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September 8, 2011

Energy Data Highlights

Crude oil futures price 9/6/2011: $86.02/bbl down$2.88 from week earlier up$11.42 from year earlier Natural gas futures price 9/6/2011: $3.938/mmBtu up$0.029 from week earlier down$0.002 from year earlier Retail gasoline price 9/5/2011: $3.674/gal up$0.047 from week earlier up$0.992 from year earlier Retail diesel price 9/5/2011: $3.868/gal up$0.048 from week earlier up$0.937 from year earlier Weekly coal production 8/27/2011: 21.153 million tons up0.366 million tons from week earlier down0.251 million tons from year earlier http://www.eia.gov/ Natural Gas/ Power News EIA Storage Release 9/1/11 (Actual): +55 Bcf Previous Week: +73 Bcf -4.4% Change from 1 Year Ago -2.0% Change 5-year Average China, Kazakhstan Sign Agreement to Expand Natural-Gas Pipeline Network China, the worlds biggest energy user, signed an accord with Kazakhstan to expand the capacity of a pipeline network delivering natural gas from Central Asia by more than 80 percent. http://www.bloomberg.com/news/2011-09-08/china-kazakhstan-sign-accord-toexpand-gas-pipeline-network-1-.html

Gas-Pipeline Operators Sweat Test U.S. pipeline companies are questioning whether it is necessary to conduct a type of safety test on all high-pressure, natural-gas pipelines built before 1970, an exercise that federal investigators say would help prevent deadly explosions.Companies are required by federal law to perform a water-pressure test on all gas-transmission pipelines built after 1970. The proposed change would expand that requirement to the nearly 178,000 miles of large-diameter, highpressure gas pipelines more than 40 years old, about 60% of the nation's network. http://online.wsj.com/article/SB1000142405311190410340457655668182767762 2.html?KEYWORDS=natural+gas

Crude Oil News

OPEC Daily Basket Price 9/7/2011 $111.33 (9/6/2011 $108.32) Recent Rig Counts Last Count Change Cou from Prior nt Count -7 +9 -8 Date of Prior Count 26 Aug 11 26 Aug 11 June 2011 Change Date of from Last Last Year's Year Count +315 +129 +41 03 Sept 10 03 Sept 10 July 2010

Area U.S. Canada Internatio nal

2 Sept 1968 11 2 Sept 11 July 2011 517 1150

http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm Brent eases as awaits economic news, oil data Brent oil eased on Thursday, falling from its highest in a month, ahead of news from the heads of the European and U.S. central banks, a jobs package from the U.S. president and weekly oil inventory data. http://www.reuters.com/article/2011/09/08/us-markets-oilidUSTRE77838320110908 Crude Oil Inventories Decreased Last Week, API Says in Report Crude oil inventories fell 2.97 million barrels to 349.2 million last week, the American Petroleum Institute said. Gasoline stockpiles fell 871,000 barrels to 209.9 million, the report showed. Inventories at Cushing, Oklahoma, the delivery point for futures traded on the New York Mercantile Exchange, declined 426,000 barrels to 32.7 million. http://www.bloomberg.com/news/2011-09-07/crude-oil-inventories-decreased-lastweek-api-says-in-report.html Brent Steady at Over $115; German Court Ruling Supports Brent crude held steady above $115 a barrel, after a $3 surge in the previous session, in line with a rebound in equity markets as a ruling by a top German court helped assuage fears that euro zone bailout efforts might get stalled. Prices were

