Oill and Gas Basics JPM Oct 2006

8/2/2019 Oill and Gas Basics JPM Oct 2006

1/69

O CT OB ER 2 0 0 6

O I L & G A S B A SI CS

STRIC

TLY

PRIVATE

AND

CONFIDENTI

AL

Katherine Spector(1-212) 834-2031

kather [email protected]

Scott Speaker

(1-212) 834-3878

scott [email protected]

Krist i Jones(1-212) 834-2835

kri st i . l . j [email protected]

Sung Yoo

(1-212) 834-7045

[email protected]


2/69

Oil & Gas Basics_20061020_book

This presentat ion was prepared exclusively for t he benefi t and internal use of the client in order to indicate, on a preliminary basis, the feasibil it y of apossible t ransaction or t ransactions and does not carry any right of publicat ion or disclosure to any other part y. This presentat ion is incomplete wit houtreference to, and should be viewed solely in conjunction wit h, t he oral bri efing provided by JPMorgan. Neither this presentat ion nor any of i ts contentsmay be used for any other purpose wit hout t he prior wri t ten consent of JPMorgan.

The information in this presentation is based upon management forecasts and reflects prevailing conditions and our views as of this date, all of which aresubject to change. In preparing this presentat ion, we have reli ed upon and assumed, wit hout independent verif icat ion, the accuracy and completeness ofall i nformati on available from public sources or which was provided to us by or on behalf of t he client or which was otherwise reviewed by us. In addit ion,our analyses are not and do not purport to be appraisals of t he assets, stock, or business of the client . The information in t his presentat ion does not t akeint o account t he effect s of a possible tr ansaction or t ransactions involving an actual or potent ial change of control, which may have signifi cant valuationand other effects.

JPMorgan is a market ing name for investment banking businesses of J.P. Morgan Chase & Co. and it s subsidiaries worl dwide. Securi t ies, syndicated loanarranging, f inancial advisory and other investment banking activi t ies are perf ormed by J.P. Morgan Securit ies Inc. and its securit ies aff il iates, and lending,derivati ves and other commerci al banking activit ies are perf ormed by JPMorgan Chase Bank and it s banking aff il iat es. JPMorgan deal t eam members may

be employees of any of t he foregoing enti t ies.

OIL

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Volat il it y of Various Markets

Volat il it y of Various Markets

Energy is signif icant ly more volatile than other markets

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

Jan-01 Sep-01 Jun-02 Mar-03 Nov-03 Aug-04 May-05 Feb-06

Power EUR GLD CL NG HO SPX 10-yr T bills

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Agenda

Page


References, Websites and Data Releases to Watch

Natural Gas Specif ics

What s the Story This Year?

The Big Picture: Macro Oil Fundamentals

Oil Specifics

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From the well t o the tank. . .

Source: JPMorgan Energy Strategy

3OIL

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Market drivers to watch

Macro economy

Sectoral t rends are growth sector

energy intensive?

Power generation t rends what kind

of fuel does new generat ion use? Transportation trends number and

type of cars sold?

Tax and subsidy regimes distort

price signals to consumers and

affect their consumpt ion behavior

Weather, seasonalit y winter heating

demand, summer cooling demand,holidays, vacation and travel trends

Non-oil fuel markets, subst it uti on

(e.g. gas, coal, hydro, nuclear)

Misc events e.g. SARS, Sep. 11

Upstream investment capacity

addit ions? Cost? Location? Type of

crude?

Natural decline rates Field age, f ield

maintenance, geological makeup

Geopolitics (e.g. Iran, Nigeria)

Field maintenance, unplanned outages

Weather (e.g. hurr icanes)

OPEC decisions and politics internal

polit ics, spare capacit y, relat ionshipswith consumer countries

Level relati ve to long term t rend and

normal seasonality

Level relative to demand

Regional distribution

Levels at t ransit points

Crude versus refined product levels

Oil DemandOil Demand Oil SupplyOil Supply Oil InventoriesOil Inventories

Deals associated with

mergers/ acquisit ions

Speculative f lows

Tanker supply/ demand/ rates

Seaborne disruptions weather, t raff ic,

accidents

Port capacity, availability

Pipeline capacit y/ nominat ions

Refinery capacit y/ investment

Planned outages, unplanned outages

Refi ning economics, run rates

Refined product yields

OtherOther DistributionDistribution Oil RefiningOil Refining


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Price relat ionships to watch. . .and what JPMorgan t rades

Time spreads

e.g. Q1 vs. Q3; winter vs. summer, Cal 05vs. Cal 06

Regional spreads

e.g. NYMEX West Texas Int ermediate vs.IPE Brent , NY Harbor gasoline vs. US Gulfgasoline

Crude vs. ref ined product spreads

Cracks (e.g. crude-gasoline;crude-heat ing oil)

Refinery margins

Crude grade differentials (physical trade only)

e.g. West Texas Intermediate vs.West Texas Sour; Bonny Light vs. Brent

Product vs. product spreads e.g. gasoline-heating oil

Interfuel spreads

e.g. natural gas-heating oil

Oil

Crude

WTI

Brent

Tapis

Dubai Refined products

US market :

NYMEX heat ing oi l

US Gulf Coast heat ing oil

US Gulf Coast j et fuel

NYMEX gasolineEuropean market :

IPE gasoil

Gasoil 0.2%CIF NWE

Jet fuel cargoes CIF NWE

EN590 cargoes CIF NWE

1%and 3.5%fuel oil cargoes FOB NWEAsian market :

Singapore j et fuel

Natural Gas:

NYMEX natural gas

European natural gas priced as oil -referencedformula

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How oil (gas) trades

Formal Exchanges

Int l Petroleum Exchange(London)

Brent Crude

1 lot = 1,000 bbl

Gas Oil

1 lot = 100 tonnes = 750 bbl

NY Mercant ile Exchange

West Texas Intermediate(Light, Sweet) Crude

1 lot = 1,000 bbl

Heating Oil

1 lot = 42,000 gallons = 1,000 bbl

Unleaded Gasoline

1 lot = 42,000 gallons = 1,000 bbl

Henry Hub Natural Gas

1 lot = 10,000 MMBtu

Over-the-Counter

Swaps/Options

Variety Of RegionalBenchmark Crudes andRefined Products. . .

