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September 1, 2011

Energy Data Highlights

Crude oil futures price 8/30/2011: $88.90/bbl up$3.46 from week earlier up$14.20 from year earlier Natural gas futures price 8/30/2011: $3.909 /mmBtu down$0.084 from week earlier up$0.099 from year earlier Retail gasoline price 8/29/2011: $3.627/gal up$0.046 from week earlier up$0.945 from year earlier Crude Oil Inventories 8/26/2011: 357.1 mmbbl up$0.010 from week earlier up$0.882 from year earlier Weekly coal production 8/20/2011: 20.787 million tons up0.526 million tons from week earlier down0.404 million tons from year earlier http://www.eia.gov/ Natural Gas/ Power News EIA Storage Release 8/25/11 (Actual): +73 Bcf Previous Week: +50 Bcf -4.6% Change from 1 Year Ago -1.9% Change 5-year Average NYMEX October gas contract rises 12.5 cents Wednesday midday The NYMEX October natural gas futures contract showed a solid rally on Wednesday midday, as it was up 12.5 cents to $4.034/MMBtu at 12:48 p.m. EDT (1648 GMT). The contract rose above the $4/MMBtu mark earlier during the trading session for the first time since August 15. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6429193

More than 1.8 million still without power in Mid-Atlantic, Northeast: DOE More than 1.8 million customers in 13 states and the District of Columbia were still without power Wednesday morning in the aftermath of Hurricane Irene, the Department of Energy's Office of Electricity Delivery and Energy Reliability said in its latest update http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/6429269 Amid oil sands growth, a boom for natural gas The rapid growth of Canadas oil sands is expected to dramatically increase its consumption of natural gas over the coming decade, a prospect that stands to help Albertas gas industry but raise the countrys emissions.A new estimate by Ziff Energy Group, a Calgary-based energy advisory, predicts that oil sands gas consumption will rise to three billion cubic feet (bcf) a day, up from 1.1 bcf today. http://www.theglobeandmail.com/report-on-business/industry-news/energy-andresources/amid-oil-sands-growth-a-boom-for-natural-gas/article2149379/ UK winter gas retreats from all-time high British winter 2011/12 gas fell from an all-time high reached on Tuesday as further profit taking weakened the contract and traders said it had risen too far above oilindexed prices in continental Europe http://uk.reuters.com/article/2011/08/31/uk-markets-britain-gas-poweridUKTRE77U4HO20110831

Green/ Alternative Energy News

Fresh approach needed on climate finance for developing countries A White Paper published today by Bloomberg New Energy Finance argues that a single Green Climate Fund will not succeed in routing $100bn per annum of funding from the developed to the developing world to combat climate change, as demanded by commitments made in Copenhagen and reinforced in last years Cancn negotiations. http://www.commodities-now.com/reports/environmental-markets/7645-freshapproach-needed-on-climate-finance-for-developing-countries.html

Brazil's gasoline imports to surge 5-10 times on ethanol cut: analysts Brazil will need to import an extra 250-500 million liters of gasoline a month -about five to ten times current import levels -- to meet domestic demand following a decision by the government to reduce the ethanol mix in gasoline, industry observers said Wednesday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6428653 Solyndra, first recipient of DOE loan guarantee, to declare bankruptcy A California-based solar panel manufacturer that received a $535 million loan

guarantee from the US Department of Energy Wednesday said it will file for bankruptcy and has laid off 1,100 employees http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/6428754

Crude Oil News

OPEC Daily Basket Price 8/31/2011 $111.40 (8/30/2011 $109.48) Recent Rig Counts Last Count Change Cou from Prior nt Count +1 +22 -8 Date of Prior Count 19 Aug 11 19 Aug 11 June 2011 Change Date of Last from Last Year's Year Count +319 +122 +41 20 Aug 10 20 Aug 10 July 2010

