NEW YORK, Aug 26 (Reuters) – Operators of oil, natural gas and power infrastructure in the densely-populated U.S. Northeast activated emergency plans ahead of Hurricane Irene and warned of potential supply disruptions, but most continued to operate normally on Friday.

The U.S. Coast Guard said it had no immediate plan to shut the New York Harbor, a delivery hub for millions of barrels a day in oil products. The harbor handles shipments from ocean-going ships, barges and pipelines.

But the 2.37 million barrel per day Colonial Pipeline system, which delivers oil products to New York Harbor as well as other East Coast locations like Virginia and Maryland, said it expects operations to be partially affected as some coastal oil terminals shut down to gird against Irene.

Pipeline and terminal operator Magellan Midstream partners (MMP.N: Quote, Profile, Research, Stock Buzz) was shutting petroleum terminals in North Carolina and Virginia on Friday.

Steve Baker, a spokesman for Colonial Pipeline, which ends in New York Harbor, said the company was preparing its facilities. “We don’t expect impact until Saturday.” he said.

As Irene bore down on North Carolina on Friday, tens of thousands of people evacuated and East Coast cities including New York braced for a possible weekend battering from the Category 2 storm, with winds between 96 and 110 miles per hour (154-177 kph) and storm surges of 6 to 8 feet (1.8-2.4 meters).

U.S. Homeland Security Secretary Janet Napolitano on Friday warned East Coast inhabitants to expect extensive power outages.

NEW YORK (Reuters) – From nuclear plants to pipelines and refineries, energy firms on the East Coast braced on Thursday for a potentially devastating Hurricane Irene that could make landfall this weekend in North Carolina.

Irene, a Category 3 hurricane barreling toward the most densely populated part of the United States, is prompting energy suppliers to secure equipment, put emergency plans in action and warn customers about potential power disruptions.

While the East Coast has no major oil and gas production facilities like the hurricane-prone Gulf Coast, it is the site of nuclear plants, a massive energy shipment hub at New York Harbor, and huge oil and gas pipeline and power networks.

“Irene appears set to deliver a major blow. Now is the time to prepare for this major hurricane, as impacts appear imminent,” MDA EarthSat Weather said. It warned of potentially prolonged power outages in the region, including New York City, which could have winds over 75 miles per hour.

The National Hurricane Center said the eastern seaboard from North Carolina northward was “well within” the path of Irene, which could have an impact “well inland”. The storm pounded the Bahamas on Thursday, forcing the closure of major oil terminals but not damaging them.

Irene was still around 645 miles south of North Carolina.

NUCLEAR PLANTS BATTEN DOWN HATCHES

HOUSTON/NEW YORK, Aug 23 (Reuters) – The largest earthquake to hit the East Coast of the United States in 67 years raised concerns on Tuesday about the safety of the country’s nuclear power plants.

The 5.8 magnitude quake’s epicenter was just a few miles from the two-reactor North Anna nuclear power plant operated by Dominion Resources (D.N: Quote, Profile, Research, Stock Buzz) in Mineral, Virginia, 80 miles southwest of Washington.

The plant lost power and automatically halted operations after the quake. While a Dominion spokesman reported no “major” damage to the facility, three diesel generators were required to kick in and keep the reactors’ radioactive cores cool. A fourth diesel unit failed.

While nuclear power plants can operate safely on back-up power, failure of generators was a key reason for the disaster at Japan’s Fukushima Daiichi plant after a 9.0 magnitude quake and tsunami in March.

“Nuclear power plants lose a significant margin of safety when they’re forced to rely on these emergency back-up systems,” said Paul Gunter, director of reactor oversight at Beyond Nuclear, an anti-nuclear lobby group.

The U.S. Nuclear Regulatory Commission (NRC) said North Anna’s shutdown was safe and posed no risk to the public. It wasn’t clear when off-site power could be restored or when the 1806-megawatt plant, which remained on alert, could restart.

Dominion spokesman Jim Norvelle said the plant was designed to withstand an earthquake of up to 6.2 in magnitude.

NEW YORK (Reuters) – Oil rose on Tuesday on speculation the U.S. Federal Reserve could embark on fresh stimulus measures for the economy, and on continued violence in Libya and planned disruptions to Nigeria’s oil exports.

U.S. crude for October delivery rose by 91 cents to $85.33 a barrel and European benchmark Brent traded up 80 cents at $109.20 by 1:52 p.m. in New York.