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Maj or global crude benchmarks and oil market centers

Dubai

London (IPE)

Dated BrentUrals

WTINew York(NYMEX)

Tapis

Singapore

Oman


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Risk exposure and management st rategies

Production

Consumption


Exposure Type Risk Management St rategy

Price of crude

Cost of t ransport ation,insurance, duty/ tarif f

Cost of carry (time valueof money), t ime spread

Refinery margins

Refined product price

Locat ional/ basis risk

Retail margins

Producer hedging: swaps or put options

Freight hedging

Hedging with time spreads

Hedging cracks (spread between crudeand ref ined products) or f ull margins

Consumer hedging: swaps or call options

Hedging product product risk,or regional risk

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Convent ions of the oil market

Commodity Lot Size Quote Unit

Crude (global) 1,000 barrels US$/ barrel

Gasoline (US) 42,000 gallons cents/ gallon

Heat ing oil (US) 42,000 gallons cents/ gallon

Gas oil (Europe) 100 metric tons US$/ metric ton

Jet fuel (Europe) 100 met ric tons US$/ met ric ton

Natural gas (US) 10,000 MMBtu US$/ MMBtu

BenchmarksBenchmarks

Barges: 1,000 - 5,000 MT (2 - 8 days loading)

Cargoes: 10,000 - 25,000 MT (15 days loading)

ParcelParcel

Delivery specifications are factored into the cost of products. For example

Free on Board ( FOB )

Cost Insurance Freight ( CIF )

In the US, products may be priced as pipe , barge , or waterborne based on delivery method

Delivery MethodsDelivery Methods

Europe: Amsterdam-Rotterdam-Antwerp; Arab Gulf ; Medit erranean; North West Europe; Rotterdam.

United States: New York Harbour; Los Angeles; San Francisco; US Gulf Coast ; Midcont inent; West Coast .

Singapore

Main Locati onsMain Locati ons


9OIL

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For example. . .

What is the price of spot fuel oil relative to crude?

What region?Europe.

Rot t erdam or Med?Med.

What sulphur content ?1%.

CIF or FOB? CIF.

Barge or cargo? Cargo. $239/ tonne

Compare to what crude?Urals.

36.60 x $1.34 - $239 x 1 tonne = $13.16/bbl

1 bbl Urals 1 1 tonne FO 6.66 bbl

Ext ensions of t his idea?

Look at the forward spreads; l ook at the spread to the US or Asian fuel cracks


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Backwardation vs. contango

Backwardation vs. Contango CurvesBackwardation vs. Contango Curves

$4.70

$4.80

$4.90

$5.00

$5.10

$5.20

$5.30

M01 M05 M09 M13 M17 M21 M25 M29 M33

In US$/bb l

contango curve

backwardation curve


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More backwardation than contango

Contango vs. BackwardationContango vs. Backwardation The oil curve shif ts regularly

between backwardation and

contango

Historically, oil has spentmore time in backwardation

than contango

Backwardation has been

steeper than periods of

contango

0

10

20

30

40

50

60

70

80

90

$(11) $(9) $(7) $(5) $(3) $(1) $1 $3 $5 $7 $9 $11

N ote: M 02M13 in U S$/bbl


Contango Backwardation

Number of instances

12OIL

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Agenda

Page






Oil Specifics

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How is crude oil related to other oils, l ike gasoline and heat ing oil?

Crude oil is what gets pumped out of t he ground. Very

little crude oil is consumed directly it is a raw

material that has to be refined into other products, such

as gasoline and heating oil

Other products that are derived from crude oil include:Jet fuel, diesel, residual fuel oil, naphtha, kerosene,

lubricants, tar, asphalt , pet rochemicals, fert il izers,

and plastics

The dif ference between the price of a finished product,

such as gasoline, and the price of crude oil is oftenreferred to as the crack spread. A crack spread is a

very simplistic representation of how much money a

ref iner makes by turning crude into products

A refinery netback is the crude price at which a refiner

breaks even, given the value of the finished product

slate minus other costs to the refiner such as transport

costs, ref inery fuel costs, etc.

A refinery margin is essent ially the refiner s profit

i.e. the value of the product slate, minus the cost of

crude inputs and other expenses


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Is all crude oil the same?

There are many different grades of crude oil. All grades have dif ferent qualities, and sell for

different prices based on their qualities

When we talk about l ight,

sweet crude, we mean grades

with a high API gravity number,and a low sulfur content . A

heavy, sour crude has a low

API gravity and a high sulfur

content

In general, light/ sweet crudetends to sell at a higher price

than heavy/ sour crude

In general, refiners can produce

a higher yield of high quality

refined products, such asgasoline, by running light/ sweet

crudes. Heavy/ sour grades yield

less gasoline, and more of the

dirty products such as fuel oilSource: JPMorgan Energy Strategy

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Where are most of the worlds oil reserves?

Source: JPMorgan Energy Strategy, BP Statistical Handbook (June 2006)

Proved Oil Reserves (end 2005)Proved Oil Reserves (end 2005)

40.259.5

103.5 114.3140.5

742.7

Asia Pacific North America Africa South & Central

America

Europe & Eurasia Middle East

In thousand million barrels

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Top Oil Consumers (2005)Top Oil Consumers (2005)

Where are the worlds top consumers of oil?

FSU

5%

Japan

6%

China

9%

United States

25%

Other49%

India

3%

Germany

3%

Source: JPMorgan Energy Strategy, BP Statistical Handbook (June 2006)

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US Gasoline Demand & Exploration Based on Fuel EfficiencyUS Gasoline Demand & Exploration Based on Fuel Efficiency

US gasoline: 12% of global demand and growing

6

7

8

9

10

11

12

1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

In million b/d

Historical Gasoline Demand

Extrapolation at today's MPGAt 22 MPG

At 24 MPG

At 26 MPG

At 28 MPG

At 30 MPG

At 30 MPG With Staggered Fleet Turnover

Source: JPMorgan Energy Strategy, EIA

270kbd

1.4mbd

2.2mbd

2.8mbd

3.4mbd

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Who are the world s top producers of crude oil?

