energy and markets newsletter 101111

8/3/2019 Energy and Markets Newsletter 101111

1/8

October 11,2011

Energy Data Highlights

Crude oil futures price10/6/2011: $82.59/bblup$0.45 from week earlierup$0.36 from year earlier

Natural gas futures price10/6/2011: $3.598/mmBtudown$0.149 from week earlierdown$0.272 from year earlier

Weekly coal production10/1/2011: 21.911 million tonsup0.718 million tons from week earlierup0.481 million tons from year earlier

Natural gas inventories9/30/2011: 3,409 Bcfup97 Bcf from week earlierdown78 Bcf from year earlier

Crude oil inventories9/30/2011: 336.3 mmbbldown4.7 mmbbl from week earlierdown24.7 mmbbl from year earlier

http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 10/6/11 (Actual): +97 BcfPrevious Week: +111 Bcf-2.2% Change from 1 Year Ago+0.8% Change 5-year Average

Shale Gas & the Re-Shaping of European Power PoliticsRussia clearly holds now the balance of power when it comes to European energy

security. However, the current Eurozone economic crisis and the development of

massive European shale gas reserves are set to combine to re-shape entirely the

landscape of European power politics no matter what the politicking of Brussels

or Moscow. Of the rich band of shale gas across much of northern and Eastern

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/cneaf/coal/weekly/weekly_html/wcpweek.htmlhttp://ir.eia.gov/ngs/ngs.htmlhttp://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCESTUS1&f=Whttp://www.eia.gov/http://fuelfix.com/blog/2011/10/07/shale-gas-the-re-shaping-of-european-power-politics/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/cneaf/coal/weekly/weekly_html/wcpweek.htmlhttp://ir.eia.gov/ngs/ngs.htmlhttp://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCESTUS1&f=Whttp://www.eia.gov/http://fuelfix.com/blog/2011/10/07/shale-gas-the-re-shaping-of-european-power-politics/http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RCLC1&f=D


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Europe, and large deposits are thought to be beneath Ukraine, Poland, Germany,

France, the UK, Hungary, Bulgaria and Romania. In early September 2011, the

Ukraine, once again clashing with its Russian gas providers over prices and

outstanding payments, and committed to cutting Russian gas imports from 34

billion to 12 cubic metres within five years, has just signed a deal by which Shell

expect to invest up to $800 million in a bid to speed up the Ukraines domesticnatural gas production. The countrys reserves could well prove to be the biggest

in Europe.

http://fuelfix.com/blog/2011/10/07/shale-gas-the-re-shaping-of-european-power-

politics/

Putin Courts China to Bridge Divide on Gas

Prime Minister Vladimir Putin said Russia is nearing an agreement with China to

supply natural gas to the worlds biggest energy consumer. Those who sellalways want to sell at a higher price, while those who buy want to buy at a lower

price, Putin said today at the start of a meeting with Chinese Prime Minister Wen

Jiabao in Beijing. We need to reach a compromise that will satisfy both sides.

http://www.bloomberg.com/news/2011-10-10/putin-courts-china-as-russia-seeks-

to-bridge-differences-on-gas.html

Houston firm Complete to merge with SuperiorNew Orleans-based Superior Energy Services is buying Houstons Complete

Production Services for about $2.7 billion in a cash-and-stock deal that willcombine the two mid-size energy service firms.

http://fuelfix.com/blog/2011/10/10/houston-oil-field-services-firm-complete-to-

merge-with-superior/

Crude Oil News

OPEC Daily Basket Price 10/10/2011- $104.67

(10/7/2011- $103.22)

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. 7 Oct 11 2012 22 30 Sept

11

+341 8 Oct 10
http://fuelfix.com/blog/2011/10/07/shale-gas-the-re-shaping-of-european-power-politics/http://fuelfix.com/blog/2011/10/07/shale-gas-the-re-shaping-of-european-power-politics/http://www.bloomberg.com/news/2011-10-10/putin-courts-china-as-russia-seeks-to-bridge-differences-on-gas.htmlhttp://www.bloomberg.com/news/2011-10-10/putin-courts-china-as-russia-seeks-to-bridge-differences-on-gas.htmlhttp://fuelfix.com/blog/2011/10/10/houston-oil-field-services-firm-complete-to-merge-with-superior/http://fuelfix.com/blog/2011/10/10/houston-oil-field-services-firm-complete-to-merge-with-superior/http://fuelfix.com/blog/2011/10/10/houston-oil-field-services-firm-complete-to-merge-with-superior/http://fuelfix.com/blog/2011/10/07/shale-gas-the-re-shaping-of-european-power-politics/http://fuelfix.com/blog/2011/10/07/shale-gas-the-re-shaping-of-european-power-politics/http://www.bloomberg.com/news/2011-10-10/putin-courts-china-as-russia-seeks-to-bridge-differences-on-gas.htmlhttp://www.bloomberg.com/news/2011-10-10/putin-courts-china-as-russia-seeks-to-bridge-differences-on-gas.htmlhttp://fuelfix.com/blog/2011/10/10/houston-oil-field-services-firm-complete-to-merge-with-superior/http://fuelfix.com/blog/2011/10/10/houston-oil-field-services-firm-complete-to-merge-with-superior/http://fuelfix.com/blog/2011/10/10/houston-oil-field-services-firm-complete-to-merge-with-superior/