Rising U.S. equities markets helped lift crude prices. The S&P 500 index gained 2.4 percent ahead of a widely anticipated speech by Fed Chairman Ben Bernanke at a central bankers’ meeting Friday in Jackson Hole, Wyoming.

Some investors expect Bernanke to signal more Fed quantitative easing measures ahead to stimulate a sluggish U.S. economy.

“This is a rally driven on hopes of Bernanke saying something about more stimulus,” said Bill O’Grady of Confluence Investment Management in St. Louis.

“In Libya, rebels are in an urban warfare situation and Gaddafi hasn’t fallen, increasing the risk of oil disruptions and a lengthy period before production can resume.”

In top African oil producer Nigeria, Royal Dutch Shell declared a force majeure on Tuesday for exports of Bonny Light crude through October, following a hacksaw attack on a pipeline.

NEW YORK (Reuters) – U.S. crude oil shipments by railroad could help to end gaping price distortions in world oil markets faster than most traders have been expecting.

Rail shipments of crude from the landlocked and oversupplied Midwest to refiners in the Gulf Coast appear set to surge next year, to nearly double the volume now flowing in congested pipelines between the regions.

The shipments, which were rare until this year, have already grown to around 100,000 barrels per day (bpd) in recent months, industry sources told Reuters. Two rail terminals in St. James, Louisiana are receiving much of the crude, while other sites like Houston are taking additional crude.

The daily cargoes between the Midwest (PADD 2) and the Gulf Coast (PADD 3) could triple to 300,000 bpd by late 2012, industry sources said. Logistics firms unveiled plans for several new crude-by-rail terminals over the last four months.

Since the Department of Energy does not track crude-by-rail, there’s no official data on how much is moving.

But logistics firms say volumes are growing fast, a trend that could slash discounts of $24 a barrel on U.S. oil futures relative to oil in the Gulf Coast or Europe.

Delays in southbound pipeline construction and insufficient existing capacity have resulted in midwestern crude gluts, the main reason cited by oil traders for the unusual discounts. Railroads are emerging as a viable option for inland oil producers to get crude to coastal areas and maximize profits.

NEW YORK (Reuters) – U.S. crude oil shipments by railroad could help to end gaping price distortions in world oil markets faster than most traders have been expecting.

Rail shipments of crude from the landlocked and oversupplied Midwest to refiners in the Gulf Coast appear set to surge next year, to nearly double the volume now flowing in congested pipelines between the regions.

The shipments have already grown to around 100,000 barrels per day (bpd) in recent months, industry sources told Reuters. Two rail terminals in St. James, Louisiana are receiving much of the crude, while other Gulf Coast sites including Houston are taking additional crude.

The daily cargoes between the Midwest (PADD 2) and the Gulf Coast (PADD 3) could triple to 300,000 bpd by late 2012, industry sources said. Logistics firms unveiled plans for several new crude-by-rail terminals over the last four months.

Such traffic between the regions was rare until recently. Since the Department of Energy does not track crude-by-rail, there’s no official data on how much is moving.

But logistics firms say volumes are growing fast, a trend that could slash discounts of nearly $23 a barrel on U.S. oil futures relative to oil in the Gulf Coast or Europe.

Delays in southbound pipeline construction and insufficient existing capacity have resulted in midwestern crude gluts, the main reason cited by oil traders for the unusual discounts. Railroads are emerging as a viable option for inland oil producers to get crude to coastal areas and maximize profits.

NEW YORK (Reuters) – Top U.S. refiner Valero is likely to commit to shipping crude on Enterprise Products Double E pipeline, a 450,000 bpd oil link that would run from Cushing, Oklahoma, to Houston and could begin operating before 2013, two industry sources told Reuters on Tuesday.

Enterprise and its partner, Energy Transfer, have been scrambling to drum up commitments from oil shippers to help it build the line, which could alleviate a glut of crude in the U.S. midcontinent.

As a huge Gulf Coast refiner, Valero’s weight behind the project may help give it critical mass to go forward, said the sources who requested anonymity.

Valero declined comment on whether it would participate in Double E. The company has said in the past it supports a “debottlenecking” of oil logistics in the U.S. Midwest and wants to bring more oil to its plants along the Gulf Coast.

Valero has already committed to shipping crude down a competing oil pipeline known as Keystone XL, which is still seeking approval from the U.S. State Department since it would bring in crude from Canada and ship it to the Gulf Coast.

Energy Transfer did not return calls seeking comment. Enterprise spokesman Rick Rainey declined comment on whether Valero would ship oil on Double E. He said the company expects to announce results of its so-called open season for Double E soon.

