energy and markets newsletter 100311

8/3/2019 Energy and Markets Newsletter 100311

1/8

October 3,2011

Energy Data Highlights

Energy Data Highlights

Crude oil futures price9/29/2011: $82.14/bbl

up$1.63 from week earlierup$4.28 from year earlier

Natural gas futures price9/29/2011: $3.747/mmBtuup$0.042 from week earlierdown$0.213 from year earlier

Natural gas inventories9/23/2011: 3,312 Bcfup111 Bcf from week earlierdown91 Bcf from year earlier

Crude oil inventories9/23/2011: 341.0 mmbblup1.9 mmbbl from week earlierdown16.9 mmbbl from year earlier

Weekly coal production9/24/2011: 21.193 million tonsdown0.015 million tons from week earlierdown0.611 million tons from year earlierhttp://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 9/29/11 (Actual): +111 BcfPrevious Week: +89 Bcf-2.7% Change from 1 Year Ago+0.2% Change 5-year Average

Chevron's Platong II Gas Project To Begin Production Late Oct -OfficialChevron Corp (CVX)'s $3.1 billion Platong II natural gas project will come on

stream in late October with capacity of 330 million standard cubic feet a day,

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/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.foxbusiness.com/topics/business/companies/chevron.htmhttp://www.foxbusiness.com/industries/2011/10/03/chevrons-platong-ii-gas-project-to-begin-production-late-oct-official/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/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.foxbusiness.com/topics/business/companies/chevron.htmhttp://www.foxbusiness.com/industries/2011/10/03/chevrons-platong-ii-gas-project-to-begin-production-late-oct-official/http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RCLC1&f=D


2/8

Director-General of the Department of Mineral Fuels Songpob Polchan said

Monday. Chevron owns 69.8% of Platong II.

http://www.foxbusiness.com/industries/2011/10/03/chevrons-platong-ii-gas-

project-to-begin-production-late-oct-official/

Enogex to acquire natural gas pipeline assets in US

Enogex has entered into agreements to buy natural gas pipeline assets with rights

to gather and process production from a large acreage position located in the

Granite Wash, Tonkawa and Marmaton plays of northwestern Oklahoma, US.

Other parties in the transactions include Cordillera Energy Partners III, Oxbow

Midstream and West Canadian Midstream.

http://transportationandstorage.energy-business-review.com/news/enogex-to-

acquire-natural-gas-pipeline-assets-in-us-031011

Rasgas plans seven plant shutdowns in 2012Qatari liquefied natural gas (LNG) producer Rasgas plans seven maintenance

shutdowns in 2012, a company official from one of the world's biggest gas

exporters said on Monday. In June, Rasgas announced plans to shut its 7.8-million

tonne per year (mtpa) LNG export facility, known as Train 7, for maintenance in

January 2012. But it plans to shut Train 7 again for work in October 2012 as part of

a wide-ranging programme of shutdowns next year.

http://www.reuters.com/article/2011/10/03/qatar-lng-maintenance-

idUSL5E7L31JM20111003

Gazprom to start gas supply to Germany via Nord Stream November 8

Russia's Gazprom will start supplying gas to Germany through the 27.5 billion

cubic meter/year Nord Stream pipeline on November 8, company CEO Alexei Miller

said Monday. The pipeline runs under the Baltic Sea, bypassing Ukraine, currently

the main route for Russian natural gas to Europe.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8411033

Natural gas discovered near Sri Lanka coastThe president told a public meeting on Sunday that an Indian firm had found a gas

field in the Mannar basin. The government signed an agreement with the

company, Cairn India Limited, in 2008 to explore for oil and gas off the country's

north-western coast. Cairn Lanka Limited, a subsidiary of the Indian firm,

confirmed the find.

http://www.bbc.co.uk/news/world-south-asia-15147093
http://www.foxbusiness.com/industries/2011/10/03/chevrons-platong-ii-gas-project-to-begin-production-late-oct-official/http://www.foxbusiness.com/industries/2011/10/03/chevrons-platong-ii-gas-project-to-begin-production-late-oct-official/http://transportationandstorage.energy-business-review.com/news/enogex-to-acquire-natural-gas-pipeline-assets-in-us-031011http://transportationandstorage.energy-business-review.com/news/enogex-to-acquire-natural-gas-pipeline-assets-in-us-031011http://www.reuters.com/article/2011/10/03/qatar-lng-maintenance-idUSL5E7L31JM20111003http://www.reuters.com/article/2011/10/03/qatar-lng-maintenance-idUSL5E7L31JM20111003http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8411033http://www.bbc.co.uk/news/world-south-asia-15147093http://www.foxbusiness.com/industries/2011/10/03/chevrons-platong-ii-gas-project-to-begin-production-late-oct-official/http://www.foxbusiness.com/industries/2011/10/03/chevrons-platong-ii-gas-project-to-begin-production-late-oct-official/http://transportationandstorage.energy-business-review.com/news/enogex-to-acquire-natural-gas-pipeline-assets-in-us-031011http://transportationandstorage.energy-business-review.com/news/enogex-to-acquire-natural-gas-pipeline-assets-in-us-031011http://www.reuters.com/article/2011/10/03/qatar-lng-maintenance-idUSL5E7L31JM20111003http://www.reuters.com/article/2011/10/03/qatar-lng-maintenance-idUSL5E7L31JM20111003http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8411033http://www.bbc.co.uk/news/world-south-asia-15147093


