energy and markets newsletter 102011

8/3/2019 Energy and Markets Newsletter 102011

1/9

October 20,2011

Energy Data HighlightsCrude oil futures price10/18/2011: $88.34/bblup$2.53 from week earlierup$5.26 from year earlier

Natural gas futures price

10/18/2011: $3.553/mmBtudown$0.063 from week earlierup$0.123 from year earlier

Retail heating oil price10/17/2011: $3.768 /galup$0.086 from week earlierup$0.796 from year earlier

Crude oil inventories10/14/2011: 332.9 mmbbldown4.7 mmbbl from week earlier

down28.3 mmbbl from year earlier

Weekly coal production10/8/2011: 21.602 million tonsdown0.309 million tons from week earlierup0.137 million tons from year earlier

http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 10/13/11 (Actual): +112 BcfPrevious Week: +97 Bcf-1.6% Change from 1 Year Ago+2.0% Change 5-year Average

Big Gas Find for Italy's EniEni SpA, the Italian energy giant, has made a very large natural-gas discovery offthe coast of Mozambique, big enough that it could turn the East African countryinto a major exporter of gas to Asia. The company's first well in a deepwaterexploration campaign has found about 15 trillion cubic feet of gas, according topeople briefed on the discovery. They said the gas reservoir is of very high quality

and Eni should be able to get an unusually large percentage of the gas out of the

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/hopu/hopu.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/hopu/hopu.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


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ground. Eni reported 17.7 trillion cubic feet of proved natural-gas reserves at theend of 2010.http://online.wsj.com/article/SB10001424052970203752604576641612293848484.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Canadian gas exports to US fall 7.3% in August versus July level

Canadian natural gas exports to the US fell 7.3% from July to August to around237.1 million cubic meters/day, according to statistics released by the NationalEnergy Board Wednesday. The biggest drop in exports was seen at the Kingsgatepoint in British Columbia, a gateway to US Pacific Northwest markets. Marketsources attributed the fall to a return to seasonal temperatures in the region andthe opening of the Ruby Pipeline -- which brings supplies from the Rockies toMalin, Oregon, where it then can access Northern California markets -- in late July,which pushed back some western Canadian volumes.http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6598466

Russia needs $2.5 trillion in energy investments to 2035Russia needs to invest a total of $2.5 trillion between now and 2035 in its energy

industry to guarantee stable growth and development, Russia's Deputy Energy

Minister Anatoli Yanovsky said Thursday at an industry conference, citing

estimates given by the International Energy Agency. "At its annual ministerial

meeting earlier this week, the IEA said it sets its estimation of required

investments into the Russian energy market until 2035 at $2.5 trillion," he said at

an energy forum organized by Russia's Chamber of Commerce and Industry.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8486319

Argentina plans to increase LNG purchases in 2012

Argentina plans to step up LNG imports next year as domestic gas production

declines and energy demand rises with a growing economy, a source close to the

planning process said Wednesday. The country will seek 50-to-60 cargoes of

138,000 cu meters each, up from 50-to-55 cargoes this year, a source at the state

energy company Enarsa said on the condition of anonymity. "The purpose for

importing more is because gas production is falling and demand is rising," said the

source.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6598440

Shale boom leads Enterprise to add NGL capacity

Enterprise Products Partners has launched operation of a fifth natural gas liquidsfractionator at a Houston-area complex and will start a sixth in early 2013, inresponse to surging supply and demand for shale gas, the company announced

Tuesday.The new fractionators each add 75,000 barrels per day of natural gas processingcapacity to Enterprise Products complex in Mont Belvieu, and will bring the totalcomplex capacity to 450,000 barrels per day. Fractionators separate various

gases, including ethane, propane and butane, found in the mixture of natural gas
http://online.wsj.com/article/SB10001424052970203752604576641612293848484.html?mod=WSJ_hp_LEFTWhatsNewsCollectionhttp://online.wsj.com/article/SB10001424052970203752604576641612293848484.html?mod=WSJ_hp_LEFTWhatsNewsCollectionhttp://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6598466http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8486319http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6598440http://fuelfix.com/blog/2011/10/19/shale-boom-leads-enterprise-products-to-add-ngl-capacity/http://online.wsj.com/article/SB10001424052970203752604576641612293848484.html?mod=WSJ_hp_LEFTWhatsNewsCollectionhttp://online.wsj.com/article/SB10001424052970203752604576641612293848484.html?mod=WSJ_hp_LEFTWhatsNewsCollectionhttp://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6598466http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8486319http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6598440http://fuelfix.com/blog/2011/10/19/shale-boom-leads-enterprise-products-to-add-ngl-capacity/


