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September 14, 2011

Energy Data Highlights

Crude oil futures price 9/12/2011: $88.19/bbl up$1.74 from week earlier up$11.74 from year earlier Natural gas futures price 9/12/2011: $3.885/mmBtu up$0.013 from week earlier up$0.005 from year earlier Retail gasoline price 9/12/2011: $3.661/gal down$0.013 from week earlier up$0.940 from year earlier Retail diesel price 9/12/2011: $3.862/gal down$0.006 from week earlier up$0.919 from year earlier Weekly coal production 9/3/2011: 20.986 million tons down0.167 million tons from week earlier down0.825 million tons from year earlier http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 9/1/11 (Actual): +64 Bcf Previous Week: +55 Bcf -4.2% Change from 1 Year Ago -1.9% Change 5-year Average

Natural Gas: Boom or Bust Natural gas, in many ways, is a tough form of energy to beat. http://www.greentechmedia.com/articles/read/natural-gas-article-for-ge/

Conoco Tries to Fuel More Natural-Gas Use ConocoPhillips is launching a campaign for natural gas to play a greater role in meeting U.S. energy needs, even as it plays a diminished role in the energy giant's portfolio because of weak prices driven by a supply glut.With the initiative, "Power in Cooperation," Houston-based Conoco is staking out a position on a major domestic energy issue, touting the country's massive natural-gas resources as a job-creating, clean-burning energy source, while trying to address concerns about its impact on the environment. http://online.wsj.com/article/SB1000142405311190353280457656891328224747 4.html?mod=rss_Politics_And_Policy Japan hopes to buy LNG from U.S. by 2015 Japan hopes to start buying liquefied natural gas from the United States after a project there starts exporting LNG in 2015, as the country looks to secure a steady supply amid growing demand for the fuel, a trade ministry official said on Wednesday. Japan's demand for natural gas is expected to rise for years to come, with its LNG imports climbing at a record pace this year as utilities ramp up gasfired generation to offset a drop in nuclear utilisation following the Fukushima crisis. http://www.sharenet.co.za/news/Japan_hopes_to_buy_LNG_from_US_by_2015/708f 4e271b1011c2c88e4c92443b13cb Australia's Norwest Energy gets approval to fracture shale gas well Australia's Norwest Energy has received approval from the Western Australian Department of Mines and Petroleum to hydraulically fracture stimulate the Arrowsmith-2 shale gas well, the company said Wednesday in a release to the Australian Securities Exchange. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7350157 EPA says it tried to help Luminant avoid plant shut downs Dallas-based Luminant said Monday it was shutting down two of its coal-fired power generation units at the end of the year because it wasnt possible to retrofit them to meet new air quality standards set to go into effect on Jan. 1. The move has been telegraphed for a while Luminant has been the most vocal of the Texas power plant operators about the pending Cross State Air Pollution Rules ever since the final version was released in July with the surprise inclusion of Texas for sulfur dioxide reductions. http://fuelfix.com/blog/2011/09/13/epa-says-it-tried-to-help-luminant-avoid-plantshut-downs/

Green/ Alternative Energy News

Carbon emissions to go on rising way beyond 2030 Energy experts are seriously concerned about the world's capacity to cut carbon emissions over the coming decades, according to a new report published today by the Economist Intelligence http://www.commodities-now.com/news/environmental-markets/7807-carbonemissions-to-go-on-rising-way-beyond-2030.html

Crude Oil News

OPEC Daily Basket Price 9/13/2011 $108.42 (9/10/2011 $107.86) Recent Rig Counts Last Count Change Cou from Prior nt Count -10 -2 +33 Date of Prior Count 2 Sept 11 2 Sept 11 July 2011 Change Date of from Last Last Year's Year Count +304 +132 +81 10 Sept 10 10 Sept 10 August 2010

