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October 3, 2011

Energy Data Highlights Energy Data Highlights

Crude oil futures price 9/29/2011: $82.14/bbl up$1.63 from week earlier up$4.28 from year earlier Natural gas futures price 9/29/2011: $3.747/mmBtu up$0.042 from week earlier down$0.213 from year earlier Natural gas inventories 9/23/2011: 3,312 Bcf up111 Bcf from week earlier down91 Bcf from year earlier Crude oil inventories 9/23/2011: 341.0 mmbbl up1.9 mmbbl from week earlier down16.9 mmbbl from year earlier Weekly coal production 9/24/2011: 21.193 million tons down0.015 million tons from week earlier down0.611 million tons from year earlier http://www.eia.gov/ Natural Gas/ Power News

EIA Storage Release 9/29/11 (Actual): +111 Bcf Previous Week: +89 Bcf -2.7% Change from 1 Year Ago +0.2% Change 5-year Average Chevron's Platong II Gas Project To Begin Production Late Oct -Official Chevron Corp (CVX)'s $3.1 billion Platong II natural gas project will come on stream in late October with capacity of 330 million standard cubic feet a day,

Director-General of the Department of Mineral Fuels Songpob Polchan said Monday. Chevron owns 69.8% of Platong II. http://www.foxbusiness.com/industries/2011/10/03/chevrons-platong-ii-gasproject-to-begin-production-late-oct-official/

Enogex to acquire natural gas pipeline assets in US Enogex has entered into agreements to buy natural gas pipeline assets with rights to gather and process production from a large acreage position located in the Granite Wash, Tonkawa and Marmaton plays of northwestern Oklahoma, US. Other parties in the transactions include Cordillera Energy Partners III, Oxbow Midstream and West Canadian Midstream. http://transportationandstorage.energy-business-review.com/news/enogex-toacquire-natural-gas-pipeline-assets-in-us-031011 Rasgas plans seven plant shutdowns in 2012 Qatari liquefied natural gas (LNG) producer Rasgas plans seven maintenance shutdowns in 2012, a company official from one of the world's biggest gas exporters said on Monday. In June, Rasgas announced plans to shut its 7.8-million tonne per year (mtpa) LNG export facility, known as Train 7, for maintenance in January 2012. But it plans to shut Train 7 again for work in October 2012 as part of a wide-ranging programme of shutdowns next year. http://www.reuters.com/article/2011/10/03/qatar-lng-maintenanceidUSL5E7L31JM20111003

Gazprom to start gas supply to Germany via Nord Stream November 8 Russia's Gazprom will start supplying gas to Germany through the 27.5 billion cubic meter/year Nord Stream pipeline on November 8, company CEO Alexei Miller said Monday. The pipeline runs under the Baltic Sea, bypassing Ukraine, currently the main route for Russian natural gas to Europe. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8411033 Natural gas discovered near Sri Lanka coast The president told a public meeting on Sunday that an Indian firm had found a gas field in the Mannar basin. The government signed an agreement with the company, Cairn India Limited, in 2008 to explore for oil and gas off the country's north-western coast. Cairn Lanka Limited, a subsidiary of the Indian firm, confirmed the find. http://www.bbc.co.uk/news/world-south-asia-15147093

ERCOT to pay fines for 2008 errors Texas main electric grid operator will pay $384,000 in fines for violations of power reliability standards in 2008. The Electric Reliability Council of Texas, ERCOT, will pay the fines under a settlement with Texas Reliability Entity, which oversees federal rules related to power grid reliability in Texas. http://fuelfix.com/blog/2011/10/03/ercot-to-pay-fines-for-2008-errors/

Crude Oil News

OPEC Daily Basket Price 9/30/2011 $101.57 (9/29/2011 $103.11) Recent Rig Counts Change from Prior Count -1 5 +33 Date of Prior Count 23 Sept 11 23 Sept 11 July 2011 Change Date of from Last Last Year's Year Count +331 +197 +81 1 Oct 10 1 Oct 10 August 2010

