Newsletter

Capitol Area Energy, Inc.
April 4, 2008
David Babin
NATURAL GAS & ELECTRICITY 5105 Pryor Lane

Austin, Texas 78734
Phone 512-266-4710
NATURAL GAS Fax 512-266-4712
Natural gas futures for May on the NYMEX ended down $ 0.095 per MMBtu on Friday to settle at $ 9.322 erasing www.capitolareaenergy.com
an earlier gain on speculation that storage supplies will begin to rise as warmer weather cuts demand. Storage
inventories began the winter at all-time highs of 3.545 Tcf and will likely finish slightly above 1.24 Tcf. Above-
normal temperatures for this time of year are probable in the eastern half of the nation next week, the US Climate NATURAL GAS PRICES
Prediction Center said. The trend is in place for natural gas prices to move lower. Energy demand may also fall
NYMEX Last Change
after employers cut the most workers in 5 years last month. US payrolls decreased by 80,000, more than
forecast and the 3rd consecutive monthly decline, suggesting the economic contraction is deepening and the May 08 9.32 -0.09
Federal Reserve will continue to lower interest rates. Industrial, commercial and power-generation demand
accounts for about 78% of natural gas use. Some speculators, who had anticipated storage levels dipping to or 03 Month Strip 9.42 -0.09
below the 5-year average, also sold positions when that didn’t happen last week. Traders may start buying again 06 Month Strip 9.51 -0.09
this week before the release of the Colorado State University 2008 hurricane forecast. The forecast is scheduled
to be released on April 9th. Last week, the EIA reported a storage withdrawal of 29 Bcf, a little less than expected, 12 Month Strip 9.77 -0.09
compared to a withdrawal of 35 Bcf a year ago. The report showed that total storage levels of 1.248 Tcf are still 6
Bcf above the 5-year average. For this week, look for a withdrawal of about 10 to 20 Bcf. For this week, major 18 Month Strip 9.44 -0.07
resistance is seen at $ 10.090, with minor at $ 9.505, while major support is seen at $ 8.690 and minor at $
9.295.
April 2008 Gas Prices
NYMEX Historical Natural Gas Prices Point Price
NYMEX 9.578
2005 2006 2007 2008
Houston Ship Channel 9.25
15.00 Waha Hub 8.65
10.00
EIA GAS STORAGE
Region Bcf Change
5.00
East 575 -32
0.00 West 175 -1

J F M A M J J A S O N D
Prod 498 4
2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18 Total 1,248 -29
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32
2007 5.84 6.92 7.65 7.56 7.51 7.59 6.93 6.11 5.43 6.42 7.27 7.17 ◄ LINKS ►
2008 7.17 7.996 9.83 If you are interested in receiving
electricity bids, simply complete our
Letter of Authorization and fax it
back to 512-266-4712
HOW LONG, HOW DEEP By Avery Shenfeld Click Here!
Ben Bernanke studiously avoided saying it, but the rest of the world is shouting it from the rooftops: America’s
LETTER OF AUTHORIZATION
economy is in recession. The last doubters will throw in the towel after today’s non-farm payrolls report. Forward-
looking investors have therefore turned to the new issue at hand, namely, just how long, and just how deep the US
downturn will be when the final chapters are written. And that’s of critical concern to Canada, since while the If you are currently under contract
economy here seems to still be inching ahead, with job gains rather than losses, a protracted and deep American an would like notification of
recession would inevitably send Canada into its own tailspin. The optimist in us would like to be able to say that
natural gas or electricity rates,
the mild tone to American payrolls declines thus far tells us something about the prognosis for what lies ahead.
Typically, recessions entail months where 200,000-300,000 jobs disappear, and we’ve yet to see that scale of please sign up to receive future
damage. Unfortunately, the early months of recession are not helpful in predicting its severity. If anything, the prices.
ugliest real GDP downturns—1974 and 1981-82 being cases in point—seem to start with better news on Click Here!
employment than the short and shallow recessions of 1991 and 2001. So is the “good” news we’ve seen on layoffs NATURAL GAS &
a predictor of very bad news ahead? Not really, because the hallmark of long and deep recessions was the
response, or rather the lack of, by the central bankers of the day. Worried about inflation, and energy prices in ELECTRICITY SIGN UP
particular, the Fed actually tightened during the first half of the 1974 recession, taking the funds rate up by more
than 300 basis points. Similarly, the Fed held on to a high, double-digit fed funds rate, and a high real funds rate,
until the 1981-82 recession was nearly over. The Great Depression, which some are pointing to today, was so
“great” because the central bank allowed a collapse in the financial sector and, in effect, a massive tightening in MCPE AVERAGE
monetary policy. In contrast, Greenspan was well into his easing cycle when the recession got underway in 1991
and 2001, and took real rates to zero by the middle of those slumps. Bernanke has taken his cue from those two, ERCOT Ave Change
more shallow downturns. He’s fighting a credit crunch that has slowed the transmission of lower overnight rates Houston 77.19 -26.08
into other private sector yields. But with a 1.25% funds rate likely by summer’s end, and more steps by Washington
to wade into the mortgage mess, the overall thrust of monetary policy will be just what’s needed for this recession North 68.53 19.43
to be mild, and shallow.
South 71.22 -3.90
To remove your name for our mailing list, please click here. West 58.69 11.48
Questions or comments? E-mail us at newsletter@capitolareaenergy.com
April 11, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
www.capitolareaenergy.com
Natural gas futures for May on the NYMEX ended up $ 0.197 lower Friday to settle at $ 9.901 per MMBtu, amid
speculation demand will wane as the nations’ economy slows and the weather warms. The Midwest and
Northeast will have above-normal temperatures this week. Chicago may reach 66 degrees by April 16th. General NATURAL GAS PRICES
Electric reported its first decline in quarterly profit since 2003 and its shares fell. Industrial stocks fell the most in
6 years after GE cut its profit forecasting, signaling the US economy may be worsening. The economy won’t NYMEX Last Change
expand during the first 6 months of this year, according to a recent survey. A majority of those polled also
May 08 9.90 -0.19
projected the US economy is, or will be soon, in a recession. Confidence among US consumers fell to a 26-year
low after employers fired workers and gasoline prices surged. Industrial, commercial and power-generation needs 03 Month Strip 9.99 -0.20
account for about 78% of natural gas use, according to the EIA. The International Energy Agency, an adviser to 27
nations, cut its 2008 global oil demand forecast for a 3rd straight month as economic growth slows amid record 06 Month Strip 10.07 -0.19
crude prices and the credit-market slump. The annual forecast was reduced by 310,000 bpd to 87.23 million, 12 Month Strip 10.28 -0.19
from last month’s estimate. Energy demand will fall in the US by 410,000 bpd, to 20.38 million bpd this year, the
lowest since 2003. Inventories are now at their lowest since May 2004. Last week, the EIA reported a storage 18 Month Strip 9.86 -0.17
withdrawal of 14 Bcf, about what was expected, compared to an injection of 33 Bcf a year ago. The report
showed that total storage levels of 1.234 Tcf are 23 Bcf below the 5-year average. For this week, look for a
withdrawal of about 20 to 30 Bcf. For this week, major resistance is seen at $ 10.365, with minor at $ 9.960,
while major support is seen at $ 8.775 and minor at $ 9.825. April 2008 Gas Prices
Point Price
NYMEX 9.578
NYMEX Historical Natural Gas Prices Houston Ship Channel 9.25

