina border, resulting in electricity outages. H u r r i c a n e S e a s o n

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

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

Natural Gas Processing Capacity Shut-ins Resulting from Hurricanes Gustav and Ike Gustav Gustav & Ike Source: Energy Information Administration

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

Natural Gas Processing Plants by Capacity Level million cubic feet per day (number) 1,200+ (9) 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. Most Processing Plant Capacity is Located in the Gulf Region

Natural Gas Outages Hurricanes Gustav and Ike Natural Gas Processing Pre- Hurricane Worst Day Outages 8/28/2008 Gustav (9/2/08) Ike (9/14/08) Number of Plants Billion Cubic Feet per Day % Gulf Capacity100%63%57% % U.S. Capacity38%24%21% Source: Energy Information Administration

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)

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

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

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

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

Information Collected on Form EIA-757 Schedule ASchedule B Plant Characteristics Operator Emergency Contacts Current Operating Levels Physical damage to plant Constraints on plant operations Estimated restoration timeline

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

MarketersBrokersTraders OPERATORS OPERATORSProducersPipelinesProcessorsStorageLDCsRefineries Trade Press and Media FINANCIAL FINANCIAL Risk Managers Investors CONSUMERS Government Information Aggregators Market Stake- holders Gas Market Information is Needed By...

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

Barbara Mariner-Volpe Energy Information Administration 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: , October 2006