December 12, 2011 Energy Data Highlights Crude oil futures price 12/8/2011: $98.34/bbl down$1.86 from week earlier up$10.06 from year earlier Natural gas futures price 12/8/2011: $3.457/mmBtu down$0.191 from week earlier down$1.149 from year earlier Weekly coal production 12/3/2011: 22.106 million tons up1.299 million tons from week earlier up0.273 million tons from year earlier Natural gas inventories 12/2/2011: 3,831 Bcfdown20 Bcf from week earlier up102 Bcf from year earlier Crude oil inventories 12/2/2011: 336.1 mmbbl up1.3 mmbbl from week earlier down19.8 mmbbl from year earlier Natural Gas/ Power News EIA Storage Release 12/8/11 (Actual): -20 BcfPrevious Week: -1 Bcf+2.7% Change from 1 Year Ago +8.7% Change 5-year Average Middle East can expect 'dash for gas', Shell exec tells Oman conference Shell anticipates a dash for gas in the Middle East to cope with increasing energy demand and expectations that some 60 million people are due to enter its jobs market over the next t en years. The forecast ca me from Mark Carne, Shell's Executive Vice President for the Middle East and North Africa, addressing the Gas Arabia conference in Muscat Monday. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8687320 Follow
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Wyoming’s Tainted Water Puts Pressure on EPA to Act on Gas Fracking
A U.S. Environmental Protection Agency report linking hydraulic fracturing for
natural gas to groundwater contamination for the first time puts pressure on the
agency to move sooner on efforts to regulate drilling. The Dec. 8 report that
chemicals consistent with those used in drilling were found in groundwater
samples in west-central Wyoming may be used by the agency to accelerate
action, according to Ken von Schaumburg, a Washington-based attorney and
former EPA deputy general counsel. The EPA is weighing three rules on fracturing,or fracking, the first of which is planned for April. Environmental groups say
fracking, in which millions of gallons of chemically treated water are forced
underground to shatter rock and let gas flow, is a threat to drinking-water
supplies. The EPA’s draft report on groundwater contamination in Pavillion,
Wyoming, about 230 miles (370 kilometers) northeast of Salt Lake City, is the first
to blame the drilling technique for spoiling water.
HyperSolar's "No Fracking" Renewable Natural Gas Technology HyperSolar, Inc. , the developer of a breakthrough technology to make renewable
natural gas using solar power, today announced that its technology can help
reduce the need for hydraulic fracturing (fracking) used to access undergroundnatural gas resources. The company's renewable natural gas is a clean, carbon
neutral methane gas that can be produced above ground and used as a direct
replacement for traditional natural gas to power the needs of the world. Even
though the United States has vast natural gas resources, a majority of these
reserves are only accessible through fracking, a potentially environmentally-
hazardous process that many environmentalists claim could contaminate our
water supplies and the air we breathe," said Tim Young, CEO of HyperSolar.
"Rather than extracting difficult-to-reach fossil fuel reserves, we think that the
focus should be on alternative technologies that can provide the world with
affordable and clean sources of energy. We believe it is far better to consider
Oil Falls on Europe’s Debt Crisis as Moody’s Readies to Review
Oil fell in New York, extending last week’s decline, on concern the European debtcrisis may spread and as Moody’s Investors Service said it will review ratings for
countries in the region. Futures dropped as much as 1.5 percent, adding to the 1.5
percent loss in the five days to Dec. 9. Last week’s European Union summit
offered few new measures and doesn’t diminish the risk of credit-ranking
revisions, Moody’s said today. EU leaders will have to quickly implement an
agreement to strengthen budget rules to regain market confidence, according to
German Finance Minister Wolfgang Schaeuble. “We expect prices to stay under
pressure as long as macro- fears stay high,” Eugen Weinberg, head of
commodities research at Commerzbank AG in Frankfurt, said by phone. “At the
moment it’s Europe, providing contagion that other countries will be dragged into
it, that’s keeping demand away. China’s growth may disappoint if European jitters
benchmark January light, sweet crude oil contract was trading around $98.35,down $1.06 per barrel, having reached an intra-day low of $98.30. Investors worrythe long-term EU steps may not be sufficient to avert a short-term funding crisisfor one or more of the euro zone's most indebted economies. Tight budget controlis also likely to imply lower economic growth in the medium term, economists say.http://www.cnbc.com/id/45633533
