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November 29, 2011 Energy Data Highlights Retail gasoline price 11/28/2011: $3.307/gal down$0.061 from week earlier up$0.451 from year earlier Retail diesel price 11/28/2011: $3.964/gal down$0.046 from week earlier up$0.802 from year earlier Crude oil futures price 11/25/2011: $96.77/bbl down$0.64 from week earlier up$96.77 from year earlier Natural gas futures price 11/25/2011: $3.542/mmBtu up$0.226 from week earlier up$3.542 from year earlier Weekly coal production 11/19/2011: 21.218 million tons down0.055 million tons from week earlier down0.315 million tons from year earlier

Natural Gas/ Power News

EIA Storage Release 11/23/11 (Actual): +9 Bcf Previous Week: +19 Bcf +0.6% Change from 1 Year Ago +6.4% Change 5-year Average Africa's East Coast in Natural-Gas Spotlight The east coast of Africa confirmed its place as one of the brightest spots on the global energy landscape after Anadarko Petroleum Corp. sharply raised its estimate for the amount of natural gas contained in a big field it has found off the coast of Mozambique. Anadarko's chief executive, James Hackett, said the revised estimate increased the company's confidence that "this could be one of the most important natural-gas fields discovered in the last 10 years." Anadarko said it had

increased the estimate of recoverable resources from the four discoveries made in its Offshore Area 1 block to between 15 trillion and 30 trillion cubic feet of gas. Initially, the Texas-based company had said the field contained six trillion cubic feet, a figure it raised to 10 trillion cubic feet in October. Thirty trillion cubic feet would be enough to meet an entire year's gas consumption by the U.S. Anadarko, whose partners in the block include Dublin-based Cove Energy PLC and Japan's Mitsui & Co., is the field's operator, with a 36.5% interest. "I'm convinced that in 10 years' time, Tanzania, Mozambique and Kenya will together form a major gas hub for Asian and Far Eastern markets," said John Craven, CEO of Cove Energy, in an interview. http://online.wsj.com/article/SB1000142405297020393560457706579183822006 0.html?mod=WSJ_Commodities_LEFTTopNews Anadarko discovers big natural gas field Anadarko Petroleum Corp. said Monday that a natural gas field discovered off the coast of Mozambique is the largest the company has ever found. The Houston oil and gas company said the East African offshore field contains 15 trillion to 30 trillion cubic feet of recoverable natural gas, up from an initial estimate of 6 trillion cubic feet. That's enough to satisfy U.S. natural gas demand for a year. The Anadarko discovery, along with a similarly large find by Italian energy company Eni SpA in October, has elevated Mozambique as a potentially major gas exporter. http://newsok.com/national-business-briefs/article/3627419#ixzz1f6DAXbwC Norway's Statoil to shut output at some North Sea fields Norway's Statoil said Friday it will shut output at some of its North Sea oil and gas fields over the weekend as a major storm heads to the region. It declined to say which fields would be concerned, but said they were situated in the Norwegian sea. "We will reduce production on a few installations as a precautionary measure," Ola Anders Skauby, a spokesman for Statoil, told Platts. "We do not expect it to have a significant impact on production overall." Statoil said some fields would stop output as soon as Friday, but declined to say how long the shutin would last. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8626451

Green/ Alternative Energy News

Managing the risks in renewable energy The study identified eight types of risk facing the renewable energy industry, including financial, business/strategic, operational, political/regulatory, and weather related volume risk. The challenges of managing these risks are expected to increase as the scale and complexity of renewable-fuel power plants grows, in response to growing demand for low-carbon electricity. Indeed, in 2010 global investment in new renewable energy projects exceeded investment in new fossil-fuel plants for the first time... Meanwhile, Shell and ConocoPhillips, which also operate oil and gas fields in the Norwegian sector of the North Sea, said their operations were unlikely to be affected.

http://www.commodities-now.com/commodities-now-reports/power-andenergy/9023-managing-the-risks-in-renewable-energy.html

