energy and markets newsletter 092611

8/3/2019 Energy and Markets Newsletter 092611

1/7

September27, 2011

Energy Data Highlights

Retail gasoline price9/26/2011: $3.509/galdown$0.092 from week earlierup$0.815 from year earlier

Retail diesel price

9/26/2011: $3.786/galdown$0.047 from week earlierup$0.835 from year earlier

Crude oil futures price9/23/2011: $79.85/bbldown$8.11 from week earlierup$4.67 from year earlier

Natural gas futures price9/23/2011: $3.701/mmBtudown$0.108 from week earlier

down$0.319 from year earlier

Weekly coal production9/17/2011: 21.208 million tonsup0.514 million tons from week earlierdown0.639 million tons from year earlier

http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 9/1/11 (Actual): +89 BcfPrevious Week: +87 Bcf

-4.3% Change from 1 Year Ago-1.6% Change 5-year Average

Marcellus producer PDC Mountainer buys Seneca-Upshur for $152.5millionPDC Mountaineer, a joint venture of Denver-based independent PetroleumDevelopment Corp. and Lime Rock Partners V, has agreed to buy for $152.5million the membership interests of producer Seneca-Upshur, which holds 100,000acres of leases in West Virginia's Marcellus Shale, PDC said Monday. PDCM saidthe acquisition will give it all rights and all depths to an estimated 90,000prospective net acres primarily in Harrison, Taylor, Barbour, Upshur, Lewis andRandolph counties of north-central West Virginia and another 10,000 net acres inMingo and McDowell counties in southwestern West Virginia that are prospective

Follow
http://www.eia.gov/oog/info/gdu/gasdiesel.asphttp://www.eia.gov/oog/info/gdu/gasdiesel.asphttp://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/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/oog/info/gdu/gasdiesel.asphttp://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/cneaf/coal/weekly/weekly_html/wcpweek.htmlhttp://www.eia.gov/http://www.eia.gov/oog/info/gdu/gasdiesel.asp


2/7

for the Huron Shale.http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6522752

Utica Shale Energizes Deal Frenzy in OhioOne of the latest hot spots for deal making is far from New York City or SiliconValleyit's in eastern Ohio, where energy companies are staking claims in what isbeing touted as North America's next big energy field, the Utica Shale. While the

170,000-square-mile Utica Shale sprawls beneath parts of eight states andCanada, energy companies and analysts believe the richest reserves of oil andvaluable natural-gas liquids, such as propane and butane, lie in eastern Ohio. Inrecent weeks the buzz around the area has intensified. Large producers' movesinto the area are becoming public. This month has seen big acquisitions. And stockanalysts are recommending shares of small companies with Ohio acreage. Lastweek, Exxon Mobil Corp. confirmed it is snapping up drilling rights in the UticaShale. Exxon won't say how much land it has locked up or where the property lies.But the move caught Wall Street analysts' attention. And Chesapeake EnergyCorp., the country's second-largest natural-gas producer, after Exxon, is shoppinga stake in its 1.25 million eastern Ohio acres that analysts say could set a newprice baseline. Chesapeake Chief Executive Aubrey McClendon has said it may

have a joint venture signed as early as next month.http://online.wsj.com/article/SB10001424052970204010604576592783750697202.html?mod=WSJ_Commodities_LEFTTopNews

Remote Wyoming site could help shape frackings futureNatural gas development in the U.S. will depend not only on what happens inWashington and in statehouses across the country. It could be shaped in part bywhat happens in a big antelope-dotted field south of this remote valley town.Here, Shell Oil Co. and others are taking steps some required and othersvoluntary that soon may be the norm for reducing the environmental impact ofgas drilling and the extraction process called hydraulic fracturing, or fracking.Shell, for instance, now recycles more than half the water it uses in fracturing local

wells, reducing the need for locally sourced fresh water. It also has installedequipment that is sharply cutting emissions from drilling rigs and has shrunk itssurface footprint by drilling more wells at a single site, rather than spacing themout checkerboard style, as is done in some other fields.http://fuelfix.com/blog/2011/09/26/remote-wyoming-site-could-help-shape-frackings-future/

Russian Sakhalin authorities mull second LNG plant by 2020An expected increase in gas production from the Sakhalin projects in Russia's FarEast will make it expedient to build a second liquefied gas production plant inSakhalin Island by 2020, apart from the planned expansion of the existing LNGcapacities, Sakhalin governor Alexander Khoroshavin said Tuesday. "We believethat with the start of gas production at the Sakhalin 1 and Sakhalin 3 projects it

will be [a real possibility] to build a second LNG plant in Sakhalin Island, possiblyon the western shore of the island near Ilinskoye," Khoroshavin said at theSakhalin Oil and Gas conference.http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7430853

Egypt's gas supply to Israel sabotagedMasked militants have blown up a terminal on a key pipeline supplying natural gasfrom Egypt to Israel as well as to Jordan and Lebanon. It's the fifth time this yearthe pipeline has been sabotaged.http://www.abc.net.au/worldtoday/content/2011/s3326758.htm

