energy and markets newsletter 092211

8/3/2019 Energy and Markets Newsletter 092211

1/7

September22, 2011

Energy Data Highlights

Crude oil futures price9/20/2011: $86.89/bbldown$3.32 from week earlierup$12.03 from year earlier

Natural gas futures price

9/20/2011: $3.798/mmBtudown$0.182 from week earlierdown$0.022 from year earlier

Retail gasoline price9/19/2011: $3.601/galdown$0.060 from week earlierup$0.878 from year earlier

Crude oil inventories9/16/2011: 339.0 mmbbldown7.3 mmbbl from week earlier

down19.3 mmbbl from year earlier

Weekly coal production9/10/2011: 20.694 million tonsdown0.292 million tons from week earlierdown0.380 million tons from year earlier

http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 9/1/11 (Actual): +87 Bcf

Previous Week: +64 Bcf-4.3% Change from 1 Year Ago-1.6% Change 5-year Average

Sierra Club wants natural gas reforms

An explosion at a natural gas well in Oklahoma this week shows why more

safeguards are needed in the energy sector, the Sierra Club said. A natural gas

well exploded near Watonga, Okla., late Monday, leading to the evacuation of

around 20 homes. Authorities opted to let the blaze die out on its own. Deb

Nardone, a natural gas reform director at the Sierra Club, issued a statement

saying that natural gas disasters are a troubling trend across the country despite

claims from the industry that appropriate procedures are in place.

Follow
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RCLC1&f=Dhttp://www.eia.gov/dnav/ng/hist/rngc1d.htmhttp://www.eia.gov/oog/info/gdu/gasdiesel.asphttp://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCESTUS1&f=Whttp://www.eia.gov/cneaf/coal/weekly/weekly_html/wcpweek.htmlhttp://www.eia.gov/http://www.choiceenergyservices.com/http://twitter.com/#!/Choice_Energyhttp://www.facebook.com/pages/Choice-Energy-Services/204397769603350http://www.linkedin.com/company/choice-energyhttp://www.eia.gov/dnav/ng/hist/rngc1d.htmhttp://www.eia.gov/oog/info/gdu/gasdiesel.asphttp://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCESTUS1&f=Whttp://www.eia.gov/cneaf/coal/weekly/weekly_html/wcpweek.htmlhttp://www.eia.gov/http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RCLC1&f=D


2/7

http://www.upi.com/Business_News/Energy-Resources/2011/09/22/Sierra-Club-

wants-natural-gas-reforms/UPI-90721316687205/

U.K. Gets Big Shale FindAn area in northwest England may contain 200 trillion cubic feet of shale gas,putting it in the same league as some of the vast shale-gas plays that havetransformed the U.S. energy industry. The figure for the area near Blackpool,released Wednesday by Cuadrilla Resources, a small oil-and-gas company withoperations in England's Bowland Shale, highlights the U.K.'s emerging position asa new frontier for unconventional gas exploration. But it inflamed environmentalgroups who say the technology used to extract shale gas is environmentallydamaging. "We have as much gas per square mile in Bowland as the successfulNorth American shale plays," said Mark Miller, Cuadrilla's chief executive, in aninterview. He said the company found nearly four times more gas than it wasexpecting to discover. The discovery of such vast resources200 trillion cubicfeet would be enough to meet U.K. gas demand for 64 yearscomes at a timewhen the U.K.'s conventional gas fields are in steep decline and as it is becomingincreasingly dependent on imports such as liquefied natural gas from Qatar and

piped gas from Norway.http://online.wsj.com/article/SB10001424053111904563904576584904139100880.html?mod=WSJ_Commodities_LEFTTopNews

Green/ Alternative Energy News

Germanys Drive for Green Energy Subdues 2013 Power Prices: Energy

Markets

A surge in renewable energy in Germany is pushing power prices for 2013 below

next years level even as natural gas, coal and emissions rise.

http://www.bloomberg.com/news/2011-09-21/germany-s-green-drive-subdues-

2013-power-prices-energy-markets.html

Light Bulb Saga Illuminates New Republicans

How many Republicans does it take to screw in an energy-efficient light bulb? The

answer to that riddle tells us much about the state of the Republican Party in 2011

http://www.bloomberg.com/news/2011-09-21/light-bulb-saga-illuminates-new-

republicans-margaret-carlson.html

Crude Oil News

OPEC Daily Basket Price 9/21/2011 $108.99

(9/20/2011 $108.29)