Energy Subsidies Stymie Wind, Solar Innovation This month, the U.S. Department of Commerce launched a formal investigation into complaints, lodged by the U.S. solar-cell manufacturers, that the government of China is funneling loan guarantees, grants and subsidies to its solar-cell companies. http://www.bloomberg.com/news/2011-11-27/energy-subsidies-stymie-wind-solarinnovation-nathan-myhrvold.html Chinese solar power companies say US trade complaint will hurt American jobs, consumers Leaders of Chinas solar power industry rejected a U.S. trade complaint that they receive unfair government support and said Tuesday possible sanctions would hurt American consumers and development of clean energy. http://www.washingtonpost.com/business/chinese-solar-power-companies-say-ustrade-complaint-will-hurt-american-jobsconsumers/2011/11/29/gIQA5ZcZ7N_story.html Google Pulls the Plug on a Renewable Energy Effort Google has quietly dropped a four-year-old initiative to make renewable energy cheaper than coal, which it promoted with an abbreviation that read like a math formula, RE<c . http://green.blogs.nytimes.com/2011/11/28/google-pulls-the-plug-on-a-renewableenergy-effort/

Crude Oil News

OPEC Daily Basket Price 11/28/2011- $108.75 (OPEC Daily Basket Price 11/25/2011- $107.73)

Crude Oil Advances as Euro Extends Gains After Italian Treasury-Bond Sale Crude oil rose a third day in New York, recouping earlier losses as a strengthening euro and advancing equities signaled investors were less concerned that Europes debt crisis will derail the global recovery. West Texas Intermediate futures gained as much as 1.1 percent, having earlier lost 1 percent. Demand for 2014 bonds auctioned by Italy today was 1.5 times the amount sold. The U.S. Energy Department may say tomorrow oil inventories rose for the first time in a month, while gasoline supplies climbed for a third week, according to a Bloomberg News survey. Sentiment has improved on news of the successful Italian bond auction, said Andrey Kryuchenkov, an analyst at VTB Capital in London. Were seeing a

stronger euro as a result, and crude prices gaining alongside the broader commodity market rebound. http://www.bloomberg.com/news/2011-11-29/crude-oil-advances-as-euro-extendsgains-following-italian-bond-sale.html

Oil Up Above $110 After Italian Bond Auction Oil pushed above $110 a barrel on Tuesday after Italy successfully completed a closely-watched bond auction, which boosted investor confidence, lifting European stocks and the euro to a session high. Brent crude futures [LCOCV1 109.89 0.89 (+0.82%)] were up $1.29 to $110.29 a barrel earlier Tuesday, and U.S. crude [CLCV1 98.16 -0.05 (-0.05%)] was up 81 cents to $99.02 a barrel after pushing to an intraday high of $99.30 following the bond auction Analysts and traders said oil was being supported by geopolitical risk and supply fundamentals given tight inventories in the United States. "We get inventory data later today and tomorrow which may show a further decline in product stocks and could lend support to crude oil prices. Brent will stay range-bound at $105-$110 a barrel," said Carsten Fritsch, an analyst at Commerzbank in Frankfurt. The market is also eyeing a meeting of euro zone finance ministers to be held in Brussels from 1400 GMT. http://www.cnbc.com/id/45468844 Crude Flirts With $100 on Geopolitical Unrest Oil futures neared $100 a barrel, lifted by unrest in Syria and the prospect of additional sanctions against Iran...Futures ended the day higher following news of geopolitical unrest on several fronts. The European Union signaled it would recommend additional sanctions on Iran, including a possible oil-import ban, during a meeting of foreign ministers set for Thursday in Brussels. Meanwhile, the Arab League on Sunday approved economic sanctions on Syria as punishment for the regime's crackdown on protesters. "This unrest in Syria, possible sanctions against Iranit's potentially bullish stuff," said Peter Donovan, vice president at Vantage Trading, an oil options brokerage in New York. Iran exported 2.2 million barrels of oil a day last year, according to the U.S. Energy Information Administration, making it the world's third-largest oil exporter. The EU was the second-biggest recipient of that oil. Although Syria itself isn't a major oil producer, the scale of the uprising has fed concern that the popular unrest in the region could spread to major oil producers like Saudi Arabia. http://online.wsj.com/article/SB1000142405297020380220457706592370618559 2.html?mod=WSJ_Commodities_LeadStory Iran embargo talk buoys Russian crude It is not yet clear whether France will succeed in placing a European Union embargo on imports of Iranian oil. But the talk is already having a noticeable impact on the physical crude markets. Traders have been placing their bets on a potential shutdown of Tehrans oil supplies using Urals, a Russian benchmark that has a similar quality to Iranian crude. The price of the Russian grade has surged to a rare premium to global benchmark Brent. The move reflects both speculation on an embargo and the fact that the market for high-sulphur, low-quality heavy sour oil is tight. Crude oil traders closely watch the Russian grade because it is widely