Green/ Alternative Energy News
http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6522752http://online.wsj.com/article/SB10001424052970204010604576592783750697202.html?mod=WSJ_Commodities_LEFTTopNewshttp://online.wsj.com/article/SB10001424052970204010604576592783750697202.html?mod=WSJ_Commodities_LEFTTopNewshttp://fuelfix.com/blog/2011/09/26/remote-wyoming-site-could-help-shape-frackings-future/http://fuelfix.com/blog/2011/09/26/remote-wyoming-site-could-help-shape-frackings-future/http://fuelfix.com/blog/2011/09/26/remote-wyoming-site-could-help-shape-frackings-future/http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7430853http://www.abc.net.au/worldtoday/content/2011/s3326758.htmhttp://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6522752http://online.wsj.com/article/SB10001424052970204010604576592783750697202.html?mod=WSJ_Commodities_LEFTTopNewshttp://online.wsj.com/article/SB10001424052970204010604576592783750697202.html?mod=WSJ_Commodities_LEFTTopNewshttp://fuelfix.com/blog/2011/09/26/remote-wyoming-site-could-help-shape-frackings-future/http://fuelfix.com/blog/2011/09/26/remote-wyoming-site-could-help-shape-frackings-future/http://fuelfix.com/blog/2011/09/26/remote-wyoming-site-could-help-shape-frackings-future/http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7430853http://www.abc.net.au/worldtoday/content/2011/s3326758.htm


3/7

Princeton student creates low cost, more efficient solar panelPrinceton University student Eden Full, 19, was awarded more than $380,000 tohelp spur development of her solar panels that track the sun without the use ofelectricity. Full, a mechanical engineering student, developed her SunSaluterpanels as a low-cost passive solar panel tracker that can increase energy outputby 40 percent. The system tracks the sun by using thin strips of aluminum and

steel that bend and twist, moving the panel with the sun. As a result, the panelsare much more efficient than typical solar panels, and they cost significantly less.http://fuelfix.com/blog/2011/09/26/princeton-student-creates-low-cost-more-efficient-solar-panel/

Crude Oil News

OPEC Daily Basket Price 9/26/2011 $101.81

(9/23/2011 $104.37)

Recent Rig Counts

AreaLast

CountCount

Change

from PriorCount

Date of

PriorCount

Change

from LastYear

Date of

Last Year'sCount

U.S. 23 Sept11

1991 6 16 Sept 11 +341 24 Sept 10

Canada 23 Sept11

505 3 16 Sept 11 +223 24 Sept 10

International

August2011

1183 +33 July 2011 +81 August 2010

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

Oil Climbs on Optimism Europe Will Tame Debt Crisis, Boosting Fuel

Demand

Oil rose for a second day in New York on speculation European governments will

contain their sovereign-debt crisis, limiting its impact on the global economy and

demand for raw materials. Futures gained as much as 3.2 percent, trimming the

biggest quarterly decline since the global financial crisis in 2008. U.S. Treasury

Secretary Timothy F. Geithner predicted Europe will intensify efforts to contain its

debt problems after being pressured at international meetings in Washington last

week. European stocks climbed for a third day. Its a risk-on day for oil, saidThorbjorn Bak Jensen, an analyst at Global Risk Management in Middelfart,

Denmark, who predicts Brent will average $107 in the fourth quarter. Investors

are hoping the European Central Bank will pull a rabbit out of the hat, in the form

of an increase in the strength of the bond-buying program.

http://www.bloomberg.com/news/2011-09-27/oil-gains-on-optimism-europe-will-

tame-debt-crisis-boosting-fuel-demand.html

Japanese investment in Russian E&P to continue to be crucial: METI

official

Japanese investments in Russia's oil and gas sector will continue to play a crucial

role in meeting Japan's energy demand as Tokyo is eyeing expanded cooperation
http://fuelfix.com/blog/2011/09/26/princeton-student-creates-low-cost-more-efficient-solar-panel/http://fuelfix.com/blog/2011/09/26/princeton-student-creates-low-cost-more-efficient-solar-panel/http://fuelfix.com/blog/2011/09/26/princeton-student-creates-low-cost-more-efficient-solar-panel/http://investor.shareholder.com/bhi/rig_counts/rc_index.cfmhttp://www.bloomberg.com/news/2011-09-27/oil-gains-on-optimism-europe-will-tame-debt-crisis-boosting-fuel-demand.htmlhttp://www.bloomberg.com/news/2011-09-27/oil-gains-on-optimism-europe-will-tame-debt-crisis-boosting-fuel-demand.htmlhttp://fuelfix.com/blog/2011/09/26/princeton-student-creates-low-cost-more-efficient-solar-panel/http://fuelfix.com/blog/2011/09/26/princeton-student-creates-low-cost-more-efficient-solar-panel/http://fuelfix.com/blog/2011/09/26/princeton-student-creates-low-cost-more-efficient-solar-panel/http://investor.shareholder.com/bhi/rig_counts/rc_index.cfmhttp://www.bloomberg.com/news/2011-09-27/oil-gains-on-optimism-europe-will-tame-debt-crisis-boosting-fuel-demand.htmlhttp://www.bloomberg.com/news/2011-09-27/oil-gains-on-optimism-europe-will-tame-debt-crisis-boosting-fuel-demand.html