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. 16 Sept11

1985 27 9 Sept 11 +324 16 Sept 10

Canada 16 Sept11

502 -13 9 Sept 11 +169 16 Sept 10
http://www.upi.com/Business_News/Energy-Resources/2011/09/22/Sierra-Club-wants-natural-gas-reforms/UPI-90721316687205/http://www.upi.com/Business_News/Energy-Resources/2011/09/22/Sierra-Club-wants-natural-gas-reforms/UPI-90721316687205/http://online.wsj.com/article/SB10001424053111904563904576584904139100880.html?mod=WSJ_Commodities_LEFTTopNewshttp://online.wsj.com/article/SB10001424053111904563904576584904139100880.html?mod=WSJ_Commodities_LEFTTopNewshttp://topics.bloomberg.com/germany/http://www.bloomberg.com/news/2011-09-21/germany-s-green-drive-subdues-2013-power-prices-energy-markets.htmlhttp://www.bloomberg.com/news/2011-09-21/germany-s-green-drive-subdues-2013-power-prices-energy-markets.htmlhttp://topics.bloomberg.com/republican-party/http://www.bloomberg.com/news/2011-09-21/light-bulb-saga-illuminates-new-republicans-margaret-carlson.htmlhttp://www.bloomberg.com/news/2011-09-21/light-bulb-saga-illuminates-new-republicans-margaret-carlson.htmlhttp://www.upi.com/Business_News/Energy-Resources/2011/09/22/Sierra-Club-wants-natural-gas-reforms/UPI-90721316687205/http://www.upi.com/Business_News/Energy-Resources/2011/09/22/Sierra-Club-wants-natural-gas-reforms/UPI-90721316687205/http://online.wsj.com/article/SB10001424053111904563904576584904139100880.html?mod=WSJ_Commodities_LEFTTopNewshttp://online.wsj.com/article/SB10001424053111904563904576584904139100880.html?mod=WSJ_Commodities_LEFTTopNewshttp://topics.bloomberg.com/germany/http://www.bloomberg.com/news/2011-09-21/germany-s-green-drive-subdues-2013-power-prices-energy-markets.htmlhttp://www.bloomberg.com/news/2011-09-21/germany-s-green-drive-subdues-2013-power-prices-energy-markets.htmlhttp://topics.bloomberg.com/republican-party/http://www.bloomberg.com/news/2011-09-21/light-bulb-saga-illuminates-new-republicans-margaret-carlson.htmlhttp://www.bloomberg.com/news/2011-09-21/light-bulb-saga-illuminates-new-republicans-margaret-carlson.html


3/7

International

August2011

1183 +33 July 2011 +81 August 2010

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

Oil Drops to Four-Week Low as Fed Sees Downside Risks to EconomyOil fell to the lowest price in more than four weeks in New York after the U.S.Federal Reserve cited significant downside risks to the economic outlook in theworlds biggest crude-consuming nation.http://www.businessweek.com/news/2011-09-22/oil-drops-to-four-week-low-as-fed-sees-downside-risks-to-economy.html

Oil Slides $3 on Economic Gloom, Dollar

Oil prices fell over $3 a barrel on Thursday, with US futures touching $82.75 a

barrel as a combination of signals heightened worries about global economic

growth and a rallying U.S. dollar added to downard momentum. Investors were

rattled by the U.S. Federal Reserve's statement that the world's largest oil

consumer faced significant downside risks, and analysts worried measures to kick-start growth would be insufficient. Adding to gloom, a slowdown in China and the

worst euro zone private sector growth in over two years cast clouds over the

outlook for the global economy. "Brent is heading towards a test of $107 a barrel,"

said Thorbjrn Bak Jensen, an analyst at A/S Global Risk Management Ltd. "It's a

combination of no QE3, low economic growth, China's PMI falling and European

PMI data either slightly or widely below expectations."

http://www.cnbc.com/id/44619415

OPEC eyes markets ahead of next meeting

With another year before Libyan oil production returns to normal, one official atOPEC said from Vienna it was the economy that would determine crude output. A

member of the Organization of the Petroleum Exporting Countries told Bloomberg

News on condition of anonymity that Saudi Arabia would keep its production rates

high to meet global demands so long as the economic troubles in U.S. and

European markets are contained.