The world s biggest producers are not

necessarily t he same as the world s

biggest exporters. For example, the US

and China produce a lot of oil, but

export very little given high domesticdemand

OPEC members Saudi Arabia and Iran

are the world s biggest exporters of

crude oil

2005 Averages2005 Averages

Note: Bold = OPEC membersSource: JPMorgan Energy St rat egy, IEA

Volume in kbd

Producer Volume Share of Global ProductionRussia 9,185 12.5%Saudi Arabia 9,063 12.4%

United States 5,131 7.0%Iran 3,879 5.3%China 3,617 4.9%Mexico 3,334 4.6%Venezuela 2,706 3.7%Norway 2,506 3.4%UAE 2,458 3.4%Nigeria 2,405 3.3%

Kuwait 2,133 2.9%Iraq 1,813 2.5%Canada 1,805 2.5%Libya 1,640 2.2%Brazil 1,634 2.2%UK-offshore 1,560 2.1%Algeria 1,345 1.8% Angola 1,245 1.7%Kazakhstan 1,025 1.4%

Indonesia 942 1.3%Qatar 796 1.1%Malaysia 727 1.0%Oman 722 1.0% Argentina 665 0.9%India 663 0.9%Other 10,206 13.9%

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What is OPEC s role

OPEC does not set prices. OPEC sets product ion quotas. Current ly 10 of the

cart el s 11 members are subj ect to group quotas; Iraq is exempt. Saudi Arabia is

by far the group s biggest and most influent ial member

What is OPEC s ideal pr ice?

Contrary to popular believe, i t is not to OPEC s advantage to target as high an oil

price as possible. The cartel wants to maximize revenues, but needs consumers asmuch as consumers need OPEC oil. At very high oil prices, OPEC faces two risks:

1. High oil prices could reduce economic growth and oil demand growth

2. High oil prices could encourage higher-cost non-OPEC producers to

make investments that would increase global oil supply, and reduceOPEC s market share

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A li t t le history. . .

US Refiner Acquisit ion Price of Imported CrudeUS Refiner Acquisit ion Price of Imported Crude

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

In US$/bb l

Nominal Real


Gulf War I

Iran-IraqWar

NetbackPricing

Non-OPEC compet it iongrows, pr ice war

Exxon Valdezspill

Soviet Unioncollapse Asian Crisis

9/11

Venezuela Crisis,Gulf War II,Nigeria st ri ke

Hurricane Ivan

Nigerian st ri ke,cold winter

HurricaneKatr ina & Rit a

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Unt il this bull run, loss of market share was a real concern for OPEC

Shift ing Market ShareShift ing Market Share

34%

35%

36%

37%

38%

39%

40%

41%

42%

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06

5.5

6.5

7.5

8.5

9.5

10.5

11.5

12.5

OPEC Share of Global Product ion

Saudi Oil Production

FSU Oil Production

OPEC Share of Global Oil Production (%) FSU/Saudi Oil Production (mbd)

Source: JP Morgan Energy Strategy, IE A, OPE C

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Keeping the cartel t ogether can be tough, too

The Prisoner s (OPEC Member s) DilemmaThe Prisoner s (OPEC Member s) Dilemma

Source: JPMorgan Energy St rat egy

Cut Production Cheat on Quotas

CutProduction

(6,6) (1,10)

Che

atonQuotas

(10,1) (3,3)

OPEC MEMBER #1

OPEC

MEMBER

#2

All members have anincent ive to cheat ,

even t hough theywould all be bett er

off st icking to quotas

The bestoutcome for

the group as a

whole, but hardto achieve. . .

Given the chance thatother members might

cheat, and the non-cheater could end up

in his worst casescenario, all membershave an incentive to

cheat themselves

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Agenda

Page




Whats the Story This Year?


Oil Specifics

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Short - to medium-term drivers for the oil market

Ongoing oil buying interest from consumersand investors

Iran noise; major Nigerian disruptions

Call on OPEC crude still topping 30 millionb/ d in 2007

OPEC showing commitment to a $50-55basket price

Comfortable oil inventories

Hurricane season less eventful than expected?Warm weather this winter t o follow?

Global oil demand growth moderating; slowereconomic growth ahead

Downstream investment should start to hitthe market in 2007-08

Reassessment of investors commodit iesallocations down the road as returns falterand interest rates rise?

Current JPMorgan Price ForecastsCurrent JPMorgan Price Forecasts

2006 crude forecasts as of May 2, 2006, 2007 crude forecasts as of Aug. 9, 2006.Natural gas forecast as of March 2, 2006 *Actual to date prices as of October 6, 2006

Note: All values are period averages. WTI & Brent in $/bbl; natural gas in $/MMBtuSource: JPMorgan Energy Strategy

1Q06 2Q06 3Q06 4Q06 2005 2006 2007

WTI Forecast 65.00 67.39 64.05

WTI Actual* 63.48 70.72 70.60 59.90 56.70

Brent Forecast 64.00 67.05 63.05

Brent Actual* 62.71 70.43 71.00 59.78 55.25

Natural Gas Forecast 7.67 7.32 7.50

Natural Gas Actual 7.84 6.65 6.18 6.02 9.02

Crude Oil Pri ce History, Forwards & Forecast RangeCrude Oil Pri ce History, Forwards & Forecast Range

US$/bbl

$0

$20

$40

$60

$80

$100

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

JPM Probable RangeJPM Possible Range

HistoryForward CurveJPM Forecast


25WHAT

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28/69


The crude oil market today

Crude Oil Pr ice History & ForwardsCrude Oil Pr ice History & Forwards

$5

$15

$25

$35

$45

$55

$65

$75

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

WTI Brent

In US$/bbl


$0

26WHAT

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THIS

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29/69


This has been a refined products driven market

Heating Oil Crack + ForwardsHeating Oil Crack + Forwards Gasoline Crack + ForwardsGasoline Crack + Forwards

US$/bbl

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Heat Crack Fwds

Heat Crack


US$/bbl

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Gasoline Crack

Gasoline Crack Fw ds


Alt hough demand growth has moderated, we don t think the products story is over yet. Newref inery capacity addit ions wil l pressure these market s by 20072008, but not yet this year. Specchanges in the US will be support ive psychologically if not physically

27WHAT

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THIS

YEAR?

