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November 8,2011

Energy Data Highlights

Retail gasoline price11/7/2011: $3.424/galdown$0.028 from week earlierup$0.559 from year earlier

Retail diesel price11/7/2011: $3.887/galdown$0.005 from week earlierup$0.771 from year earlier

Crude oil futures price11/4/2011: $94.26/bblup$0.94 from week earlierup$7.77 from year earlier

Natural gas futures price11/4/2011: $3.783/mmBtu

down$0.140 from week earlierdown$0.077 from year earlier

Weekly coal production10/29/2011: 21.634 million tonsup0.475 million tons from week earlierup1.154 million tons from year earlier

http://www.eia.gov/

Crude Oil News

OPEC Daily Basket Price 11/7/2011- $111.08

(11/4/2011- $109.96)

Oil Trades Near a Three-Month High on U.S. Supply, European Crisis

Outlook 

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Oil rose to the highest price in more than three months in New York on signs of 

shrinking stockpiles in the U.S. and amid speculation European leaders will make

progress in containing the region’s debt crisis.

http://www.bloomberg.com/news/2011-11-08/oil-trades-near-a-three-month-high-

on-u-s-supply-european-crisis-outlook.html 

Oil up near $116 as Iran, Italy eyed Oil prices rose to near $116 a barrel on Tuesday as investors said strong seasonalfundamentals and concerns about an escalating dispute over Iran's nuclearprogram outweighed worries caused by Italy's sovereign debt risk. Brent crudefutures were up $1.17 a barrel to $115.73 by 1157 GMT, close to their highestlevel in nearly two months. U.S. crude was up 46 cents at $95.98 a barrel. "Thereare several factors at play, some are offsetting each other but the general trend isto the upside," said Carsten Fritsch, an energy analyst at Commerzbank inFrankfurt.

http://www.reuters.com/article/2011/11/08/us-markets-oil-idUSTRE7922QH20111108 

Oil rallies as tensions mount over IranOil prices rallied to a seven-week high on Monday as bearish investors rushed to

cover their bets amid a war of words between Washington, Tel Aviv and Tehran

over Iran’s nuclear programme...Iran is a member of the Opec oil cartel and

traders are starting to worry that the IAEA report could lead to an attack by Israel

on Tehran’s nuclear facilities. An attack could disrupt oil production and lead to

closure of the Strait of Hormuz, the gateway for oil exports from key Opec

producers in the Middle East region, including Saudi Arabia.

http://www.ft.com/intl/cms/s/0/deb9512a-095f-11e1-a20c-00144feabdc0.html?

ftcamp=rss#axzz1d7NrNN5t 

Repsol Makes Record Shale-Oil Discovery at Argentina’s Loma La Lata

Field 

Repsol YPF SA (REP), Spain’s largest oil company, said its Argentine YPF SA (YPF)

unit discovered about 927 million barrels equivalent of shale oil at the Loma La

Lata field in northern Patagonia, its biggest find… YPF, which produces more than

50 percent of Argentina’s crude, is boosting exploration to arrest a decline in

output and last year had a 100 percent annual oil reserve-replacement ratio for

the first time in 13 years.

http://www.bloomberg.com/news/2011-11-07/ypf-finds-six-times-more-shale-oil-

than-estimated-at-loma-la-lata-field.html 

State Department Said to Weigh Altering Keystone Pipeline Route

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 The U.S. State Department is weighing whether to seek a rerouting of 

 TransCanada Corp. (TRP)’s planned $7 billion Keystone XL pipeline away from the

Sandhills region of Nebraska, a department official said. The department is

considering how to respond to concern among Nebraska citizens and public

officials about the risk that TransCanada’s current plans may pose to the

Sandhills, said the official familiar with the deliberations, who spoke on conditionof anonymity yesterday about internal discussions.

http://www.bloomberg.com/news/2011-11-08/keystone-rerouting-said-to-be-

weighed-by-u-s-state-department.html 

Woodside Petroleum: To Shell or Not to Shell?

It’s been a year to the day since Royal Dutch Shell blindsided Australia’s largest oiland gas company Woodside Petroleum by selling down a 10% stake for A$3.3

billion (US$3.4 billion). Appeasing Woodside, Shell promised to hold onto itsremaining 24.27% interest for a year unless a takeover offer or a strategic buyersurfaced. Given that no industry interest arose even when stock fell to a three-year low below A$30 (US$31.08), analysts believe the only way Shell can divest isto return to the market.http://blogs.wsj.com/deals/2011/11/08/woodside-petroleum-to-shell-or-not-to-shell/ 

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. 4 Nov11

2026 5 28 Oct 11 +343 5 Nov 10

Canada 4 Nov11

476 -23 28 Oct 11 +59 5 Nov 10

International

October2011

1162 -12 September 2011

+54 September2010

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

Natural Gas/ Power News

EIA Storage Release 11/3/11 (Actual): +78 Bcf Previous Week: +92 Bcf -0.4% Change from 1 Year Ago+5.6% Change 5-year Average

