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November 9, 2011 Energy Data Highlights Energy Data Highlights Crude oil futures price 11/7/2011: $95.52/bbl up$2.33 from week earlier up$8.67 from year earlier Natural gas futures price 11/7/2011: $3.696/mmBtu down$0.238 from week earlier down$0.244 from year earlier Retail gasoline price 11/7/2011: $3.424/gal down$0.028 from week earlier up$0.559 from year earlier Retail diesel price 11/7/2011: $3.887/gal down$0.005 from week earlier up$0.771 from year earlier Weekly coal production 10/29/2011: 21.634 million tons up0.475 million tons from week earlier up1.154 million tons from year earlier http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 11/3/11 (Actual): +78 Bcf Previous Week: +92 Bcf -0.4% Change from 1 Year Ago +5.6% Change 5-year Average

RWE npower: Challenges to UK power sector could provide revenue source for end-users A potential revenue stream will open up over the next few years for energyintensive corporations in the UK to sell back-up power to fill supply gaps left by retired plants, says RWE npower. http://www.risk.net/energy-risk/news/2123738/rwe-npower-challenges-uk-powersector-provide-revenue-source-users

TPG puts $1 billion behind Maverick American for gas assets Private equity giant TPG Capital will put $1 billion behind two exploration and production business veterans to form a new company focused on acquiring onshore natural gas production assets. The new company, Maverick American Natural Gas, will be run by Dan Allen Hughes Jr. and Thomas M. Hart III. Maverick, which will be based in San Antonio, will focus on buying production facilities in conventional natural gas fields meaning fields that produce gas from formations other than dense shales that have been the focus of much of the nations drilling in recent years. http://fuelfix.com/blog/2011/11/09/tpg-puts-1-billion-behind-maverick-americanfor-gas-assets/ Chesapeake chief renews call for US policies that promote use of gas The head of US producer Chesapeake Energy on Tuesday once again called for industry and government leaders to adopt policies aimed at stimulating demand for natural gas to take advantage of the nation's shale plays. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6654058

Duke CEO Rogers sees potential halt in power-demand growth, as prices rise Differing from some of his utility CEO colleagues, Duke Energy Chairman, President and CEO Jim Rogers said Tuesday that growth in power demand may have stopped, as price increases loom. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/6654107

US energy secretary calls for faster power grid modernization US Energy Secretary Steven Chu on Tuesday said that the deployment of solar, wind and other renewable energy was outpacing the development of a modern electricity grid, and that the country risked falling behind others in the use of advanced grid technologies. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/6654055

Green/ Alternative Energy News

First Solar Says Competitors Desperate to Sell Panels in Glut First Solar, the worlds largest maker of thin-film solar panels, said competitors are desperate to sell inventory after adding too much factory capacity that has led to a supply glut and plummeting prices. http://www.bloomberg.com/news/2011-11-09/first-solar-says-competitorsdesperate-to-sell-panels-in-glut.html

Energy Costs Will Rise Viciously Without Atomic Energy, IEA Outlook Says Energy will become viciously more expensive and polluting if governments dont promote renewable and nuclear power in the next two decades instead of burning coal, the International Energy Agency said. Global demand for energy is set to increase 40 percent by 2035, the Paris-based agency said today in its annual World Energy Outlook report. Consumption will rise 1.3 percent a year to 16.96 billion metric tons of oil equivalent in 2035, spurred by China and other emerging economies, the IEA said. If we do not have an international legally binding agreement soon, and if it doesnt give a boost to a major investment wave of clean energy technologies by 2017, the door to 2 degrees will be closed forever, Fatih Birol, the IEAs chief economist in Paris, said in an interview yesterday. A shift away from nuclear power would definitely be bad news for energy security, for climate change and also for the economics of the electricity price. http://www.bloomberg.com/news/2011-11-09/energy-costs-to-rise-viciouslywithout-atomic-power-iea-outlook-says.html

