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September 13, 2011

Energy Data Highlights

Crude oil futures price Retail gasoline price 9/12/2011: $3.661/gal down$0.013 from week earlier up$0.940 from year earlier Retail diesel price 9/12/2011: $3.862/gal down$0.006 from week earlier up$0.919 from year earlier Crude oil futures price 9/9/2011: $87.24/bbl up$0.79 from week earlier up$12.99 from year earlier Natural gas futures price 9/9/2011: $3.915/mmBtu up$0.043 from week earlier up$0.145 from year earlier Weekly coal production 9/3/2011: 20.986 million tons down0.167 million tons from week earlier down0.825 million tons from year earlier http://www.eia.gov/ Natural Gas/ Power News EIA Storage Release 9/1/11 (Actual): +64 Bcf Previous Week: +55 Bcf -4.2% Change from 1 Year Ago -1.9% Change 5-year Average Japan Utilities' LNG Imports, Consumption Climb to Record Japan's 10 regional power utilities' imports and consumption of liquefied natural gas rose to a record for a second month in August because of all-time low utilization rates at nuclear power plants. The companies led by Tokyo Electric Power Co. imported 5.28 million metric tons of LNG last month, up 23.5 percent from the same month last year, the Federation of Electric Power Companies said today. Consumption rose 15.4 percent to 4.81 million tons.

http://news.businessweek.com/article.asp?documentKey=1376-LRFV316KLVS50118SII6SP3MSCOUHM78GCF59CN0

Green/ Alternative Energy News

Repower Expands Wind-Turbine Plants in Germany to Meet Demand Repower Systems SE is spending 10 million euros ($14.6 million) to expand two wind-turbine production facilities in Germany to satisfy increasing demand. The Hamburg-based company, a unit of Asias third-largest turbine maker Suzlon Energy Ltd. (SUEL), will boost annual capacity at its nacelle and hub production plant in Bremerhaven to 900 megawatts from 600 megawatts by 2012, the company said today in a website statement. Repower is also expanding its facility in the state of Brandenburg to assemble 3-megawatt turbines, instead of 2megawatt machines, by the end of this year. The smaller turbines will be built at plants in Germany, Portugal and India, Repower said. http://www.bloomberg.com/news/2011-09-13/repower-expands-wind-turbineplants-in-germany-to-meet-demand.html AT&T to use sugarcane, cut petroleum, in plastic packaging AT&T will start packaging its cell phone accessories in bio-plastic instead of petroleum-based plastic next month, the telecom company announced this week.AT&T says the change is its latest effort to reduce the companys carbon footprint. While the new plastic packaging will contain petroleum, up to 30 percent will be manufactured from plant materials, the company said in a statement. http://fuelfix.com/blog/2011/09/13/att-to-use-sugarcane-cut-petroleum-in-plasticpackaging/ Why green carbon technologies can't keep up In June 2011, American Electric Power halted their flagship integrated clean coal and power project at the Mountaineer plant in West Virginia. http://globalpublicsquare.blogs.cnn.com/2011/09/12/why-green-carbontechnologies-cant-keep-up/

Crude Oil News

OPEC Daily Basket Price 9/10/2011 $107.86 (9/9/2011 $110.40) Recent Rig Counts Last Count Change Cou from Prior nt Count -10 -2 +33 Date of Prior Count 2 Sept 11 2 Sept 11 July 2011 Change Date of from Last Last Year's Year Count +304 +132 +81 10 Sept 10 10 Sept 10 August 2010

Area U.S. Canada Internatio nal

9 Sept 1958 11 9 Sept 11 515

August 1183 2011

http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm Oil Pares Gains on Weak Demand Forecast Oil pared early gains after the International Energy Agency (IEA) cut its estimate for demand growth and raised its supply forecast on Tuesday, countering support provided by rebounds in the euro and in stock markets. The IEA, which advises 28 industrialised countries on policy, said slowing economic growth had led the agency to cut its oil demand growth forecast by 160,000 barrels per day for 2011 and by 190,000 bpd for 2012.Supply was also seen to rise more rapidly than previously forecast over the next year, with Libyan crude oil production capacity coming back sooner than expected and signs OPEC output was continuing to grow. http://www.cnbc.com/id/44493760 Oil Trades Near Four-Day Low in London as IEA Reduces Demand Estimates Oil futures traded near their lowest in four days in London after the International Energy Agency cut demand estimates amid growing concern Greece will default on its debt. Brent pared earlier gains after the IEA, an adviser on energy policy to 28 nations, reduced its estimate of 2012 global oil demand by 400,000 barrels a day. Stock markets in Europe extended a two-year low. A report from the U.S. Energy Department tomorrow may show U.S. crude supplies fell for a second week as a result of storms in the Gulf of Mexico. http://www.bloomberg.com/news/2011-09-13/oil-trades-near-four-day-low-inlondon-as-iea-reduces-demand-estimates.html Oil May Climb as Storms Hit Supply; Growth Concerns May Cap Upside: Survey Oil prices may trade higher this week after storms shut production in the Gulf of Mexico though any upside will continue to be limited by global growth concerns led by the debt crisis in the Europe, CNBC's weekly survey showed. http://www.cnbc.com/id/44495792 Analysts look for US crude stock draw of 2.9 million barrels Weekly oil data from the US Energy Information Administration and the American Petroleum Institute should show a draw of about 2.9 million barrels in US commercial crude stocks for the reporting week ended September 9, analysts polled by Platts said Monday. API is scheduled to release its weekly data at 4:30 p.m. EDT (2030 GMT) Tuesday. EIA's weekly oil statistics will be released at 10:30 a.m. EDT (1430 GMT) Wednesday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6468246