Waha Hub 8.65
2005 2006 2007 2008
15.00
EIA GAS STORAGE
Region Bcf Change
10.00
East 563 -12
West 173 -2
5.00
Prod 498 0
0.00 Total 1,234 -14

2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18 ◄ LINKS ►
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32 If you are interested in receiving
2007 5.84 6.92 7.65 7.56 7.51 7.59 6.93 6.11 5.43 6.42 7.27 7.17 electricity bids, simply complete our
2008 7.17 7.996 9.83 9.578 back to 512-266-4712
Click Here!
Industry Analysis If you are currently under contract

an would like notification of
The United States is the world's largest energy producer, consumer, and net importer. It also ranks natural gas or electricity rates,
eleventh worldwide in reserves of oil, sixth in natural gas, and first in coal. Since the mid 1950s, please sign up to receive future
domestic usage of energy has exceeded the domestic production levels of all energy used by industry, prices.
transportation, commercial and residential users. With the exception of a brief rollback in the late Click Here!
1970s and early 1980s domestic consumption continues to outpace consumption despite additional NATURAL GAS &
technology that has created new energy resources and improved the production efficiencies of
ELECTRICITY SIGN UP
traditional energy supplies. Most energy produced in the United States comes from fossil fuels -- coal,
natural gas, and crude oil. Coal, the leading source at the middle of the 20th century, was surpassed
by crude oil and natural gas for many years, but again became the leading source of energy in the
mid-1980s, used primarily for electric generation. With increased economic output, the US requires
more energy in 2008 than 2006 and 2007. Oil & Gas Journal (OGJ) forecasts that total energy
MCPE AVERAGE
demand will be 202.34 quadrillion btu (quads) in 2008. Energy efficiency, the amount of energy ERCOT Ave Change
consumed per dollar of GDP, will improve slightly in 2008. The energy efficiency ratio has improved
Houston 74.59 -13.98
nearly each year since 1970.
North 71.99 9.56
South 73.46 -4.70
April 18, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures for May delivery slipped $ 0.126 lower yesterday to settle at $ 10.607 www.capitolareaenergy.com
per MMBtu, as early predictions of a larger build in storage inventories and forecasts of
mild spring weather in the Northeast and Midwest reduced supply concerns. Moderate NATURAL GAS PRICES
temperatures across much of the US over the next 2 weeks are expected to cut demand.
The weather forecasts have helped calm fears of supply constraints as a production shut-in NYMEX Last Change
continues at the Independence Hub. A private forecaster predicts normal temperatures in May 08 10.59 +0.20
the northern and eastern states from April 26th to April 30th. From May 1st to May 5th, 03 Month Strip 10.70 +0.21
above-normal temperatures are expected in the Ohio Valley and Southeast. Natural gas
has not really had a bona fide post-winter correction and despite how high crude oil is, 06 Month Strip 10.81 +0.21
natural gas is entering a shoulder period of softening demand. Last week, the EIA reported 12 Month Strip 11.03 +0.21
a storage injection of 27 Bcf, somewhat higher than expected, compared to a withdrawal 18 Month Strip 10.57 +0.21
of 26 Bcf a year ago. The report showed that total levels of 1.261 Tcf are now 3 Bcf below
the 5-year average. For this week, look for an injection of about 25 to 35 Bcf. For this
week, major resistance is seen at $ 10.880, with minor at $ 10.625, while major support is
seen at $ 8.925 and minor at $ 10.350. April 2008 Gas Prices
Point Price
NYMEX Historical Natural Gas Prices NYMEX 9.578
2005 2006 2007 2008 Houston Ship Channel 9.25

Waha Hub 8.65
15.00
EIA GAS STORAGE

10.00
Region Bcf Change
East 582 19
5.00
West 176 3
Prod 503 5
0.00
Total 1,261 27
2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32 ◄ LINKS ►
2008 7.17 7.996 9.83 9.578 electricity bids, simply complete our
back to 512-266-4712
Click Here!
Crude Oil Trades Little Changed Amid U.K. Strike Talks, Dollar LETTER OF AUTHORIZATION
By Grant Smith
April 23 (Bloomberg) -- Crude oil was little changed in New York amid negotiations to avert a refinery strike in the
If you are currently under contract
U.K. and as the U.S. dollar stabilized after touching a record low. Oil has retreated from the record $119.90 a
barrel reached yesterday when the dollar touched an all-time low of $1.6018 to the euro. Unions planning to strike
at a 200,000 barrel-a-day refinery in Scotland next week are holding talks with the plant's owners Ineos Group natural gas or electricity rates,
Holdings Plc today after failing to reach agreement yesterday. ``The weakness of the dollar is a great driver here,'' please sign up to receive future
said Francisco Blanch, head of commodities research at Merrill Lynch in London. ``Oil has become a little bit of a prices.
monetary phenomenon, where low rates boost demand for oil in emerging markets.'' Crude oil for June delivery Click Here!
was at $117.77 a barrel, down 30 cents, at 11:20 a.m. London time in after-hours electronic trading on the New
NATURAL GAS &
York Mercantile Exchange. The May contract, which expired yesterday, rose $1.89, or 1.6 percent, to settle at
$119.37 a barrel on Nymex, a record close. Futures earlier reached the highest intraday price since trading began ELECTRICITY SIGN UP
in 1983. Brent crude for June settlement was at $115.56 a barrel, down 39 cents, on London's ICE Futures Europe
exchange at 11:08 a.m. London time. The contract gained $1.52, or 1.3 percent, to close at a record $115.95 a
barrel yesterday after touching $116.75, an all-time intraday high. Forties Pipeline Workers are planning to strike
from April 27-28 at Ineos' Scottish plant, which takes crude from BP Plc's Forties Pipeline System that transfers oil MCPE AVERAGE
from more than 50 North Sea fields. Oil has also gained because of a supply disruption in Nigeria. Royal Dutch
Shell Plc closed 169,000 barrels a day of supply after attacks on a pipeline last week. The U.S. Energy Department ERCOT Ave Change
is scheduled to release its weekly report on inventories today at 10:30 a.m. in Washington. Gasoline stockpiles
probably declined 2 million barrels in the week ended April 18 from 215.8 million barrels the week before, Houston 87.07 17.74
according a Bloomberg survey. Oil supplies advanced 1.5 million barrels from 313.7 million barrels, according to North 87.07 18.66
the median of responses from 15 analysts.
South 87.07 17.90
April 25, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures for May delivery ended Friday on the NYMEX $ 0.173 higher to settle at $ 10.963 www.capitolareaenergy.com
per MMBtu, the highest in more than two years as oil advanced on supply disruptions. Crude oil
prices rose as BP prepared to shutdown a North Sea pipeline and violence and strikes cut output in
Nigeria. Natural gas prices also gained amid speculation supplies may fall short of the quantities NATURAL GAS PRICES
needed to rebuild storage for next winter’s heating loads. There has been a notion prevalent for the NYMEX Last Change
last month that the storage gap has to close for prices to fall. The May contract was up 4% last
week. Prices are 47% higher so far this year. The May contract closes today. Based on prices in the May 08 10.96 +0.17
cash market, fuel oil is valued at $ 14.66 MMBtu compared and heating oil at $ 23.88 per MMBtu 03 Month Strip 11.10 +0.16
equivalent, than double the price of natural gas. Prices have held above the 9-day moving average of
06 Month Strip 11.22 +0.16
about $ 10.605 and unless it breaks below that, they could continue higher. US LNG imports
dropped to 900 MMcf per day in April from a daily 3.2 Bcf per day a year ago. The New York June 12 Month Strip 11.43 +0.14
futures contract was $ 1.63 per MMBtu below prices offered in the UK for the same month. Last
18 Month Strip 10.94 +0.10
week, the EIA reported a storage injection of 24 Bcf, somewhat less than expected, compared to an
injection of 0 Bcf a year ago. The report showed that total storage levels of 1.285 Tcf are now 25 Bcf
below the 50year average. For this week, look for an injection of about 40 to 50 Bcf. For this week,
major resistance is seen at $ 11.385, with minor at $ 10.98, while major support is seen at $ 9.040 April 2008 Gas Prices
and minor at $ 10.89.
Point Price
NYMEX 9.578
NYMEX Historical Natural Gas Prices Houston Ship Channel 9.25
2005 2006 2007 2008 Waha Hub 8.65
15.00
EIA GAS STORAGE
Region Bcf Change
10.00
East 598 16
West 181 5
5.00
Prod 506 3
0.00 Total 1,285 24