also supported by storms in the U.S. Gulf Coast that have already shut in about 37 percent of oil production from the region. Investors are awaiting U.S. President Barack Obama's speech on jobs and a European Central Bank rate-setting meeting later for clues on the health of the global economy. http://www.cnbc.com/id/44432394 Crude Oil Declines From 5-Week High as Libyans Discuss Output, Storm Spins Crude futures declined in New York, paring yesterdays 3.9 percent rally, as Libyan officials discussed prospects for resuming production and investors bet that economic growth is faltering. http://www.bloomberg.com/news/2011-09-08/crude-oil-declines-from-5-week-highas-libyans-discuss-output-storm-spins.html Oil jumps $3 to 5-week high on storm concerns, Europe Oil rose by more than $3 to a five-week high on Wednesday, boosted by production outages in the Gulf of Mexico and tracking a surge in equity markets after a ruling by Germany's top court soothed euro zone fears. http://www.reuters.com/article/2011/09/07/us-markets-oilidUSTRE77838320110907 Oil Rises as Storm Threatens Gulf Crude oil climbed the most in four weeks in New York as a weather system threatened to reduce U.S. production from the Gulf of Mexico, where shut-ins from last weeks storm probably curbed stockpiles. http://www.bloomberg.com/news/2011-09-07/oil-in-new-york-rises-on-forecastsupply-decline-as-storm-threatens-gulf.html Gulf of Mexico rig count 'unsustainable' without quicker permits: FBR Twenty deepwater drilling rigs would leave the Gulf of Mexico if US regulators do not accelerate permitting, investment bank FBR Capital Markets said Wednesday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6448981 Rising Equity Prices and Sliding Dollar Boost Oil Markets A German court decision that ruled its countrys participation in the European bailout program was constitutional and surging German industrial production of 4% which helped lift equity prices and send the dollar lower drove the oil and fuel market higher to start Wednesdays trading session as the energy markets continue to take their direction from price swings in the broader financial markets. Crude oil rallied $1.57 to $87.59, while the product market climbed more than 2 cents higher to 3.0360 basis heating oil and to 2.8471 basis gasoline in moderate overnight trading to begin todays mid-week trading. http://www.theenergydesk.com/editorial.aspx?id=891649 Oil Firms on Hopes of Obama's Stimulus Oil prices remained supported in European session. Market sentiment improved dramatically as US President Barack Obama is scheduled to announce new measures to bolster the employment situation tomorrow. WTI crude oil climbed higher to 86.5/87.4 today. The front-month contract slumped to as low as 83.2 yesterday but then staged a sharp rebound and ended the day at 86.02. The equivalent Brent crude contract faltered after failing to re-test 114 today. The contract jumped +2.55% yesterday. Other than Obama's stimulus, financial markets were also boosted by some news and events happened in China and the Eurozone.

http://community.nasdaq.com/News/2011-09/oil-firms-on-hopes-of-obamasstimulus.aspx?storyid=93540 US oil production, demand estimates cut for 2012 on weaker economy: EIA Demand for crude oil and liquid fuels in the US will drop in 2012, reflecting more modest economic growth projections, the Energy Information Administration said Wednesday in its September Short-Term Energy Outlook. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6448894 New IEA head rules out oil reserves use to lower price The International Energy Agency ( IEA) will release emergency oil reserves only in case of a supply disruption and not to help the economy or lower prices, its new executive director said on Thursday. Maria van der Hoeven, a former Dutch economy minister who started at the IEA on Sept. 1, also said the agency's release of oil from its emergency reserves in June was a success and there was no plan for a further move. http://www.commodities-now.com/news/power-and-energy/7734-new-iea-headrules-out-oil-reserves-use-to-lower-price.html Oil producers target Asia as outlook in West bleak Oil producers from Brazil to Azerbaijan are targeting Asia to expand sales as growth falters in the U.S. and Europe, highlighting confidence that the world's fastest-growing energy market will offset any demand slump in industrialised nations. At Singapore's annual Asia-Pacific Petroleum Conference (APPEC) this week, company executives are still upbeat about booming energy consumption in the region, despite the uncertainty surrounding the pace of global economic growth. http://www.commodities-now.com/reports/power-and-energy/7735-oil-producerstarget-asia-as-outlook-in-west-bleak.html Lake Charles refinery hit with criminal charges A Houston company that owns a refinery in Lake Charles, La. was charged today with criminal violations of federal anti-pollution laws and obstructing justice http://fuelfix.com/blog/2011/09/07/lake-charles-refinery-hit-with-criminal-charges/ BP doubles estimate for Mad Dog field BP says it has drilled a successful appraisal well in a previously untested northern segment of the Mad Dog field in the Gulf of Mexico, leading it to double the size of the potential resource. http://fuelfix.com/blog/2011/09/07/bp-doubles-estimate-for-mad-dog-field/ Ex-BP CEO Hayward to Spark Oil Fight in Iraq Tony Haywards $2.1 billion deal for oil assets in Iraqs Kurdistan region may spark a battle for resources from the area as its export prospects brighten http://www.bloomberg.com/news/2011-09-08/tony-hayward-to-spark-oil-fight-iniraqi-last-great-frontier-.html

Weather

Tropical Storm Nate Forecast to Strengthen as Lee Drenches U.S. Northeast Tropical Storm Nate, one of three active weather systems in the Atlantic basin, was forecast to grow stronger as it moves erratically in Mexicos Bay of Campeche, the National Hurricane Center said http://www.bloomberg.com/news/2011-09-07/tropical-storm-nate-forms-as-threesystems-now-churning-in-atlantic-ocean.html Tropical Storm MARIA http://www.nhc.noaa.gov/text/refresh/MIATCPAT4+shtml/081139.shtml

Tropical Storm NATE http://www.nhc.noaa.gov/text/refresh/MIATCPAT5+shtml/081146.shtml

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