Brent down on economy, U.S. crude rises on spread sale Brent crude fell in volatile trade on Monday, weighed down by concerns the euro zone debt crisis could dent the global economic recovery and a bout of spread trading. U.S. crude rose more than 1 percent as traders sold the spread between WTI and Brent crude prices after it widened to a record high last week. Brent futures fell 52 cents to settle at $112.25 a barrel, after earlier falling as low as $110.42. U.S. crude rose 95 cents to settle at $88.19. "In the Brent market, we are seeing a little more profit-taking on the WTI-Brent spread and that is why Brent is down a little and WTI is up," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut. http://www.reuters.com/article/2011/09/12/us-markets-oilidUSTRE77838320110912 Oil Markets Open Week Mixed Fears of possible Greek bond default and its effect on the major European banks triggered an equity market slide and US dollar rally which drove the oil markets sharply lower to start the trading week as the oil markets continue to track economic perceptions and the broader financial markets. Crude oil declined $2.24 to a low at 485.00, while gasoline slipped nearly 5 cents to 2.7064, and heating oil dropped nearly 6 cents to 2.9275 in light overnight trading volume to begin Mondays trading session before selling pressure eased an dlight short covering rebounded the market slightly as morning trading neared. http://www.theenergydesk.com/editorial.aspx?id=902846 OPEC Hints at Output Cuts The Organization of Petroleum Exporting Countries hinted Monday that some of its members could reduce production as a slowing global economy dents oil demand and Libyan crude exports resume more rapidly than expected. OPEC trimmed its 2011 and 2012 oil-demand forecast amid economic weakness and predicted that Libyan oil output would reach one million barrels a day within six months http://online.wsj.com/article/SB1000142405311190426550457656628181877853 2.html?mod=WSJ_hp_LEFTWhatsNewsCollection Shell, UT to study better shale production method Shell Oil is donating $7.5 million to establish a program at the University of Texas at Austin to study improved methods for extracting oil and gas from unconventional rock formations containing vast energy resources. http://fuelfix.com/blog/2011/09/13/shell-ut-to-study-better-shale-productionmethod/ US Treasury lifts sanctions on Libyan oil subsidiaries...OFAC removes ban on transactions with several Libyan oil company subsidiaries The US Treasury has lifted sanctions on several Libyan oil subsidiaries, following international efforts to aid the National Transitional Council in rebuilding the country. On Friday, the Office of Foreign Asset Control (OFAC) issued a licence reversing sanctions imposed in February when unrest first broke out in Libya. This new regulation allows US nationals to engage in any transactions involving entities owned or controlled by the Libyan National Oil Corporation, with the exception of Zueitina Oil Company, provided such transactions do not involve the Libyan National Oil Corporation itself or any other persons still affected by sanctions. http://www.risk.net/operational-risk-and-regulation/news/2108638/treasury-liftssanctions-libyan-oil-subsidiaries

Russia Sees Stalling Economy, Ruble Plunge at $60 Oil Price Oil at $60 a barrel may halt Russias two-year economic expansion next year, triggering a substantial devaluation of the ruble, the Economy Ministry said, according to a document obtained by Bloomberg. Gross domestic product may shrink as much as 1.4 percent next year under a negative scenario that projects a world recession cutting the average price of Urals crude by almost a half from the current level, according to the report, submitted to the government for approval last week. The price of Urals, the nations chief export oil blend, has averaged $109.35 this year and was at $114.23 yesterday. http://www.bloomberg.com/news/2011-09-13/russia-sees-stalling-economy-rubleplunge-at-60-oil-price.html

Weather
Tropical Storm MARIA http://www.nhc.noaa.gov/text/refresh/MIATCPAT4+shtml/131135.shtml

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