2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18 ◄ LINKS ►
2008 7.17 7.996 9.83 9.578 back to 512-266-4712
Click Here!
CFTC Report and Weather If you are currently under contract

CFTC report issued on Friday showed that funds have decreased both longs (7,482) and shorts natural gas or electricity rates,
(11,518) on a futures only basis although long seen increasing by 5,999 on a futures/options basis. please sign up to receive future
prices.
With respect to natural gas, the funds increased longs by 6.737 and decreased shorts by 1,699 on a
futures only basis. However, on a futures/options basis longs increased by 11,138 and shorts Click Here!
increased by a whopping 33,637. AccuWeather said that waning La Nina conditions and a continued NATURAL GAS &
warm water cycle in the Atlantic Basin will cause a number of storms to be slightly above average and ELECTRICITY SIGN UP
will increase the chance that storms will hit the U.S. during the upcoming hurricane season. FERC said
that the construction of the proposed AES Sparrows Point LNG receiving terminal in Baltimore Harbor
would be environmentally acceptable. NOAA’s 6-10 day forecast showing above normal temps along
the entire eastern seaboard with below normal temps in many areas in the central U.S. and the MCPE AVERAGE
interior sections of the West. The 8-14 day forecast shows normal temps in the NE with above normal
ERCOT Ave Change
temps along the eastern seaboard from southern Virginia through Florida and along the eastern Gulf
Coast state. It also shows below normal temps continuing in the countries midsection and interior Houston 115.98 24.73
West.
North 226.44 139.36
South 78.07 -14.10
May 2, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures for June on the NYMEX ended $ 0.216 higher Friday to settle at $ 10.777 per
MMBtu, following crude oil, after a government report showed the US lost fewer jobs than forecasted
in April which made the stock market rally. The American workplace shrunk by 20,000 jobs and the NATURAL GAS PRICES
jobless rate fell to 5%, the Labor Department said. Economists had projected a loss of 75,000 jobs.
NYMEX Last Change
Eight of 10 industry groups in the Standard & Poor’s 500 Index climbed. Natural gas has gained 44%
so far this year, climbing to a 28-month intra-day high of $ 11.36 on April 28th. Increasing output of June 08 10.77 +0.22
electricity from natural gas-fired power plants will add about 1 Bcf per day to demand over the next
03 Month Strip 10.90 +0.22
several years. Last week, the EIA reported a storage injection of 86 Bcf, considerably more than
expected, compared to an injection of 67 Bcf a year ago. The report showed that total storage levels 06 Month Strip 11.03 +0.22
of 1.371 Tcf are now 3 Bcf below the 5-year average. For this week, look for an injection of about 70 12 Month Strip 11.06 +0.21
to 80 Bcf. For this week, major resistance is seen at $ 11.39, with minor at $ 10.877, while major
support is seen at $ 9.380 and minor at $ 10.651. 18 Month Strip 10.66 +0.19
NYMEX Historical Natural Gas Prices

May 2008 Gas Prices
2005 2006 2007 2008 Point Price
NYMEX 11.28
15.00
Waha Hub 10.08
10.00
5.00 EIA GAS STORAGE

