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November 1,2011

Energy Data Highlights

Retail gasoline price10/31/2011: $3.452/galdown$0.010 from week earlierup$0.646 from year earlier

Retail diesel price10/31/2011: $3.892/galup$0.067 from week earlierup$0.825 from year earlier

Crude oil futures price10/28/2011: $93.32/bblup$5.92 from week earlierup$11.14 from year earlier

Natural gas futures price10/28/2011: $3.923/mmBtu

up$0.294 from week earlierup$0.033 from year earlier

Weekly coal production10/22/2011: 21.159 million tonsdown0.227 million tons from week earlierdown0.111 million tons from year earlier

http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 10/27/11 (Actual): +92 Bcf Previous Week: +112 Bcf -0.7% Change from 1 Year Ago+4.4% Change 5-year Average

Russian Gas Takes Route in the Baltic Sea

 The Castoro Sei’s 330-strong multinational crew of engineers and technicians are

laying the second leg of the world's longest subsea natural-gas pipeline. The

Follow

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conduit, called Nord Stream, snakes its way across 761 miles of Baltic sea, joining

Vyborg, Russia, to Lubmin on the German coast. At a cost of 7.4 billion euros ($11

billion), it will deliver Siberian natural gas into the heart of Western Europe,

crucially avoiding a politically fraught passage through Ukraine. Flowing at

capacity, the link could supply the entire gas consumption of France.

http://www.bloomberg.com/news/2011-10-28/russian-gas-takes-route-in-the-baltic-

sea.html 

US gas exports could converge global prices: IEA deputy chief 

 The $10/Mcf premium for natural gas in Asian markets compared with the US

could shrink if North American LNG exports become established, the deputy chief 

of the International Energy Agency said Monday in Singapore.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8522827

Middle East could start tapping 'plentiful' shale gas resources: Partex  

 The Middle East may have big deposits of shale gas, the unconventional natural

gas resource that has transformed North America's gas market, a senior officer of 

Partex Oil and Gas said Monday.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8522884

Green/ Alternative Energy News

Beacon Power bankrupt; had U.S. backing like Solyndra

Beacon Power Corp filed for bankruptcy on Sunday, just a year after the energy

storage company received a $43 million loan guarantee from a controversial

Department of Energy program. The bankruptcy comes about two months after

Solyndra -- a solar panel maker with a $535 million loan guarantee -- also filed for

Chapter 11, creating a political embarrassment for the administration of President

Barack Obama, which has championed the loans as a way to create "green

energy" jobs.

http://www.reuters.com/article/2011/10/31/us-beaconpower-bankruptcy-

idUSTRE79T39320111031 

US EPA, greens extend GHG talks; agency promises schedule 'shortly' 

 The US Environmental Protection Agency said Monday it remains in talks with

advocates seeking limits on greenhouse gas emissions from the power sector and

planned to soon have a schedule to release the first federal regulations to curb

global warming pollution from existing fossil fuel units.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/6631563

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Crude Oil News

OPEC Daily Basket Price 10/28/2011- $109.15

(10/27/2011- $109.09)

Crude Falls a Third Day on China Manufacturing Slowdown, European

Debt 

Oil dropped for a third day in New York on speculation commodity demand will

falter as Chinese manufacturing slows and European leaders struggle to contain

the region’s debt crisis.

http://www.bloomberg.com/news/2011-11-01/crude-falls-a-third-day-on-china-

manufacturing-slowdown-european-debt.html 

Oil at $100 ‘Not Sustainable,’ Former IEA Chief Tanaka SaysOil prices at $100 a barrel in New York would not be sustainable given the state of the global economy, according to the former executive director of the InternationalEnergy Agency.http://www.businessweek.com/news/2011-11-01/oil-at-100-not-sustainable-former-iea-chief-tanaka-says.html

Oil prices fall $2 as euro crisis fears deepenOil prices fell more than $2 per barrel on Tuesday as worries over the euro zone 

debt crisis and the collapse of broker-dealer MF Global darkened the outlook for

the global economy.

