energy and markets newsletter 092911

8/3/2019 Energy and Markets Newsletter 092911

1/9

September29, 2011

Energy Data Highlights

Crude oil futures price9/27/2011: $84.45/bbldown$2.44 from week earlierup$7.93 from year earlier

Natural gas futures price9/27/2011: $3.827/mmBtuup$0.029 from week earlierup$0.027 from year earlier

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

Crude oil inventories9/23/2011: 341.0 mmbbl

up1.9 mmbbl from week earlierdown16.9 mmbbl 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 9/22/11 (Actual): +89 Bcf

Previous Week: +87 Bcf-4.3% Change from 1 Year Ago-1.6% Change 5-year Average

Upper Devonian may hold as much gas as Marcellus Shale: Range

executive

The Upper Devonian geologic horizon, located a couple of hundred feet above the

prolific Marcellus Shale natural gas field in Pennsylvania, could contain as much

gas per section as the Marcellus layer itself, a top manager at Range Resources

said.

Upper Devonian, found at shallower depths than the Marcellus Shale that sits

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


2/9

around 6,500 feet deep in southwest Pennsylvania, may hold "probably an equal

amount of gas per section...as there is in the Marcellus," Ray Walker, a senior vice

president of Range, said late Tuesday at the Independent Petroleum Association of

America's Oil and Gas Investment Seminar in San Francisco. His comments were

webcast.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6531422Corridor drills shale gas appraisal well in Canada

Corridor Resources has drilled the vertical shale gas appraisal well, Will DeMille O-

59 for the progress of Frederick Brook Shale program in Canada. Located north of

Elgin, New Brunswick, the well with the Akita drilling rig #40 is expected to be

drilled to a total depth of about 2800m by the end of October, 2011. Corridor

Resources is a natural resource company engaged in the exploration for and

development and production of petroleum and natural gas onshore in New

Brunswick, Prince Edward Island and Qubec and offshore in the Gulf of St.

Lawrence.

http://drillingandproduction.energy-business-review.com/news/corridor-drills-shale-gas-appraisal-well-in-canada-290911

Kogas says gas pipe from Russia via N. Korea to cost $2.5 bilA gas pipeline from Russia via North Korea to South Korea, estimated to cost $2.5billion, is the most "economically efficient" option for supplies of Russian gas butrepresents "unavoidable" political risks, an official with South Korea's Kogassubsidiary in Russia, Kogas Vostok, said Wednesday. "The project will cost $2.5billion," Kogas Vostok general director Chang Seon Lee said, citing publicly listedinformation.http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8400342

Naftohaz Ukrainy, US Exxon Mobil Reach Agreement To DevelopCooperation In Exploration Of Shale Gas In Ukraine

The Naftohaz Ukrainy national joint-stock company and Exxon Mobil Corporation

(United States) have reached agreement to develop cooperation in exploration of

gas reserves from unconventional sources. The companies have signed a

corresponding agreement on Thursday in Kyiv. The sides signed a tentative

agreement, envisaging cooperation in the sphere of exploration and deployment

of unconventional hydrocarbons in Ukraine: shale gas, tight sandstone gas and

coal-deposit gas (methane).

http://un.ua/eng/article/352433.html

Green/ Alternative Energy News
http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6531422http://drillingandproduction.energy-business-review.com/news/corridor-drills-shale-gas-appraisal-well-in-canada-290911http://drillingandproduction.energy-business-review.com/news/corridor-drills-shale-gas-appraisal-well-in-canada-290911http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8400342http://un.ua/eng/article/352433.htmlhttp://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6531422http://drillingandproduction.energy-business-review.com/news/corridor-drills-shale-gas-appraisal-well-in-canada-290911http://drillingandproduction.energy-business-review.com/news/corridor-drills-shale-gas-appraisal-well-in-canada-290911http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8400342http://un.ua/eng/article/352433.html


3/9

Rush is on to develop smarter powerIn oil and gas, new, techniques for fracking fracturing rock formations with acombination of high-pressure water and chemicals hold out the hope for openingvast new fields without the environmental damage caused by earlier types. InNorth America, new production from tight oil reserves has helped reverse thedecline in US oil output. Injection technologies are also giving new life to mature

oilfields, while in provinces such as the Atlantic waters off Brazil, pioneeringdrillers are finding oil and gas in depths of water that would have been thoughtprohibitive in the recent past. New, ultra-deepwater rigs can operate in depths ofup to 7,500 feet.http://www.ft.com/intl/cms/s/0/b0a8154a-e5d9-11e0-8e99-00144feabdc0.html#axzz1ZFEcAp3A

SP Amherst Wind Power receives Suzlon S97 turbines in Canada

SP Amherst Wind Power has received Suzlon Wind Energy's first S97 turbines for

the construction of a wind farm in Nova Scotia, Canada. Suzlon's 15 units of S97-

