energy and markets newsletter 100411

8/3/2019 Energy and Markets Newsletter 100411

1/9

October 4,2011

Energy Data Highlights

Retail gasoline price10/3/2011: $3.433/galdown$0.076 from week earlier

up$0.701 from year earlierRetail diesel price10/3/2011: $3.749/galdown$0.037 from week earlierup$0.749 from year earlier

Crude oil futures price9/30/2011: $79.20/bbldown$0.65 from week earlierdown$0.77 from year earlier

Natural gas futures price9/30/2011: $3.666/mmBtudown$0.035 from week earlierdown$0.204 from year earlier

Weekly coal production9/24/2011: 21.193 million tonsdown0.015 million tons from week earlierdown0.611 million tons from year earlier

http://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

NRG says summer power spikes were costlyThe owner of Texas second-largest power plant operator and largest retail electric

provider is lowering its earnings projections for the year due to this past summers

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://fuelfix.com/blog/2011/10/03/nrg-says-summer-power-spikes-were-costly/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://fuelfix.com/blog/2011/10/03/nrg-says-summer-power-spikes-were-costly/http://www.eia.gov/oog/info/gdu/gasdiesel.asp


2/9


3/9

A US-Backed Geothermal Plant in Nevada Struggles

In a remote desert spot in northern Nevada, there is a geothermal plant run by apolitically connected clean energy start-up that has relied heavily on an Obama

administration loan guarantee and is now facing financial turmoil. The company isNevada Geothermal Power, which like Solyndra, the now-famous California solarcompany, is struggling with debt after encountering problems at its only operatingplant. After a series of technical missteps that are draining Nevada Geothermalscash reserves, its own auditor concluded in a filing released last week that therewas significant doubt about the companys ability to continue as a goingconcern. It is a description that echoes the warning issued in 2010 by auditorshired by Solyndra, which benefited from the same Energy Department loanguarantee before its collapse in August caused the Obama administration greatembarrassment.http://www.cnbc.com/id/44756837Crude Oil News

OPEC Daily Basket Price 10/3/2011 $99.65

(9/30/2011 $101.57)

Recent Rig Counts

AreaLast

CountCount

Change

from PriorCount

Date of

PriorCount

Change

from LastYear

Date of

Last Year'sCount

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

Crude Oil Declines to Eight-Week Low on U.S. Supplies, Libyan

Production

Oil fell to an eight-week low in New York on signs of rising U.S. supplies and outputfrom Libya. Goldman Sachs Group Inc. (GS) cut its 2012 forecast for Brent crude.Futures slid as much as 2.2 percent after settling yesterday at the lowest level inmore than a year. Goldman Sachs said Brent will average $120 a barrel next year,

down from $130. U.S. crude inventories climbed for a second week, an Energy
http://www.solyndra.com/http://www.cnbc.com/id/44756837http://investor.shareholder.com/bhi/rig_counts/rc_index.cfmhttp://www.solyndra.com/http://www.cnbc.com/id/44756837http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm


4/9

Department report tomorrow may show. Libya aims to raise production to morethan 500,000 barrels a day by the end of this month, according to the chairman ofstate-run National Oil Corp.

http://www.bloomberg.com/news/2011-10-04/crude-oil-declines-to-eight-week-low-on-u-s-supplies-libyan-production.html

Oil May Draw Support From OPEC Cuts in Grim Q4: Survey

Possible OPEC supply cuts, the delayed return of Libyan oil and peak winterheating fuel demand may provide pockets of support to benchmark crude oilprices during an otherwise grim final quarter plagued by global growth concerns,CNBC's weekly survey showed.http://www.cnbc.com/id/44766772

Crude Fluctuates Amid Uncertainties

Crude oil continues to fluctuate since the opening of todays session despite thebad sentiment that appear among investors after the rising possibility of a Greekdefault due to their announcement that the country will not meet the target deficitfor 2011 and 2012. Yesterday, Euro area finance ministers met in Luxemburg todiscuss the latest development that in the region, especially the Greek situationwhich been the focus for many days, with rising possibility that it will default.After the finance ministers meeting, they decide to delay the decision of giving thesixth tranche of last years bailout to Greece till after October, which is consideredthe second time they delay this decision because Greece didnt keep its part ofthe deal by missing the target deficit.

http://uk.ibtimes.com/articles/224485/20111004/fundamental-oil-report-2011-10-04.htm

Midwest ULSD, regular unleaded prices rise on news of Ozark pipeline

shutdown

Cash differentials for unleaded gasoline and ultra low sulfur diesel in the Midweststrengthened Monday on news that Enbridge had shut its 231,000 b/d Ozark

pipeline indefinitely, market sources said . Enbridge shut the Ozark line, whichruns from Cushing, Oklahoma, to Wood River, Illinois, on Friday after finding anexposed area of the pipeline on the bottom of the Mississippi River near WoodRiver. No leak has been found, but Enbridge said the pipeline will remain shut untila detailed assessment is completed, which is expected in the next few days.Midwest traders said they expect prices to continue to strengthen until they havemore of an idea how long the pipeline will be shut. "Tight crude supply meansreduced refinery run," one Midwest trader said. "But no one seems to know howbig of a problem it is."