4/7

with Russia, a Japanese government official said Monday. Given the aftermath of

the March earthquake in Japan, Russian exports of LNG played an important role in

meeting domestic demand, Hisayoshi Ando, Director-General of the Natural

Resources & Fuel Department of the Agency for Natural Resources and Energy at

Japan's Ministry of Economy, Trade and Industry, or METI, said Monday, speaking

at the 15th Sakhalin Oil and Gas conferenceJapan is the biggest importer of LNGin the world. In 2010, Japan imported 70 million mt of LNG, which accounts to one

third of the total LNG volume traded globally, he said. In 2010, Russian exports of

LNG accounted for 8.5% of Japan's total LNG imports, of which the majority

derived from Sakahlin 2, Ando said. "The demand for LNG has increased sharply

and will continue to be high in the mid- and long-term," Ando said.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7430860

U.S. Should Welcome Crude From Canadas Dirty Oil Sands: View

On first look, it might seem wrong to allow TransCanada Corp. to build the 1,700-

mile Keystone XL pipeline to carry oil from Alberta, Canada, to the U.S. Gulf Coast.

After all, if such a pipeline were to ever leak, as pipelines do, there is some risk it

could pollute the Ogallala Aquifer under Nebraskas Sandhills, which supplies 80

percent of that states drinking water. Whats more, a new conduit would seem to

only encourage the further development of the Athabascan oil sands in Alberta.

This is a dirty business, to be sure A closer look, however, reveals that blocking

the $7 billion pipeline would do more harm than good. Consider, first of all, that

the Canadian oil sands contain more than 173 billion barrels of recoverable crude,

second only to Saudi Arabias 264 billion barrels. Extracting it means almost half a

million new jobs for Canada and, for both Canada and the U.S., a sizable supply of

oil that is safe from interruption by unfriendly governments.

http://www.bloomberg.com/news/2011-09-27/u-s-should-welcome-the-flow-of-crude-from-canada-s-dirty-oil-sands-view.html

Glencore's shipping firm may cut oil tanker fleetGlencore's shipping unit, ST Shipping, may reduce the number of oil tankers in itsfleet over the next six months because rock-bottom freight rates have cut intoprofit margins, a company executive said on Tuesday. ST Shipping is looking atreturning several crude oil tankers to owners when long-term contracts expire inthe next few months due to negative freight rates, said company director KentPaulli. (Our fleet) could very well shrink over the next three to six months," Paulitold reporters on the sidelines of an industry conference.http://www.reuters.com/article/2011/09/27/shipping-finance-stshipping-

idUSL3E7KR1DG20110927Iran to build super heavy oil refinery

Iran is to build the first super heavy oil refinery in Qeshm Island in southern Iran to

produce light crude oil and desirable tar. The refinery with the capacity of

producing light crude oil and high-quality tar up to 30,000 barrels a day will be run

by the next one and a half year. Changing heavy crude oil to other products will

make more earnings for the country. Crude oil produced in Iranian Soroush and

Norowz fields is among the heaviest products which can be changed to more

valuable products and find more profitable markets in Asian and European

markets.

http://www.isna.ir/ISNA/NewsView.aspx?ID=News-1855845&Lang=E
http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7430860http://www.bloomberg.com/news/2011-09-27/u-s-should-welcome-the-flow-of-crude-from-canada-s-dirty-oil-sands-view.htmlhttp://www.bloomberg.com/news/2011-09-27/u-s-should-welcome-the-flow-of-crude-from-canada-s-dirty-oil-sands-view.htmlhttp://www.reuters.com/article/2011/09/27/shipping-finance-stshipping-idUSL3E7KR1DG20110927http://www.reuters.com/article/2011/09/27/shipping-finance-stshipping-idUSL3E7KR1DG20110927http://www.isna.ir/ISNA/NewsView.aspx?ID=News-1855845&Lang=Ehttp://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7430860http://www.bloomberg.com/news/2011-09-27/u-s-should-welcome-the-flow-of-crude-from-canada-s-dirty-oil-sands-view.htmlhttp://www.bloomberg.com/news/2011-09-27/u-s-should-welcome-the-flow-of-crude-from-canada-s-dirty-oil-sands-view.htmlhttp://www.reuters.com/article/2011/09/27/shipping-finance-stshipping-idUSL3E7KR1DG20110927http://www.reuters.com/article/2011/09/27/shipping-finance-stshipping-idUSL3E7KR1DG20110927http://www.isna.ir/ISNA/NewsView.aspx?ID=News-1855845&Lang=E


5/7

Weather

Tropical Storm PHILIPPE

http://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/270833.shtml

6 to 10 Day Outlooks

Temperature

Precipitation
http://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/270833.shtmlhttp://www.cpc.ncep.noaa.gov/products/predictions/610day/610temp.new.gifhttp://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/270833.shtml


6/7

8 to 14 day Outlooks

Temperature
http://www.cpc.ncep.noaa.gov/products/predictions/610day/610prcp.new.gif


7/7

Precipitat

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

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