3/8

Canada 7 Oct 11 522 12 30 Sept11

+119 8 Oct 10

International

September 2011

1174 -9 August2011

+54 September2010

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

Crude Oil Drops From Two-Week High in New York Before Vote on Europe

Debt

Oil fell from its highest in more than two weeks in New York before a government

vote in Slovakia on the euro areas bailout fund that may endanger a recovery in

the regions economy. Futures slipped as much as 1.3 percent and European

equities fell after European Central Bank President Jean-Claude Trichet said the

regions debt crisis has reached a systemic dimension. Crude climbed 2.9percent yesterday after German Chancellor Angela Merkel and French President

Nicholas Sarkozy said they will deliver a plan to recapitalize the regions banks by

Nov. 3. An Energy Department report Oct. 13 may show U.S. crude supplies rose

last week.

http://www.bloomberg.com/news/2011-10-10/oil-trades-near-two-week-high-on-

european-debt-pledge-u-s-growth-outlook.html

Brent slips below $108 on euro bank woes, dollarBrent crude oil fell more than $1 to below $108 per barrel on Tuesday on concernsover the health of the euro zone economy and as Kuwaiti oil exports resumedafter a strike by the country's customs union.http://www.reuters.com/article/2011/10/11/us-markets-oil-idUSTRE7922QH20111011

Oil slips below $85 as markets await European has plan to contain debtcrisisOil prices slipped below $85 a barrel Tuesday, as doubts surfaced about expandinga bailout plan in Europe and OPEC cut its estimate for world oil demand. By earlyafternoon in Europe, benchmark crude for November delivery was down 63 centsat $84.78 a barrel at late afternoon Singapore time in electronic trading on theNew York Mercantile Exchange. The contract rose $2.43 to settle at $85.41 in New

York on Mondayhttp://www.washingtonpost.com/business/markets/oil-rises-to-near-84-in-asia-amid-encouraging-us-jobs-data-possible-europe-debt-crisis-plan/2011/10/10/gIQAFFnBZL_story.html

Big Prize Awaits Energy PatchSamson Investment Co., one of the country's largest privately held oil and gas

explorers, is considering strategic options including whether to sell itself in a deal

that could fetch as much as $10 billion, according to people familiar with the

matter. The Tulsa, Okla.-based company, little known outside the oil patch, has

been seeking a financial adviser to assess a range of options from setting up a

joint venture to a full sale, the people said. Hiring an investment bank would be a
http://investor.shareholder.com/bhi/rig_counts/rc_index.cfmhttp://www.bloomberg.com/news/2011-10-10/oil-trades-near-two-week-high-on-european-debt-pledge-u-s-growth-outlook.htmlhttp://www.bloomberg.com/news/2011-10-10/oil-trades-near-two-week-high-on-european-debt-pledge-u-s-growth-outlook.htmlhttp://www.reuters.com/article/2011/10/11/us-markets-oil-idUSTRE7922QH20111011http://www.reuters.com/article/2011/10/11/us-markets-oil-idUSTRE7922QH20111011http://www.washingtonpost.com/business/markets/oil-rises-to-near-84-in-asia-amid-encouraging-us-jobs-data-possible-europe-debt-crisis-plan/2011/10/10/gIQAFFnBZL_story.htmlhttp://www.washingtonpost.com/business/markets/oil-rises-to-near-84-in-asia-amid-encouraging-us-jobs-data-possible-europe-debt-crisis-plan/2011/10/10/gIQAFFnBZL_story.htmlhttp://www.washingtonpost.com/business/markets/oil-rises-to-near-84-in-asia-amid-encouraging-us-jobs-data-possible-europe-debt-crisis-plan/2011/10/10/gIQAFFnBZL_story.htmlhttp://investor.shareholder.com/bhi/rig_counts/rc_index.cfmhttp://www.bloomberg.com/news/2011-10-10/oil-trades-near-two-week-high-on-european-debt-pledge-u-s-growth-outlook.htmlhttp://www.bloomberg.com/news/2011-10-10/oil-trades-near-two-week-high-on-european-debt-pledge-u-s-growth-outlook.htmlhttp://www.reuters.com/article/2011/10/11/us-markets-oil-idUSTRE7922QH20111011http://www.reuters.com/article/2011/10/11/us-markets-oil-idUSTRE7922QH20111011http://www.washingtonpost.com/business/markets/oil-rises-to-near-84-in-asia-amid-encouraging-us-jobs-data-possible-europe-debt-crisis-plan/2011/10/10/gIQAFFnBZL_story.htmlhttp://www.washingtonpost.com/business/markets/oil-rises-to-near-84-in-asia-amid-encouraging-us-jobs-data-possible-europe-debt-crisis-plan/2011/10/10/gIQAFFnBZL_story.htmlhttp://www.washingtonpost.com/business/markets/oil-rises-to-near-84-in-asia-amid-encouraging-us-jobs-data-possible-europe-debt-crisis-plan/2011/10/10/gIQAFFnBZL_story.html