Region Bcf Change
0.00 East 652 54
West 188 7
2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18
Prod 531 25
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32
Total 1,371 86
2007 5.84 6.92 7.65 7.56 7.51 7.59 6.93 6.11 5.43 6.42 7.27 7.17
2008 7.17 7.996 9.83 9.578 11.28
◄ LINKS ►
If you are interested in receiving
Oil rises near $117 on supply fears electricity bids, simply complete our
By GEORGE JAHN Associated Press Writer back to 512-266-4712
VIENNA, Austria — Oil prices rose Monday, supported by weekend news of an attack on a Nigerian oil installation,
Click Here!
but with gains limited by a stronger U.S. dollar. Royal Dutch Shell PLC spokesman Precious Okolobo said Saturday
that attackers hit a flow station belonging to Shell's joint venture in southern Nigeria and that some oil production LETTER OF AUTHORIZATION
had been shut down. He gave no further details. Flow stations are intersections for pipelines carrying oil from wells
to export terminals. "The geopolitical news (out of Nigeria) is supportive of oil pricing and causes investors to come
back into oil," said Victor Shum, an analyst with Purvin & Gertz in Singapore. However, "the strengthening dollar If you are currently under contract
has capped further gains in oil," he said. Light, sweet crude for June delivery rose 58 cents to $116.90 a barrel by an would like notification of
noon in European electronic trading on the New York Mercantile Exchange. The contract rose $3.80 to settle at natural gas or electricity rates,
$116.32 a barrel on Friday. Crude futures soared Friday after Turkish air strikes on Kurdish rebel bases in Iraq please sign up to receive future
injected supply concerns into the market. Also supporting oil prices were concerns about Iran after Supreme prices.
Leader Ayatollah Ali Khamenei said Sunday that his country will not bend to international pressure and give up its Click Here!
nuclear program. Iran is the second largest producer in the Organization of Petroleum Exporting Countries. When
conflict breaks out or political tensions rise in the Middle East, investors often buy oil on the belief that supplies NATURAL GAS &
could be disrupted. "The market is supported by strong commodity index fund buying that happened on Friday, ELECTRICITY SIGN UP
driven primarily by a belief that there would be supply issues in the long term," Shum said. At the same time, an
employment report from the U.S. Labor Department also gave investors reason to be more optimistic about the
U.S. economy — and raised the floor on prices. The U.S. is the world's largest consumer of oil and any drop in
demand there can have a global impact on prices. Vienna's JBC Energy described the relatively positive MCPE AVERAGE
employment figures as "the main bullish factor in the market." "Positive news on the U.S. economy eased
concerns about a recession and made further (U.S. interest) rate cuts ... unlikely," said Monday's JBC newsletter. ERCOT Ave Change
"Theoretically, this would decrease the amount of money invested in oil as a hedge for the falling dollar." Oil prices
dropped to nearly $110 a barrel on Thursday, helped by the rising U.S. dollar. A rising dollar undercuts the appeal Houston 100.44 32.14
of commodities such as oil as a hedge against inflation, and makes oil more expensive to investors overseas. In North 58.82 -5.88
other Nymex trading, heating oil futures added more than a penny to $3.2305 a gallon while gasoline prices were
flat at $2.9664 gallon. Natural gas futures rose more than 6 cents to $10.84 per 1,000 cubic feet. South 89.47 22.52
West 52.71 6.23
To remove your name for our mailing list, please click here.
May 9, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures for June delivery on the NYMEX dipped $ 0.236 lower yesterday to settle at $ 11.301 per www.capitolareaenergy.com
MMBtu, amid speculation inventories will increase as a major pipeline in the Gulf of Mexico resumes output
following repairs and after crude oil prices fell. The Independence Hub in the Gulf was shut April 9th by a leak on
the Independence Trail export pipeline and was moving about 900 MMcf per day. Repairs are scheduled to be NATURAL GAS PRICES
finished in the first half of the month. Oil declined on signs that rising prices may cut demand in emerging
NYMEX Last Change
markets Supplies of liquefied natural gas to the US may fall by 35% in 2008, investment bank Tudor, Pickering,
Holt said, reversing a forecast that shipments will rise. Imports of LNG may decline by 0.7 Bcf per day to 1.3 Bcf June 08 11.54 +0.27
per day this year because of diversions of supplies to Europe and Asia, Tudor said. Supplies of LNG to the US
increased 33% last year. The US imported about 1.9 Bcf per day last year, or about 9% of global LNG 03 Month Strip 11.64 +0.28
consumption. The hurricane starts June 1st. The Gulf of Mexico will have a normal distribution of tropical activity, 06 Month Strip 11.75 +0.28
with energy interests experiencing at least 7 to 10 days with disruptions or threats of disruptions, AccuWeather
forecaster Joe Bastardi said in his outlook for the season. Specifically, the forecast is for 2 or 3 storms that affect 12 Month Strip 11.76 +0.26
the energy infrastructure in and around the Gulf of Mexico. He anticipates 12 named storms in 2008, with 40%
becoming either a tropical storm or a hurricane. Last week, the EIA reported a storage injection of 65 Bcf, about 18 Month Strip 11.34 +0.23
what was expected, compared to an injection of 94 Bcf a year ago. The report showed that total storage levels of
1.436 Tcf are now 11 Bcf below the 5-year average. For this week, look for an injection of about 70 to 80 Bcf.
For this week, major resistance is seen at $ 12.380, with minor at $ 11.480, while major support is seen at $
9.580 and minor at $ 11.250. May 2008 Gas Prices
Point Price

2005 2006 2007 2008
Waha Hub 10.08
15.00
EIA GAS STORAGE
10.00 Region Bcf Change
East 690 38
5.00 West 197 9
Prod 549 18
0.00
J F M A M J J A S O N D Total 1,436 65
2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32 ◄ LINKS ►
2007 5.84 6.92 7.65 7.56 7.51 7.59 6.93 6.11 5.43 6.42 7.27 7.17
2008 7.17 7.996 9.83 9.578 11.28 Letter of Authorization and fax it
back to 512-266-4712
Click Here!
Short-Term Crude Outlook from the EIA LETTER OF AUTHORIZATION
West Texas Intermediate (WTI) crude oil spot prices increased from $101 to $120 per barrel over the first 3 weeks
of April as supply disruptions in Nigeria and the North Sea and continuing strong demand growth in the emerging If you are currently under contract
market countries pressured oil markets. In 2007, domestic crude oil output averaged 5.1 million bbl/d, unchanged an would like notification of
from 2006. Total output in 2008 is projected to grow by only 10,000 bbl/d. In 2009, domestic crude oil natural gas or electricity rates,
production is projected to average 5.3 million bbl/d, up 210,000 bbl/d from 2008. Federal Gulf of Mexico output please sign up to receive future
is expected to rise by 260,000 bbl/d but declines are projected for Alaska (30,000 bbl/d) and the lower-48 States prices.
(20,000 bbl/d). Total petroleum consumption of liquid fuels and other petroleum products averaged 20.7 million Click Here!
bbl/d in 2007, essentially unchanged from 2006. Based on projections of weak economic growth and record high
crude oil and product prices, consumption is projected to decline by 190,000 bbl/d in 2008, a sharper drop than NATURAL GAS &
the 90,000 bbl/d decline projected in the previous Outlook. After accounting for projected increases in ethanol ELECTRICITY SIGN UP
use, U.S. petroleum consumption is projected to fall by 330,000 bbl/d. In 2009, total petroleum and other liquid
fuel consumption is projected to rise by 210,000 bbl/d. WTI crude oil prices, which averaged $72.32 per barrel in
2007, are projected to average $110 per barrel in 2008, up about $9 per barrel from the projection in last month’s
Outlook, and $103 per barrel in 2009, up about $11 per barrel from the previous Outlook. EIA projects regular- MCPE AVERAGE
grade motor gasoline retail prices, which averaged $2.81 per gallon in 2007, to average $3.52 per gallon this year,
up 16 cents from last month’s Outlook. The motor gasoline price is expected to average $3.66 over this summer ERCOT Ave Change
(April through September). These projections reflect our assumption of a sizable narrowing of refiner gasoline
margins from last year, attributable to weakness in gasoline demand and growth in ethanol supply. In 2009, Houston 188.54 40.60
regular-grade gasoline retail prices are projected to average $3.44 per gallon, 20 cents higher than in the previous North 67.03 8.02
Outlook. Diesel fuel retail prices in 2008 are projected to average $3.94 per gallon, up from $2.88 per gallon last
year. This reflects global strength in diesel demand that is contributing to a widening of the margin between diesel South 156.02 -43.14
prices and crude oil costs since last year. Retail diesel prices are projected to average $3.67 per gallon in 2009.
West 76.71 12.71
May 16, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures for June on NYMEX dropped $ 0.14 to $ 10.954 yesterday marking the third day
in a row with a decrease in prices, as mild weather and rising storage levels placed downward
pressure on prices. Forecasts of moderate temperatures in the Northeast and Midwest prompted NATURAL GAS PRICES
profit-taking despite a late-day rally in the crude oil market. The natural gas markets failure to
NYMEX Last Change
remain above $ 11.50 led to technical selling. Mild spring weather in the Northeast and Midwest
over the next two weeks is expected to dampen demand. The National Weather Service is June 08 11.09 -0.31
forecasting above-normal temperatures in parts of the Mid-Atlantic and Midwest from May 24th to 03 Month Strip 11.24 -0.30
May 28th, though the warm weather is not expected to spark significant demand for cooling. From
May 26th to June 1st, below-normal temperatures were expected in New England and the Upper 06 Month Strip 11.38 -0.29
Midwest, while normal temperatures are predicted for most of the Great Lakes and Mid-Atlantic. The 12 Month Strip 11.46 -0.25
mild weather was expected to bring substantial injections into storage. Last week, the EIA reported a
storage injection of 93 Bcf, somewhat more than was expected, compared to an injection of 95 Bcf a 18 Month Strip 11.12 -0.20
year ago. The report showed that total storage levels of 1.529 Tcf are now 3 Bcf above the 5-year
average. For this week, look for an injection of about 85 to 95 Bcf. For this week, major resistance is
seen at $ 11.625, with minor at $ 11.085, while major support is seen at $ 9.72 and minor at $
10.850.
May 2008 Gas Prices
Point Price