Crude Oil News

OPEC Daily Basket Price 11/8/2011- $113.79 (11/7/2011- $111.08) Crude Oil Declines on Concern Italys Turmoil May Derail European Economy Oil declined for the first time in six days in New York after political turmoil in Italy revived concern that Europes debt crisis may continue to spread. Futures fell as much as 1.9 percent after reaching their highest price in more than three months. European equities declined as the cost of insuring against Italian default rose to a record. The euro sank 1 percent against the dollar, reducing the appeal of commodities priced in the U.S. currency. Further deterioration of the euro-zone crisis has shifted its focus from Greece to Italy, an economy too big to be bailed

out, said James Zhang, a strategist at Standard Bank Plc in London. It has spurred a general risk off in the market. http://www.bloomberg.com/news/2011-11-09/oil-snaps-longest-winning-streak-ina-year-before-u-s-crude-supply-data.html Brent down, hit by Italy debt worries Brent crude fell over $1 on Wednesday, pressured by European debt worries as the cost of Italian bonds reached dangerously high levels, driving investors from demand sensitive assets.Italian 10-year bond yields rose well above the 7 percent level that is widely deemed unsustainable, leading to sharp falls in equities and lifting the dollar against the euro. http://www.reuters.com/article/2011/11/09/us-markets-oilidUSTRE7922QH20111109 Brent Down, Europe Debt Offsets China Data Boost Brent crude fell on Wednesday, pressured by European debt concerns which outweighed a boost from cooling Chinese inflation data which had soothed fears of a sharp slowdown in the world's second largest oil consumer. Brent was well off the day's high of $115.75, as Berlusconi's declaration that he would resign did not stop worries about Italy's ability to service its debt. "The euro mess is not over yet and LCH increasing margins on the Italian debt is not helping," said Olivier Jakob, analyst at Petromatrix in Zug, Switzerland. http://www.cnbc.com/id/45213851 Crude-Oil Rally Chugs Along, Nears $97 a Barrel Oil prices extended a one-month rally to close at nearly $97 a barrel, buoyed by concerns about tightening crude supplies and a host of macroeconomic factors. Light, sweet crude for December delivery settled up $1.28, or 1.3%, at $96.80 a barrel on the New York Mercantile Exchange. Brent crude on the ICE Futures exchange settled 44 cents higher, or 0.4%, at $115 a barrel. Much of the market is focused on the U.S. government's weekly oil inventory report, which is due out Wednesday. A survey of analysts by Dow Jones Newswires predicts a small increase in crude supplies of 700,000 barrels, to 339.5 million barrels. However, many market participants believe the report will indicate stockpiles have shrunk, feeding fears of a near-term supply squeeze that have fueled much of the more than $20 increase in oil prices over the last month. http://online.wsj.com/article/SB1000142405297020455420457702574204430118 0.html?mod=WSJ_Commodities_LEFTTopNews Oil Could Hit $150 a Barrel in Near Term: IEA The price of oil could rise to as much as $150 per barrel in the near term if investment in the oil-producing countries of North Africa and the Middle East is lower than required to meet growth in demand from emerging economies, the International Energy Agency said on Wednesday. "Growth, prosperity and rising population will inevitably push up energy needs over the coming decades. But we cannot continue to rely on insecure and environmentally unsustainable uses of energy," IEA Executive Director Maria van der Hoeven said in said the organizations 2011 edition of the World Energy Outlook.