3/8

ERCOT to pay fines for 2008 errorsTexas main electric grid operator will pay $384,000 in fines for violations of powerreliability standards in 2008. The Electric Reliability Council of Texas, ERCOT, willpay the fines under a settlement withTexas Reliability Entity, which overseesfederal rules related to power grid reliability in Texas.http://fuelfix.com/blog/2011/10/03/ercot-to-pay-fines-for-2008-errors/

Crude Oil News

OPEC Daily Basket Price 9/30/2011 $101.57

(9/29/2011 $103.11)

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. 30 Sept11

1990 -1 23 Sept 11 +331 1 Oct 10

Canada 30 Sept11

510 5 23 Sept 11 +197 1 Oct 10

International

August2011

1183 +33 July 2011 +81 August 2010

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

Oil slips near to $102 on euro debt fearsOil prices fell toward $102 on Monday after Greece said it would miss its deficit

target and as concerns rose about Franco-Belgian bank Dexia, which pulled down

stocks and the euro, while the dollar strengthened. Brent crude futures were down

55 cents to $102.21 a barrel at 1100 GMT after hitting an intraday low of $101.12.

U.S. crude futures were down 68 cents to $78.52.

http://www.reuters.com/article/2011/10/03/us-markets-oil-

idUSTRE77838320111003

Crude Oil Extends Decline From One-Year Low After Worst Quarter Since

2008

Oil fell in New York, after closing last week at a one-year low, on concern that

Greece will default on debt payments, leading to slower economic growth and fuel

consumption A Greek default is becoming more and more likely amid reports

the country will miss debt-reduction targets, said James Zhang, a strategist at

Standard Bank Plc in London, who forecasts Brent will average $98 a barrel in the
http://fuelfix.com/blog/2011/10/03/ercot-to-pay-fines-for-2008-errors/http://www.ercot.com/http://www.texasre.org/about/Pages/Default.aspxhttp://fuelfix.com/blog/2011/10/03/ercot-to-pay-fines-for-2008-errors/http://investor.shareholder.com/bhi/rig_counts/rc_index.cfmhttp://www.reuters.com/article/2011/10/03/us-markets-oil-idUSTRE77838320111003http://www.reuters.com/article/2011/10/03/us-markets-oil-idUSTRE77838320111003http://fuelfix.com/blog/2011/10/03/ercot-to-pay-fines-for-2008-errors/http://www.ercot.com/http://www.texasre.org/about/Pages/Default.aspxhttp://fuelfix.com/blog/2011/10/03/ercot-to-pay-fines-for-2008-errors/http://investor.shareholder.com/bhi/rig_counts/rc_index.cfmhttp://www.reuters.com/article/2011/10/03/us-markets-oil-idUSTRE77838320111003http://www.reuters.com/article/2011/10/03/us-markets-oil-idUSTRE77838320111003


4/8

fourth quarter. The weaker euro and falling equity market are pulling oil prices

lower.

http://www.bloomberg.com/news/2011-10-03/crude-oil-extends-decline-from-one-

year-low-after-worst-quarter-since-2008.html

Oil Markets Are Balanced Ahead of Libya Return, Saudi, Iran Officials Say

Global oil demand is balanced with supply, said officials from OPECs two largest

producers Saudi Arabia and Iran, as the group evaluates the outlook for economic

growth and the return of Libyan output.

Markets are stable and in balance, Saudi Arabian Oil Minister Ali Al-Naimi was

cited by Asharq Al-Awsat newspaper as saying yesterday in Riyadh. The kingdom

is ready to play a positive role to ensure the stability of the market.

Iran sees no need for the Organization of Petroleum Exporting Countries to raise

oil production, given the lack of clarity about global demand, Mohammad Ali

Khatibi, the countrys representative to the group, told the state-run Mehr newsagencyOPEC is set to meet in December in Vienna to evaluate supply and

demand and consider current production levels.

http://www.bloomberg.com/news/2011-10-02/saudi-arabia-s-naimi-says-global-oil-

markets-in-balance-asharq-reports.html

Drilling for Crude Goes SolarChevron Corp. is enlisting the sun to help drain the sludge-like dregs of crude froman aging oil field. Chevron is keen to extract this thick crude by heating it withsteam. Historically, oil companies have used natural gas to create the energy forthe steam. Here in Coalinga, the energy comes from a vast stretch of solarpanels. This marriage of clean energy technology with one of the dirtiest forms of

oil extraction says a lot about the state of the global energy industry. U.S. solarcompanies are diversifying their core business of electricity generation to buildthe economies of scale that they hope will help them compete at a time when theindustry is under pressure.http://online.wsj.com/article/SB10001424052970203405504576602891728012656.html?mod=WSJ_Commodities_LEFTTopNews

Shell hopes to break the ice on Arctic drillingThe multipurpose vessel, which for now bears the prosaic name Hull 247, will be

used primarily to tow and position anchors that keep drilling rigs in place, said

Pete Slaiby, vice president of Shell Alaska.