2005 2006 2007 2008
Waha Hub 10.08
15.00
EIA GAS STORAGE
East 743 53
5.00 West 210 13
Prod 576 27
0.00
2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32 ◄ LINKS ►
2007 5.84 6.92 7.65 7.56 7.51 7.59 6.93 6.11 5.43 6.42 7.27 7.17
back to 512-266-4712
Click Here!
Crude Oil Flat Before EIA Report LETTER OF AUTHORIZATION

Oil traded little changed near $127 a barrel before a U.S. Energy Administration report expected to an would like notification of
show fuel stockpiles increased last week. U.S. crude-oil and distillate fuel stockpiles probably gained natural gas or electricity rates,
last week as refiners increased production and took delivery of crude imports. Prices closed at a please sign up to receive future
record in New York yesterday. Crude oil for June delivery was at $127.17 a barrel, up 12 cents, in prices.
electronic trading on the New York Mercantile Exchange at 11:09 a.m. in London time. Yesterday, the Click Here!
contract rose 76 cents, or 0.6 percent, to $127.05 a barrel, a record close. Prices are 92 percent NATURAL GAS &
higher than a year ago. Crude touched $127.82 on May 16th, the highest since trading began in 1983.
ELECTRICITY SIGN UP
The June contract expires today and the more active July future was at $126.68 a barrel, down 4
cents, at 10:52 a.m. London time. Oil supplies climbed 750,000 barrels in the week ended May 16
from 325.8 million barrels, according to the median of responses by eight analysts before an Energy
Department report tomorrow. Refineries probably operated at 87.1 percent of capacity, up 0.5
MCPE AVERAGE
percentage point from the week before, the survey showed. It would be the highest rate since the
week ended Jan. 4. Saudi Arabia, OPEC's biggest producer, said May 16 it will raise output by about ERCOT Ave Change
3.3 percent to 9.45 million barrels a day in June. The announcement followed a meeting between U.S.
Houston 76.52 -12.17
President George W. Bush and King Abdullah.
North 77.36 -11.81
South 76.03 -10.44
West 77.32 -11.88
May 23, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures ended $ 0.16 lower on Friday to settle at $ 11.857 per MMBtu, following crude once again on
short-covering ahead of the Memorial Day Holiday as the dollar dipped lower. It rose to 6.9% last week. Natural
gas prices have gained 58% while crude is 39% higher this year. There was no floor trading in New York yesterday NATURAL GAS PRICES
because of the Memorial Day holiday. Energy prices, especially for crude oil, will continue to rise until there are
substantial signs of reduced demand because of the increase. There is huge demand for diesel and the only way NYMEX Last Change
get that out is through higher prices, thus dragging along the rest of the energy complex higher. Last week, the
build-up in storage was below the average for this time of year. Natural gas futures reached an all-time high of $ June 08 11.86 +0.16
15.78 on December 15, 2005, as damage from Rita and Katrina that year curtailed output from the Gulf of 03 Month Strip 11.97 +0.15
Mexico, pushing prices higher. The 2008 hurricane season, which starts this week, may be more active than
usual with as many as nine forming in the Atlantic Ocean, the National Oceanic and Atmospheric Administration 06 Month Strip 12.09 +0.14
(NOAA) said. Five hurricanes may be major. At the lower end of the forecast, as few as six Atlantic hurricanes
may form, including two major ones, which make 2008 an average storm year. For the past two years, NOAA 12 Month Strip 12.12 +0.13
predictions have overestimated the number of hurricanes, caused by them drastically underestimating in 2005. 18 Month Strip 11.72 +0.10
Last week, the EIA reported a storage injection of 85 Bcf, a little lower than expected, compared to an injection of
101 Bcf a year ago. The report showed that total storage levels of 1.529 Tcf are now 3 Bcf below the 5-year
average. For this week, look for an injection of about 85 to 95 Bcf. For this week, major resistance is seen at $
12.88, with minor at $ 12.07, while major support is seen at $ 10.25 and minor at $ 11.74. May 2008 Gas Prices
Point Price

2005 2006 2007 2008
Waha Hub 10.08
15.00
EIA GAS STORAGE
East 797 54
5.00 West 222 12
Prod 595 19
0.00
2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32 ◄ LINKS ►
2007 5.84 6.92 7.65 7.56 7.51 7.59 6.93 6.11 5.43 6.42 7.27 7.17
back to 512-266-4712
Click Here!
Crude Oil Trades Near $133 After Attack on Nigerian Pipeline LETTER OF AUTHORIZATION

Crude oil rose, trading near $133 a barrel in New York, after a militant attack in Nigeria disrupted supplies from an would like notification of
Africa's largest producer. The Movement for the Emancipation of the Niger Delta, Nigeria's main militant group,
said it attacked a crude-oil pumping station yesterday operated by Royal Dutch Shell Plc. India will take a decision
please sign up to receive future
soon on whether to raise fuel prices, Oil Ministry spokesman S. Sundareshan said today. Crude oil for July delivery
prices.
rose as much as $1.46 a barrel, or 1.1 percent, to $133.65 a barrel on the New York Mercantile Exchange from the
May 23 close. Prices were at $133.28 at 11:08 a.m. London time. Brent crude oil for July settlement gained for a Click Here!
third day, climbing as much as $1.04 cents, or 0.8 percent, to $133.41 a barrel, on London's ICE Futures Europe NATURAL GAS &
exchange. It was at $132.73 a barrel at 11:11 a.m. London time. The contract gained 80 cents, or 0.6 percent, to
$133.16 a barrel yesterday. Since the dollar decline, New York oil futures have increased 24 percent in the past ELECTRICITY SIGN UP
two months and reached a record $135.09 on May 22 after the dollar posted its biggest weekly decline against the
euro since March. A weaker dollar prompts investors to buy commodities as a hedge against inflation. Nigeria,
Africa's biggest producer, is now OPEC's eighth- largest member by output after attacks by militants this year
halted as much as 164,000 barrels of Shell's daily output. Some production has been lost after an attack on the MCPE AVERAGE
Nembe Creek trunk line in Nigeria's Rivers State, Caroline Wittgen, Shell's spokeswoman, said yesterday. The
attack was timed to protest the one-year anniversary of President Umaru Yar'Adua's administration, MEND said in ERCOT Ave Change
an e-mailed statement. The group claimed responsibility for four attacks in April and a May 2 strike on oil Houston 196.48 77.47
installations operated by Shell's Nigerian venture. MEND actions forced Shell to announce delays in deliveries of
Bonny light crude in April and May and halt the equivalent of 169,000 barrels a day of production. North 291.04 206.81
South 233.02 96.41
West 57.89 66.68
May 30, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures for July ended $ 0.229 higher Friday to settle at $ 11.703 per MMBtu,
following the oil complex up ahead of the weekend. Natural gas flow on the Independence NATURAL GAS PRICES
Trail pipeline operated by Enterprise Products Partners in the Gulf of Mexico, shutdown
NYMEX Last Change
April 9th, may not resume service until the middle of June, a month later than originally
planned. Last week, the EIA reported a storage injection of 87 Bcf, a little higher than July 08 11.70 +0.23
expected, compared to an injection of 106 Bcf a year ago. The report showed that total 03 Month Strip 11.77 +0.23
storage levels of 1.529 Tcf are now 8 Bcf below the 5-year average. For this week, look for
06 Month Strip 11.96 +0.21
an injection of about 85 to 95 Bcf. For this week, major resistance is seen at $ 13.280,
with minor at $ 11.913, while major support is seen at $ 10.306 and minor at $ 11.617. 12 Month Strip 11.72 +0.17
18 Month Strip 11.39 +0.14