Oil & G B i 20061020 b k


30/69


Commercial oil inventories Crude levels remain healthy

Total OECD Commercial Inventor iesTotal OECD Commercial Inventor ies A 7 mil lion bbl build in refined product

inventories offset a 7 mb draw from crude.

The level of crude remains much more

comfortable than the level of refined

product stocks

Regionally in August , builds in the US and

Japan offset draws in Europe and other

areas

In days of demand cover

48

50

52

54

56

58

60

Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06

Winter Summer Linear Trend

Source: JPMorgan Energy Strategy, IEA, Govn't & industry sources

0

Total OECD Crude Invent oriesTotal OECD Crude Invent ories Total OECD Product InventoriesTotal OECD Product Inventories

In billion bbl In billion bbl

0.90

0.95

1.00

1.05

1.10

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Five-Year RangeFive-Year Average20052006

Note: Latest month is to-date only , not full-month projection


1.44

1.49

1.54

1.59

1.64

1.69

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Five-Year RangeFive-Year Average20052006

Note: Latest month is to-date only , not full-month projection


0.00 0.00

28WHAT

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THIS

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Oil & Gas Basics 20061020 book


31/69


Hurr icanes hammer US Gulf ref ineries

Hurricane Impacts in PerspectiveHurr icane Impacts in Perspective

Roughly a quart er of US ref ining capacit y was off line at peak during last year s unprecedented hurricane season.Much of the hurricane-affected capacit y had normalized by early 2006 with a few major except ions

As of May 3, 325,000 b/ d, or 22%, of Gulf of Mexico oil product ion remains offline, according to MMS report ing

Gulf of Mexico Crude Shut In (in mbd) In US$

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

28-Aug-05 27-Sep-05 27-Oct-05 26-Nov-05 26-Dec-05 25-Jan-06 24-Feb-06 26-Mar-06 25-Apr-06 25-May-06

$(5)

$-

$5

$10

$15

$20

$25

$30

$35

Source: JPMorgan Energy Strategy, EIA, government and country sources

Actual Refinery Loss Minus Gulf of Mexico Crude Shut InProjected Refinery Loss Minus Gulf of Mexico Crude Shut In

Gasoline CrackHeating Oil Crack

Gasoline Crack FwdNYMEX Heating Oil Crack Fwd

29WHAT

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32/69


US refinery maintenance: Looking ahead to the fall

While the US planned refinery maintenance program for October looks to be heavier this year

than last year, unplanned outages are minimal compared to 2005. Planned maintenance is set

to average 798 kbd off line in October, compared to 527 kbd off line in October of last year.

Unplanned outages of several hundred thousand barrels for October 2006 compared to more

than 2 mil lion b/ d lost in October 2005

US Planned & Unplanned Refinery Shut downsUS Planned & Unplanned Refinery Shut downs

Average Offline Capacity Per Month (in million b/d)

0.0

0.3

0.6

0.9

1.2

1.5

1.8

2.1

2.4

2.7

Mar-02 Jul-02 Nov-02 Mar-03 Jul-03 Nov-03 Mar-04 Jul-04 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06 Nov-06

Unplanned

PADD I (East Coast)

PADD II (Midwest)

PADD III (Gulf)

PADD IV (Rockies )

PADD V (West Coast)

Source: JPMorgan Energy Strategy, IIR

Hurricane

Katrina & Rita

Hurricane

Ivan

30WHAT

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33/69

Gasoline: An easier problem to solve in the At lant ic Basin

Net Gasoline Balances By RegionNet Gasoline Balances By Region Net Gasoil Balances By RegionNet Gasoil Balances By Region

Regional pr oduction minus regional consumption (in kbd)

-600

-500

-400

-300

-200

-100

0

100

200

300

400

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Asia

Europe

North America

Total OECD

Source: JPMorgan Energy Strategy, IEA

Regional production minus regional consumption ( in kbd)

-1,000

-800

-600

-400

-200

0

200

400

600

800

1,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

OECD Asia

OECD Europe

OECD North America

Total OECD


Europe has always been st ructural ly long gasoline but has become more so as vehicle demand shif tsto diesel. The At lant ic Basin is now long gasoline. . .but short er and short er dist il late

31WHAT

S

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THIS

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34/69

Changes to diesel specs: Lower sulfur limits to challenge supply chain

Changes to Diesel Sulfur Limi tsChanges to Diesel Sulfur Limi ts The US diesel sulf ur l imi t drops by 97%this

year to 15 ppm

US ref iners were required to meet the new

standard by June 1; pipeline operators must

meet the 15 ppm limit by Sept. 1; retailers

must offer 15 ppm by Oct . 15

Dramatic changes to diesel standards

underscore the challenge of not only making

the fuel but also dist ribut ing it to customers.

While US refiners have successfully ramped

up ULSD production and inventories of the

new spec have climbed steadily, there arestill logistical challenges associated with the

storage and t ransport of the cleaner fuel

Ultra-low sulfur diesel is so much cleaner

than others in the dist il late family (heating

oil, j et, kerosene) that operators wil l be

challenged in how t hey batch/ order t he fuels

in the pipe. Test flows have shown that the

sulfur in ULSD will have to be far

lower/ cleaner in order to deliver fuel at the

government-set limit to consumers. Separate

storage tanks wil l also be required for

distribut ion of ULSD

* Implemented in Beij ing July 2005 ahead of 2008 Olympics; t o be enforced nat ionwide 2010

** Implemented in major ci ti es in 2005; to be enforced nationwide in 2010Source: JPMorgan Energy St rat egy, government & press report s