3/9

liquids (NGLs) extracted from shale rock and other formations. The rapid additionof capacity is a response to growing demand for ethane from Gulf Coastpetrochemical companies, said A.J. Teague, Enterprise executive vice presidentand chief operating officer. The domestic shale boom has put a glut of natural gasinto the market, significantly reducing its price compared to imported crude oiland making it a more attractive feedstock for petrochemicals.

http://fuelfix.com/blog/2011/10/19/shale-boom-leads-enterprise-products-to-add-ngl-capacity/

Kinder Morgan reports lower net income, higher distributionsOil and natural gas pipeline and storage giant Kinder Morgan Energy Partners said

Wednesday its net profit was down 32 percent in the third quarter due to charges

related to an acquisition, but cash distributions to unit holders were up near 5

percentEarlier this week Kinder Morgan said it would buy El Paso Corp. for $21.1

billion, creating the 4th largest energy business in the U.S.

http://fuelfix.com/blog/2011/10/19/kinder-morgan-reports-lower-net-income-

higher-distributions/

Green/ Alternative Energy News

Green gains in importance to manufacturers, survey saysU.S. manufacturers are far more likely now than just two years ago to emphasize

green practices, such as reducing their energy use and making environmentally

friendly products, a survey of companies found. More than 59 percent of

manufacturers reported that sustainability is important or highly important to

their future, up from 35 percent in 2009, according to the report put out by theAmerican Small Manufacturers Coalition, an industry group based in Washington.

Looking to rebound from the recession, manufacturers said theyre facing higher

demand for greener products and seeking to save money by consuming less

energy and re-using materials, the report found.

http://fuelfix.com/blog/2011/10/19/green-gains-in-importance-to-manufacturers-

survey-says/

U.K. Cuts Support for Onshore, Offshore Wind; Boosts Wave, Tidal

The U.K. government cut support for land-based and offshore wind farms, while

boosting aid for wave and tidal plants, under a program that compels electricity

suppliers to get power from alternative energy.

Each megawatt-hour of electricity generated from onshore wind will be rewarded

with 0.9 tradable certificates, down from 1, the Department for Energy and

Climate Change said today on its website. Offshore wind was cut to 1.9 from 2, as

wave and tidal steam were boosted to 5 from 2.

http://www.bloomberg.com/news/2011-10-20/u-k-cuts-support-for-onshore-

offshore-wind-boosts-wave-tidal.html
http://fuelfix.com/blog/2011/10/19/shale-boom-leads-enterprise-products-to-add-ngl-capacity/http://fuelfix.com/blog/2011/10/19/shale-boom-leads-enterprise-products-to-add-ngl-capacity/http://fuelfix.com/blog/2011/10/19/kinder-morgan-reports-lower-net-income-higher-distributions/http://fuelfix.com/blog/2011/10/19/kinder-morgan-reports-lower-net-income-higher-distributions/http://fuelfix.com/blog/2011/10/19/kinder-morgan-reports-lower-net-income-higher-distributions/http://fuelfix.com/blog/2011/10/19/green-gains-in-importance-to-manufacturers-survey-says/http://fuelfix.com/blog/2011/10/19/green-gains-in-importance-to-manufacturers-survey-says/http://fuelfix.com/blog/2011/10/19/green-gains-in-importance-to-manufacturers-survey-says/http://www.bloomberg.com/news/2011-10-20/u-k-cuts-support-for-onshore-offshore-wind-boosts-wave-tidal.htmlhttp://www.bloomberg.com/news/2011-10-20/u-k-cuts-support-for-onshore-offshore-wind-boosts-wave-tidal.htmlhttp://fuelfix.com/blog/2011/10/19/shale-boom-leads-enterprise-products-to-add-ngl-capacity/http://fuelfix.com/blog/2011/10/19/shale-boom-leads-enterprise-products-to-add-ngl-capacity/http://fuelfix.com/blog/2011/10/19/kinder-morgan-reports-lower-net-income-higher-distributions/http://fuelfix.com/blog/2011/10/19/kinder-morgan-reports-lower-net-income-higher-distributions/http://fuelfix.com/blog/2011/10/19/kinder-morgan-reports-lower-net-income-higher-distributions/http://fuelfix.com/blog/2011/10/19/green-gains-in-importance-to-manufacturers-survey-says/http://fuelfix.com/blog/2011/10/19/green-gains-in-importance-to-manufacturers-survey-says/http://fuelfix.com/blog/2011/10/19/green-gains-in-importance-to-manufacturers-survey-says/http://www.bloomberg.com/news/2011-10-20/u-k-cuts-support-for-onshore-offshore-wind-boosts-wave-tidal.htmlhttp://www.bloomberg.com/news/2011-10-20/u-k-cuts-support-for-onshore-offshore-wind-boosts-wave-tidal.html