http://www.upi.com/Business_News/Energy-Resources/2011/09/22/OPEC-eyes-

markets-ahead-of-next-meeting/UPI-94391316686149/

Shell chief warns of era of energy volatility

Oil and gas supplies will struggle to keep up with world demand growth, making

energy prices more expensive and more volatile in the long term, the head of

Europes largest oil company has warned.

http://www.ft.com/intl/cms/s/0/bbdda1c8-e485-11e0-92a3-

00144feabdc0.html#axzz1YgT1oCow
http://investor.shareholder.com/bhi/rig_counts/rc_index.cfmhttp://www.businessweek.com/news/2011-09-22/oil-drops-to-four-week-low-as-fed-sees-downside-risks-to-economy.htmlhttp://www.businessweek.com/news/2011-09-22/oil-drops-to-four-week-low-as-fed-sees-downside-risks-to-economy.htmlhttp://www.cnbc.com/id/44619415http://www.upi.com/Business_News/Energy-Resources/2011/09/22/OPEC-eyes-markets-ahead-of-next-meeting/UPI-94391316686149/http://www.upi.com/Business_News/Energy-Resources/2011/09/22/OPEC-eyes-markets-ahead-of-next-meeting/UPI-94391316686149/http://www.ft.com/indepth/oilhttp://investor.shareholder.com/bhi/rig_counts/rc_index.cfmhttp://www.businessweek.com/news/2011-09-22/oil-drops-to-four-week-low-as-fed-sees-downside-risks-to-economy.htmlhttp://www.businessweek.com/news/2011-09-22/oil-drops-to-four-week-low-as-fed-sees-downside-risks-to-economy.htmlhttp://www.cnbc.com/id/44619415http://www.upi.com/Business_News/Energy-Resources/2011/09/22/OPEC-eyes-markets-ahead-of-next-meeting/UPI-94391316686149/http://www.upi.com/Business_News/Energy-Resources/2011/09/22/OPEC-eyes-markets-ahead-of-next-meeting/UPI-94391316686149/http://www.ft.com/indepth/oil


4/7

Apache agrees to buy Exxons North Sea assetsApache said this morning it would buy Exxon Mobils North Sea assets, includingthe Beryl field and related properties, for $1.75 billion. The fields have current netproduction of approximately 19,000 barrels of oil and natural gas liquids and 58million cubic feet of natural gas per day. At the end of 2010, estimated provedreserves totaled 68 million barrels of oil equivalent, according to Apache. The

deal, which is expected to close at the end of this year, should increase ApachesNorth Sea production by 54 percent and proved reserves by 44 percent.http://fuelfix.com/blog/2011/09/21/apache-agrees-to-buy-exxons-north-sea-assets/

China approves plan for resource tax on oil, gas based on price, volume

China's State Council has approved a plan to amend the resource tax on crude oil

and natural gas exploration to be levied based on sales value and volume, instead

of the current tax applied on just volume, according to a statement issued late

Wednesday by the cabinet. The proposal was approved during a cabinet meeting

chaired by Premier Wen Jiabao on Wednesday. The statement however, did not

state if the tax will be increased from the current 5% to 10% for crude oil and

natural gas, or if the tax would be extended to other commodities, as it has been

widely expected.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8370703

Weather

Tropical Storm OPHELIA

http://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/220853.shtml

6 to 10 Day Outlooks
http://fuelfix.com/blog/2011/09/21/apache-agrees-to-buy-exxons-north-sea-assets/http://fuelfix.com/blog/2011/09/21/apache-agrees-to-buy-exxons-north-sea-assets/http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8370703http://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/220853.shtmlhttp://fuelfix.com/blog/2011/09/21/apache-agrees-to-buy-exxons-north-sea-assets/http://fuelfix.com/blog/2011/09/21/apache-agrees-to-buy-exxons-north-sea-assets/http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8370703http://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/220853.shtml


5/7

Temperature

Precipitation
http://www.cpc.ncep.noaa.gov/products/predictions/610day/610temp.new.gif


6/7

8 to 14 day Outlooks Temperature
http://www.cpc.ncep.noaa.gov/products/predictions/814day/814temp.new.gifhttp://www.cpc.ncep.noaa.gov/products/predictions/610day/610prcp.new.gif


7/7

Precipitation
http://www.cpc.ncep.noaa.gov/products/predictions/814day/814prcp.new.gif

energy and markets newsletter 092211

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