Area U.S. Canada Internatio nal

26 Aug 1975 11 26 Aug 11 July 2011 508 1150

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

Brent Falls on Bad Europe Manufacturing Data Brent crude fell below $114 a barrel on Thursday as European data showed a sharp slowdown in manufacturing, raising fears of slower economic growth and a decline in fuel demand. http://www.cnbc.com/id/44349766 Crude Oil Dips Slightly to Settle at $88 Brent crude futures rose for a seventh straight day Wednesday, lifted by a sharp drawdown in U.S. gasoline stockpiles and as North Sea production issues kept European crude supplies tight. U.S. gasoline futures led the oil complex higher for a second day, after the U.S. Energy Information Administration reported a steep 2.8 million barrel drawdown in stockpiles for the week to Aug. 26. http://www.cnbc.com/id/44334695 Crude Oil Declines in London on Signs of Slowing Economic Recovery in U.S. Crude declined for the first time in eight days in London before reports that may show the U.S. economic recovering is losing strength, damping demand for fuel. http://www.bloomberg.com/news/2011-09-01/crude-oil-erases-earlier-gains-innew-york-as-dollar-advances-against-euro.html

Libyan Demand for Oil Products is Strengthening, Thenamris Says Libyan demand for refined oil products such as gasoline is rising as rebel forces tighten their grip on the country, according to Thenamaris Ships Management Inc., which operates a fleet of tankers. Shipments of gasoline and fuel oil have increased, Kostas Georgopoulos, a senior tanker broker at Thenamaris, said by phone from Athens today. Those oil products are used to power vehicles and heavy machinery. Refined products are called clean in the industry, while crude oil is referred to as dirty. http://www.bloomberg.com/news/2011-09-01/libyan-demand-for-oil-products-isstrengthening-thenamaris-says.html Oil Futures: Crude Futures Rise Slightly on Chine PMI, Weather Concerns Crude-oil futures rose 0.3% in Asia Thursday on the back of recovering economic activity in China and the likelihood of production disruptions in the U.S. Gulf as a hurricane crosses the Atlantic. http://online.wsj.com/article/BT-CO-20110901-702355.html Oil Prices Advance on Manufacturing Reports; Cushing Decline in Supplies Oil advanced from a two-day low in New York as investors speculated that signs of manufacturing growth in China and the U.S. indicate fuel demand will increase in the worlds two biggest crude consumers. http://www.bloomberg.com/news/2011-09-01/crude-oil-climbs-as-much-as-0-3-innew-york-brent-premium-to-wti-widens.html Oil traders track Cushing pipeline raceThe race to de-bottleneck Cushing, the key delivery point for the West Texas Intermediate crude oil benchmark, with the construction of new pipelines to ship oil to the US Gulf of Mexico, has claimed its first victim. The pipelines are critical for global energy markets as shipping oil from Cushing, Oklahoma, towards the refining corridor of the US Gulf would reduce the glut in the US Midwest that has depressed the cost of WTI relative to other benchmarks, including Brent.http://www.ft.com/intl/cms/s/0/72f4192c-d3ac-11e0-bc6b00144feab49a.html#axzz1WhNypjWr Gulf oil slick: is it Macondo or something else? Ask some folks in the blogosphere and theyll tell you that without a doubt BPs Macondo well is spewing oil once again. http://fuelfix.com/blog/2011/08/31/gulf-oil-slick-is-it-macondo-orsomething-else/

Supply sees 0.1% NWE cargo price over Med for first time since June A tightness in the supply of 0.1% gasoil cargoes in the Northwest European market saw the price rise above that of the Mediterranean Wednesday for the first time since June 9, according to Platts data. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8293293 ULSD production at all-time high in US, US Gulf Coast: EIA data US production of ultra low sulfur diesel reached a record high for the third week in the row, while US Gulf Coast output eclipsed its all-time high as well, US Energy Information Administration data showed Wednesday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6428202 U.S. distillate fuel exports continue to grow U.S. exports of distillate fuel (which includes diesel) reached a record 656,000 barrels per day (bbl/d) in 2010 and have grown every year since 2003 http://www.eia.gov/todayinenergy/detail.cfm?id=2890

Weather
Energy industry watches Gulf storm with a wary eye A tropical disturbance thats meandering around the Yucatan Peninsula is being watched carefully by Gulf of Mexico oil and gas producers should it form into a significant storm. http://fuelfix.com/blog/2011/08/31/energy-industry-watches-gulf-stormwith-a-wary-eye/

Tropical Storm KATIA

http://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/010835.shtml Katia a Hurricane; Another Storm Likely in Gulf Tropical Storm Katia strengthened into a hurricane over the Atlantic on Wednesday, while another mass of thunderstorms that could become a named storm this week triggered evacuations of some oil workers from the Gulf of Mexico.http://www.cnbc.com/id/44351812

6 to 10 Day Outlooks

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8 to 14 day OutlooksTemperature

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