In ppm 2003 2004 2005 2006 2007 2009 2010

US 500 15

Europe 500 350 50 10

Canada 500 15

China* 500 350

India** 2,500 500 350 50

Brazil 5,000 2,000 500 50

Japan 50 10

S Korea 430 30 10

US Diesel Inventor ies By Sulfur ContentUS Diesel Inventor ies By Sulfur Content

Million bbl

0

20

40

60

80

F eb'05 Apr'05 Jun'05 Aug'05 O ct'05 Dec '05 F eb'06 Apr'06 Jun'06 Aug'06


35/69

Changes to gasoline specs: Sulfur limits and oxygenate requirements

Changes to Gasoline Sulfur Limi tsChanges to Gasoline Sulfur Limi ts

* Implemented i n Beij ing July 2005 ahead of 2008 Olympics; t o be enforcednationwide 2010

** Implemented in major ci ti es in 2005; to be enforced nationwide in 2010Source: JPMorgan Energy St rategy, government & press report s

RFG Inventor ies vs. RBOB/Alcohol StocksRFG Inventor ies vs. RBOB/Alcohol Stocks

Major US gasoline spec changes slated for 2006: lower sulfur content limit and theelimination of the oxygen content standard, which will impact MTBE use

While market concern, over the what is in effect an MTBE phase-out, has beendramat ic, t hese worries are overdone. We are experiencing some hiccups alongthe supply chain during the present t ransit ion period, but these should workthemselves out as the US has proven itself to be quite capable of blendingcomponents up to standard

In ppm 2004 2005 2006 2008 2009

European Union 150 50 10

US 120 90 30

China* 500 150

India** 500 150

Japan 50 10

South Korea 130 50

Brazil** 400 80

In million bbl

5

10

15

20

25

30

35

Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06

Finished RF G RBOB w/ Alcohol


33WHAT

S

THE

STORY

THIS

YEAR?



36/69

Phasing out MTBE. . . phasing in ethanol

2005 US Energy Policy Act eliminated the nat ional oxygen content standard in

gasoline while not explicitly banning MTBE it effectively phases out the

gasoline addit ive MTBE and phases in the use of renewable fuels

MTBE has been found to contaminate groundwater, opening up MTBE-makers

up to lawsuits

Most of the industry are using ethanol because it replaces octane and clean-

burning propert ies of MTBE and it is in compliance with renewable fuel standard

Because of ethanol s af f init y to water, it cannot be t ransport ed by pipelineafter mixing with gasoline

Reformulated gasoline for oxygenate blending (RBOB) is blended with ethanol

in the tank, af ter it has been t ransport ed separately by pipe

States such as New York and California have already successfully phased out

MTBE in favor of ethanol

34WHAT

S

THE

STORY

THIS

YEAR?



37/69

Short - to medium-term drivers for the oil market

Bullish

Ongoing oil buying interest from

consumers and investors

Iran noise; maj or Nigerian disruptions

Call on OPEC crude st il l topping 30

mil lion b/ d in 2007

OPEC showing commitment to a$50-55 basket price

Bearish

Comfortable oil inventories

Hurricane season less eventful than

expected. Warm weather this winter

to follow?

Global oil demand growth

moderating; slower economic growth

ahead

Downstream investment should start

to hit the market in 2007-08

Reassessment of investorscommodities allocations down the

road as returns falter and interest

rates rise?

35WHAT

S

THE

STORY

THIS

YEAR?



38/69

Mean reversion (at least to the $20) is out the window

Front-month NYMEX West Texas Intermediate wi th Snapshot in Time Future Str ipsFront-month NYMEX West Texas Intermediate wi th Snapshot in Time Future Str ips

We are now assuming a new long-t erm average of $40

In US$/bb l

$-

$10

$20

$30

$40

$50

$60

$70

$80

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Source: JPM organ Energy Strategy

36WHAT

S

THE

STORY

THIS

YEAR?



39/69

Today s crude curve: Contango in the front , backwardat ion further out

West Texas Intermediate CurveWest Texas Intermediate Curve

In US$/bb l

$56

$58

$60

$62

$64

$66

$68

$70

Nov06 May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12

Source: JPM organ Energy Strategy

$0

37WHAT

S

THE

STORY

THIS

YEAR?



40/69

A new paradigm contango at $70!

WTI Flat Price vs. Backwardation (in US$/bbl)WTI Flat Price vs. Backwardation (in US$/bbl)

We see contango as sustainable at these price levels. However, a compell ing move lower (sub $50)could see backwardation return

$(2)

$(1)

$-

$1

$2

$3

$4

'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06

$(5)

$5

$15

$25

$35

$45

$55

$65

$75


M01-M02 NYMEX WTI M01 NYMEX WTI

Backwardation

Contango

38WHAT

S

THE

STORY

THIS

YEAR?



41/69

WTI backwardat ion vs. f lat pr ice

WTI Backwardation vs. Flat PriceWTI Backwardation vs. Flat Price


We see contango as sustainable at these price levels. However, a compell ing move lower (sub $50)could see backwardation return

M01 NYMEX WTI (in US$/bbl)

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$(8) $(6) $(4) $(2) $- $2 $4 $6 $8 $10 $12

M02-M24 NYMEX WTI (US$/bbl)

1996-2002 2004-present 10/13/2006

$0

39WHAT

S

THE

STORY

THIS

YEAR?


42/69



43/69

Medium-t erm drivers of oil price have not gone away yet

Key fundamental drivers have supported oil prices in recent years that are

st il l wit h us today

For the past several years, we have seen a refined products-led market.

In other words, as much as crude oil prices have increased, prices for refined

products such as gasoline and diesel have gone up even more

This had been in large part a demand story. Demand growth has been strong

particularly in 2004, and particularly in the US and non-OECD Asia. Importantly,

demand growth is disproportionately for light-end products, notably diesel, which

is a type of distillate

The oil indust ry cycles through periods of over- and under-investment. Refining

and distribution (e.g. pipelines, tankers, terminals) are particularly pronounced

examples of how years of under-investment due to poor margins can lead to

capacity constraints down the road

While under-investment in ref ining and dist ribut ion is not a permanent market

feature, i t is also not a driver that can be reversed overnight. We see t ight

downstream capacit y inf luencing price until at least 200708, unless demand

growth falters signif icantly

41WHATS

THE

STORY

THIS

YEAR?



44/69

Is the demand story over?

