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September12, 2011

Energy Data Highlights

Crude oil futures price9/8/2011: $89.05/bblup$0.12 from week earlierup$14.38 from year earlier

Natural gas futures price9/8/2011: $3.980/mmBtudown$0.070 from week earlierup$0.170 from year earlier

Weekly coal production9/3/2011: 20.986 million tonsdown0.167 million tons from week earlierdown0.825 million tons from year earlier

Natural gas inventories9/2/2011: 3,025 Bcf 

up64 Bcf from week earlierdown131 Bcf from year earlier

Crude oil inventories9/2/2011: 353.1 mmbbldown4.0 mmbbl from week earlierdown6.8 mmbbl from year earlierhttp://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 9/1/11 (Actual): +64 Bcf 

Previous Week: +55 Bcf -4.2% Change from 1 Year Ago-1.9% Change 5-year Average

Power outage may have caused more than $100M in losses to area

 The electrical grid collapse that cut off power to 2 million customers of San Diego

Gas & Electric Co. may have resulted in $97 million to $118 million in losses,

according to an independent analysis of the economic impact

http://www.nctimes.com/business/article_a52214fe-cb47-506d-86bd-

817f34045189.html#ixzz1Xk1GfyBn

Follow

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Texas Heat Wave, August 2011: Nature and Effects of an Electricity Supply ShortageA prolonged August heat wave in Texas produced two periods of very highwholesale prices in the Electric Reliability Council of Texas (ERCOT), the wholesalemarket operator for most of the State. Day-ahead, on-peak wholesale powerprices for August 2011 rose far above the range of prices seen during the previous

five Augusts (see chart above).http://www.eia.gov/todayinenergy/detail.cfm?id=3010

Wildfires weaken natural gas demand in TexasWildfires, fed by a historic drought, have so far spared oil and gas operations in

 Texas, Louisiana and Oklahoma, but they’ve had another impact on the energysector: a drop in natural gas consumption.http://fuelfix.com/blog/2011/09/09/report-wildfires-weaken-natural-gas-demand-in-texas/#loopbegin

EU starts negotiations on Caspian pipeline to bring gas to Europe

 Today the European Union has adopted a mandate to negotiate a legally bindingtreaty between the EU, Azerbaijan and Turkmenistan to build a Trans CaspianPipeline System. This is the first time that the European Union has proposed atreaty in support of an infrastructure project. The treaty will be concluded by theEU after decision by all 27 Member States that the European Commission shouldlead the negotiations on behalf of them all. http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/1023&format=HTML&aged=0&language=EN&guiLanguage=en

OPEC Daily Basket Price 9/9/2011 – $110.40

(9/8/2011 – $112.15)

Recent Rig Counts

Area

Last

Count

Cou

nt

Change

from Prior

Count

Date of 

Prior

Count

Change

from Last

 Year

Date of 

Last Year's

Count

U.S. 9 Sept11

1958 -10 2 Sept 11 +304 10 Sept 10

Canada 9 Sept11

515 -2 2 Sept 11 +132 10 Sept 10

International August2011 1183 +33  July 2011 +81 August 2010

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

Oil Drops for Third Day on Concern Debt Crisis to Limit Growth, Fuel 

Need 

Oil fell for a third day in New York, the longest losing streak in a month, as

investors bet that Europe’s debt crisis will limit economic growth. Production

resumed in the Gulf of Mexico as the threat of storms eased. West Texas

Intermediate crude slid as much as 2.6 percent as the euro dropped to its lowest

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level since 2001 against the yen on speculation that a Greek default will trigger a

banking crisis in Europe. Nate, a storm over eastern Mexico, weakened as it

moved further inland, the U.S. National Hurricane Center said. The oversupply of 

oil may disappear as the market absorbs the release of stockpiles, Goldman Sachs

Group said.

http://www.bloomberg.com/news/2011-09-12/oil-drops-for-third-day-on-concern-debt-crisis-to-limit-growth-fuel-need.html

