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October 27, 2011

Energy Data Highlights

Crude oil futures price 10/25/2011: $93.17/bbl up$4.83 from week earlier up$10.65 from year earlier Natural gas futures price 10/25/2011: $3.658/mmBtu up$0.105 from week earlier up$0.338 from year earlier Retail heating oil price 10/24/2011: $3.798 /gal up$0.030 from week earlier up$0.811 from year earlier Crude oil inventories 10/21/2011: 337.6 mmbbl up4.7 mmbbl from week earlier down28.6 mmbbl from year earlier Weekly coal production 10/15/2011: 21.386 million tons down0.216 million tons from week earlier down0.345 million tons from year earlier http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 10/20/11 (Actual): +112 Bcf Previous Week: +103 Bcf -1.3% Change from 1 Year Ago +3.2% Change 5-year Average LNG export terminal gets first major customer The U.S. is one step closer to being an energy exporter once again. Houstonbased Cheniere Energy Partners said it has signed its first long-term customer to buy liquified natural gas for export from its Sabine Pass terminal on the Texas/Louisiana border.

http://fuelfix.com/blog/2011/10/26/lng-export-terminal-gets-first-major-customer/ Shale takes 80% of third-quarter upstream deals: PwC report Oil and gas deals got bigger and were dominated by foreign buyers placing bets on US shale plays, according to a report on US energy mergers and acquisitions released Wednesday by PwC's energy consulting practice. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6618528 Cheniere Energy surges on long-term energy deal Shares of Cheniere Energy Partners LP rose Wednesday after the natural gas company said it signed a 20-year deal with a unit of BG Group plc for the sale and export of natural gas. http://www.businessweek.com/ap/financialnews/D9QK13983.htm Indian refining giant to bid for Valero, British newspaper says An energy and manufacturing conglomerate based in India is set to make a bid for San Antonio refiner Valero Energy Corp., a British newspaper reported Wednesday. Reliance Industries Ltd., reportedly the largest company in India, is set to offer $48 a share for Valero, which owns 15 plants in the United States and abroad, the United Kingdoms Daily Mail reported, but it didnt cite sources. http://fuelfix.com/blog/2011/10/26/indian-refining-giant-set-bid-for-valero-energybritish-newspaper-says/

Exelon backs tighter pollution standards Exelon, one of the largest US electricity groups, has backed tighter federal standards for pollution control, saying they can be met without excessive damage to energy supplies by the increased use of natural gas for power generation. That sets Exelon against other leading US power groups, which have warned that new regulations will drive up electricity prices and could threaten the reliability of supplies. http://www.ft.com/intl/cms/s/0/fb5465d2-0049-11e1-844100144feabdc0.html#axzz1bz3EaT6z

Green/ Alternative Energy News

Vestas Says Dong Energy Will Test New 7 Megawatt Wind Turbine Vestas Wind Systems A/S will be supplying a V164-7.0 MW turbine, which is a dedicated offshore wind turbine designed specifically for the harsh conditions at sea. http://www.bloomberg.com/news/2011-10-27/vestas-says-dong-energy-will-testnew-7-megawatt-wind-turbine.html

Energy Department to stress funding for carbon capture, use and storage absent climate legislation, official says The Department of Energy will emphasize funding for carbon capture, sequestration and utilization research and projects as a way to move the needle on climate change in the coming decade in the absence of climate legislation, a top official said today. http://fuelfix.com/blog/2011/10/26/energy-department-to-stress-funding-forcarbon-capture-use-and-storage-absent-climate-legislation-official-says/

Crude Oil News

OPEC Daily Basket Price 10/26/2011- $108.83 (10/25/2011- $109.47)

Crude Oil Gains on European Debt Agreement, Signs of U.S. Economic Growth Oil advanced in New York after European leaders agreed on measures to tame a sovereign debt crisis that threatens to slow economic growth and curb demand for commodities. http://www.bloomberg.com/news/2011-10-26/oil-rebounds-from-biggest-drop-inthree-weeks-on-economy-european-talks.html