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6545216
http://www.bloomberg.com/news/2011-10-04/crude-oil-declines-to-eight-week-low-on-u-s-supplies-libyan-production.htmlhttp://www.bloomberg.com/news/2011-10-04/crude-oil-declines-to-eight-week-low-on-u-s-supplies-libyan-production.htmlhttp://www.cnbc.com/id/44766772http://uk.ibtimes.com/articles/224485/20111004/fundamental-oil-report-2011-10-04.htmhttp://uk.ibtimes.com/articles/224485/20111004/fundamental-oil-report-2011-10-04.htmhttp://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6545216http://www.bloomberg.com/news/2011-10-04/crude-oil-declines-to-eight-week-low-on-u-s-supplies-libyan-production.htmlhttp://www.bloomberg.com/news/2011-10-04/crude-oil-declines-to-eight-week-low-on-u-s-supplies-libyan-production.htmlhttp://www.cnbc.com/id/44766772http://uk.ibtimes.com/articles/224485/20111004/fundamental-oil-report-2011-10-04.htmhttp://uk.ibtimes.com/articles/224485/20111004/fundamental-oil-report-2011-10-04.htmhttp://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6545216


5/9

Activists Criticize TransCanada-Government EmailsAn environmental group opposed to TransCanada Corp.'s planned Keystonepipeline expansion released emails on Monday it says show a cozy relationshipbetween a company lobbyist and an employee of the U.S. State Department, the

government agency responsible for approving the line. TransCanada's plannedKeystone XL expansion, which would deliver an additional 500,000 barrels a day ofcrude oil from Alberta's oil-sands region to the Gulf Coast refining belt, hasprovoked opposition from Friends of the Earth and other environmental groups aswell as some Democratic and Republican politicians. Foes say the tar-sands oiltraveling the pipeline is dirtier than other types of crude, a charge that

TransCanada disputes. Pipeline supporters say it would supply the U.S. with oilfrom a close ally.

http://online.wsj.com/article/SB10001424052970204612504576609111854243754.html

Middle East oil products surplus seen emerging

The Middle East's refining capacity will translate into a surplus of oil products inthe region in the medium term, Saeed Khoory, Group CEO of Dubai government-owned Emirates National Oil Company said Monday. "There will be increasingcompetition between refineries east of Suez to place their products," he told theMiddle East Petroleum and Gas Conference in Dubai. Refinery expansion wouldcontinue in the East of Suez market, which includes the Persian Gulf and Asia-

Pacific regions, Khoory predicted. Nonetheless, he forecast 1.7 million b/d ofeastern refinery closures by 2020, mainly in China and Japan. "Oil demand in theWest has peaked and we do not expect any growth in future," Khoory said."Similarly, crude supply in the West has peaked." He predicted that oil-demandgrowth East of Suez would falter in 2012 before subsequently resuming a strongupward trajectory.


China says Myanmar pipeline project continues despite dam suspension

Construction of the $2.5 billion Sino-Myanmar oil and natural gas pipelines byChina National Petroleum Corp is progressing according to plan and proceedingsmoothly, the official Xinhua news agency reported on Tuesday, just days afterMyanmar announced that it has suspended construction of a China-backed damproject. CNPC has attached great importance to Myanmar's public welfare andfulfilling its social responsibility. Whenever there is a cyclone or earthquake inMyanmar, CNPC has always provided aid in the form of cash donations or goods,"Xinhua said.

http://online.wsj.com/article/SB10001424052970204612504576609111854243754.htmlhttp://online.wsj.com/article/SB10001424052970204612504576609111854243754.htmlhttp://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8411299http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7470407http://online.wsj.com/article/SB10001424052970204612504576609111854243754.htmlhttp://online.wsj.com/article/SB10001424052970204612504576609111854243754.htmlhttp://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8411299http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7470407


6/9

Shell Singapore Fire Caused by Maintenance Preparation, Today Says

The fire at Royal Dutch Shell Plc (RDSA)s refinery at Pulau Bukom in Singaporewas caused by preparation work for maintenance, which included the draining ofresidual oil in a pipeline, Today newspaper reported.

http://www.bloomberg.com/news/2011-10-03/shell-singapore-fire-caused-by-maintenance-preparation-today-says.html

Norway Oil Find May Be its Third Biggest Ever

An oil discovery in the North Sea could be the third-biggest find ever made offNorway, oil minnow Lundin Petroleum said after giving new estimates on Friday,breathing life into a mature oil region largely written off by the majors.

The Avaldsnes/Aldous Major South find, which could already be the biggestdiscovery so far this year worldwide, may hold 1.2 billion to 2.6 billion barrels of oilequivalent, Sweden's Lundin said after more than quadrupling the size ofAvaldsnes.

http://www.cnbc.com/id/44731178Weather

Tropical Storm PHILIPPE

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

6 to 10 Day Outlooks Temperature
http://www.bloomberg.com/news/2011-10-03/shell-singapore-fire-caused-by-maintenance-preparation-today-says.htmlhttp://www.bloomberg.com/news/2011-10-03/shell-singapore-fire-caused-by-maintenance-preparation-today-says.htmlhttp://www.cnbc.com/id/44731178http://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/290842.shtmlhttp://www.cpc.ncep.noaa.gov/products/predictions/610day/610temp.new.gifhttp://www.bloomberg.com/news/2011-10-03/shell-singapore-fire-caused-by-maintenance-preparation-today-says.htmlhttp://www.bloomberg.com/news/2011-10-03/shell-singapore-fire-caused-by-maintenance-preparation-today-says.htmlhttp://www.cnbc.com/id/44731178http://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/290842.shtml


7/9

Precipitation

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


8/9

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


9/9

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