http://www.cnbc.com/id/45220111 Oil storage companies expand Houston Ship Channel facilities Two companies announced today plans to expand the Houston Ship Channels oil storage and transport capacity in multi-million dollar projects to help transport the nations growing crude oil production. Storage terminal company Oiltanking will construct two crude oil pipelines and add a million barrels of oil storage capacity at its Houston facility, an expansion with an $80 million to $85 million price tag, the company announced. The project expands Oiltankings active Houston storage capacity to 18.8 million barrels, the company said. It was not immediately clear how many miles of new pipeline will be constructed. http://fuelfix.com/blog/2011/11/08/oil-storage-companies-expand-houston-shipchannel-facilities/ Experts say $4 gasoline might be here by Easter
Gas prices might make you head spin now, but experts expect those prices to soar next year, according to a Los Angeles Times story. Experts told the newspaper that growing global demand and increasing U.S. fuel exports could send gas prices into the $4 range nationally by Easter. Gas prices have been steadily decreasing from the highs this summer, but nationally prices are still more than 50 cents higher than a year ago. Even with the declines this year, prices for this week are still more than 40 cents higher than record-high set in 2007. http://fuelfix.com/blog/2011/11/08/experts-say-4-gasoline-might-be-here-by-easter/

Pipeline Opening Highlights Russian Energy Role Russian and European corporate and government leaders Tuesday used the unveiling of a major new pipeline to tout an important, but challenging, energy partnership that is expected to become increasingly important for Europe as some parts of the continent scale back nuclear power. At an event to mark the start of the giant Nord Stream pipeline, German Chancellor Angela Merkel, French Prime Minister Franois Fillon and Russian President Dmitry Medvedev emphasized Russia's growing importance for European energy security and offered sunny comments on their deepening energy interdependency. http://online.wsj.com/article/SB1000142405297020419070457702609021655477 0.html?mod=WSJ_Commodities_LEFTTopNews Iran Nuclear Report Prompts U.S., Europe to Move for Sanctions U.S. and European officials said they will seek to tighten financial sanctions against Iran as soon as possible, armed with a United Nations atomic weapons inspectors report that asserts Iran has conducted clandestine activities specific to nuclear weapons.Singh, now managing director of The Washington Institute for Near East Policy, an independent research center, said in an interview that there are plenty of other sanctions on entities or individuals yet to be applied, including some similar to those recently imposed on Syria. You never know what marginal pressure will cause Iran to break. Iran is the second-largest oil producer in the Organization of Petroleum Exporting Countries, after Saudi Arabia. About 15.5 million barrels of oil a day, the equivalent of about a sixth of global consumption, according to the U.S. Energy Department, flows through the Strait of Hormuz, a narrow waterway between Iran and Oman at the mouth of the Persian Gulf. http://www.bloomberg.com/news/2011-11-09/iran-nuclear-report-by-un-inspectorsspurs-u-s-europe-to-press-sanctions.html

US proposes new five-year offshore leasing plan A new five-year offshore leasing proposal, the first from the Obama administration, favors areas with current leases and does not include a sale off the Virginia coast, the US Department of the Interior said Tuesday. The plan was slammed by Republicans and industry groups, which said it did not go far enough to create jobs or take advantage of US energy resources. Environmental groups said the program put sensitive Arctic resources at risk from the effects of an oil spill. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6654116

Obama proposal would open Arctic and Gulf of Mexico to oil drilling Arctic waters would be open to new oil and gas development under an Obama administration proposal that keeps the Pacific and Atlantic coasts off limits to new drilling. The Interior Departments plan steers a middle course, going too far in the view of environmental groups and not far enough in the eyes of House Republicans http://latimesblogs.latimes.com/greenspace/2011/11/obama-opens-oil-drilling-inarctic-gulf-of-mexico-.html

Recent Rig Counts Change from Prior Count 5 -23 -12 Date of Prior Count 28 Oct 11 28 Oct 11 Septembe r 2011 Change Date of from Last Last Year's Year Count +343 +59 +54 5 Nov 10 5 Nov 10 September 2010

Area U.S. Canada

Last Cou Count nt 4 Nov 2026 11 4 Nov 11 476

Internatio October 1162 nal 2011

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

Weather Tropical Storm SEAN http://www.nhc.noaa.gov/text/refresh/MIATCPAT4+shtml/091143.shtml

6 to 10 Day Outlooks Temperature

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8 to 14 Day Outlooks Temperature

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