EU Seeks Stricter Offshore Oil Rules After Spill, Extends Liability Zone European Union regulators proposed stricter safety standards for offshore oil and natural-gas exploration to curb the risk of a major accident after BP Plc (BP/)s spill in the Gulf of Mexico, the largest in U.S. history. Draft regulation presented today by the European Commission, the EUs regulatory arm in Brussels, sets riskassessment rules for offshore platforms and gives national regulators more powers to inspect their operations. It also extends 16-fold the zone in which companies will be held liable for environmental damage. http://www.bloomberg.com/news/2011-10-27/eu-seeks-stricter-offshore-oil-rulesafter-spill-extends-liability-zone.html

Oil Above $110 on EU Rescue Deal Oil rose above $110 a barrel on Thursday after European leaders struck a deal with private holders of Greek debt, easing concerns that economic weakness could spread and curb energy demand. Euro zone leaders struck a deal with private banks and insurers on Thursday for them to accept a 50 percent loss on their Greek government bonds under a plan to lower Greece's debt burden and try

to contain the euro zone crisis. Brent crude was up $1.82 at $110.73 a barrel, after touching a high of $110.96 earlier. U.S. light, sweet crude gained $1.97 to $92.17 a barrel, down from an intraday high of $92.43. "Oil prices have made slight gains in response to the decisions made at the EU summit," said Carsten Fritsch, analyst at Commerzbank. http://www.cnbc.com/id/45054046 Qatar joins Mexico with oil hedge Qatar, a member of the Opec oil cartel, has joined Mexico in taking out an insurance policy against falling oil prices next year, hedging some of its oil for 2012 as both nations adopt a cautious view about the global economy. Mexico hedges oil prices every year, but bankers said that Qatar has taken out insurance only rarely over the last two decades. The programme by Mexico is the worlds largest single hedge in commodities markets by value and one of only a few implemented by a sovereign entity, rather than a company. http://www.ft.com/intl/cms/s/0/78efae60-fff1-11e0-8441-00144feabdc0.html? ftcamp=rss#axzz1bhL9vOpP

US lawmakers ask inspector general to hold off on Keystone XL decision Three US senators and 10 members of the US House of Representatives on Wednesday asked the State Department's inspector general to hold off on making a decision on TransCanada's Keystone XL project and to investigate whether TransCanada "improperly" influenced State's review of the project. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6618664

Conoco Marketing Its Half of Seaway Oil Pipeline ConocoPhillips said Wednesday it is attempting to sell its 50% share of the Seaway pipeline, a move that could add up to a billion dollars to the oil company's balance sheet and perhaps help ease a glut of oil supplies in the central U.S. ConocoPhillips' announcement comes amid intense deal-making in the pipeline sector, in which companies are scrambling to connect up-and-coming oil and gas fields to markets. Pipeline owners and operators Kinder Morgan Inc. and Energy Transfer Equity LP have recently announced multibillion-dollar merger deals in an attempt to dominate the transport of the shale oil and gas bounty unlocked by new drilling technology. http://online.wsj.com/article/SB1000142405297020368750457700026414848268 8.html?mod=WSJ_Commodities_LEFTTopNews Shell's Profit Soars Royal Dutch Shell PLC Thursday said net profit for the third quarter more than doubled, driven by strong oil and rising natural gas prices and as major projects ramp up production. Net profit for the quarter totaled $6.98 billion, more than double the $3.46 billion posted a year ago. Group revenue was $123.41 billion, compared with $90.71 billion in the third quarter of 2010. The results reveal that the company is reaping rewards for heavy investment in new infrastructure, some of which enables it to turn less valuable hydrocarbons like natural gas and oil sands into high quality transport fuels and lubricants.

http://online.wsj.com/article/SB1000142405297020368750457700102425886899 2.html?mod=WSJ_hp_LEFTWhatsNewsCollection Recent Rig Counts Change from Prior Count -10 -15 -9 Date of Prior Count 14 Oct 11 14 Oct 11 August 2011 Change Date of from Last Last Year's Year Count +344 +78 +54 22 Oct 10 22 Oct 10 September 2010

Area U.S. Canada

Last Count 21 Oct 11 21 Oct 11

Cou nt 2013 497

Internatio Septemb 1174 nal er 2011

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

Weather Hurricane RINA- http://www.nhc.noaa.gov/

6 to 10 Day Outlooks Temperature

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8 to 14 Day Outlooks Temperature

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