2.1MW wind turbine will be installed on 90m hub height towers at the wind farm

project located in Amherst. With a generating capacity of 31.5MW, the Amherst

wind farm will be owned by SP Amherst Wind Power, a partnership betweensubsidiaries of Sprott Power Corp and Firelight Infrastructure Partners. At full

capacity, will deliver enough electricity to power nearly 10,000 Canadian homes.

http://wind.energy-business-review.com/news/sp-amherst-wind-power-receives-

suzlon-s97-turbines-in-canada-290911

Carbon capture: How to match oil and gas with a green reputationTo supporters, it is a groundbreaking project at the forefront of efforts to fight

climate change. To critics, it is a cynical smokescreen to justify business as usual

by western Europes biggest oil and gas producer

http://www.ft.com/intl/cms/s/0/83cb7824-e2d1-11e0-93d9-00144feabdc0.html#axzz1ZGtnwITH

Crude Oil News

OPEC Daily Basket Price 9/28/2011 $104.34

(9/27/2011 $104.53)

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. 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
http://wind.energy-business-review.com/news/sp-amherst-wind-power-receives-suzlon-s97-turbines-in-canada-290911http://wind.energy-business-review.com/news/sp-amherst-wind-power-receives-suzlon-s97-turbines-in-canada-290911http://investor.shareholder.com/bhi/rig_counts/rc_index.cfmhttp://wind.energy-business-review.com/news/sp-amherst-wind-power-receives-suzlon-s97-turbines-in-canada-290911http://wind.energy-business-review.com/news/sp-amherst-wind-power-receives-suzlon-s97-turbines-in-canada-290911http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm


4/9


5/9

Bleak times for US east coast refinersThe tight market for light, sweet crude just claimed its latest victim. This weekConocoPhillips, the US oil company, announced it would sell or shut down its185,000 barrel-a-day refinery in Trainer, Pennsylvania. The 86-year-old refinerydown river from Philadelphia is the latest to face an existential threat from brutalconditions in the Atlantic basin oil markets. Sunoco earlier this month said it will

try to unload two nearby refineries, or mothball them if no buyer is found. WhileMidwest US refiners are enjoying fat profits thanks to discounts on oils linked tothe landlocked West Texas Intermediate blend, east coast rivals face a bleakreality. Input costs are high partly due to the Libyan outage across the Atlantic.Refined product markets have become highly competitive, especially for petrol, as

Trainer battles with shipments from Europe and the Gulf of Mexico for marketshare.http://www.ft.com/intl/cms/s/0/3213b66e-ea78-11e0-b0f5-00144feab49a.html#axzz1ZFEcAp3A

ICE confirms parallel Brent benchmarkICE Futures Europe, home of the Brent oil benchmark, has confirmed it is planningto launch a parallel Brent contract to prevent a disconnect between the

derivatives and physical markets after a change in the way oil prices arecalculated. Platts, the pricing agency that acts as the de facto regulator of theBrent physical market, announced earlier this month that it would overhaul theformula it uses to estimate the cost of the oil benchmark from January next year.

The agency, a unit of New York-listed McGraw-Hill, said it would widen theassessment period used to calculate the price of the commodity in the physicalmarket from the current 10-21 days forward period to a new 10-25 days forwardperiod. Oil traders said the wider assessment window a response to falling NorthSea oil production would disconnect the physical market from the futuresmarket, which for historical reasons is based on a 10-15 days forward period.http://www.ft.com/intl/cms/s/0/d046a5e0-e9f0-11e0-b997-00144feab49a.html#axzz1ZFEcAp3A

Major oil field services firms back to work in Gulf after spillIn another sign oil and gas activity in the deep-water Gulf of Mexico is returning tonormal, the three biggest oil field services say most of their employees are backon the job in the offshore region, after being temporarily transferred to otherassignments in the wake of the BP oil spill. Schlumberger, Halliburton Co. andBaker Hughes relocated hundreds of employees from the Gulf after federalregulators imposed a six-month ban on most deep-water drilling following BPsdeadly Macondo well blowout in April 2010. Even after the moratorium was lifted,activity remained at a virtual standstill as oil companies struggled to obtain drillingpermits that incorporated new safety and environmental rules. But in recentmonths, more permits have been issued, which has put many drilling rigs and

their specialized crews back to work. About 80 percent of Schlumbergers Gulfworkforce has returned to the U.S. offshore region after working in other deep-water basins during the slowdown, said Stephen Harris, spokesman for the worldsbiggest oil services provider, with principal offices in Paris, The Hague andHouston.http://fuelfix.com/blog/2011/09/29/major-oil-field-services-firms-back-to-work-in-gulf-after-spill/#loopBegin
http://fuelfix.com/blog/2011/09/29/major-oil-field-services-firms-back-to-work-in-gulf-after-spill/http://fuelfix.com/blog/2011/09/29/major-oil-field-services-firms-back-to-work-in-gulf-after-spill/