http://www.reuters.com/article/2011/11/01/us-markets-oil-

idUSTRE7922QH20111101

US crude oil stocks should increase 1.1 million barrels: analysts

Weekly oil data from the US Energy Information Administration and the American

Petroleum Institute should show a 1.1 million barrel rise in US commercial crudeinventories for the week ended October 28, analysts polled by Platts said Monday.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/6631462

Hedge Funds Bet on Collapse of WTI-Brent Spread: Energy Markets

Hedge funds increased bullish bets on West Texas Intermediate oil to the highest

level since May on expectations the gap between the U.S. benchmark price and

Brent, the standard for more than half the world's crude, will continue to narrow.

http://www.sfgate.com/cgi-bin/article.cgi?

f=/g/a/2011/10/31/bloomberg_articlesLTXMIB0UQVI9.DTL#ixzz1cNhcwchn

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Oil prices fall on strong dollar Crude oil prices lost ground on the strength of the dollar and lingering doubts overthe eurozone sovereign debt deal, although, despite worries about a possibleglobal recession, traders pointed to the tight underlying physical markets. The ICE

December Brent benchmark was down $1.33 at $108.58 a barrel in early New York afternoon trading, while the Nymex December West Texas Intermediatecontract was down $1.21 a barrel at $92.11. However, the downward slope in thecrude oil futures price curve – known in the industry as “backwardation” – pointedto continuing a tight supply and demand balance.http://www.ft.com/intl/cms/s/0/303e7bb8-03ae-11e1-864e-00144feabdc0.html#axzz1cS8jOZvh 

Oil New World Order 

For more than five decades, the world’s oil map has centered on the Middle East.

No matter what new energy resources were discovered and developed elsewhere,virtually all forecasts indicated that U.S. reliance on Mideast oil supplies wasdestined to grow. This seemingly irreversible reality has shaped not only U.S.energy policy and economic policy, but also geopolitics and the entire globaleconomy. But today, what appeared irreversible is being reversed. The outline of a new world oil map is emerging, and it is centered not on the Middle East but onthe Western Hemisphere. The new energy axis runs from Alberta, Canada, downthrough North Dakota and South Texas, past a major new discovery off the coastof French Guyana to huge offshore oil deposits found near Brazil.http://www.washingtonpost.com/opinions/daniel-yergin-for-the-future-of-oil-look-

to-the-americas-not-the-middle-east/2011/10/18/gIQAxdDw7L_story.html?

tid=sm_btn_linkedIn 

Pendulum swings on American oil independence The sparsely populated state is at the heart of the new US oil boom and there is a

desperate need for drivers of equipment trucks and oil tankers. As a result, North

Dakota has the lowest unemployment in the union – just 3.5 per cent, compared

with national average of 9.1 per cent. The true significance of the oil rush,

however, will be felt far beyond this rural state on the Canadian border. Along with

similar booms that are under way or expected across North America, from Alberta

to Texas, it is a development that holds profound implications for the economy of 

the US and its status as superpower. In prospect is energy independence – adecades-old dream of American politicians of all stripes. Many analysts expect

that in the coming decade the US will leapfrog Saudi Arabia and Russia to become

the world’s largest producer of liquid hydrocarbons, counting both crude oil and

lighter natural gas liquids such as propane and ethane. That optimism reflects the

increasing flow of “tight oil” as well as gas from shale – rock formations holding

reserves unlocked through new extraction technologies.

http://www.ft.com/intl/cms/s/0/65bfd07a-03b3-11e1-bbc5-

00144feabdc0.html#axzz1cS8jOZvh 

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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. 28 Oct11

2021 8 21 Oct 11 +349 5 Nov 10

Canada 28 Oct11

499 2 21 Oct 11 +66 5 Nov 10

International

September 2011

1174 -9 August2011

+54 September2010

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

Weather

6 to 10 Day Outlooks

Temperature

Precipitation

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8 to 14 Day Outlooks Temperature

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Precipitation

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