Histor ical Oil Demand GrowthHistor ical Oil Demand Growth


Demand growth has moderated relative to 2004. We see this trend continuing for thebalance of the year

%yoy, 3 month rolling average

-5%

0%

5%

10%

15%

20%

25%

30%

Apr-98 Mar-99 Feb-00 Jan-01 Dec-01 Nov-02 Oct-03 Sep-04 Aug-05 Jul-06 Jun-07

OECD Dem and G rowth/Contrac tion Non-OECD Dem and G rowth/Contrac tion OECD Projec t

Non-OECD Project Global Demand Growth Historical Average Rate of Global Growth

World Project

42WHATS

THE

STORY

THIS

YEAR?



45/69

Light -end products dominate global oil demand growth

Global Oil Demand Growt h by Major ProductGlobal Oil Demand Growt h by Major Product

Dieselization and tightening global fuel specs will continue to dictate the global oil demandgrowt h profile we see this t rend cont inuing even as total demand growth eases

In kbd

-500

250

1,000

1,750

2,500

3,250

2000 2001 2002 2003 2004 2005

Gasoline Distillate Jet/Kero Fuel Oil Heavy Light

Source: JPMorgan Energy Strategy, IEA, government & industry sources

43WHATS

THE

STORY

THIS

YEAR?



46/69

Energy intensity in emerging economic powers moderates as they grow

Energy Intensity/GDP China & JapanEnergy Intensity/GDP China & Japan

Oil bbl co nsumed pe r US$1,000 GDP

0

1

2

3

4

5

6

7

8

0 1,000 2,000 3,000 4,000 5,000

GDP (in billion current US$)

Japan China

Source: JPMorgan Energy Strategy, BP Statistical Handbook

Find from same publi cat ion (above)

Energy Intensit y Declines As GDP IncreasesEnergy Intensit y Declines As GDP Increases

0

1

2

3

4

5

6

7

8

9

250 5,250 10,250 15,250 20,250 25,250

GDP (in billion current US$)

OECD Non-OECD

Oil bbl co nsumed p er US$1,000 GDP


Chinese oil demand growth wil l cont inue to be signif icant to the global balance, especiall y in thelead-up to the Beij ing Olympics. But the energy intensit y to growth rat io does moderate ascountr ies get richer

44WHATS

THE

STORY

THIS

YEAR?


Th l f i


47/69

The cycle of investment

OECD Oil Demand vs. Ref inery Capacit yOECD Oil Demand vs. Ref inery Capacit y

In million b/d

20

25

30

35

40

45

50

55

'83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05

Refined Products Import Gap

Refinery Capacity

Oil Demand

Source: JPM Energy Strategy , IEA, EIA

Downstream investment, or lack

thereof, is cyclical and tends to over-

shoot in both directions

Theres no reason to think that this

investment cycle wont eventually be the same

OECD demand exceeds OECD refinery

capacity. That means that, increasingly,

spare ref inery capacit y is in the non-OECD. That means that j ust like

crude production most of t he worlds

refined products production is

geographically far away from most of

the world s consumpt ion0

45WHATS

THE

STORY

THIS

YEAR?


E i f t t /di t ib t i it i t i ll t i t


48/69

Energy inf rast ructure/dist r ibut ion capacit y is st i ll a const raint

Global Oil Demand Supplied By International TradeGlobal Oil Demand Supplied By International Trade

More refined products, in part icular, have to t ravel greater distances to their end user. Port s,pipes, tankers, etc. are all an issue will they see the investment boom that refining is seeing?

Oil Trade:Oil Demand

30%

35%

40%

45%

50%

55%

60%

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

1985-89: 44%

1990-94: 51%

1995-99: 55%

2000-04: 58%


Crude Refined Products

1987-1995 3.6% 1.8%1996-2005 2.5% 3.8%

2001-2005 1.7% 5.4%

Grow th In Waterbor ne

Crude & Products Transpor t

Source: Clarkson's Shippi ng Review

0%

46WHATS

THE

STORY

THIS

YEAR?


N OPEC d ti h di i t d i t


49/69

Non-OPEC production has disappointed in recent years

Histor ical Oil Supply GrowthHistor ical Oil Supply Growth

%yoy, 3 month rolling average

-10%

-5%

0%

5%

10%

15%

20%

25%

Mar-98 Jul-99 Nov-00 Mar-02 Jul-03 Nov-04 Mar-06 Jul-07

OPEC Supply Growth/Contrac tion Non-O PEC Supply G rowth/Contrac tionGlobal Supply Growth Historical Average Rate of Global Growth


47WHATS

THE

STORY

THIS

YEAR?


OPEC sails through t hree bull years


50/69

OPEC sails through t hree bull years

OPEC Crude Production & Group QuotaOPEC Crude Production & Group Quota

OPEC s market relevance has waned. The group hasn t had to cut production or show anydiscipline since March 2004

In million b/d

20

21

22

23

24

25

26

27

28

29

Oct-02 Mar-03 Aug-03 Jan-04 Jun-04 Nov-04 Apr-05 Sep-05 Feb-06 Jul-06

OPEC-10 Wellhead

Production of Crude

Quota

Source: JPM organ Energy Strategy, IEA

0

48WHATS

THE

STORY

THIS

YEAR?


Sliding OPEC spare capacit y but capacity addit ions in t he pipeline


51/69

Sliding OPEC spare capacit y, but capacity addit ions in t he pipeline

OPEC Spare Capacity vs. PriceOPEC Spare Capacity vs. PriceExpected Additions toOPEC Capacity* (in kbd)

Expected Additions toOPEC Capacity* (in kbd)

* Excluding declinesNote: This is not a complete list and is subject to changeSource: JPMorgan Energy Strategy, government

reports, media reports

In kbd

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Aug-97 Feb-99 Aug-00 Feb-02 Aug-03 Feb-05 Aug-06

$-

$10

$20

$30

$40

$50

$60

$70

$80Spare Capacity Nymex WTI Price


US$/bbl 2006Saudi Arabia 300

Iran 160

Nigeria 265

Algeria 50

Venezuela 75Libya 150

UAE 200

2007

Saudi Arabia 500

Nigeria 220

Algeria 140

2008Saudi Arabia 300

Nigeria 1,130

Indonesia 180

2009-2010

Saudi Arabia 1,200

Algeria 100

Qatar 525

2006 1,200

2007 860

2008 1,610

2009-2010 1,825

2006-2010 Total 5,495

49WHA

TS

THE

STORY

THIS

YEAR?


