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November 3, 2011

Energy Data Highlights

Crude oil futures price 11/1/2011: $92.19/bbl down$0.98 from week earlier up$9.24 from year earlier Natural gas futures price 11/1/2011: $3.781/mmBtu up$0.123 from week earlier down$0.049 from year earlier Retail heating oil price 10/31/2011: $3.85 /gal up$0.052 from week earlier up$0.858 from year earlier Crude oil inventories 10/28/2011: 339.5 mmbbl up1.8 mmbbl from week earlier down28.7 mmbbl from year earlier Weekly coal production 10/22/2011: 21.159 million tons down0.227 million tons from week earlier down0.111 million tons from year earlier http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 10/27/11 (Actual): +92 Bcf Previous Week: +112 Bcf -0.7% Change from 1 Year Ago +4.4% Change 5-year Average Shale Gas Reserves Could Reignite U.S. Economy On the economic potential of the nascent shale revolution, even some career environmentalists sound impressed, if cautious. This thing is a potential gamechanger, said Fred Krupp, president of the New York-based Environmental

Defense Fund (EDF). Shale production in the U.S. has increased from practically nothing in 2000 to more than 13 billion cubic feet per day, or about 30 percent of the countrys natural-gas supply. http://www.bloomberg.com/news/2011-11-03/shale-gas-reserves-have-potentialto-reignite-u-s-economy.html Russia confirms 2017 target for gas pipeline supply to S.Korea: report Pipeline supplies of Russian gas to South Korea are expected to start in 2017, Gazprom CEO Alexei Miller reiterated Wednesday following talks between Russia's President Dmitry Medvedev and his South Korean counterpart Lee Myung-Bak in St Petersburg. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8533804 Government gets into shale gas research with a bang US government scientists are experimenting with the use of explosive charges to fracture deep underground formations to stimulate the production of shale gas, a researcher said at the World Energy Council Business Forum in Houston Tuesday. Julio Friedmann, carbon management program leader at the Lawrence Livermore National Laboratory, said the lab is studying the effectiveness of explosive detonations in creating fractures in oil- and gas-bearing formations as an alternative to hydraulic fracturing, the well-completion technique most commonly employed to free these energy resources from solid rock. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/3766112

Green/ Alternative Energy News

Hydropower Makes Australian Utility Ratings Resilient, S&P Says Standard & Poors Ratings Services said that the ratings of Austrian utilities have proven to be resilient. A high share of environment-friendly hydropower assets, of regulated cash flows, and the bulk of activities in an economically strong region are helping Austrias rated utilities withstand the harsher utility market environment in Europe that has led to downgrades among many of their European peers, according to a statement today. http://www.bloomberg.com/news/2011-11-03/hydropower-makes-australian-utilityratings-resilient-s-p-says.html

Q-Cells Signs Contracts for Solar Park Project With Luxcara, MCG Q-Cells SE (QCE) is building a solar park in Brandenburg-Briest, Germany, with a capacity of 91 megawatts. It will be the largest solar park in Europe, according to the company. Q-Cells signed a contract for the project with investors Luxcara and MCG and it expects the project will be completed by end of 2011. http://www.bloomberg.com/news/2011-11-03/q-cells-signs-contracts-for-solarpark-project-with-luxcara-mcg.html

Crude Oil News

OPEC Daily Basket Price 11/2/2011- $108.65 (11/1/2011- $106.35)

Crude Oil Advances a Second Day as Europe Presses Greece on Rescue Deal Oil rose for a second day in New York, reversing losses as European leaders pressured Greece into proceeding with a rescue package that may stem the regions debt crisis. West Texas Intermediate futures on the New York Mercantile Exchange rebounded after dropping as much as 1.8 percent. Led by Germany and France, Europes economic and political anchors, the euros guardians yesterday cut off financial aid for Greece until an early December vote determines whether it deserves a fresh batch of loans. http://www.bloomberg.com/news/2011-11-03/oil-slides-after-europe-witholdsgreek-aid-u-s-crude-stockpiles-increase.html