That period, which was extended twice before it ended on Friday, saw Enterprise seek commitments from oil producers, oil traders and refiners to ship crude on Double E once it is built.

NEW YORK (Reuters) – As a U.S. economic rebound stalls and threatens to spiral into recession, oil demand in the world’s top consumer may be slipping into an irreversible decline.

Last year’s fledgling recovery in U.S. oil usage — when demand rose 400,000 barrels per day (bpd) — made up for only a part of the 1 million bpd demand drop during a year of economic turmoil that began in August 2008.

Until recently, most analysts believed a healthier economy would push U.S. oil use higher this year and next, before tighter environmental regulations, increased use of biofuels, and tougher fuel-efficiency standards kick in later this decade to lower demand permanently.

Instead, a sour economy may turn last year’s demand growth into a one-off. With U.S. manufacturing and service sectors slowing, a recent S&P downgrade on U.S. debt, and a series of stock market falls that have rattled consumer confidence, the odds are tilting toward short-term declines as well.

Last week, the U.S. Department of Energy lowered its forecast for U.S. oil demand from growth to decline in 2011. It also cut its forecasts for growth in global oil demand, as did the Organization of the Petroleum Exporting Countries and the International Energy Agency.

“We see U.S. oil demand falling this year and, later, settling into steady declines after 2015,” said Rick Mueller of Boston-based consultant Energy Security Analysis Inc.

“It’s all about the transportation sector, and the trends point to lower oil use.”

NEW YORK (Reuters) – As a U.S. economic rebound stalls and threatens to spiral into recession, oil demand in the world’s top consumer may be slipping into an irreversible decline.

Last year’s fledgling recovery in U.S. oil usage — when demand rose 400,000 barrels per day (bpd) — made up for only a part of the 1 million bpd demand drop during a year of economic turmoil that began in August 2008.

Until recently, most analysts believed a healthier economy would push U.S. oil use higher this year and next, before tighter environmental regulations, increased use of biofuels, and tougher fuel-efficiency standards kick in later this decade to lower demand permanently.

Instead, a sour economy may turn last year’s demand growth into a one-off. With U.S. manufacturing and service sectors slowing, a recent S&P downgrade on U.S. debt, and a series of stock market falls that have rattled consumer confidence, the odds are tilting toward short-term declines as well.

Last week, the U.S. Department of Energy lowered its forecast for U.S. oil demand from growth to decline in 2011. It also cut its forecasts for growth in global oil demand, as did the Organization of the Petroleum Exporting Countries and the International Energy Agency.

“We see U.S. oil demand falling this year and, later, settling into steady declines after 2015,” said Rick Mueller of Boston-based consultant Energy Security Analysis Inc.

“It’s all about the transportation sector, and the trends point to lower oil use.”

NEW YORK, Aug 4 (Reuters) – Logistics firms are accelerating plans to build crude-by-rail terminals in the United States as shippers look to transport more oil on railroads to capture massive oil price spreads between the country’s northern and southern regions.

Logistics firm Musket said on Thursday it would build capacity to ship 70,000 barrels a day of oil by railroad from North Dakota’s Bakken region, and competitor Plains All American (PAA.N: Quote, Profile, Research, Stock Buzz) said it is also boosting crude-by-rail capacity.

Oil traders and shipping companies are building rail terminals in the booming Bakken shale and other northern or mid-continent locations in a race to move crude south due to a dearth of pipelines to do the job. Pipeline tariffs remain cheaper than rail, but the boom period for crude-by-rail could last until at least 2013, when new pipelines between the Midwest and Gulf Coast regions enter into play.

The unusually large price spread of more than $20 per barrel between crudes in Cushing, Oklahoma, or further north, and those traded in the U.S. southern Gulf Coast region is providing huge economic incentives to move crude south.

Oklahoma-based Musket, a fuel trader and logistics firm, said Thursday it will build a unit train terminal at Bakken by early 2012, expanding its existing rail infrastructure in an oil-boom region that now produces around 400,000 barrels a day.

The plans will allow Musket to 70,000 to 80,000 bpd from Bakken, mostly in unit rail cars, up from an average daily shipments of 10,000 to 16,000 bpd now on so-called manifest cars, a company source told Reuters.

Musket didn’t give the cost of the expansion. The company currently ships Bakken crude by rail to the Gulf Coast, West Coast and Mid-Continent locations. But once built, unit-car terminals provide much cheaper transport costs than moving oil on individual manifest cars.