Top geopoli t ical hotspots: No st rangers to disrupt ions


52/69

Top geopoli t ical hotspots: No st rangers to disrupt ions

In million b/d

0

1

23

4

5

6

'67 '69 '71 '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05

Source: JPM organ Energy Strategy, BP Statistical Handbook

Iranian

Revolution

In million b/d

0

1

2

3

4

'67 '69 '71 '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05


Iran-Iraq

War

Gulf War I

Gulf War II

In million b/d

0

1

2

3

'79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05


Strike cripples

production

NigeriaNigeria

IranIran

VenezuelaVenezuela

IraqIraq

In million b/d

0

1

2

3

4

'67 '69 '71 '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05


Strike cripples

production

50WHA

TS

THE

STORY

THIS

YEAR?


Oil production: An inherent ly r isky business


53/69

Oil production: An inherent ly r isky business

OECD Reserves as % of GlobalOECD Reserves as % of Global

More and more of t he world s remaining oil reserves are in geopoli t ically risky part s of t he world,and that s not going to change

OECD Reserves: Global Reserves

0%

5%

10%

15%

20%

25%

'81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05


Oil Reserves by Risk of LocationOil Reserves by Risk of Location

0

50

100

150

200

250

300

350

400

450

500

0-1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10

Average of Country Risk Rating & Corruptionion Perception Index

(0 = highest risk/most corrupt)

Total Reserves (in '000 billion bb l)

Source: JPMorgan Energy Strategy, BP Statistical Handbook, Transparency International, UNCTAD

5 = 329

More corrupt / r isky Less corrupt / r isky

51WHA

TS

THE

STORY

THIS

YEAR?


US oil dependency on the r ise


54/69

US oil dependency on the r ise

US Oil Demand as % of Total US Energy DemandUS Oil Demand as % of Total US Energy Demand

Poli t ical rhetoric aside, oi l s share of US energy consumption is rising, the share of renewables hasfallen slightly in each of the past 2 decades

US Oil Demand by Source (2004)US Oil Demand by Source (2004)

35%

37%

39%

41%

43%

45%

47%

49%

'50 '55 '60 '65 '70 '75 '80 '85 '90 '95 '00 '05


Coal, 23%Nuclear, 8%

Petroleum,40%

Natural Gas,23%

Renewable,

6%


0%

52WHA

TS

THE

STORY

THIS

YEAR?


US reliance on oil imports also on the rise


55/69

US reliance on oil imports also on the rise

US Net Oil Imports As % Of Total US Oil DemandUS Net Oil Imports As % Of Total US Oil Demand

Foreign oil supplies are an ever growing percent of US demand. OPEC members supply j ust lessthan half of total US net oil imports and Middle East Gulf produces supply 20%

US Net Oil Imports By SourceUS Net Oil Imports By Source

0%

10%

20%

30%

40%

50%

60%

70%

'60 '63 '66 '69 '72 '75 '78 '81 '84 '87 '90 '93 '96 '99 '02 '05

Total Oil Imports, All Sources

From Mide ast Gulf

From OPEC Members

Source: JPMorgan Energ y Strategy, EIA

Other Non-

Opec, 28%Other Opec,

4%

Mexico, 12%Canada,

16%

UK, 3%

Venezuela,

11%

Nigeria, 8%

Mideast Gulf,

17%


53WHA

TS

THE

STORY

THIS

YEAR?

Agenda



56/69

Agenda

Page


Natural Gas Specifics



Oil Specifics

54

2

13

24

54

62

OIL

&

GAS

BASICS


How is gas dif ferent from oil?


57/69

g

Natural gas is a regional commodity, whereas oil is a global commodity

In other words, oil is fungible in a way that gas is not

Why? The physical propert ies of natural gas make it harder t o transport ,part icularly inter-cont inentally. Most natural gas is t ransported in gaseous

form via pipeline. This means that the US gas market is effectively a

closed system

For this reason, regional gas markets are unrelated. For example, t he UK

gas market has no relationship to the US gas market . In fact, European

natural gas is priced using an oil-referenced formula

The widespread adopt ion of liquefied natural gas (LNG) when and if ithappens will change the gas market from a regional market to a global

market. In other words, the development of LNG will make the gas

market look more like the oil market

55NATURAL

GAS

SPEC

IFICS


The US natural gas market


58/69

g

Natural gas is transported in the U.S. through pipelines to different locations called Hubs

Hubs are market places where the physical commodity can be bought and sold. Dif ferent

market places have different prices due to different supply and demand factors

Henry Hub is the most liquid physical natural gas market, because Henry Hub is where

futures contracts are sett led for the physical commodit y. It is the market which is most

closely represented by the NYMEX futures curve

Producers and consumers of natural gas have incentives to not only hedge their physical

commodity exposure using futures contracts, but also to hedge the location (basis) risk

associated with dealing in different markets across United States, Canada and Mexico

The basis market provides this added hedging ability

In the basis market hub locations trade at a differential to NYMEX futures contracts on a

forward basis

Hence leading to the abil ity to buy the NYMEX +/ the appropriate basis dif ferentialforward to hedge a future sale of the physical commodity

Some of the most frequently quoted basis markets are: the Rocky Mountain region, the

Houston Ship Channel Hub, AECO (Canada), and t he Panhandle Hub

56NATURAL

GAS

SPEC

IFICS


Natural gas: How is it measured?


