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November 30, 2011 Energy Data Highlights Crude oil futures price 11/28/2011: $98.21/bbl up$1.29 from week earlier up$14.45 from year earlier Natural gas futures price 11/28/2011: $3.364/mmBtu down$0.035 from week earlier down$1.035 from year earlier 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 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 Proposed KMI and El Paso merger would create largest U.S. natural gas pipeline company The proposed merger of Kinder Morgan Inc. (KMI) and El Paso Corp. (El Paso) announced on October 16, 2011 would create the nation's largest natural gas pipeline company. If approved by state and federal regulatory officials, the combined company would operate about 67,000 miles of natural gas pipelines

(see the blue and red lines in the map), or about 22% the U.S. natural gas pipeline network. Upon closing, the proposed $38 billion transaction would be one of the biggest natural gas pipeline mergers in United States history. http://www.eia.gov/todayinenergy/detail.cfm?id=4090 Researchers: U.S. demand for hydrofracking chemicals will surge Domestic demand for chemicals used in hydraulic fracturing of oil and gas wells will continue to surge through at least 2015, according to a report released Tuesday by industry research firm Freedonia Group. U.S. demand for oilfield chemicals will swell more than 8 percent each year, the firm forecasts, reaching $13.6 billion in 2015. Of the major uses for chemicals in oil and gas production, well stimulation will see greatest demand growth, expanding by nearly 10 percent each year through 2015, according to the report. Hydraulic fracturing is a form of well stimulation that uses chemicals, sand and massive amounts of water to open up rock deep underground and release the fossil fuels inside. http://fuelfix.com/blog/2011/11/30/researchers-u-s-demand-for-hydrofrackingchemicals-will-surge/ NYMEX January gas futures contract settles 10.8 cents higher The NYMEX January natural gas futures contract settled at $3.633/MMBtu Tuesday, 10.8 cents above Monday's $3.525/MMBtu close, on forecasts of cooler weather. Commodity Weather Group on Tuesday predicted below-average temperatures across the US in its six- to 10-day report. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6718121 Iran to sell gas futures to fund energy projects: report Iran, which has already announced a novel plan to sell oil futures to local investors, plans to offer investors gas futures contracts as well in order to raise billions of dollars needed to fund various energy projects, the semi-official Mehr news agency reported Tuesday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8637595

Officials in Texas town defend ordinance in wake of Chesapeake withdrawal Chesapeake Energy's decision to let drilling leases it held in Southlake, Texas, expire would not cause the city to rethink its tough new drilling ordinance, city officials said Monday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6713252

Green/ Alternative Energy News

Energy Commission OKs Renewable Energy Report to the Legislature The California Energy Commission has approved a report marking the progress its Renewable Energy Program made over the past fiscal year. Mandated by the

Legislature, the Renewable Energy Program (REP) 2011 Annual Report summarizes the results and accomplishments of the program and highlights the status of funding from July 1, 2010 through June 30, 2011. http://www.renewablesbiz.com/article/11/11/energy-commission-oks-renewableenergy-report-legislature

Crude Oil News

OPEC Daily Basket Price 11/29/2011- $109.74 (OPEC Daily Basket Price 11/28/2011- $108.75)

Crude Rises Above $100 a Barrel in New York After China Cuts Reserve Rate Oil traded near its highest in a week in New York, erasing losses after China reduced the amount of cash that banks must set aside as reserves for the first time since 2008. Futures extended this months gain after the Peoples Bank of China cut its reserve requirement ratio for lenders by 0.5 percentage point with effect from Dec. 5. Crude earlier fell as much as 0.9 percent. The decision falls in line with selective monetary policy easing, said Harry Tchilinguirian, the Londonbased head of commodity markets strategy at BNP Paribas SA. The scenario of a soft landing in the Chinese economy, with a potential re- acceleration next year, takes on a greater probability of realization, which in turn is supportive of global oil demand. http://www.bloomberg.com/news/2011-11-30/crude-rises-above-100-a-barrel-innew-york-after-china-cuts-reserve-rate.html

