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October 13, 2011

Energy Data Highlights

Crude oil futures price 10/11/2011: $85.81/bbl up$10.14 from week earlier up$4.48 from year earlier

Natural gas futures price 10/11/2011: $3.616/mmBtu down$0.022 from week earlier up$0.016 from year earlier Retail gasoline price 10/10/2011: $3.417/gal down$0.016 from week earlier up$0.598 from year earlier Retail diesel price 10/10/2011: $3.721/gal down$0.028 from week earlier up$0.655 from year earlier Weekly coal production 10/1/2011: 21.911 million tons up0.718 million tons from week earlier up0.481 million tons from year earlier http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 10/6/11 (Actual): +97 Bcf Previous Week: +111 Bcf -2.2% Change from 1 Year Ago +0.8% Change 5-year Average Cybercrime becomes bigger threat to energy industry than terrorists In years past, discussions about security in the energy industry usually focused on protecting refineries from terrorist attacks and overseas workers from kidnapping. http://fuelfix.com/blog/2011/10/13/cybercrime-becomes-bigger-threat-to-energyindustry-than-terrorists/

Williams last-minute bid for SUG assets fell through Houston-based Southern Union Co. was the center of a fierce bidding war this summer, which Energy Transfer Equity appears to have won. But rival suitor Williams Co. made a last-minute bid for some of Southern Unions assets, a bid that appears to have failed, according to a filing made Tuesday http://fuelfix.com/blog/2011/10/12/williams-last-minute-bid-for-sug-assets-fellthrough/ Drilling shift, power demand could hit gas oversupply: Conoco executive The abundance of US shale gas, a game changer for the natural gas industry in the country, has also led to a misconception that the US is vastly oversupplied, a ConocoPhillips official said Wednesday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6576717

Italy's Eni to restart Libyan gas export pipeline Oct 13 Italian oil major Eni is planning to resume Libyan gas imports through the Greenstream subsea gas pipeline on Thursday, Italy's Correra della Sera reported Wednesday without citing sources. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8452276

Green/ Alternative Energy News

Clean-Energy Investment Rises Annual 16% in Quarter, BNEF Says New investment in clean energy rose 16 percent in the third quarter to $45.4 billion, driven by a surge in wind and solar plant financings even amid Europes debt turmoil, Bloomberg New Energy Finance said. Asset finance of utility-scale renewable-energy projects jumped to a record $41.8 billion in the quarter, led by offshore wind deals, the London-based researcher said today in a statement. http://www.bloomberg.com/news/2011-10-13/clean-energy-investment-risesannual-16-in-quarter-bnef-says.html Munich Re Sees Window of Opportunity in Spanish Solar Plants Munich Re, the worlds biggest reinsurer, said investments in Spanish solar plants are being offered at attractive prices by developers and banks, providing a window of opportunity for investors. Supply of photovoltaic plants in Spain clearly exceeds demand at the moment, said Robert Pottmann, head of renewable energy and new technologies at MEAG, the Munich-based reinsurers asset manager. This is a window of opportunity offering pretty attractive returns to investors.

http://www.bloomberg.com/news/2011-10-13/munich-re-sees-window-ofopportunity-in-spanish-solar-plants.html

Eurogas sees 80% cut in EU CO2 by 2050 possible with 32% gas share Increasing gas' share in the EU's energy mix from 26% in 2010 to 32% in 2050 could contribute to meeting the EU's goal to cut its greenhouse gas emissions by 80% on 1990 levels by 2050, according to a study by European gas association Eurogas published Thursday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8457216

Crude Oil News

OPEC Daily Basket Price 10/12/2011- $107.68 (10/11/2011- $105.61)

Recent Rig Counts Change from Prior Count 22 12 -9 Date of Prior Count 30 Sept 11 30 Sept 11 August 2011 Change Date of from Last Last Year's Year Count +341 +119 +54 8 Oct 10 8 Oct 10 September 2010

Area U.S. Canada

Last Count

Cou nt

7 Oct 11 2012 7 Oct 11 522

Internatio Septemb 1174 nal er 2011

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

Oil Falls for a Second Day on Speculation U.S. and China Demand Will Slow Oil dropped for a second day in New York as signs of weakening U.S. fuel demand and slowing crude imports in China stoked speculation that consumption will falter in the worlds largest energy users. Futures fell as much as 1.9 percent before the Energy Department publishes figures that may show that crude inventories rose last week. The American Petroleum Institute said yesterday that U.S. gasoline demand slid the most in more than five years. Chinas net crude imports declined to the third-lowest level this year, the customs bureau said today.

http://www.bloomberg.com/news/2011-10-12/crude-oil-declines-for-second-day-innew-york-after-iea-s-demand-forecast.html Energy prices continue to climb Energy prices continued to rise Oct. 11 with front-month crude up a modest 0.5% for the day after failing to maintain an intraday high above $86/bbl in the New York market. Natural gas continued to surge, jumping 2.3%. http://www.ogj.com/articles/2011/10/market-watch-energy-prices-continue-toclimb.html European crude stocks hit multi-year low European oil stocks have plunged to their lowest in almost nine years after a wave of supply disruptions, the International Energy Agency said on Wednesday, a finding that explains the recent strength of Brent crude. The western countries oil watchdog said that European stocks fell in August, the latest month for which data are available, to less than 310m barrels, the lowest level since February 2003, due to a series of supply-side factors. These included the loss of Libyan supplies, North Sea production outages, pipeline sabotage in Nigeria and the gradual redirection of Russian crude flows towards Asia. http://www.ft.com/intl/cms/s/0/de085f44-f4a8-11e0-a28600144feab49a.html#axzz1aNUQw4Tp Total charts risky path in hunt for oil Total, the French oil company, has adopted a much bolder exploration strategy and will take on higher risk, higher reward acreage, according to Christophe de Margerie, its chairman and chief executive. The company will increase its net capital expenditure to an average of $23bn a year over the next four years, up from an average of $18.5bn over the past two years. But while the money was a vital ingredient of the invigorated strategy, it is not the essence, Mr de Margerie said. Its much more a new behaviour in the way we are spending this money. It is definitely in a more bold way. We were probably too cautious in the past, he admitted. http://www.ft.com/intl/cms/s/0/68659e7a-f4e2-11e0-ba2d00144feab49a.html#axzz1aNUQw4Tp Energy Risk Europe: eurozone sovereign debt fears could exacerbate oil supply problems, says Currie Fears that the sovereign debt crisis in the eurozone will lead to financial stress across the globe is causing oil producers to destock and cut back on investment shifts that could lead to supply problems if a global systemic event does not occur, warned Jeffrey Currie, global head of commodities research at Goldman Sachs, speaking at the Energy Risk Europe conference in London this morning. http://www.risk.net/energy-risk/news/2116680/energy-risk-europe-eurozonesovereign-debt-fears-exacerbate-oil-supply-currie Return of Libyan Oil Muddies the Water After six months, some Libyan oil is coming back to market, and crude prices could come under pressure as a result. Why? Because the output is returning sooner than expected, while demand projections are wavering. The collapse of Libya's oil exports earlier this year amid booming demand had the Organization of the Petroleum Exporting Countries opening up the spigots to prevent prices from

returning to the destructive highs of 2008. http://online.wsj.com/article/SB1000142405297020391430457662673076733982 2.html?mod=WSJ_Commodities_LEFTTopNews

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