59/69

g

In the Unit ed States, natural gas derives it s value from its Bri t ish thermal unit (Btu)

content, or heating capability

Bri t ish thermal unit : a unit of heat equal to about 252 calories; quantit y of heat required

to rise the temperature of one pound of water one degree Fahrenheit

Volumetrically natural gas is measured in cubic feet (cf) on a 24-hour flowing basis, and

consequent ly a standard conversion was adopted whereby 1 cf = 1,000 Btus, which allows

for natural gas to be bought and sold in terms of its Btu value

Useful gas conversions:Useful gas conversions:

1 MMbtu = 1 mil l ion Btus

1 Mcf 1 MMBtu, depending upon the purity of the gas

1 MMcf = 1,000 MMBtu

10 MMcf = 10,000 MMBtu = 1 NYMEX cont ract

1 Bcf = 1 bil lion cubic feet = 1,000,000 MMBtu

1 Tcf = 1 t ril lion cubic feet

57NATURAL

GAS

SPEC

IFICS


Maj or market drivers


60/69

Weather is both a demand and supply factor

Summer storage inj ect ion season (AprilOctober) is influenced by cooling demand

Winter storage withdrawal season (NovemberMarch) is influenced by heating

demand

Shoulder Months (March, April, May and September, October, November) are less

weather sensitive

But hurricane disruptions most typically in the late-summer to fall can affect

the supply side of the balance

Drought conditions in areas that depend on hydropower for electricity generation

can also boost gas demand

Oil price is also a driver of gas price, because there is some degree of

substitutability between the two fuels

Liquefied Natural Gas (LNG) is a minor factor in the gas market now, but will

become increasingly import ant as the market develops. LNG will make the gas

market more global

58NAT

URAL

GAS

SPEC

IFICS


The US needs LNG to meet growing gas demand


61/69

The long-term gas price will depend heavily on LNG to fill the growing disconnect between demandfrom residential, commercial, industrial and power generation consumers and North Americansources of supply

The declining domest ic product ion scenario makes LNG vital t o satisfying projected US demandgrowth. . . or price wil l have to rat ion demand

In Tcf

500

700

900

1,100

1,300

1,500

1,700

1,900

2,100

2,300

2,500

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Lower-48 Production Canadian/Alaska Production Demand


In Bcf/day

0

The growing US LNG supply gapThe growing US LNG supply gap

59NAT

URAL

GAS

SPEC

IFICS


US LNG terminal capacity


62/69

Imports by Terminal (Monthly)Imports by Terminal (Monthly)

In Bcf

0.0

0.5

1.01.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Everett (MA) Lake Charles (LA) Cove Point (MD) Elba Island (GA) Gulf Gateway (Offshore)

Source: JPMorgan Energy Strategy, Waterborne LNG Report

Sustainable Capacit y

Right now, LNG supply is the limiting factor for the US, not spare terminal capacity.LNG imports to the US should ramp up from late 2007 when new supplies from Trinidadand the Middle East come online contracted to meet US demand, likely to pressure USgas prices

60NAT

URAL

GAS

SPEC

IFICS


Winter natural gas storage t raj ectories


63/69

Wint er Gas Storage TrajectoriesWint er Gas Storage Trajectories

In Bcf

500

1,000

1,500

2,000

2,500

3,000

3,500

7-Oct 1-Nov 26-Nov 21-Dec 15-Jan 9-Feb 6-Mar 31-Mar 25-Apr 20-May 14-Jun 9-Jul 3-Aug 28-Aug 22-Sep

200001 200102 200203 200304 200405 200506


0

61NAT

URAL

GAS

SPEC

IFICS

Agenda



64/69

Page





Oil Specifics

62

2

13

24

54

62

OIL

&

GAS

BASICS


Import ant data releases


65/69

EIA Weekly Pet roleum Status Report (Wednesdays 10:30 AM)

EIA Weekly Natural Gas Storage Report (Thursday 10:30 AM)

EIA Petroleum Supply Monthly Report (end of month)

EIA Short Term Energy Out looks (beginning of month)

IEA monthly Oil Market Report (~10th of the month)

Euroilstock inventory report (~10th of the month)

CFTC Commit ment of Traders report (Fridays)

63REF

ERENCES,

W

EBS

ITES

AND

DATA

RELEASES

TO

W

ATCH


Key websites


66/69

US Department of Energy, Energy information Administration

www.eia.doe.gov

Organizat ion of Petroleum Export ing Countries

www.opec.org

BP s Statist ical Review of World Energy

www.bp.com

New York Mercant ile Exchange

www.nymex.com

Commodity Futures Trading Commission

www.cftc.govInternat ional Energy Agency

www.iea.org

64REF

ERENCES,

W

EBS

ITES

AND

DATA

RELEASES

TO

W

ATCH


Bloomberg codes


67/69

Prices:Prices: News & Info:News & Info:

Main energy page NRG

EIA inventory data DOE

Global crude oil prices CRUD

Exchange menu CEM

Nymex WTI crude CL1 [cmdty]

Nymex heat ing oil HO1 [cmdty]

Nymex gasoline HU1 [cmdty]

Nymex natural gas NG1 [cmdty]

IPE Brent crude CO1 [cmdty]

IPE gasoil QS1 [cmdty]

Cash values for refined products USPD

EUPD

FEPD

Top energy pages OTOP

ETOP

TGAS

All energy news NI NRG

Oil news NI OIL

Gas news NI GAS

Power news NI ELC

Refinery news NI REF

OPEC NI OPEC

Energy glossary REFG

Keeping t ime IC

Calendars CDR

65REF

ERENCES,

W

EBS

ITES

AND

DATA

RELEASES

TO

W

ATCH


Reuters codes


68/69

Prices:Prices: News & Info:News & Info:

Main energy page Q: ENERGY

EIA inventory data Q: EIAA

Nymex WTI crude Q: CLc1

Nymex heat ing oil Q: HOc1

Nymex gasoline Q: HUc1

Nymex natural gas Q: NGc1

IPE Brent crude Q: LCOc1

IPE gasoil Q: LGOc1

Cash values for Q: PRODUCT/ 1refined products

Energy highlights Q: nTOPO or TOP/ O

Link to energy codes O/ CODES

All energy news O

Oil news OIL

Gas news NGS

OPEC news OPEC

EIA inventory report EIA/ S

US refinery news REF/ US

Energy glossary ENERGY/ 3

66REF

ERENCES,

W

EBS

ITES

AND

DATA

RELEASES

TO

W

ATCH


Basic oil conversions


69/69

42 gallons = 1 barrel

159 li ters = 1 barrel

7.33 barrels of crude = 1 ton

67REF

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DATA

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Date post:	06-Apr-2018
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Oill and Gas Basics JPM Oct 2006

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