Brent Drops on Euro Zone Worry Brent crude fell on Wednesday as uncertainty about plans to resolve the euro zone debt crisis weighed on sentiment, and intensified worries about prospects for economic growth. Brent crude [LCOCV1 111.35 0.53 (+0.48%)] fell 70 cents to $110.12. U.S. crude [CLCV1 99.81 0.02 (+0.02%)] fell 37 cents to $99.42 a barrel. Euro zone finance ministers who met in Brussels on Tuesday could not say by how much they would ramp up the firepower of their rescue fund and may turn to the IMF for more help as soaring borrowing costs in Italy highlight the region's serious structural economic problems."Europe has still not been able to come up with a clear plan, so there has not really been a change there, and I think there are continued worries," said Olivier Jakob, analyst at Petromatrix in Zug, Switzerland. http://www.cnbc.com/id/45484759 Iran Oil Sanctions Set to Shrink the Circle of Foreign Buyers Iran faces new hurdles to getting paid for its oil as the U.S. tightens financial sanctions to deter buyers from the worlds third-largest crude exporter. The U.S. approved additional curbs on Irans banking system and oil industry on Nov. 21, hoping to thwart the countrys nuclear program, and the European Union may

follow. Current sanctions have led Indian importers to route payments for Iranian crude through a Turkish bank. These refiners, concerned Turkey may stop cooperating amid the latest U.S. rules, are asking banks in Russia to arrange alternatives, said three people with direct knowledge of the situation. The idea of the sanctions is to shrink the circle of buyers and so increase their ability to extract discounts from Iran, said Robin Mills, an analyst at Dubai-based Manaar Energy Consulting, who worked for a decade at Royal Dutch Shell Plc in the Middle East. http://www.bloomberg.com/news/2011-11-29/iran-financial-sanctions-set-toshrink-circle-of-foreign-buyers-of-crude.html U.S. Nears Milestone: Net Fuel Exporter U.S. exports of gasoline, diesel and other oil-based fuels are soaring, putting the nation on track to be a net exporter of petroleum products in 2011 for the first time in 62 years. A combination of booming demand from emerging markets and faltering domestic activity means the U.S. is exporting more fuel than it imports, upending the historical norm. According to data released by the U.S. Energy Information Administration on Tuesday, the U.S. sent abroad 753.4 million barrels of everything from gasoline to jet fuel in the first nine months of this year, while it imported 689.4 million barrels... So long as the U.S. remains the world's biggest net importer of crude oil, currently taking in nine million barrels per day, it isn't likely to become energy independent anytime soon. Yet its growing presence as an overall exporter of fuels made from crude gives it greater influence in the global energy market. http://online.wsj.com/article/SB1000142405297020344170457706867048830624 2.html?mod=WSJ_hp_LEFTTopStories

Cairns $600 Million Greenland Oil Exploration Campaign Ends in Failure Cairn Energy Plc (CNE) ended this years $600 million drilling program off Greenland after the biggest exploration campaign attempted in the Arctic islands waters failed to make a viable discovery. The AT7-1 well, which had encountered traces of oil and gas, has been plugged and abandoned, the Edinburgh-based company said today in a statement. The AT2-1 well, the last of five drilled this year, was also abandoned after reporting only minor hydrocarbon shows. The company will evaluate its program next year and seek partners for investment. Effectively these are write-offs, though there were some encouraging signs, said Richard Rose, an oil analyst at Oriel Securities Ltd. Thats the end of the program, rigs are going to disappear, and we wont see any drilling there next year. http://www.bloomberg.com/news/2011-11-30/cairn-s-600-million-greenland-oilexploration-campaign-ends-in-failure.html

Recent Rig Counts Area Last Cou Change from Date of Count nt Prior Count Prior Count Change from Last Year Date of Last Year's

Count U.S. Canada 23 Nov 2000 11 23 Nov 484 11 -1 -3 +23 18 Nov 11 18 Nov 11 Septembe r 2011 +313 +69 +98 24 Nov 10 24 Nov 10 September 2010

Internatio October 1197 nal 2011

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

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