Rising Consumer Confidence and Fading Euro Fears Lift Oil Markets The refusal of the Untied Kingdom to go along with proposed euro treaty changesand Moody’s credit rating downgrade to 3 of France’s major banks helped drivethe oil markets lower in choppy overnight trading to begin today’s final tradingday of the week. Although China’s announcement that it will create a $300 billioninvestment vehicle for the US and Europe helped drive oil and fuel prices higherinitially in overnight trading, as the markets realized that the entire EU was not inagreement about the proposed EU treaty changes, prices quickly reversed and slidinto negative territory as today’s pit opening neared and the energy marketcontinued to take direction from changing economic perception. Crude oil rangedfrom a low at $97.55 up to a high at $99.03 in moderate overnight trading volume
before slipping back to near $98.00 as today’s pit opening approached.http://www.theenergydesk.com/editorial.aspx?id=1134860
Oil falls below $99 ahead of OPEC meetingOil prices fell below $99 a barrel Monday in Asia as traders looked to this week'sOPEC meeting for clues about the cartel's future crude output. Benchmark crudefor January delivery was down 79 cents to $98.62 a barrel in midday Singaporetime in electronic trading on the New York Mercantile Exchange. The contract rose$1.07 to settle at $99.41 on Friday.http://www.sacbee.com/2011/12/11/4116067/oil-hovers-above-99-ahead-of-opec.html
Credibility and unity at top of Opec’s agenda
The world’s largest oil producers meet in Vienna this week amid uncertainty overthe outlook for crude markets next year. Delegates from the Organisation of
Petroleum Exporting Countries, the cartel which accounts for about a third of the
world’s oil production, will have to weigh conflicting issues, in particular the
uncertain economic backdrop in Europe, heightened tensions with Iran over
possible European Union sanctions and the increase in supply from Libya after the
overthrow of Colonel Gaddafi. The cartel will also have to present a united front
after its last meeting in June ended in disarray, with no agreement reached on
production levels. Saudi Arabia, Opec’s most influential member which had argued
for an increase in output, called it: “One of the worst meetings we have ever had”.
Saudi Arabia responded to the impasse, along with Kuwait and the United Arab
Emirates, by unilaterally boosting its output in order to make up for the loss of
Saudi Arabia is by far the world’s largest oil exporter. Thus, when it raises itsproduction, oil prices usually fall. Yet, when Ali Naimi, Saudi oil minister, said last
week Riyadh was pumping more than 10m barrels a day, prices barely moved a
few cents. Oil traders were in disbelief at the number. The International Energy
Agency estimated that in October the kingdom pumped 9.45m barrels a day and
Opec itself put Saudi production at 9.47 b/d in the same month. The level of
production that Mr Naimi stated suggested a huge increase, in only a few weeks.
Moreover, the 10m b/d is a psychological barrier – a level the kingdom has not
reached since the aftermath of the second oil crisis in 1979. The level of Saudi oil
production has triggered a heated debate among oil traders, analysts and
government officials. The discussion is twofold: on the one hand, about the level
itself; on the other, about why it has boosted its output at a time when many are
betting that oil demand growth is slowing down, not accelerating.
Oil group to dilute shares in Kazakh project An international oil group led by BG and Italy’s Eni is expected to sign an
agreement with Kazakhstan this week to transfer a stake in the Karachaganak
oilfield to the central Asian state and end a bitter dispute that has bedevilled the
project for more than two years. Under the deal Kazakhstan will pay $1bn to
acquire a 10 per cent interest in the Karachaganak Petroleum Operating company
and withdraw legal claims against the foreign partners including a $1.1bn claimfor back taxes. BG and Eni and its partners in KPO, including Chevron and Lukoil,
the Russian oil group, will dilute their shares in the Karachaganak project on a pro
rata basis to make room for KazMunaigas, the Kazakh state oil company. A person
familiar with the group said negotiators were racing to put the finishing touches to
the agreement that is expected to be signed this week when Kazakhstan
Two-month deadline for Keystone XL embedded in US tax proposal
A provision forcing a decision on the Keystone XL pipeline appeared in a key end-
of-year tax package introduced Friday by US House Republicans. The bill would
give the Obama administration 60 days to approve TransCanada's Alberta-to-
Texas pipeline or declare it against the national interest. The latter finding would
require the administration to submit to Congress within 15 days a report justifyingthe decision, "including consideration of economic, employment, energy security,