Area U.S. Canada Internatio nal

9 Sept 1958 11 9 Sept 11 515

August 1183 2011

http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm Oil gains ground as risk appetite recovers Brent crude rose on Wednesday as proposals from the European Commission to issue joint bonds reassured investors hoping for a resolution to the euro zone debt crisis. http://www.reuters.com/article/2011/09/14/us-markets-oilidUSTRE77838320110914 New York Oil-Price Contango Narrows as Stockpiles Decline The price gap between front-month and November crude oil futures in New York fell for a sixth day after settling yesterday at the narrowest in almost three years. Crude for October delivery on the New York Mercantile Exchange was at $89.39 a barrel in electronic trading at 10:54 a.m. Singapore time, 6 cents below the November contract. On a settlement basis, the discount was 7 cents yesterday, the smallest for front-month futures since November 2008, according to data compiled by Bloomberg http://www.bloomberg.com/news/2011-09-14/new-york-oil-price-contangonarrows-as-stockpiles-decline-1-.html Crude Oil Drops From Six-Week High on Concern Economic Recovery to Falter Oil declined from a six-week high on concern that Europes debt crisis and the faltering U.S. economic recovery will temper fuel demand. Futures fell as much as 1.9 percent after technical indicators signaled gains of more than 3 percent in the past two days may have been excessive. The European Central Bank said it will lend two euro-area banks dollars tomorrow, a sign they are having difficulties with borrowing. The International Energy Agency yesterday cut global oil-consumption forecasts for this year and 2012. The Energy Department may say U.S. crude stockpiles fell last week, according to a Bloomberg survey.

http://www.bloomberg.com/news/2011-09-14/crude-oil-drops-from-six-week-highon-concern-economic-recovery-to-falter.html OIL FUTURES: Crude Oil Mixed on Uncertainty Over Eurozone Debt Crude prices were mixed Wednesday as investors remained cautious ahead of a conference call between Greek Prime Minister George Papandreou, German Chancellor Angela Merkel and French President Nicolas Sarkozy to discuss the Greek debt crisisAdding to the gloom, Moody's Investors Service cut the credit ratings of two French banks, Societe Generale and Credit Agricole, because of their exposure to Greek debt, causing fresh concern that the European debt crisis could spread to other countries in the euro zone. http://www.nasdaq.com/aspx/stock-market-news-story.aspx? storyid=201109140647dowjonesdjonline000297&title=oil-futures-crude-oil-mixedon-uncertainty-over-eurozone-debt Commodities speculation debate heats up The debate over whether high oil prices are the result of tight fundamentals or pure financial speculation is heating up, and economists are trading heavy punches. http://www.ft.com/cms/s/0/f36db348-deaa-11e0-a22800144feabdc0.html#axzz1XvXdsyuu Heavy crude oil growth to outstrip new condensate supply to 2030: HART The world will see far more incremental barrels of heavy crude in the market over the next two decades than the additional condensate supply that will come on stream, according to an analyst at Hart Energy, a provider of specialized data and information products to the energy industry. Global crude production is expected to grow from 73.5 million b/d in 2010 to 93 million b/d in 2030, of which heavy crude oil (API gravity of less than 22 degrees) will account for 38% and condensates and natural gas liquids or NGLs for 14%, Hart Energy's executive director for refining, planning and evaluation, Rodrigo Favela, told a recent industry conference in Singapore. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8340130 BP sees 'good' initial result from Alaska North Slope heavy oil test well BP is getting very good results from the first of four test production wells drilled into the Ugnu heavy oil deposit on the Alaska North Slope, company officials said in an interview Tuesday. The well produced up to 650 b/d of oil mixed with sand and with the sand removed the net production was about 550 b/d, said Eric West, BP's manager on the project. Production began on April 22. "It was higher than we expected. It is a good well," West said. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6473799 Alberta wants more oil sands pipelines Canadas oil sands producers need to build at least two more pipelines the size of the controversial Keystone XL project if they are to meet their ambitious plans for growth, Albertas energy minister has said. http://www.ft.com/intl/cms/s/0/5a0b442e-dd86-11e0-b6db-00144feabdc0.html? ftcamp=rss#axzz1XvXdsyuu

Weather

Tropical Storm MARIA http://www.nhc.noaa.gov/text/refresh/MIATCPAT4+shtml/141148.shtml 6 to 10 Day Outlooks Temperature

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8 to 14 day Outlooks Temperature

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