HOUSTON (September 1, 2005) – With 819 manned production platforms and 137 drilling rigs in the Gulf of Mexico (GOM), the devastation Hurricane Katrina has caused the oil and gas industry, and thus consumers, will be calculated and felt for many months to come.

Jim Flanagan, regional manager, Frontier Gulf of Mexico for IHS Energy, regularly follows the drilling, leasing and production activities in that region.

“Fortunately, producers were able to safely evacuate the manned platforms, but we’ve already seen a severe impact on production,” said Flanagan. From August 26 to 31, approximately 6.1 million barrels of oil that would normally be available for distribution were “shut in” (contained within the platform’s infrastructure when the rig was powered down for safety purposes prior to the hurricane). This represents 1.1 percent of the yearly oil produced in the GOM.

The impact on gas production was almost as devastating, with 32.4 bcf (billion cubic feet) shut in during that same period, Flanagan said. This represents slightly less than 1 percent of the yearly production in the GOM.

“Many people who work in our industry live in the areas affected by the hurricane. Obviously, the first and foremost priority is to ensure the safety of these employees and their families, as well as securing their homes and communities,” he said.

“When the process of bringing platforms and rigs back online begins, producers will be faced with many challenges such as heavily damaged staging areas onshore and limited transportation means to get everyone back to work offshore,” he said. “It’s anyone’s guess as to how long it will take to attain pre-Katrina production levels.”

IHS Energy enables oil and gas companies worldwide to create and maintain best-in-class decision-making processes by providing and integrating essential E&P information, intuitive software and consulting services. IHS Energy is an operating division of IHS Inc. ( www.ihs.com). IHS is one of the leading global providers of critical technical information, decision-support tools and related services to customers in a number of industries including energy, defense, aerospace, construction, electronics and automotive.

NOTE TO MEDIA :

If you would like to interview Jim Flanagan about oil & gas production in the Gulf of Mexico, please contact Karen Phillips (O: 407/323-2571 C: 407/474-6488) or Stephennie Anderson (713/383-4315).