Brent Drops to $111 on Debt, Growth Worries

Oil fell on Monday on deepening concerns over Europe's sovereign debt crisis and

slowing global growth. Worries that Greece may default on its debts rose after

finance ministers of the Group of Seven (G7) industrialized economies pledged a

coordinated response to the global slowdown but offered no specific steps to

support their economies

http://www.cnbc.com/id/44479194

U.S. Crude Falls More Than $1 on Economic Concerns 

U.S. crude fell more than $1 as markets opened on Monday in Asia, on concernabout slowing global economic growth and Europe's deepening sovereign debt

crisis. News that production Libyan oil production would resume in days and that

the OPEC member country is set to reach full pre-war output levels within a year

was another bearish factor, especially for Brent. Brent and U.S. crude ended the

week near unchanged, after prices had jumped earlier in the week on tropical

weather threats to U.S. production and strong equities after a ruling by Germany's

top court briefly soothed euro zone fears.

http://www.cnbc.com/id/44479436 

Economic concerns hit oil and metals

Economic worries gripped commodities markets in European morning trading, withselling depressing oil and industrial metals. Commodities, including gold, wereaffected by the dollar’s “haven rally” given the weakness of the euro. High qualityglobal journalism requires investment. Supply worries supporting crude oil priceslast week gave way to concerns about the global macro economic situation anddemand for oil. The ICE Brent October contract traded down $1.44 a barrel at$111.33 and Nymex October West Texas Intermediate fell $1.25 a barrel to $85.99http://www.ft.com/intl/cms/s/0/12fd7594-dd1c-11e0-b4f2-00144feabdc0.html#axzz1XjmkEbn6 

Oil Prices to Keep Rising in 2011: Analyst  

Oil prices will gradually rise throughout the rest of the year despite a weakening in

demand growth, Neil Atkinson, director of energy research and analysis at

Datamonitor told CNBC on Monday. "Because of supply management and a slight

weakening in demand growth, prices are more likely to rise gradually," Atkinson

said. "The statistics will show that demand growth is weakening especially in the

OECD countries.On the supply side we have stocks that are adequate. They are

not very tight but we don't have a significant amount of spare capacity and that is

under the control of Saudi Arabia and the other Middle Eastern countries,"

Atkinson told CNBC.

http://www.cnbc.com/id/44482406

OPEC cuts oil demand forecast on growth concerns

OPEC sharply revised down its forecast for world oil demand for this year and

expected consumption would remain weak in 2012, citing on Monday waning

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economic growth in key industrialized nations and a weak U.S. driving season. The

12-nation group that supplies about a third of the world's crude oil slashed its

global oil demand forecast by 150,000 barrels per day for 2011 and by 40,000

barrels per day for 2012, saying "turbulence in world economic recovery has

resulted in considerable uncertainty for demand growth next year."

http://www.elpasotimes.com/business/ci_18876583Iran oil minister urges increased output 

Iran's Oil Minister Rostam Qasemi says boost in the country's crude production

and extensive exploitation from the joint fields are among the ministry's top

priorities. Crude output of the National Iranian Offshore Oil Company (NIOOC)

should increase to one million barrels a day in the Fifth Five-Year Development

Plan (2010-15), IRIB quoted Qasemi as saying on Monday.

http://www.allvoices.com//contributed-news/10311893-iran-oil-minister-urges-

increased-output

Oil Tanker Sailing for Libya’s Mellitah as First Cargo From West Offered 

An oil tanker is sailing to the Libyan port of Mellitah, a sign the nation may beresuming energy exports after months of fighting that led to the ouster of 

Muammar Qaddafi, ship-tracking data show.

http://www.bloomberg.com/news/2011-09-12/crude-oil-tanker-sailing-for-libyan-

coast-as-first-western-cargo-offered.html

Weather

Tropical Storm MARIA

http://www.nhc.noaa.gov/text/refresh/MIATCPAT4+shtml/120840.shtml

Tropical Storm NATE

http://www.nhc.noaa.gov/text/refresh/MIATCPAT5+shtml/120231.shtml

6 to 10 Day Outlooks

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Temperature

Precipitation

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8 to 14 day Outlooks

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Temperature

Precipitation

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