6/9

Oil industry PR reps to meet in Houston to coordinate message onfrackingAn upcoming conference in Houston seeks to arm oil and gas industry publicrelations officials with better tools for defending the recent boom in shale gasdrilling and, particularly, a controversial extraction technique known as hydraulicfracturing amid mounting criticism of the practice. The conference, called Media &

Stakeholder Relations: Hydraulic Fracturing Initiative 2011, will offer practical,commercial solutions to drive forward the industrys position through the internet,social media and grassroots efforts, with the goal of presenting a united industryfront in answering critics, according to promotional materials.http://fuelfix.com/blog/2011/09/28/oil-industry-pr-reps-to-meet-in-houston-to-coordinate-message-on-fracking/#loopBegin

Report: North American oil output will hit all-time record by 2016North American oil production will hit a new all-time high by 2016 given thecurrent pace of drilling in the U.S. and Canada, according to a study released byan energy research firm this week. U.S. oil production in areas like the PermianBasin, the Eagle Ford, Bakken and others will rise by a little over 2 million barrelsper day between 2010 and 2016, according to data compiled by Bentek Energy, a

Colorado firm that tracks energy infrastructure and production projects. Its areversal of the steady downward production trend that started around 1970, whenU.S. oil production peaked at around 9.5 million barrels per day. Canadian crudeproduction is expected to grow by about 971,000 barrels per day between 2010and 2016, with much of it headed for U.S. refineries. Combined, the U.S. andCanadian oil output will top 11.5 million barrels per day, which is even more thanthe amount produced at the peak in 1972.http://fuelfix.com/blog/2011/09/28/report-north-american-oil-output-will-hit-all-time-record-by-2016/

Cairn Energy Drops After Abandoning Third Well Off GreenlandCairn Energy Plc, the Scottish oil company exploring in Greenland, dropped in

London trading after abandoning its third well in less than two months. The sharesfell 6.5 percent after Edinburgh-based Cairn said today in a statement it willabandon the Delta-1 exploration well 365 kilometers (227 miles) off Aasiaat in theNapariaq Block after failing to find hydrocarbon shows. Cairn had planned todrill as many as four wells off the island at a cost of $600 million this year, it saidin May. So far, it has not found any commercially viable oil resources in its two-year exploration campaign off the island, the worlds largest.http://www.businessweek.com/news/2011-09-28/cairn-energy-drops-after-abandoning-third-well-off-greenland.html

Weather

Tropical Storm OPHELIA

http://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/290858.shtml

Tropical Storm PHILIPPE

http://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/290842.shtml

6 to 10 Day Outlooks

Temperature
http://fuelfix.com/blog/2011/09/28/oil-industry-pr-reps-to-meet-in-houston-to-coordinate-message-on-fracking/http://fuelfix.com/blog/2011/09/28/oil-industry-pr-reps-to-meet-in-houston-to-coordinate-message-on-fracking/http://fuelfix.com/blog/2011/09/28/report-north-american-oil-output-will-hit-all-time-record-by-2016/http://fuelfix.com/blog/2011/09/28/report-north-american-oil-output-will-hit-all-time-record-by-2016/http://fuelfix.com/blog/2011/09/28/report-north-american-oil-output-will-hit-all-time-record-by-2016/http://www.businessweek.com/news/2011-09-28/cairn-energy-drops-after-abandoning-third-well-off-greenland.htmlhttp://www.businessweek.com/news/2011-09-28/cairn-energy-drops-after-abandoning-third-well-off-greenland.htmlhttp://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/290858.shtmlhttp://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/290842.shtmlhttp://fuelfix.com/blog/2011/09/28/oil-industry-pr-reps-to-meet-in-houston-to-coordinate-message-on-fracking/http://fuelfix.com/blog/2011/09/28/oil-industry-pr-reps-to-meet-in-houston-to-coordinate-message-on-fracking/http://fuelfix.com/blog/2011/09/28/report-north-american-oil-output-will-hit-all-time-record-by-2016/http://fuelfix.com/blog/2011/09/28/report-north-american-oil-output-will-hit-all-time-record-by-2016/http://fuelfix.com/blog/2011/09/28/report-north-american-oil-output-will-hit-all-time-record-by-2016/http://www.businessweek.com/news/2011-09-28/cairn-energy-drops-after-abandoning-third-well-off-greenland.htmlhttp://www.businessweek.com/news/2011-09-28/cairn-energy-drops-after-abandoning-third-well-off-greenland.htmlhttp://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/290858.shtmlhttp://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/290842.shtml


7/9

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


8/9

8 to 14 day Outlooks

Temperature

Precipitation
http://www.cpc.ncep.noaa.gov/products/predictions/814day/814temp.new.gifhttp://www.cpc.ncep.noaa.gov/products/predictions/610day/610prcp.new.gif


9/9
http://www.cpc.ncep.noaa.gov/products/predictions/814day/814prcp.new.gif

energy and markets newsletter 092911

Documents