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November 11, 2011

Energy Data Highlights

Crude oil futures price 11/9/2011: $95.74/bbl up$3.23 from week earlier up$9.02 from year earlier Natural gas futures price 11/9/2011: $3.652/mmBtu down$0.097 from week earlier down$0.558 from year earlier Weekly coal production 11/5/2011: 21.300 million tons down0.334 million tons from week earlier up0.381 million tons from year earlier Natural gas inventories 11/4/2011: 3,831 Bcf up37 Bcf from week earlier down6 Bcf from year earlier Crude oil inventories 11/4/2011: 338.1 mmbbl down1.4 mmbbl from week earlier down26.8 mmbbl from year earlier http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 11/10/11 (Actual): +37 Bcf Previous Week: +78 Bcf -0.2% Change from 1 Year Ago +5.9% Change 5-year Average Settlement would let LG&E/KU recover $2.25 billion to clean up coal plants Louisville Gas & Electric and Kentucky Utilities would be able to recover $2.25 billion from their nearly 1 million ratepayers to install pollution controls on their largest coal-fired power plants under a proposed settlement filed Thursday with

the Public Service Commission. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/8571793

California PUC approves 250-MW PG&E PPA with Abengoa solar thermal project Pacific Gas & Electric, on a 4-1 vote, won California Public Utilities Commission approval Thursday for a power purchase agreement with Abengoa Solar's proposed 250-MW Mojave Solar project. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/3782121 US EPA issues GHG permit to gas-fired power plant in Texas The US Environmental Protection Agency Thursday issued the first greenhouse gas permit in Texas to a power plant that is being modernized and expanded by the Lower Colorado River Authority to run on natural gas to replace an aging coal-fired facility. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/3782047

Investors thirsty for new markets looking to water Oil and water may not mix, but managing water -- moving it, filtering it, recycling it and ultimately exhausting it -- is one of the fastest growing sectors of the oil and gas industry, industry experts and investors said on Thursday. http://in.reuters.com/article/2011/11/10/idINIndia-60459020111110

Green/ Alternative Energy News

New wind power forecasting system can save millions A new detailed wind energy forecasting system is allowing a utility company to better determine the amount of energy that can be produced by the source, officials said. The National Center for Atmospheric Research developed a system with Xcel Energy that is 35 percent more accurate than past models, NCAR and Xcel officials said. The system helped Xcel Energy save $6 million by powering down traditional coal and natural gas plants and using wind power to fill the energy demand gap. The forecasting system allows them to correctly manage the supply that reduces the likelihood of having to buy electricity on the spot market, which can drive up costs. http://fuelfix.com/blog/2011/11/10/new-wind-power-forecasting-system-can-savemillions/

Euro Debt Crisis Slowing Solar Panel Installs, SMA Solar Says Europes debt crisis will cause global solar-panel demand to fall this year before returning to moderate growth in 2012, Germanys biggest solar-power company by market value said. http://www.bloomberg.com/news/2011-11-11/euro-debt-crisis-slowing-solar-panelinstalls-sma-solar-says.html

Crude Oil News

OPEC Daily Basket Price 11/10/2011- $111.67 Brent turns flat; doubts about euro zone Brent crude turned flat on Friday, after showing strong gains in the previous session, amid doubts that developments in highly indebted Italy and Greece will be enough to curtail a widening crisis in Europe. http://www.reuters.com/article/2011/11/11/us-markets-oilidUSTRE7A96JZ20111111 U.S. Delays Pipeline Decision The Obama administration said Thursday it would seek to reroute a portion of a proposed Canada-U.S. oil pipeline, postponing until after the 2012 election a decision on an issue that has divided the Democratic Party's environmental and union supporters. While the Keystone XL pipeline could still be built in 2013 or later, environmentalists called the delay a clear victory. Industry and labor groups, which argue the pipeline would create thousands of jobs and allow the U.S. to increase its imports of oil from a friendly neighbor, issued swift denunciations.The decision could reshape the North American energy industry, given the project's importance for Canadian oil producers looking to the U.S. market and for refiners that have spent billions of dollars to handle the influx of heavy Alberta crude, one of the world's most promising sources of fuel. Canadian officials and oil-industry executives have recently hinted they would go elsewhere to sell their oil. http://online.wsj.com/article/SB1000142405297020435800457703009341769256 0.html?mod=WSJ_hp_LEFTWhatsNewsCollection Delay in Keystone XL process 'not a political decision': State Dept. The decision to re-examine the proposed route of TransCanada's Keystone XL pipeline in Nebraska was not influenced by presidential politics, a US Department of State official said Thursday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/3782153

Obama to explore new route for controversial Keystone pipeline The State Department today announced plans to explore a new route for the Keystone XL pipeline, putting off the decision on whether to approve the controversial project until after the 2012 election.

http://www.cbsnews.com/8301-503544_162-57322466-503544/obama-to-explorenew-route-for-controversial-keystone-pipeline/ Crude Futures Head for Longest Run of Weekly Gains in New York Since 2009 Oil rose to a three-month high, heading for the longest run of weekly gains since April 2009, on speculation that signs of U.S. economic growth and Europes steps to contain its debt crisis will support fuel demand. Tightening supplies in the U.S. could be one explanation, said Carsten Fritsch, an analyst in Frankfurt at Commerzbank, the fourth most-accurate forecaster of Brent prices in the third quarter. Additionally, the debt crisis seems to fade with the new government in Greece, and maybe Italy as well. But this should be only temporary. http://www.bloomberg.com/news/2011-11-11/oil-rises-heading-for-longest-run-ofweekly-gains-in-new-york-since-2009.html Libya Accelerates Oil Output Libya's oil production is coming back online faster than expected and should reach 700,000 barrels a day by the end of the year, the country's interim Oil Minister Ali Tarhouni said Thursday, confirming estimates also announced by the International Energy Agency. http://online.wsj.com/article/SB1000142405297020435800457702953138136672 6.html?mod=googlenews_wsj Exxon signs Kurd exploration contracts ExxonMobil has become the first of the supermajor oil companies to venture into Kurdistan, in a controversial move that will be seen as a huge vote of confidence in the semi-autonomous region of Iraq but could spark a backlash in Baghdad. Exxon, the largest international oil company, signed contracts with the Kurdistan Regional Government (KRG) last month to explore for oil and gas in six blocks in the region, according to an adviser to the KRG. The KRG has for the last few months been in discussions with a number of major oil companies. This resulted in the recent signing by ExxonMobil of contracts to explore in six blocks, Michael Howard, an adviser to the KRG, told the Financial Times. http://www.ft.com/intl/cms/s/0/4e44f860-0bda-11e1-986100144feabdc0.html#axzz1dOvLSfJ3 US September crude imports down 4.26% year-on-year: Commerce The US Department of Commerce said Thursday that crude oil imports into the US in September fell 4.26%, or 416,000 b/d, to 9.338 million b/d, from September 2010. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/3782032

Recent Rig Counts Change from Prior Count 5 Date of Prior Count 28 Oct 11 Change Date of from Last Last Year's Year Count +343 5 Nov 10

Area U.S.

Last Cou Count nt 4 Nov 2026 11

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4 Nov 11

476

-23 -12

28 Oct 11 Septembe r 2011

+59 +54

5 Nov 10 September 2010

Internatio October 1162 nal 2011

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

Weather Tropical Storm SEAN http://www.nhc.noaa.gov/text/refresh/MIATCPAT4+shtml/091143.shtml

6 to 10 Day Outlooks Temperature

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8 to 14 Day Outlooks Temperature

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