4/8

first step, although the company could still decide not to proceed further, they

cautioned.

http://online.wsj.com/article/SB1000142405297020445080457662345331094976

0.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Coast Guard: Sunken rig is not the source of the Gulf sheenThe U.S. Coast Guard does not believe the sunken drilling rig Deepwater Horizon isthe source of oil sheens spotted near the site several times this past summer. Nodischarge or leaking from the riser or the wreckage was observed, the CoastGuard statement said. The cause of the sheens remains under investigation.http://fuelfix.com/blog/2011/10/10/coast-guard-sunken-rig-is-not-the-source-of-

the-gulf-sheen/

Thai bourse to start oil futures trade on Oct. 17

The Stock Exchange ofThailand (SET) is to start trading in oil futures on Monday,Oct. 17, to offer an alternative investment for local investors and help business

operators manage energy-related costs better.

http://www.reuters.com/article/2011/10/11/thailand-oil-futures-

idUSL3E7LB10G20111011

In Uncertain Times, a Need for StabilityWhether we consider economic or political factors, reading the new energy map

of 2011 is difficult. Political instability in the oil exporting countries of the MiddleEast and North Africa has led to changes in governments, new political actors

and, in some cases, a temporary suspension of oil producing and exporting

activities.

http://www.nytimes.com/2011/10/11/business/energy-environment/in-uncertain-

times-a-need-for-stability.html?_r=1

Weather

Tropical Depression IRWINhttp://www.nhc.noaa.gov/#IRWIN

6 to 10 Day Outlooks

Temperature
http://online.wsj.com/article/SB10001424052970204450804576623453310949760.html?mod=WSJ_hp_LEFTWhatsNewsCollectionhttp://online.wsj.com/article/SB10001424052970204450804576623453310949760.html?mod=WSJ_hp_LEFTWhatsNewsCollectionhttp://fuelfix.com/blog/2011/10/10/coast-guard-sunken-rig-is-not-the-source-of-the-gulf-sheen/http://fuelfix.com/blog/2011/10/10/coast-guard-sunken-rig-is-not-the-source-of-the-gulf-sheen/http://fuelfix.com/blog/2011/10/10/coast-guard-sunken-rig-is-not-the-source-of-the-gulf-sheen/http://www.reuters.com/places/thailandhttp://www.reuters.com/article/2011/10/11/thailand-oil-futures-idUSL3E7LB10G20111011http://www.reuters.com/article/2011/10/11/thailand-oil-futures-idUSL3E7LB10G20111011http://www.nytimes.com/2011/10/11/business/energy-environment/in-uncertain-times-a-need-for-stability.html?_r=1http://www.nytimes.com/2011/10/11/business/energy-environment/in-uncertain-times-a-need-for-stability.html?_r=1http://online.wsj.com/article/SB10001424052970204450804576623453310949760.html?mod=WSJ_hp_LEFTWhatsNewsCollectionhttp://online.wsj.com/article/SB10001424052970204450804576623453310949760.html?mod=WSJ_hp_LEFTWhatsNewsCollectionhttp://fuelfix.com/blog/2011/10/10/coast-guard-sunken-rig-is-not-the-source-of-the-gulf-sheen/http://fuelfix.com/blog/2011/10/10/coast-guard-sunken-rig-is-not-the-source-of-the-gulf-sheen/http://fuelfix.com/blog/2011/10/10/coast-guard-sunken-rig-is-not-the-source-of-the-gulf-sheen/http://www.reuters.com/places/thailandhttp://www.reuters.com/article/2011/10/11/thailand-oil-futures-idUSL3E7LB10G20111011http://www.reuters.com/article/2011/10/11/thailand-oil-futures-idUSL3E7LB10G20111011http://www.nytimes.com/2011/10/11/business/energy-environment/in-uncertain-times-a-need-for-stability.html?_r=1http://www.nytimes.com/2011/10/11/business/energy-environment/in-uncertain-times-a-need-for-stability.html?_r=1


5/8

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


6/8

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


7/8

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


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

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