Oil Inventories Slip, Slide Away A glut of crude, particularly at an important U.S. hub, that had oil companies and traders fixated for much of this year is giving way to worries about a decline in supplies. At Cushing, Okla., the storage hub that is key to determining U.S. oil prices, inventories are down 14% since the beginning of the year despite a slight rise last week, according to the latest data released Wednesday by the Department of Energy. While total U.S. crude stockpiles are slightly higher since the start of 2011, they are down 9.2%, to about 339.5 million barrels, from a May peak. The reversal has caused a jump in U.S. crude prices and revived talk of a return to the triple digits. Driving the fall in inventories is a global fuel appetite that is sated partly by U.S. refineries processing crude and then exporting products like diesel and gasoline to countries like China. http://online.wsj.com/article/SB1000142405297020462190457701414373427115 0.html?mod=WSJ_Commodities_LEFTTopNews

Chesapeake to Supply Ethane for Enterprise Pipeline Chesapeake Energy Corp. announced an agreement Wednesday to supply Enterprise Products Partners LP with ethane for its proposed pipeline connecting the Marcellus Shale to the U.S. Gulf Coast... Chesapeake, one of the most active drillers in the Marcellus, said it will supply 75,000 barrels a day of ethane over the next five years for Enterprise's pipeline. The 1,230-mile line would stretch to the Gulf Coast petrochemical refining hub and is scheduled to start operating in the

first quarter of 2014. Chesapeake's commitment would supply more than half of the 125,000 barrel-a-day pipeline's capacity. Enterprise said the committed shipper transportation rate would range between 14.5 cents and 15.5 cents a gallon. The 350,000 barrel-a-day Seaway pipeline, owned by Conoco and Enterprise, brings oil from the Gulf of Mexico to the storage hub in Cushing, Okla. But as new drilling technology helped lead to a U.S. oil-production boom and a supply glut in Cushing, customers have asked for Seaway's flow to be reversed to send the oil back to the Gulf Coast refining hub. http://online.wsj.com/article/SB1000142405297020371620457701385023227550 4.html?mod=WSJ_Commodities_LEFTTopNews TransCanada says Keystone delays could cost $1M a day A Canadian pipeline developer that wants to run an oil line through six states to Texas refineries would lose at least $1 million a day and suffer substantial economic harm if opponents delay or derail the project, a top executive said in response to a federal lawsuit. http://fuelfix.com/blog/2011/11/02/transcanada-says-keystone-delays-could-cost1m-a-day/

Devon seeks partner for 1.2 million-acre shale venture Devon Energy Corp. is seeking a joint-venture partner for five exploratory projects covering 1.2 million acres in the U.S., including the oil-bearing Niobrara and Utica formations, Chief Executive Officer John Richels said. Potential partners are reviewing data on the Mississippian oil deposit in Oklahoma, oil and natural-gas shale formations in Michigan and Louisiana, the Utica Shale in Ohio and the Niobrara deposit in Wyoming and Colorado, Richels said today in an investor conference call. Devon is still buying leases in those areas, he said. http://fuelfix.com/blog/2011/11/02/devon-seeks-partner-for-1-2-million-acre-shaleventure/

Husky prepares an Arctic expedition Before the end of the year, Husky Energy Inc. will begin preparing 40 kilometres of winter roads through the forests of the western Northwest Territories. Operating just below the Arctic Circle, it will build an ice bridge across the Mackenzie River and clear a landing strip on a frozen lake. http://www.theglobeandmail.com/report-on-business/husky-prepares-an-arcticexpedition/article2223218/?utm_medium=Feeds%3A%20RSS %2FAtom&utm_source=Home&utm_content=2223218

Recent Rig Counts Area Last Count Cou nt Change from Prior Count Date of Prior Count Change from Last Year Date of Last Year's

Count U.S. Canada 28 Oct 11 28 Oct 11 2021 499 8 2 -9 21 Oct 11 21 Oct 11 August 2011 +349 +66 +54 5 Nov 10 5 Nov 10 September 2010

Internatio Septemb 1174 nal er 2011

http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm

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