May 2008 Gas Prices
2005 2006 2007 2008
Point Price
NYMEX 11.28
15.00
10.00 Waha Hub 10.08
5.00
EIA GAS STORAGE
Region Bcf Change
0.00
J F M A M J J A S O N D East 845 48
West 234 12
2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18
Prod 622 27
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32
Total 1,701 87
2007 5.84 6.92 7.65 7.56 7.51 7.59 6.93 6.11 5.43 6.42 7.27 7.17
2008 7.17 7.996 9.83 9.578 11.28
◄ LINKS ►
Hurricane Season Update back to 512-266-4712
Click Here!
It’s that time of year again and so we bring you the latest tropical update from
AccuWeather.com. Hurricane Arthur Bringing Heavy Rain to Parts of Central America this
morning. Hurricane season officially began Sunday, and Tropical Rainstorm Arthur If you are currently under contract
continues to bring heavy rain to areas of southeast Mexico and Guatemala. Arthur is
centered over southeastern Mexico and is drifting southwestward as it slowly dissipates. please sign up to receive future
Arthur's most dangerous attribute continues to be the heavy rain associated with its tropical prices.
convection. An average of 5 to 10 inches of rain is expected to fall across the mountainous Click Here!
terrain of Belize, Guatemala, southern Mexico and western Honduras, causing flash flooding NATURAL GAS &
and mudslides. A strong ridge of high pressure over the south-central United States will ELECTRICITY SIGN UP
keep all threats from this storm away from the lower 48. Elsewhere, a tropical wave along
63 west shows no signs of development. A more healthy tropical wave along 53 west and
south of 13 north is moving west at 10-15 knots and will cause heavy and gusty showers
and thunderstorms to northeast South America over the next 24 to 36 hours and locally MCPE AVERAGE
heavy and gusty showers and thunderstorms to the southern Windward Islands later ERCOT Ave Change
Monday into Tuesday. Another impressive tropical wave along 28 west and south of 15
Houston 104.89 19.59
north is tracking west at 15 knots and is causing showers and thunderstorms mainly south
of 10 north. North 70.31 -8.44
South 122.78 35.13
To remove your name for our mailing list, please click here. West 23.54 -2.31
Capitol Area Energy, Inc.,
June 6, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures for July rose $ 0.174 higher Friday to settle at $ 12.693 per MMBtu, driven by
soaring oil prices and forecasts of scorching temperatures in the Northeast and Midwest. The heat
has pushed into the Midwest and will arrive today in the Northeast. Temperatures as much as 14 NATURAL GAS PRICES
degrees above normal may linger through June 12th. Natural gas futures are up 67% this year. The
NYMEX Last Change
model continues to get warmer and now has 3 days near 100 degrees in New York City. Natural gas
was also driven higher by the crude oil market jumping 8.4% to a new all time record high. NYMEX July 08 12.69 +0.17
heating oil futures for July jumped $ 0.2932 to $ 3.974 per gallon and July crude oil futures jumped $
03 Month Strip 12.74 +0.18
10.75 to $ 128.54 per barrel. Last week, the EIA reported a storage injection of 105 Bcf, some
higher than expected, compared to an injection of 110 Bcf a year ago. The report showed that total 06 Month Strip 12.89 +0.19
storage levels of 1.806 Tcf are now 1 Bcf below the 5-year average. For this week, look for an 12 Month Strip 12.50 +0.17
injection of about 95 to 105 Bcf. For this week, major resistance is seen at $ 13.855, with minor at
$ 12.865, while major support is seen at $ 11.276 and minor at $ 12.406. 18 Month Strip 12.04 +0.15
June 2008 Gas Prices

2005 2006 2007 2008 NYMEX 11.916

15.00 Waha Hub 10.43
10.00
EIA GAS STORAGE
Region Bcf Change
5.00
East 905 60
West 251 17
0.00
J F M A M J J A S O N D Prod 650 28
2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18 Total 1,806 105
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32
2007 5.84 6.92 7.65 7.56 7.51 7.59 6.93 6.11 5.43 6.42 7.27 7.17 ◄ LINKS ►
2008 7.17 7.996 9.83 9.578 11.28 11.92 If you are interested in receiving
back to 512-266-4712
Click Here!
Oil Dips After Record $ 11 Surge to New High LETTER OF AUTHORIZATION
Oil eased on Monday after the biggest one-day price gain in the history of the market left traders and
analysts divided over the explanation. U.S. light, sweet crude for July delivery fell by $1.42 to $137.12 If you are currently under contract
by 6:40 a.m. EDT, while Brent futures dropped $1.81 to $135.88. U.S. prices surged by nearly $11 on an would like notification of
Friday to a new record above $139 a barrel, taking two-day day gains to more than $16 a barrel and natural gas or electricity rates,
reversing two weeks of losses. Frantic buying was triggered by a range of factors, including a forecast please sign up to receive future
by investment bank Morgan Stanley that oil prices could top $150 a barrel by the July 4 U.S. holiday, prices.
as well as by a falling U.S. dollar. Goldman Sachs' global head of commodities research Jeffrey Currie Click Here!
on Monday reinforced Morgan Stanley's view, telling a conference "demand for oil is weak, but NATURAL GAS &
supplies are even weaker." "I would suggest that the likelihood of that happening sooner has ELECTRICITY SIGN UP
increased tremendously ... some time in summer," Currie said with reference to oil at $150. Oil's six-
year rally has gathered pace this year, with futures markets climbing by around 40 percent since
January. The weakness of the U.S. currency has been a major factor behind this year's commodity
price gains as dollar-denominated raw materials are relatively cheap for non-dollar buyers and offer MCPE AVERAGE
investors a potential hedge against inflation. The dollar plunged on Friday after U.S. economic data
showed the biggest jump in the U.S. unemployment rate for 22 years, denting expectations the ERCOT Ave Change
Federal Reserve would raise interest rates. Houston 105.20 8.79
North 104.80 10.91
South 105.51 8.47
June 13, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures for July on the NYMEX slipped $ 0.173 on Friday to settle at $ 12.625 per MMBtu,
ahead of the weekend amid a slump in oil prices and forecasts for below-average temperatures in
the Eastern US. Futures prices last week were driven up first by a scorching heat wave in the NATURAL GAS PRICES
Northeast and Mid-Atlantic and then by a lower-than-expected injection into storage. But Friday, the
NYMEX Last Change
dip in crude oil futures more than weather or supply concerns drove natural gas prices down. A
stronger dollar pushing oil prices lower and in turn put downward pressure on natural gas futures. July 08 12.63 -0.17
The National Weather Service predicts below-normal temperatures in the Northeast and parts of the
03 Month Strip 12.70 -0.17
Midwest from June 18th to June 22nd. By today, highs in Chicago should cool into the lower 70’s, and
highs by Tuesday should cool into the 70’s along the East Coast. Last week, the EIA reported a 06 Month Strip 12.91 -0.15
storage injection of 80 Bcf, somewhat less than expected, compared to an injection of 97 Bcf a year 12 Month Strip 12.59 -0.12
ago. The report showed that total storage levels of 1.886 Tcf are now 19 Bcf below the 5-year
average. For this week, look for an injection of about 80 to 90 Bcf. For this week, major resistance is 18 Month Strip 12.19 -0.10
seen at $ 13.080, with minor at $ 12.825, while major support is seen at $ 9.985 and minor at $
12.570.
2005 2006 2007 2008 NYMEX 11.916