consumed by European refineries on the Mediterranean, which are also big importers of Iranian oil. http://www.ft.com/intl/cms/s/0/7db459c6-1a6f-11e1-ae1400144feabdc0.html#axzz1f64rS7ik IEA head concerned about tight oil market, but encouraged by Libya International Energy Agency Director Maria van der Hoeven said Monday that tight oil supplies continue to threaten the global economy, even as Libyan production returns quicker than some expected. Van der Hoeven, during an interview in Washington, said the rebuilding of Libya's petroleum sector "looks as if it's going quite fast. This of course is very interesting and reassuring." http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6711247 Sudan halts oil exports from south Sudan has halted exports of oil from its newly independent southern neighbour, undermining the latest negotiations between the two sides to agree a revenuesharing deal. South Sudan, which separated from Khartoum on July 9 following decades of civil war, produces 75 per cent of the former countrys oil but exports it through northern infrastructure.We stopped exportation of the southern oil, Ali Ahmed Osman, Khartoums acting oil minister, told reporters in Khartoum on Monday. We gave them four months free, without any sort of agreement, he said of the 200,000 bpd exported by the South. South Sudans government responded angrily to the move. We consider it a sign of irresponsible and abusive anger which does not show any sense of leadership in the government of Sudan, Elizabeth James Bol, South Sudans deputy oil minister, told reporters. http://www.ft.com/intl/cms/s/0/65fa8b24-19ee-11e1-988800144feabdc0.html#axzz1f64rS7ik Houston researchers receive funding to reduce risks of offshore drilling Five Houston-based projects focused on reducing risks of ultra-deepwater drilling are among recipients of $9.6 million in federal awards from the Office of Fossil Energy, the U.S. Department of Energy announced Monday. The federal funds cover only a portion of each projects full cost. In total, the six awarded projects have a pricetag of more than $26.4 million over three years, according to the Department of Energy. The sixth project is based in Boulder, Colo. and studies the impact of hurricanes on offshore production operations in the Gulf of Mexico. Operated by the University Corporation for Atmospheric Research, the $1.8 million project will receive $360,000 in federal funding over three years. http://fuelfix.com/blog/2011/11/29/houston-researchers-receive-federal-funding-toreduce-risks-of-offshore-drilling/

Gasoline prices fall but stay at record levels Pump prices continued to fall in California and the rest of the nation, but they remained at record levels for the end of November. The average price of a gallon of regular gasoline in California fell 6.8 cents over the last week to $3.718, according to the Energy Department's weekly survey. That was 56.6 cents higher than the year-earlier per-gallon average and 32 cents higher than the old record

for this time of year, which was set in 2007. http://www.latimes.com/business/la-fi-gas-prices-20111129,0,2720176.story Recent Rig Counts Date of Last Year's Count 24 Nov 10 24 Nov 10 September 2010

Area U.S. Canada

Date of Last Cou Change from Prior Count nt Prior Count Count 23 Nov 2000 11 23 Nov 484 11 -1 -3 +23 18 Nov 11 18 Nov 11 Septembe r 2011

Change from Last Year +313 +69 +98

Internatio October 1197 nal 2011

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

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