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September 22, 2011

Energy Data Highlights

Crude oil futures price 9/20/2011: $86.89/bbl down$3.32 from week earlier up$12.03 from year earlier Natural gas futures price 9/20/2011: $3.798/mmBtu down$0.182 from week earlier down$0.022 from year earlier Retail gasoline price 9/19/2011: $3.601/gal down$0.060 from week earlier up$0.878 from year earlier Crude oil inventories 9/16/2011: 339.0 mmbbl down7.3 mmbbl from week earlier down19.3 mmbbl from year earlier Weekly coal production 9/10/2011: 20.694 million tons down0.292 million tons from week earlier down0.380 million tons from year earlier http://www.eia.gov/ Natural Gas/ Power News EIA Storage Release 9/1/11 (Actual): +87 Bcf Previous Week: +64 Bcf -4.3% Change from 1 Year Ago -1.6% Change 5-year Average Sierra Club wants natural gas reforms An explosion at a natural gas well in Oklahoma this week shows why more safeguards are needed in the energy sector, the Sierra Club said. A natural gas well exploded near Watonga, Okla., late Monday, leading to the evacuation of around 20 homes. Authorities opted to let the blaze die out on its own. Deb Nardone, a natural gas reform director at the Sierra Club, issued a statement saying that natural gas disasters are a troubling trend across the country despite claims from the industry that appropriate procedures are in place.

http://www.upi.com/Business_News/Energy-Resources/2011/09/22/Sierra-Clubwants-natural-gas-reforms/UPI-90721316687205/ U.K. Gets Big Shale Find An area in northwest England may contain 200 trillion cubic feet of shale gas, putting it in the same league as some of the vast shale-gas plays that have transformed the U.S. energy industry. The figure for the area near Blackpool, released Wednesday by Cuadrilla Resources, a small oil-and-gas company with operations in England's Bowland Shale, highlights the U.K.'s emerging position as a new frontier for unconventional gas exploration. But it inflamed environmental groups who say the technology used to extract shale gas is environmentally damaging. "We have as much gas per square mile in Bowland as the successful North American shale plays," said Mark Miller, Cuadrilla's chief executive, in an interview. He said the company found nearly four times more gas than it was expecting to discover. The discovery of such vast resources200 trillion cubic feet would be enough to meet U.K. gas demand for 64 yearscomes at a time when the U.K.'s conventional gas fields are in steep decline and as it is becoming increasingly dependent on imports such as liquefied natural gas from Qatar and piped gas from Norway. http://online.wsj.com/article/SB1000142405311190456390457658490413910088 0.html?mod=WSJ_Commodities_LEFTTopNews

Green/ Alternative Energy News

Germanys Drive for Green Energy Subdues 2013 Power Prices: Energy Markets A surge in renewable energy in Germany is pushing power prices for 2013 below next years level even as natural gas, coal and emissions rise. http://www.bloomberg.com/news/2011-09-21/germany-s-green-drive-subdues2013-power-prices-energy-markets.html Light Bulb Saga Illuminates New Republicans How many Republicans does it take to screw in an energy-efficient light bulb? The answer to that riddle tells us much about the state of the Republican Party in 2011 http://www.bloomberg.com/news/2011-09-21/light-bulb-saga-illuminates-newrepublicans-margaret-carlson.html

Crude Oil News

OPEC Daily Basket Price 9/21/2011 $108.99 (9/20/2011 $108.29) Recent Rig Counts Last Count Change Cou from Prior nt Count 27 -13 Date of Prior Count 9 Sept 11 9 Sept 11 Change Date of from Last Last Year's Year Count +324 +169 16 Sept 10 16 Sept 10

Area U.S. Canada

16 Sept 1985 11 16 Sept 502 11

Internatio nal

August 1183 2011

+33

July 2011

+81

August 2010

http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm Oil Drops to Four-Week Low as Fed Sees Downside Risks to Economy Oil fell to the lowest price in more than four weeks in New York after the U.S. Federal Reserve cited significant downside risks to the economic outlook in the worlds biggest crude-consuming nation. http://www.businessweek.com/news/2011-09-22/oil-drops-to-four-week-low-as-fedsees-downside-risks-to-economy.html Oil Slides $3 on Economic Gloom, Dollar Oil prices fell over $3 a barrel on Thursday, with US futures touching $82.75 a barrel as a combination of signals heightened worries about global economic growth and a rallying U.S. dollar added to downard momentum. Investors were rattled by the U.S. Federal Reserve's statement that the world's largest oil consumer faced significant downside risks, and analysts worried measures to kickstart growth would be insufficient. Adding to gloom, a slowdown in China and the worst euro zone private sector growth in over two years cast clouds over the outlook for the global economy. "Brent is heading towards a test of $107 a barrel," said Thorbjrn Bak Jensen, an analyst at A/S Global Risk Management Ltd. "It's a combination of no QE3, low economic growth, China's PMI falling and European PMI data either slightly or widely below expectations." http://www.cnbc.com/id/44619415 OPEC eyes markets ahead of next meeting With another year before Libyan oil production returns to normal, one official at OPEC said from Vienna it was the economy that would determine crude output. A member of the Organization of the Petroleum Exporting Countries told Bloomberg News on condition of anonymity that Saudi Arabia would keep its production rates high to meet global demands so long as the economic troubles in U.S. and European markets are contained. http://www.upi.com/Business_News/Energy-Resources/2011/09/22/OPEC-eyesmarkets-ahead-of-next-meeting/UPI-94391316686149/

Shell chief warns of era of energy volatility Oil and gas supplies will struggle to keep up with world demand growth, making energy prices more expensive and more volatile in the long term, the head of Europes largest oil company has warned. http://www.ft.com/intl/cms/s/0/bbdda1c8-e485-11e0-92a300144feabdc0.html#axzz1YgT1oCow

Apache agrees to buy Exxons North Sea assets Apache said this morning it would buy Exxon Mobils North Sea assets, including the Beryl field and related properties, for $1.75 billion. The fields have current net production of approximately 19,000 barrels of oil and natural gas liquids and 58 million cubic feet of natural gas per day. At the end of 2010, estimated proved reserves totaled 68 million barrels of oil equivalent, according to Apache. The deal, which is expected to close at the end of this year, should increase Apaches North Sea production by 54 percent and proved reserves by 44 percent. http://fuelfix.com/blog/2011/09/21/apache-agrees-to-buy-exxons-north-sea-assets/ China approves plan for resource tax on oil, gas based on price, volume China's State Council has approved a plan to amend the resource tax on crude oil and natural gas exploration to be levied based on sales value and volume, instead of the current tax applied on just volume, according to a statement issued late Wednesday by the cabinet. The proposal was approved during a cabinet meeting chaired by Premier Wen Jiabao on Wednesday. The statement however, did not state if the tax will be increased from the current 5% to 10% for crude oil and natural gas, or if the tax would be extended to other commodities, as it has been widely expected. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8370703

Weather
Tropical Storm OPHELIA http://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/220853.shtml 6 to 10 Day Outlooks

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