8/3/2019 Energy and Markets Newsletter 091511

http://slidepdf.com/reader/full/energy-and-markets-newsletter-091511 1/8

September16, 2011

Energy Data Highlights

Crude oil futures price9/13/2011: $90.21/bblup$4.19 from week earlierup$13.02 from year earlier

Natural gas futures price9/13/2011: $3.980/mmBtuup$0.042 from week earlierup$0.040 from year earlier

Retail gasoline price9/12/2011: $3.661/galdown$0.013 from week earlierup$0.940 from year earlier

Crude oil inventories9/9/2011: 346.4 mmbbl

down6.7 mmbbl from week earlierdown11.0 mmbbl 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

Natural Gas: Boom or Bust 

Natural gas, in many ways, is a tough form of energy to beat.

http://www.greentechmedia.com/articles/read/natural-gas-article-for-ge/

Follow

8/3/2019 Energy and Markets Newsletter 091511

http://slidepdf.com/reader/full/energy-and-markets-newsletter-091511 2/8

Conoco Tries to Fuel More Natural-Gas Use

ConocoPhillips is launching a campaign for natural gas to play a greater role in

meeting U.S. energy needs, even as it plays a diminished role in the energy

giant's portfolio because of weak prices driven by a supply glut.With the initiative,

"Power in Cooperation," Houston-based Conoco is staking out a position on a

major domestic energy issue, touting the country's massive natural-gas resourcesas a job-creating, clean-burning energy source, while trying to address concerns

about its impact on the environment.

http://online.wsj.com/article/SB1000142405311190353280457656891328224747

4.html?mod=rss_Politics_And_Policy

 Japan hopes to buy LNG from U.S. by 2015

 Japan hopes to start buying liquefied natural gas from the United States after a

project there starts exporting LNG in 2015, as the country looks to secure a steady

supply amid growing demand for the fuel, a trade ministry official said on

Wednesday. Japan's demand for natural gas is expected to rise for years to come,

with its LNG imports climbing at a record pace this year as utilities ramp up gas-fired generation to offset a drop in nuclear utilisation following the Fukushima

crisis.

http://www.sharenet.co.za/news/Japan_hopes_to_buy_LNG_from_US_by_2015/708f 

4e271b1011c2c88e4c92443b13cb

 Australia's Norwest Energy gets approval to fracture shale gas well Australia's Norwest Energy has received approval from the Western AustralianDepartment of Mines and Petroleum to hydraulically fracture stimulate theArrowsmith-2 shale gas well, the company said Wednesday in a release to theAustralian Securities Exchange.http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7350157

EPA says it tried to help Luminant avoid plant shut downsDallas-based Luminant said Monday it was shutting down two of its coal-firedpower generation units at the end of the year because it wasn’t possible to retrofitthem to meet new air quality standards set to go into effect on Jan. 1. The movehas been telegraphed for a while — Luminant has been the most vocal of the

 Texas power plant operators about the pending Cross State Air Pollution Rules eversince the final version was released in July with the surprise inclusion of Texas forsulfur dioxide reductions.http://fuelfix.com/blog/2011/09/13/epa-says-it-tried-to-help-luminant-avoid-plant-shut-downs/ 

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

Gas Trading in Netherlands Outpaces Peers as LNG Arrives: Energy 

Markets

 The Netherlands’ natural-gas market is growing faster than its peers, fending off 

competition from Germany to be mainland Europe’s largest as the country starts

importing liquefied fuel for the first time.

http://www.bloomberg.com/news/2011-09-15/gas-trading-in-netherlands-

outpaces-peers-as-lng-arrives-energy-markets.html 

8/3/2019 Energy and Markets Newsletter 091511

http://slidepdf.com/reader/full/energy-and-markets-newsletter-091511 3/8

Deloitte sees higher US natural gas prices, more LNG importsUS natural gas prices could exceed $8/MMBtu by 2022 and the country's LNGimports could rise by almost 3.5 Bcf/d by 2030, consultant Deloitte said in a reportWednesday. The study puts prices substantially higher than NYMEX futures pricesand raises questions about the recent rush by US LNG import terminals to beginexporting domestic shale gas. "Exporting LNG from North America to Europe and

Asia, while tempting now, may not prove to be profitable over the long term,especially if future technological advancements do not continue to significantlydrive down the cost of producing shale gas," the report said.http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6478397

Green/ Alternative Energy News

US fuel ethanol production, consumption growth slows

During the first five months of 2011, US fuel ethanol production increased 59,000

b/d compared with the same period in 2010, the Energy Information

Administration said Wednesday in analysis posted on its website. The year-on-

year January through May increase represented a slower rate of growth compared

with 2010 when production during the first five months of the year was 194,000

b/d higher than the same period in 2009. Output for all of 2010 was 154,000 b/d

higher than in 2009, EIA said.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6478387 

Crude Oil News

OPEC Daily Basket Price 9/14/2011 – $107.91

(9/13/2011 – $108.42)

Recent Rig Counts

AreaLast

CountCount

Change

from PriorCount

Date of 

PriorCount

Change

from Last Year

Date of 

Last Year'sCount

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

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

Crude Oil Advances a Second Day in London on European Support for 

Greece

Oil rose for a second day in London after German and French leaders said they’re

certain Greece will remain in the euro zone, tempering concern that the region’s

debt crisis will damage fuel consumption.