15.00 Waha Hub 10.43
10.00
EIA GAS STORAGE
Region Bcf Change
5.00
East 959 54
West 267 16
0.00
2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18 Total 1,886 80
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32
2007 5.84 6.92 7.65 7.56 7.51 7.59 6.93 6.11 5.43 6.42 7.27 7.17 ◄ LINKS ►
back to 512-266-4712
Click Here!
Tropical Storm Update LETTER OF AUTHORIZATION
New Tropical Wave off African Coast: There are currently no well organized tropical systems in the
Atlantic Basin, although there are a few areas of disturbed weather that will be closely monitored for If you are currently under contract
potential development over the next several days. One such feature is a tropical wave near 79 west, an would like notification of
south of 21 north, which will continue to bring an enhancement of showers and thunderstorms to natural gas or electricity rates,
central and eastern Cuba and Jamaica Sunday night. This wave is interacting with an upper-level please sign up to receive future
trough found over the northwestern Caribbean and Bahamas, which is aiding in the enhancement of prices.
this activity. This system is encountering shear and is currently in an unfavorable area for Click Here!
development. However, this area of disturbed weather will be monitored closely for development as it NATURAL GAS &
heads west-northwest. Regardless of whether this system organizes, it will at the very least bring an ELECTRICITY SIGN UP
enhancement of shower and thunderstorm activity to portions of the Bahamas and southern Florida
Monday night and Tuesday. A tropical wave is located near 42 west, south of 19 north, moving
westward. This wave is very poorly organized and is experiencing an abundance of dry air aloft with a
large area of African dust found just to the east of the wave. This system will be monitored for MCPE AVERAGE
development over the next several days. The most organized of tropical waves in the Atlantic Basin
recently emerged off of the western Africa coast and is currently located near 25 west and south of 12 ERCOT Ave Change
north. Satellite imagery indicates a defined cyclonic circulation and associated convection as it heads Houston 129.96 33.34
westward. However, there also appears to be an area of African dust near the wave which may be
North 102.60 5.98
limiting convection. It will continue to be monitored as it moves westward through the central Atlantic.
South 150.51 53.89
June 20, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures for July delivery on the NYMEX rose $ 0.133 Friday to settle at $ 12.994 per MMBtu, as crude www.capitolareaenergy.com
oil surged and the dollar fell again against the euro. The dollar is poised for its biggest weekly decline against the
euro in almost 3 months, on speculation the Federal Reserve will delay raising interest rates. One year ago
futures closed at $ 7.391. Speculators, flush with hundreds of billions in cash supplied by the multinational NATURAL GAS PRICES
banks, go into whichever market that they can best exploit by taking control of the dynamics and technicals in an
effort to drive it 2 to 4 times above its true supply/demand value. The shear monetary weight of their presence NYMEX Last Change
sets up a pseudo supply/demand value on top of the bubble they create. If you think of the oil complex market as
the $ 250 per barrel speculator cake and the natural gas as the $ 25 per MMBtu frosting, you see that first they July 08 13.00 +0.13
have eaten half their cake and as of late, have been concentrating on finishing up on the first half of their 03 Month Strip 13.08 +0.13
frosting. Whether or not they have the market power to eat the whole thing, we shall probably see by the end of
the year. Natural gas for delivery through January 2009 traded at a premium to July. That is a situation 06 Month Strip 13.30 +0.12
technically none as a contango, which encourages companies to increase storage now for use later. Gas for
12 Month Strip 12.96 +0.12
January for 2009 delivery traded close to $ 1.02 above July. Oil gained Friday after the New York Times reported
that Israel held a rehearsal for a potential bombing attack on nuclear targets in Iran. Declining US imports of 18 Month Strip 12.53 +0.11
liquefied natural gas are also spur prices higher. The flow of LNG to US terminals in 2008 will be about 30% less
than the 770 Bcf in 2007, the EIA said. Last week, the EIA reported a storage injection of 57 Bcf, somewhat less
than expected, compared to an injection of 90 Bcf a year ago. The report showed that storage levels of 1.943 Tcf
are now 52 Bcf below the 5-year average. For this week, look for an injection of about 70 to 80 Bcf. For this June 2008 Gas Prices
week, major resistance is seen at $ 13.58, with minor at $ 13.280, while major support is seen at $ 10.342 and
minor at $ 12.840. Point Price
NYMEX 11.916
2005 2006 2007 2008 Waha Hub 10.43
15.00
EIA GAS STORAGE
Region Bcf Change
10.00
East 997 38
5.00 West 279 12

Prod 667 7
0.00 Total 1,943 57

2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18
◄ LINKS ►
2008 7.17 7.996 9.83 9.578 11.28 11.92 back to 512-266-4712
Click Here!
Crude and Weather Update
The Producer/Consumer summit over the weekend came away with no news to impact the petroleum If you are currently under contract
markets. On Friday the Saudi’s made the official announcement of the 200,000 bpd increase while an would like notification of
over the weekend they pledged to increase their production to 12.5 mbpd (from 9.7 currently) in the natural gas or electricity rates,
next 18 months. There is no other news of further output increases by any of the other producing please sign up to receive future
nations. On Saturday night a Chevron pipeline in Nigeria was blown up which halted oil flows and prices.
Pengassen members are expected to stage a wildcat strike today at the Chevron facilities after talks Click Here!
broke down late last week. Shell announced force majeure on 220,000 bpd of Bonga that was shut in
after the attacks on Thursday. The House Democrats are expected to offer a package of energy NATURAL GAS &
measures that will put producers in the position of either having to drill on their existing leases or pay ELECTRICITY SIGN UP
higher fees. This seems to be in response to the Republican calls last week to remove the ban on oil
and gas drilling in much of the OCS. A legal dispute with environmentalists will delay Shell’s plans to
drill for oil and NG in the Beaufort Sea offshore Alaska through the remainder of the year. The CFTC
report on Friday again showing some interesting numbers in the natural gas market. The futures only MCPE AVERAGE
report showed a 4,996 decrease in shorts and a 1,843 increase in longs. However, the ERCOT Ave Change
futures/options report showed a 1,229 increase in longs and a whopping increase of 20,367 shorts
making the net position short 261,813 with 428,601 gross shorts. NOAA’s 6-10 and 8-14 day Houston 103.50 0.26
forecast showing increasing areas of above normal temps in the nation while there are no tropical North 100.86 10.55
developments although that are a few tropical waves that are being watched with no development
South 105.49 -7.46
expected.
June 27, 2008
David Babin