4/9

U.S. Solar Companies Seek Tax on Chinese Imports Claiming Unfair State

Aid

U.S. solar-equipment makers asked the government to slap duties on more than

$1 billion of Chinese imports, joining the wind-power industry in seekingcompensation for alleged unfair state aid undercutting American competitors.

China uses cash grants, preferential loans, discounts on raw materials, tax

incentives and currency manipulation among tactics to boost exports of solar

cells, the main device used in solar panels, the U.S. unit of Bonn-based SolarWorld

AG (SWV) said yesterday in the complaint supported by six other U.S. solar

companies. Suntech Power Holdings Co., LDK Solar Co. and Trina Solar Ltd. (TSL),

the three-biggest China-based makers of crystalline silicon panels, sell in the U.S.,

according to Bloomberg data.

http://www.bloomberg.com/news/2011-10-19/solarworld-says-it-will-file-trade-

action-with-u-s-today.html

Crude Oil News

OPEC Daily Basket Price 10/19/2011- $108.65

(10/18/2011- $107.94)

Oil Rebounds on Speculation EU Will Reach Agreement to Help Fight

Crisis

Oil rebounded on speculation that European Union leaders will reach agreement

on enhancing their rescue fund and help fight the regions debt crisis. Futures

gained as much as 1.2 percent in London and 1 percent in New York after

European Commission President Jose Barroso said government leaders may reach

a very positive outcome at a meeting this weekend in Brussels. Prices fell earlier

as divisions emerged between France and Germany on the bail-out strategy. U.S.

fuel consumption fell last week, according to data released yesterday by the

Energy Department. These are political markets right now, said Carsten Fritsch,an analyst in Frankfurt at Commerzbank AG

http://www.bloomberg.com/news/2011-10-20/oil-rebounds-on-speculation-eu-will-

reach-agreement-to-help-fight-crisis.html

Betting on the return of WTI-Brent parity

The price difference between West Texas Intermediate and Brent crude reached a

record high of more than $28 a barrel earlier this month. But, almost unnoticed,
http://www.bloomberg.com/news/2011-10-19/solarworld-says-it-will-file-trade-action-with-u-s-today.htmlhttp://www.bloomberg.com/news/2011-10-19/solarworld-says-it-will-file-trade-action-with-u-s-today.htmlhttp://www.bloomberg.com/news/2011-10-20/oil-rebounds-on-speculation-eu-will-reach-agreement-to-help-fight-crisis.htmlhttp://www.bloomberg.com/news/2011-10-20/oil-rebounds-on-speculation-eu-will-reach-agreement-to-help-fight-crisis.htmlhttp://www.bloomberg.com/news/2011-10-19/solarworld-says-it-will-file-trade-action-with-u-s-today.htmlhttp://www.bloomberg.com/news/2011-10-19/solarworld-says-it-will-file-trade-action-with-u-s-today.htmlhttp://www.bloomberg.com/news/2011-10-20/oil-rebounds-on-speculation-eu-will-reach-agreement-to-help-fight-crisis.htmlhttp://www.bloomberg.com/news/2011-10-20/oil-rebounds-on-speculation-eu-will-reach-agreement-to-help-fight-crisis.html


5/9


6/9

Precipitation
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7/9

8 to 14 Day Outlooks Temperature
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8/9

Precipitation
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9/9
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