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September13, 2011

Energy Data Highlights

Crude oil futures priceRetail gasoline price9/12/2011: $3.661/galdown$0.013 from week earlier

up$0.940 from year earlierRetail diesel price9/12/2011: $3.862/galdown$0.006 from week earlierup$0.919 from year earlier

Crude oil futures price9/9/2011: $87.24/bblup$0.79 from week earlierup$12.99 from year earlier

Natural gas futures price

9/9/2011: $3.915/mmBtuup$0.043 from week earlierup$0.145 from year earlier

Weekly coal production9/3/2011: 20.986 million tonsdown0.167 million tons from week earlierdown0.825 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 naturalgas rose to a record for a second month in August because of all-time lowutilization rates at nuclear power plants. The companies led by Tokyo ElectricPower Co. imported 5.28 million metric tons of LNG last month, up 23.5 percentfrom the same month last year, the Federation of Electric Power Companies said

today. Consumption rose 15.4 percent to 4.81 million tons.

Follow

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http://news.businessweek.com/article.asp?documentKey=1376-LRFV316KLVS501-18SII6SP3MSCOUHM78GCF59CN0 

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 Asia’s 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 2-

megawatt 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-turbine-

plants-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 thisweek.AT&T says the change is its latest effort to reduce the company’s carbonfootprint. While the new plastic packaging will contain petroleum, up to 30 percentwill 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-plastic-packaging/ 

Why green carbon technologies can't keep upIn June 2011, American Electric Power halted their flagship integrated clean coaland power project at the Mountaineer plant in West Virginia.http://globalpublicsquare.blogs.cnn.com/2011/09/12/why-green-carbon-technologies-cant-keep-up/

Crude Oil News

OPEC Daily Basket Price 9/10/2011 – $107.86

(9/9/2011 – $110.40)

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. 9 Sept11

1958 -10 2 Sept 11 +304 10 Sept 10

Canada 9 Sept11

515 -2 2 Sept 11 +132 10 Sept 10

International

August2011

1183 +33  July 2011 +81 August 2010

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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 defaulton 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-in-

london-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, analystspolled 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 

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Brent down on economy, U.S. crude rises on spread sale Brent crude fell in volatile trade on Monday, weighed down by concerns the eurozone debt crisis could dent the global economic recovery and a bout of spreadtrading. U.S. crude rose more than 1 percent as traders sold the spread betweenWTI and Brent crude prices after it widened to a record high last week. Brentfutures 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, weare seeing a little more profit-taking on the WTI-Brent spread and that is why Brentis down a little and WTI is up," said Gene McGillian, analyst at Tradition Energy inStamford, Connecticut.http://www.reuters.com/article/2011/09/12/us-markets-oil-idUSTRE77838320110912 

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 $2.24to a low at 485.00, while gasoline slipped nearly 5 ¾ cents to 2.7064, and heating

oil dropped nearly 6 cents to 2.9275 in light overnight trading volume to begin

Monday’s 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 itsmembers could reduce production as a slowing global economy dents oil demandand Libyan crude exports resume more rapidly than expected. OPEC trimmed its

2011 and 2012 oil-demand forecast amid economic weakness and predicted thatLibyan oil output would reach one million barrels a day within six monthshttp://online.wsj.com/article/SB10001424053111904265504576566281818778532.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 Texasat Austin to study improved methods for extracting oil and gas fromunconventional rock formations containing vast energy resources.http://fuelfix.com/blog/2011/09/13/shell-ut-to-study-better-shale-production-method/ 

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-lifts-

sanctions-libyan-oil-subsidiaries

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Russia Sees Stalling Economy, Ruble Plunge at $60 Oil Price 

Oil at $60 a barrel may halt Russia’s 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 fromthe current level, according to the report, submitted to the government for

approval last week. The price of Urals, the nation’s 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-ruble-

plunge-at-60-oil-price.html

Weather

Tropical Storm MARIA

http://www.nhc.noaa.gov/text/refresh/MIATCPAT4+shtml/131135.shtml

6 to 10 Day Outlooks

Temperature

Precipitation

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8 to 14 day Outlooks

Temperature

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Precipitation