http://www.bloomberg.com/news/2011-09-15/crude-declines-for-a-second-day-on-

u-s-fuel-supplies-economic-outlook.html 

8/3/2019 Energy and Markets Newsletter 091511

http://slidepdf.com/reader/full/energy-and-markets-newsletter-091511 4/8

Goldman Sachs Maintains Crude Oil, Copper Forecasts Even as Risks

Increase

Brent crude and copper may rally as global economic growth led by emerging

markets remains adequate to drive an expansion in raw-materials demand,

Goldman Sachs Group Inc. (GS) said, sticking with forecasts for price gains. “We

remain constructive on commodities,” Allison Nathan, an analyst at Goldman formore than a decade, said in an interview today. Still, “risks to our bullish views

have risen,” said Nathan, citing Europe’s sovereign-debt problems and a “mixed

bag” of economic data from the United States.

http://www.bloomberg.com/news/2011-09-15/goldman-sachs-maintains-crude-oil-

copper-forecasts-even-as-risks-increase.html 

Oil up over $114, equity rally supportsOil traded at over $114 on Thursday, up over $2, buoyed by a rally in Europeanequities, a weaker dollar, and an improvement in risk appetite after euro zoneleaders reiterated their commitment to keeping Greece afloat.http://www.reuters.com/article/2011/09/15/markets-oil-idUSL3E7KF0IJ20110915 

Crude Oil Falls While Brent Gains on Euro Debt Worries 

Brent crude rose on Wednesday on hopes the euro zone's debt crisis would ease,

while U.S. oil futures fell following data showing a surprise increase in U.S. product

inventories. The premium of Brent crude to U.S. futures increased to about $1.50

a barrel as data from the U.S. Energy Information Administration showed large

increases in U.S. gasoline and distillate stockpiles last week due to poor demand.

Brent prices gained as the euro rose on comments about possible new euro zone

bonds to help ease the region's debt troubles.

http://www.cnbc.com/id/44510898 

Oil Drilling Rebounds in Gulf After Spill  

 The Gulf of Mexico has staged a comeback as a source of oil for big energycompanies, little more than a year after the Obama administration largely shutdown drilling in the wake of the largest offshore oil spill in U.S. history. The burstof activity comes as the government prepares to toughen its oversight of offshoredrilling. On Wednesday, federal regulators probing the Deepwater Horizon disasterissued a report that recommended numerous changes.http://online.wsj.com/article/SB10001424053111904491704576571052525514860.html?mod=WSJ_hp_LEFTWhatsNewsCollection 

Traders split on knife-edge oil market outlook  The crude oil market is witnessing a titanic battle: some macroeconomic hedgefunds are betting on a drop in prices yet most physical traders are placing wagers

that prices will rise.http://www.ft.com/intl/cms/s/0/80f37400-df64-11e0-845a-00144feabdc0.html#axzz1XvY50VJL 

TransCanada likely to miss 2013 start for Keystone XL pipeline

Even if the US approves the Keystone XL pipeline in the next few months, an

expected lawsuit by environmental opponents could force TransCanada to miss its

2013 target for starting the system, Deutsche Bank said Wednesday.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6478388

New pipeline plans abound for Kinder Morgan, Valero, Shell

Kinder Morgan Energy Partners and Valero Energy say they will build and

operate a new 136-mile, 16-inch pipeline to transport gasoline, jet fuel

and diesel from refineries in Norco, La. to an existing hub in Collins,

8/3/2019 Energy and Markets Newsletter 091511

http://slidepdf.com/reader/full/energy-and-markets-newsletter-091511 5/8

Miss. The Parkway Pipeline will have an initial capacity of 110,000

barrels per day with the ability to expand to over 200,000 bpd. It will

bring fuels to Southeastern markets served by the Plantation Pipe Line,

which Kinder Morgan owns a 51 percent stake in and operates.

http://fuelfix.com/blog/2011/09/14/new-pipeline-plans-abound-for-kinder-

valero-and-shell/ China oil demand growth to slow more on weak economic outlook 

China's oil demand growth is expected to decelerate further in the third and fourth

quarters, after slowing down in August, due to the combination of a weak

economic outlook and a high base of comparison for the second half of 2010,

analysts from Bernstein Research and HSBC said in separate research reports.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8344954

Nigerian NPDC Has 350 Million Barrel Oil Reserves, Guardian Says

Nigerian Petroleum Development Co., the exploration unit of the state-owned oil

company, has 350 million barrels of crude reserves, the Guardian newspaper

reported, citing Managing Director Abiye Membere. The exploration arm, alsoknown as NPDC, currently pumps 102,000 barrels of crude and condensate a day

and plans to raise output to 265,000 barrels a day within four years, the Lagos-

based newspaper said.

http://www.bloomberg.com/news/2011-05-27/nigeria-s-oil-explorer-expects-

output-to-reach-250-000-barrels-in-3-years.html 

Weather

Tropical Storm MARIA

http://www.nhc.noaa.gov/text/refresh/MIATCPAT4+shtml/151143.shtml

6 to 10 Day Outlooks

8/3/2019 Energy and Markets Newsletter 091511

http://slidepdf.com/reader/full/energy-and-markets-newsletter-091511 6/8

Temperature

Precipitation

8/3/2019 Energy and Markets Newsletter 091511

http://slidepdf.com/reader/full/energy-and-markets-newsletter-091511 7/8

8 to 14 day Outlooks

Temperature

8/3/2019 Energy and Markets Newsletter 091511

http://slidepdf.com/reader/full/energy-and-markets-newsletter-091511 8/8

Precipitation