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September 16, 2011

Energy Data Highlights

Crude oil futures price 9/14/2011: $88.91/bbl down$0.43 from week earlier up$12.11 from year earlier Natural gas futures price 9/14/2011: $4.039/mmBtu up$0.099 from week earlier up$0.069 from year earlier Weekly coal production 9/10/2011: 20.694 million tons down0.292 million tons from week earlier down0.380 million tons from year earlier Natural gas inventories 9/9/2011: 3,112 Bcf up87 Bcf from week earlier down140 Bcf from year earlier Crude oil inventories 9/9/2011: 346.4 mmbbl down6.7 mmbbl from week earlier down11.0 mmbbl from year earlier http://www.eia.gov/ Natural Gas/ Power News EIA Storage Release 9/1/11 (Actual): +87 Bcf Previous Week: +64 Bcf -4.3% Change from 1 Year Ago -1.6% Change 5-year Average

US energy groups act on natural gas demand US energy companies are converting rigs and trucks to run on natural gas, building fuelling stations and launching educational campaigns to increase demand for the domestic fuel that has flooded the market on the back of the shale boom. With technological advances enabling gas production from shale rock, estimates of US supplies of natural gas have risen from 30 to 100 years worth, at current usage rates, with the US market now oversupplied. http://www.ft.com/intl/cms/s/0/743857d6-df9a-11e0-845a-00144feabdc0.html? ftcamp=rss#axzz1XvY50VJL Program aims to jump start new energy companies A business accelerator aimed at jump starting new energy and information technology companies launched in Houston today. Surge will teach 10 entrepreneurs the basics of developing a business plan and how ideas to investors during a three-month program that begins in March 2012. Each startup company will receive $30,000 in seed money to help spur their business along. At the end of the program, the participants will pitch their ideas to more than 300 potential investors. Information technology is going to transform the energy business, said Kirk Coburn, the managing director of the program. There is a great need for equipment in the energy business, but the data on nature resources can change the business dramatically. This is the time to change the energy business. http://fuelfix.com/blog/2011/09/15/program-aims-to-jump-start-new-energycompanies/ U.S. natural gas processing capacity expands rapidly Natural gas that flows from the wellhead often contains impurities and/or valuable liquid components that must be removed before the product can be distributed to natural gas customers. http://www.eia.gov/todayinenergy/detail.cfm?id=3090 US FERC okays two pipeline projects to send Marcellus gas to the Northeast Tennessee Gas Pipeline can build a new gas line segment and other facilities to add 250,000 Dt/day of transportation capacity from the Marcellus Shale to the Northeast region, the US Federal Energy Regulatory Commission said Thursday.The Northeast Supply Diversification Project includes a 6.77-mile, 30inch-diameter pipeline loop in northeastern Pennsylvania, improvements to a compressor station in Niagara County, New York, improvements to a meter station in Erie County, New York and installation of several other facilities in New York and Pennsylvania. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6482872 Pennsylvania governor says he'll accept impact fee on gas drillers Pennsylvania's Republican Governor Tom Corbett, who has opposed a severance tax on natural gas production in his state, on Thursday said he would support imposing impact fees on drillers if the revenue goes directly to affected local governments. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6480393

Green/ Alternative Energy News

US Army moves to attract $7.1 bil in private money for renewables The Army on Thursday launched a special task force that it hopes will attract $7.1 billion in private-sector investment over 10 years to help expand the use of renewable energy at bases around the country. Meant to be a "one-stop shop" for

companies interested in building large-scale renewable-energy projects on Army facilities, the Energy Initiative Task Force will work to increase the use of solar, wind, geothermal power and other technologies in the face of declining Pentagon budgets. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/6482889 Calif carbon falls 12 pct in correction -Point Carbon California carbon allowances (CCAs) for delivery in 2013 were valued at $18.50/t on Thursday, down nearly 12 percent from a week ago, when sources said allowances had been overvalued. http://af.reuters.com/article/energyOilNews/idAFS1E78E1WO20110915

Crude Oil News

OPEC Daily Basket Price 9/15/2011 $109.58 (9/14/2011 $107.91) Recent Rig Counts Last Count Change Cou from Prior nt Count -10 -2 +33 Date of Prior Count 2 Sept 11 2 Sept 11 July 2011 Change Date of from Last Last Year's Year Count +304 +132 +81 10 Sept 10 10 Sept 10 August 2010

Area U.S. Canada Internatio nal

9 Sept 1958 11 9 Sept 11 515

August 1183 2011

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

Crude Oil Heads for Fifth Weekly Advance in London on European Debt Plan Oil headed for a fifth weekly gain in London, the longest winning streak since March, on bets that a plan to contain Europes debt crisis will help shore up fuel demand. Brent advanced after the European Central Bank said it worked with the U.S., U.K., Japan and Switzerland to extend three-month loans to euro-area banks. The 17 euro nations accounted for about 12 percent of global oil demand in 2010, according to Bloomberg calculations based on BP Plcs Statistical Review of World Energy. U.S. crude stockpiles dropped last week, a Sept. 14 Energy Department report showed, after Tropical Storm Lee closed platforms in the Gulf of Mexico. http://www.bloomberg.com/news/2011-09-15/crude-oil-futures-decline-in-newyork-trading-brent-premium-to-wti-widens.html

Oil towards Weekly Gain on Central Banks' Europe Move Oil was headed for a weekly gain on Friday after central banks launched coordinated action to boost European bank funding, easing concern about falling oil demand from industrialized consumersU.S. Treasury Secretary Timothy Geithner will discuss with European finance ministers on Friday the possibility of leveraging the euro zone's bailout fund to make it more effective in fighting the region's debt crisis. Industrial output in top oil consumer the United States edged higher in August and consumer prices rose more than expected, reinforcing expectations the Federal Reserve will offer only modest stimulus measures. "Fundamentals don't look too bad for oil, it's just that the macroeconomy has been keeping the market down," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp. http://www.cnbc.com/id/44543526 Report: U.S. has surprisingly large amount of oil Its no surprise that a new National Petroleum Council report says North Americas natural gas potential is huge. Its become a common refrain in recent years as hydraulic fracturing has unlocked vast formations previously deemed uneconomic to tap. But the reports finding that oil is also more abundant than previously thought was less predictable. The same technology that opened up shale gas combined with success in the deep-water Gulf of Mexico and even surges in conventional oil onshore are improving the nations potential to be more selfreliant for oil, according to the report released today. http://fuelfix.com/blog/2011/09/15/report-u-s-has-surprisingly-large-amount-of-oil/ BGs Brazilian finds tempt China oil groups Chinese oil companies have been circling BGs fast-growing Brazilian business, according to people familiar with the situation. Several industry specialists said BG had considered the sale of a minority stake in its thriving oil and gas business and that Chinese oil companies had been among those interested in the asset. http://www.ft.com/intl/cms/s/0/fdcd5580-dd1c-11e0-b4f2-00144feabdc0.html? ftcamp=rss#axzz1XvY50VJL TNK-BP to invest $45 bil in upstream in next 10 years Anglo-Russian TNK-BP oil venture plans to invest around $45 billion in the upstream sector in the next 10 years, the company's executive vice-president for strategy and business development, Sten Miroshnik, said Thursday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8345335

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