Area U.S. Canada

Last Count

Cou nt

30 Sept 1990 11 30 Sept 510 11

Internatio August 1183 nal 2011

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

Oil slips near to $102 on euro debt fears Oil prices fell toward $102 on Monday after Greece said it would miss its deficit target and as concerns rose about Franco-Belgian bank Dexia, which pulled down stocks and the euro, while the dollar strengthened. Brent crude futures were down 55 cents to $102.21 a barrel at 1100 GMT after hitting an intraday low of $101.12. U.S. crude futures were down 68 cents to $78.52. http://www.reuters.com/article/2011/10/03/us-markets-oilidUSTRE77838320111003

Crude Oil Extends Decline From One-Year Low After Worst Quarter Since 2008 Oil fell in New York, after closing last week at a one-year low, on concern that Greece will default on debt payments, leading to slower economic growth and fuel consumption A Greek default is becoming more and more likely amid reports the country will miss debt-reduction targets, said James Zhang, a strategist at Standard Bank Plc in London, who forecasts Brent will average $98 a barrel in the

fourth quarter. The weaker euro and falling equity market are pulling oil prices lower. http://www.bloomberg.com/news/2011-10-03/crude-oil-extends-decline-from-oneyear-low-after-worst-quarter-since-2008.html Oil Markets Are Balanced Ahead of Libya Return, Saudi, Iran Officials Say Global oil demand is balanced with supply, said officials from OPECs two largest producers Saudi Arabia and Iran, as the group evaluates the outlook for economic growth and the return of Libyan output. Markets are stable and in balance, Saudi Arabian Oil Minister Ali Al-Naimi was cited by Asharq Al-Awsat newspaper as saying yesterday in Riyadh. The kingdom is ready to play a positive role to ensure the stability of the market. Iran sees no need for the Organization of Petroleum Exporting Countries to raise oil production, given the lack of clarity about global demand, Mohammad Ali Khatibi, the countrys representative to the group, told the state-run Mehr news agencyOPEC is set to meet in December in Vienna to evaluate supply and demand and consider current production levels. http://www.bloomberg.com/news/2011-10-02/saudi-arabia-s-naimi-says-global-oilmarkets-in-balance-asharq-reports.html Drilling for Crude Goes Solar Chevron Corp. is enlisting the sun to help drain the sludge-like dregs of crude from an aging oil field. Chevron is keen to extract this thick crude by heating it with steam. Historically, oil companies have used natural gas to create the energy for the steam. Here in Coalinga, the energy comes from a vast stretch of solar panels. This marriage of clean energy technology with one of the dirtiest forms of oil extraction says a lot about the state of the global energy industry. U.S. solar companies are diversifying their core business of electricity generation to build the economies of scale that they hope will help them compete at a time when the industry is under pressure. http://online.wsj.com/article/SB1000142405297020340550457660289172801265 6.html?mod=WSJ_Commodities_LEFTTopNews Shell hopes to break the ice on Arctic drilling The multipurpose vessel, which for now bears the prosaic name Hull 247, will be used primarily to tow and position anchors that keep drilling rigs in place, said Pete Slaiby, vice president of Shell Alaska. It will be the worlds largest and most powerful anchor-handling ice breaker, said Gary Chouest, president of Galliano, La.-based shipbuilder Edison Chouest Offshore, which is building the vessel. It also can respond to oil spills and maneuver large blocks of ice. http://fuelfix.com/blog/2011/10/03/shell-hopes-to-break-the-ice-on-arctic-drilling/

Crude Oil Outlook 2012

A rising USD depresses Crude Oil prices, and the USD rose by around 4% in September vs. the Euro and by 6% against a basket of six currencies. Demand for Crude Oil in the developed countries of North America and Europe are also falling as these economies continue to mark slowed growth. http://www.ibtimes.com/articles/223640/20111003/crude-oil-outlook-2012.htm Showa Shell: Oct-Dec refining down 9 pct y/y on closure Showa Shell Sekiyu KK , Japan's fifth-largest refiner, said on Monday it expects to refine 9 percent less crude oil in the October-December quarter than a year earlier due mainly to the closure of its group's Ohgimachi factory last month. Refining volume at its four group refineries is expected to total 7.85 million kilolitres (537,000 barrels per day) in the quarter, during which it has no maintenance work scheduled, a company spokesman said. http://www.reuters.com/article/2011/10/03/crude-showa-shell-refiningidUSL3E7L30OS20111003

Weather
Hurricane OPHELIA http://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/290858.shtml Tropical Storm PHILIPPE http://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/290842.shtml

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