Austin, Texas 78734
Phone 512-266-4710
Natural gas futures for August on the NYMEX slipped $ 0.05 lower Friday to settle at $ 13.198 per www.capitolareaenergy.com
MMBtu, on speculation mild weather in much of the eastern two-thirds of the nation will limit
demand. Natural gas for delivery through March 2009 traded at a premium to July. When gas for
future delivery costs more than near-month contracts, it’s a situation technically known as contango, NATURAL GAS PRICES
which encourages companies to increase stockpiles now for use later. Below-normal temperatures NYMEX Last Change
are probable across Texas and parts of the Midwest and Northeast, starting July 5th. Moderate
temperatures forecast for Texas and Florida will help curtail electricity demand. Those two states July 08 13.11 +0.35
rely on natural gas fired power plants to meet increased electricity requirements when hot weather 03 Month Strip 13.22 +0.37
increases air-conditioner use. Hotter weather typically cuts the expansion of storage by increasing
demand from gas-fired power plants for electricity to run air-conditioners. There is very little 06 Month Strip 13.43 +0.35
excessive heat across the nation. Last week, the EIA reported a storage injection of 90 Bcf, about 12 Month Strip 13.11 +0.31
what was expected, compared to an injection of 96 Bcf a year ago. The report showed that total
storage levels of 2.033 Tcf are now 56 Bcf below the 5-year average. For this week, look for an 18 Month Strip 12.71 +0.28
injection of about 90 to 100 Bcf. For this week, major resistance is seen at $ 13.66, with minor at $
13.335, while major support is seen at $ 10.490 and minor at $ 13.120
NYMEX 11.916
2005 2006 2007 2008
15.00 Waha Hub 10.43
10.00
EIA GAS STORAGE
Region Bcf Change
5.00
East 1059 62
West 289 10
0.00
2005 6.21 6.29 6.30 7.32 6.75 6.12 6.98 7.65 10.85 13.91 13.83 11.18 Total 2033 90
2006 11.43 8.40 7.11 7.23 7.20 5.93 5.89 7.04 6.82 4.20 7.15 8.32
2007 5.84 6.92 7.65 7.56 7.51 7.59 6.93 6.11 5.43 6.42 7.27 7.17 ◄ LINKS ►
back to 512-266-4712
Oil Rises to Record on Concern Iran Supplies May Be Click Here!
Disrupted LETTER OF AUTHORIZATION
Crude oil rose to a record above $143 a barrel on speculation the dispute over Iran's nuclear program may disrupt
supply from OPEC's second-largest producer. Pressure on Iran to end its uranium enrichment program and the If you are currently under contract
falling value of the U.S. dollar may drive prices to $170 a barrel, OPEC President Chakib Khelil said on June 28. Oil an would like notification of
is headed for its biggest six-month gain since 1999 as investors shun equities for commodities, looking for a hedge natural gas or electricity rates,
against a weaker dollar and quickening inflation. `The weak dollar is also helping. The market does not want to please sign up to receive future
break down just yet. Crude oil for August delivery rose as much as $3.46, or 2.5 percent, to $143.67 a barrel in prices.
electronic trading on the New York Mercantile Exchange. It was at $143.27 a barrel at 11:33 a.m. in London. Brent Click Here!
crude oil for August settlement rose as much as $3.22, or 2.3 percent, to $143.53 a barrel on London's ICE Futures
Europe exchange, the highest since trading began in 1988. It was at $143.46 a barrel at 11:34 a.m. London time. NATURAL GAS &
Foreign ministers from the Group of Eight nations last week suggested more talks to coax Iran into opening its ELECTRICITY SIGN UP
nuclear program to inspectors, after speculation the Islamic Republic faces an imminent Israeli strike. Israel Strike
John Bolton, the former U.S. envoy to the United Nations, has said Israel would strike Iran between the U.S.
presidential election in November and inauguration in January. The dollar has declined 7.3 percent this year
against the euro. Buy Commodities Avoid the dollar ``at all costs,'' investor Jim Rogers said in Shanghai today.
``The best investments in 2008 are commodities and natural resources. Agricultural prices have much higher to
MCPE AVERAGE
go over the next decade. We have a shortage of everything including seeds.'' Hedge fund managers and other large ERCOT Ave Change
speculators almost doubled their bets on rising prices in the week ended June 24, according to U.S. Commodity
Futures Trading commission data. Net-long positions in New York oil contracts, the difference between contracts to Houston 106.92 17.12
buy and sell the commodity, gained 90.5 percent to 24,217 contracts. Long positions rose from a five-month low a
North 99.85 11.68
week earlier while contracts to sell oil fell a second week to a two-month low.
. South 112.09 21.07

Newsletter

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Newsletter

Hochgeladen von

Copyright:

Verfügbare Formate

Capitol Area Energy, Inc.

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

15.00 Waha Hub 8.65

0.00 West 175 -1

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

NYMEX Historical Natural Gas Prices Houston Ship Channel 9.25

0.00 Total 1,234 -14

Industry Analysis If you are currently under contract

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

2005 2006 2007 2008 Houston Ship Channel 9.25

EIA GAS STORAGE

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

2005 2006 2007 2008 Waha Hub 8.65

0.00 Total 1,285 24

CFTC Report and Weather If you are currently under contract

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

NYMEX Historical Natural Gas Prices

5.00 EIA GAS STORAGE

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

NYMEX Historical Natural Gas Prices NYMEX 11.28

Short-Term Crude Outlook from the EIA LETTER OF AUTHORIZATION

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

NYMEX Historical Natural Gas Prices NYMEX 11.28

Crude Oil Flat Before EIA Report LETTER OF AUTHORIZATION

If you are currently under contract

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

NYMEX Historical Natural Gas Prices NYMEX 11.28

If you are currently under contract

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

NYMEX Historical Natural Gas Prices

10.00 Waha Hub 10.08

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

June 2008 Gas Prices

2005 2006 2007 2008 NYMEX 11.916

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

2005 2006 2007 2008 NYMEX 11.916

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

5.00 West 279 12

0.00 Total 1,943 57

NATURAL GAS & ELECTRICITY 5105 Pryor Lane

15.00 Waha Hub 10.43

Disrupted LETTER OF AUTHORIZATION

Das könnte Ihnen auch gefallen