It will be the worlds largest and most powerful anchor-handling ice breaker,

said Gary Chouest, president of Galliano, La.-based shipbuilder Edison Chouest

Offshore, which is building the vessel.

It also can respond to oil spills and maneuver large blocks of ice.

http://fuelfix.com/blog/2011/10/03/shell-hopes-to-break-the-ice-on-arctic-drilling/

Crude Oil Outlook 2012
http://www.bloomberg.com/news/2011-10-03/crude-oil-extends-decline-from-one-year-low-after-worst-quarter-since-2008.htmlhttp://www.bloomberg.com/news/2011-10-03/crude-oil-extends-decline-from-one-year-low-after-worst-quarter-since-2008.htmlhttp://www.bloomberg.com/news/2011-10-02/saudi-arabia-s-naimi-says-global-oil-markets-in-balance-asharq-reports.htmlhttp://www.bloomberg.com/news/2011-10-02/saudi-arabia-s-naimi-says-global-oil-markets-in-balance-asharq-reports.htmlhttp://online.wsj.com/article/SB10001424052970203405504576602891728012656.html?mod=WSJ_Commodities_LEFTTopNewshttp://online.wsj.com/article/SB10001424052970203405504576602891728012656.html?mod=WSJ_Commodities_LEFTTopNewshttp://fuelfix.com/blog/2011/10/03/shell-hopes-to-break-the-ice-on-arctic-drilling/http://fuelfix.com/blog/2011/10/03/shell-hopes-to-break-the-ice-on-arctic-drilling/http://www.bloomberg.com/news/2011-10-03/crude-oil-extends-decline-from-one-year-low-after-worst-quarter-since-2008.htmlhttp://www.bloomberg.com/news/2011-10-03/crude-oil-extends-decline-from-one-year-low-after-worst-quarter-since-2008.htmlhttp://www.bloomberg.com/news/2011-10-02/saudi-arabia-s-naimi-says-global-oil-markets-in-balance-asharq-reports.htmlhttp://www.bloomberg.com/news/2011-10-02/saudi-arabia-s-naimi-says-global-oil-markets-in-balance-asharq-reports.htmlhttp://online.wsj.com/article/SB10001424052970203405504576602891728012656.html?mod=WSJ_Commodities_LEFTTopNewshttp://online.wsj.com/article/SB10001424052970203405504576602891728012656.html?mod=WSJ_Commodities_LEFTTopNewshttp://fuelfix.com/blog/2011/10/03/shell-hopes-to-break-the-ice-on-arctic-drilling/http://fuelfix.com/blog/2011/10/03/shell-hopes-to-break-the-ice-on-arctic-drilling/


5/8

A rising USD depresses Crude Oil prices, and the USD rose by around 4% in

September vs. the Euro and by 6% against a basket of six currencies. Demand for

Crude Oil in the developed countries of North America and Europe are also falling

as these economies continue to mark slowed growth.

http://www.ibtimes.com/articles/223640/20111003/crude-oil-outlook-2012.htm

Showa Shell: Oct-Dec refining down 9 pct y/y on closureShowa Shell Sekiyu KK , Japan's fifth-largest refiner, said on Monday it expects to

refine 9 percent less crude oil in the October-December quarter than a year earlier

due mainly to the closure of its group's Ohgimachi factory last month.

Refining volume at its four group refineries is expected to total 7.85 million

kilolitres (537,000 barrels per day) in the quarter, during which it has no

maintenance work scheduled, a company spokesman said.

http://www.reuters.com/article/2011/10/03/crude-showa-shell-refining-idUSL3E7L30OS20111003

Weather

Hurricane 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://www.ibtimes.com/articles/223640/20111003/crude-oil-outlook-2012.htmhttp://www.reuters.com/article/2011/10/03/crude-showa-shell-refining-idUSL3E7L30OS20111003http://www.reuters.com/article/2011/10/03/crude-showa-shell-refining-idUSL3E7L30OS20111003http://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/290858.shtmlhttp://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/290842.shtmlhttp://www.ibtimes.com/articles/223640/20111003/crude-oil-outlook-2012.htmhttp://www.reuters.com/article/2011/10/03/crude-showa-shell-refining-idUSL3E7L30OS20111003http://www.reuters.com/article/2011/10/03/crude-showa-shell-refining-idUSL3E7L30OS20111003http://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/290858.shtmlhttp://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/290842.shtml


6/8

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


7/8

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


8/8
http://www.cpc.ncep.noaa.gov/products/predictions/814day/814prcp.new.gif

energy and markets newsletter 100311

Documents