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November 4, 2011

Energy Data Highlights

Crude oil futures price 11/2/2011: $92.19/bbl up$1.99 from week earlier up$8.29 from year earlier Natural gas futures price 11/2/2011: $3.749/mmBtu up$0.159 from week earlier down$0.121 from year earlier Weekly coal production 10/29/2011: 21.634 million tons up0.475 million tons from week earlier up1.154 million tons from year earlier Natural gas inventories 10/28/2011: 3,794 Bcf up78 Bcf from week earlier down17 Bcf from year earlier Crude oil inventories 10/28/2011: 339.5 mmbbl up1.8 mmbbl from week earlier down28.7 mmbbl from year earlier http://www.eia.gov/

Natural Gas/ Power News

EIA Storage Release 11/3/11 (Actual): +78 Bcf Previous Week: +92 Bcf -0.4% Change from 1 Year Ago +5.6% Change 5-year Average Greek turmoil threatens Europes gas pipe projects Turmoil in Athens threatens plans to bring central Asian gas into Europe through Greece and will slow efforts to reform the country's energy sector. Two out of three international consortia -- TAP and ITGI -- that are competing to build the infrastructure to carry gas from Azerbaijan's Shah Deniz II gas field to Europe plan

to pass through debt-ridden Greece and through Italy into the rest of Europe. Access to Azeri gas is crucial to European Union ambitions to loosen its dependence on Russia for energy. Should Greece default or exit the euro, ITGI in particular could come under pressure as it partly relies on Greek governmentcontrolled gas company DEPA for finance. Its other partners are Italy's Edison, and Turkey's Botas. http://www.commodities-now.com/commodities-now-reports/power-andenergy/8648-greek-turmoil-threatens-europes-gas-pipe-projects.html EnerVest buys another $1.2 billion in Barnett assets Houston-based EnerVest has increased its stake in the Barnett shale in North Texas by buying some $1.2 billion in producing assets from two companies. EnerVest, which manages oil and gas properties for institutional investors, bought $975 million in active wells and reserves from a division of Encana Corp. and another $233 million for an unnamed private company. http://fuelfix.com/blog/2011/11/03/enervest-buys-another-1-2-billion-in-barnettassets/ Chesapeake, EnerVest deal a new high-water mark for the Utica A $3.4 billion joint venture of Chesapeake Energy, Houston-based EnerVest and an unnamed foreign company sets the bar higher for the Utica shale formation in Ohio. Under terms of the deal announced Thursday, the unnamed company will take a 25 percent stake in 653,000 acres in 10 Ohio counties. This includes 570,000 acres owned by Chesapeake and 83,000 acres owned by EnerVest, which manages oil and gas properties for institutional investors. http://fuelfix.com/blog/2011/11/03/chesapeake-enervest-deal-a-new-high-watermark-for-the-utica/ Singapore considers Electricity Futures Singapore is looking at an electricity futures market that will allow industry players to hedge their pricing risk while providing new business opportunities for financial firms and energy traders, the head of the city-states energy regulator Chee Hong Tat said on Thursday [Energy Market Authority of Singapore (EMA)]. Such a market will help to raise transparency and reduce risk for new power generators and retailers entering the market, said Chee Hong Tat, the chief executive of the Energy Market Authority. http://www.commodities-now.com/commodities-now-news/power-andenergy/8646-singapore-considers-electricity-futures.html

Green/ Alternative Energy News

Moser Baer Commissions 23.8 MW Solar Farm at Lauta in Germany

Moser Baer Clean Energy Ltd., the development unit of Indias second-largest maker of solar cells, developed a 23.8 megawatt solar farm at Lauta in Germany with an investment of 50 million euros, it said in an e-mailed statement today. http://www.bloomberg.com/news/2011-11-04/moser-baer-commissions-23-8-mwsolar-farm-at-lauta-in-germany.html

Crude Oil News

OPEC Daily Basket Price 11/3/2011- $107.95 (11/2/2011- $108.65)

Oil Rises to Three-Month High as Greece Backs Down on Rescue Package Vote Oil rose its highest in three months in New York as signs that Europe will reach an agreement with Greece on a rescue plan reduced concern economic growth will falter and damp fuel demand. Futures rose as much as 0.9 percent and are poised for a fifth weekly gain, the longest rising streak since April 2009. Greece wont hold a public vote on a bailout package, Finance Minister Evangelos Venizelos told lawmakers in Athens yesterday. Oil is approaching its 200-day moving average, which is at $94.84 a barrel today, according to data compiled by Bloomberg. The euro zone is the risk factor for the oil price, said Sintje Boie, an analyst at HSH Nordbank in Hamburg, who predicts the price of Brent crude will slide to $105 by year- end. The uncertainty is high but we dont expect it will end in a catastrophe. Oil demand is not so bad in the U.S., and growth in Asia is strong. http://www.bloomberg.com/news/2011-11-03/oil-rises-after-ecb-cuts-benchmarkrate-as-european-leaders-press-greece.html

Brent above $112 on Greece; jobs data eyed Brent crude extended gains for a second day on Friday to above $111 a barrel as Greece dropped plans to hold a referendum on a European Union bailout, easing worries of a disorderly default. "There is positive sentiment around despite the lack of clarity regarding the Greek political situation and with the G20 going on, I would be wary to call a burst higher in the oil contract," said GFT derivatives market strategist David Morrison. http://www.reuters.com/article/2011/11/04/us-markets-oilidUSTRE7922QH20111104

Tehrans shadow is back over the oil market Iran is back as a big geopolitical risk for the oil market. In reality it never left. The market just decided to pay, rightly, greater attention to more immediate concerns, such as Libya. Now, however, attention is turning back to Tehran. The rhetoric in Washington and Tel Aviv is rising, and next weeks report from the International Atomic Energy Agency, the nuclear watchdog, could inflame further the war of words. What would be the impact on oil prices of a surprise attack and the most probable the subsequent closure of the Strait of Hormuz, the gateway for oil exports for key Opec producers Iran, Iraq, Kuwait, Saudi Arabia, Qatar and the United Arab Emirates? http://www.ft.com/intl/cms/s/0/6fe0e5c4-06c6-11e1-90de-00144feabdc0.html? ftcamp=rss#axzz1cjnTrsyE UK minister expects oil, gas prices to de-link by mid-decade UK junior energy minister Charles Hendry expects oil and gas prices to de-link in Europe within a few years, he told parliament during a debate Thursday afternoon. "We have seen the separation of gas and oil prices in the United States," Hendry said. "My assessment is that that will happen gradually over time in Europe, probably in the middle of this decade." http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8544887

Recent Rig Counts Date of Last Year's Count 5 Nov 10 5 Nov 10 September 2010

Area U.S. Canada

Last Count 28 Oct 11 28 Oct 11

Cou nt 2021 499

Change from Prior Count 8 2 -9

Date of Prior Count 21 Oct 11 21 Oct 11 August 2011

Change from Last Year +349 +66 +54

Internatio Septemb 1174 nal er 2011

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

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