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US energy groups act on natural gas demand US energy companies are converting rigs and trucks to run on natural gas,building fuelling stations and launching educational campaigns to increasedemand for the domestic fuel that has flooded the market on the back of the shaleboom. With technological advances enabling gas production from shale rock,

estimates of US supplies of natural gas have risen from 30 to 100 years’ worth, atcurrent usage rates, with the US market now oversupplied. Prices have beenhovering at about $4 per million British thermal units, down sharply from 2008’srecord of $13.69 per mBtu, and the industry believes they could remain at thatlevel for several years.http://www.ft.com/intl/cms/s/0/743857d6-df9a-11e0-845a-00144feabdc0.html#axzz1d7NrNN5t 

Dynegy subsidiary files for bankruptcy protectionA subsidiary of power company Dynegy Inc. has sought Chapter 11 bankruptcy

protection and said it has agreed with holders of more than $1.4 billion in senior

notes on a debt restructuring. Houston-based Dynegy said Tuesday Dynegy

Holdings LLC and four of its subsidiaries have filed a voluntary petition in the U.S.

Bankruptcy Court for the Southern District of New York. The parent company and

its other subsidiaries are not seeking relief, and Dynegy said they will continue to

operate with no impact from the limited Chapter 11 filings.

http://online.wsj.com/article/AP7d7106babb2d49b08e74957c424a467a.html 

M&A by US energy utilities at four-year high

Mergers and acquisitions by US energy utilities rose to their highest level for fouryears in the first half of this year, emphasising how consolidation is being drivenby low prices for natural gas, demand for heavy investment and more willingnessby regulators to accept deals. PricewaterhouseCoopers, the professional servicesfirm, says $52bn of deals for electricity and gas companies were announced in thefirst six months of this year – the strongest such period for M&A since 2007.http://www.ft.com/intl/cms/s/0/ac8a8b78-c117-11e0-b8c2-00144feabdc0.html#axzz1d7NrNN5t 

Taming Unruly Wind Power 

For decades, electric companies have swung into emergency mode when demandsoars on blistering hot days, appealing to households to use less power. But withthe rise of wind energy, utilities in the Pacific Northwest are sometimes dealingwith the opposite: moments when there is too much electricity for the grid to soakup. In June 2010, for example, a violent storm in the Northwest caused asimultaneous surge in wind power and in traditional hydropower, creating anoversupply that threatened to overwhelm the grid and cause a blackout. As aresult, the Bonneville Power Administration, the wholesale supplier to a broadswath of the region, turned this year to a strategy common to regions with hotsummers: adjusting volunteers’ home appliances by remote control to balancesupply and demand.http://www.cnbc.com/id/45174002 

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 Another PG&E California gas line fails during test, closes interstate 

Another Pacific Gas & Electric natural gas transmission line in California has failed

during hydrotesting -- this time along the same pipeline involved in a deadly

explosion a little over a year ago.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6647316

US FERC approves changes to PJM demand response performance

measurement  

 The US Federal Energy Regulatory Commission has approved PJM

Interconnection's proposal to change the way it measures performance by

demand response resources during system emergencies, conditioned on PJM

proposing a way to mitigate the impacts of the change on participants that have

already been committed in capacity auctions.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/6647569

US House bill aims to allow states to revoke, replace federal haze plans 

Legislation has been introduced in the US House of Representatives that would

allow states to revoke federal implementation plans to control haze pollution from

coal-fired power plants in favor of their own plans that would consider local

economics for how best to reduce emissions.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/6650432

Green/ Alternative Energy News

Mexico to earn royalty on light bulb carbon credits

Mexico will earn a royalty on carbon credits generated from energy-saving light

bulbs through a world first deal that could pave the way for other developing

countries to fund emissions cuts, the investors said on Monday

http://finance.yahoo.com/news/Mexico-earn-royalty-light-rc-3619700341.html

Roth & Rau Falls Most on Record After Meyer Burger Takeover to Be

Delayed 

Roth & Rau AG (R8R) dropped the most since it began trading in Frankfurt in 2006

as a planned full takeover by Meyer Burger Technology Ltd., Europe’s biggest

solar-panel equipment maker, may take longer than previously anticipated.

http://www.bloomberg.com/news/2011-11-08/roth-rau-falls-most-on-record-after-

meyer-burger-takeover-to-be-delayed.html 

Biggest Solar Silicon Maker Expands Production as Prices Plunge

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 The Hemlock Semiconductor Group, the world’s biggest maker of polysilicon, is

increasing production as a glut for the material used in semiconductors and solar

cells pushes down prices to the lowest since 2003.

http://www.bloomberg.com/news/2011-11-07/hemlock-expanding-solar-silicon-

capacity-as-china-idles-plants.html 

Most Solar Makers Will Disappear: Trina CEO

Most of the biggest solar-equipment makers may disappear in the next few years

as plunging prices erode margins and drive the weakest out of business, according

to Trina Solar Ltd. (TSL), the fifth-largest supplier of solar panels. “This is the

decade of mergers and acquisitions,” Jifan Gao, chief executive officer of 

Changzhou, China-based Trina, said in an interview. “From now until 2015 is the

first phase, when about two-thirds of the players will be shaken out.”

http://www.bloomberg.com/news/2011-11-08/most-solar-manufacturers-may-

disappear-by-2015-trina-ceo-says.html 

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Weather 6  to 10 Day Outlooks  Temperature

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Precipitation

8 to 14 Day Outlooks

Temperature

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Precipitation

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