Happy Nonfarm Friday! Crude is mustering a positive end to a rather lackluster week, as poor US oil demand (hark, a 13-yr low) threw a wet blanket over prices. It has taken a decent employment report here in the US today to reverse this trend. Meanwhile, natural gas is on another rollercoaster ride, falling three days in a row before rallying over 7% on the back of a slightly more bullish-than-consensus storage print on Thursday. What a week it has been…let’s hit the cuisine:   

–The top 5 energy stories of Obama’s presidency.

–Why historic buildings are more efficient than LEED-qualified ones.

–Susceptible and impossible super bowl records.

–In the developing world, solar is cheaper than fossil fuels.

–Highlights of BP’s outlook for 2030.

–Infographic on the evolution of Google…..and why they invest so much in clean energy.

–California gets 5% of its electricity from wind.

–Infographic on Apple’s cash.

–Exports accounted for 14% of economic growth last year, the most since 1929.

–The annual grocery sale cycle – what to buy, and when.

–Eight areas to watch in China in the year of the Dragon.

–Infographic on how to read food labels.

–11 charts and graphs about tv shows.

The Burrito Deluxe Award of the Week goes to the US unemployment rate, which fell last month to 8.3%, the lowest level since early 2009.

The Burnt Burrito Award of the Week goes to the Baltic Dry Index, which is down 65% year-to-date. This index measures shipping costs of dry commodites, and due to the  influx of new ships to the market, pricing has crashed – destroying its relevance as an indicator of commodity prices.   

Have a jumping weeekend!

Ok, ok, I’ll put the Star Wars theme to bed. For today, my friends, we are going to look at some facts and figures about storage across a number of our dearly beloved commodities and a number of geographies – highlighting (for the most part) a theme of staunch stockpiles.  

To further provide some educational information, in addition to the focus on energy, there is also some trivia relating to the ultimate sultan of storage…the squirrel. So enjoy!

–UK natural gas storage is still approximately three quarters full at 74%,  nearly double the level it was this time last year. In contrast to the UK in 2010 experiencing the coldest December on record, the entire year of 2011 turned out to be the second warmest on record, with a mild start to winter setting up a weak demand environment (and strong storage) for UK natty in 2012.     

UK natural gas storage level

–Apparently a squirrel eats up to 9,000 nuts in its lifetime, but likely stores double that (but is too absent-minded to remember where).  

–Crude oil stockpiles in the US sit at a healthy 338 million barrels. In addition to this, there is nearly 700 million barrels stored in the Strategic Petroleum Reserve.  

US crude stocks (ex SPR)

–Swot up on those squirrel smarts with this squirrel quiz!  

–US natural gas storage is at a 586 Bcf surplus to last year (= 25%), while the surplus to the five-year average sits at an even more humongous 601 Bcf, as near-record supply and a warm winter head off demand at the pass.  

US natural gas storage level

–A squirrel acorn stash caused a car to breakdown this winter (in a Beverly Hills Cop stuff-something-in-the-tailpipe kind of way).   

–Gasoline inventories in the US are at the same elevated level as last year, as demand remains exceptionally weak. High retail prices, persistently high unemployment, and gaining efficiencies from the auto sector has seen gasoline demand reach a ten-year low, currently 7.3% lower than the four-week average of last year.   

Gasoline inventories

–Squirrels produce two litters a year, whose timing coincides with the two sets of shoulder months for natural gas of spring and early fall.   

–Despite strong stockpiles in the US, the OECD in general has seen depleting stock levels in the last year, predominantly due to the loss of supply from Libya (OECD = Organization for Economic Cooperation and Development = 34 member countries including most of Europe, the US, Canada and Japan).

–A squirrel stores so much because it eats its own body weight in nuts and seeds in a week.

Storage levels and squirrels. In one word…nuts.

Good day, good day!  Crude has toppled below the monkey bar of $100 late on this week as – would you believe - Euro debt concerns arise once more. In addition, crude has been clobbered by a disheartening domestic demand situation. Total product demand is down 7.2% on this time last year, while gasoline demand has just plummeted to its lowest level since 2001. And while on the subject of plummeting to new lows, the good ship natty has keeled over and made a decade low as supply remains staunch and the storage surplus swells (…while weather is set to swelter). Ay, there’s the rub, and here’s the grub.

–32,100 New Yorkers speak out against fracking.

–Why tornadoes take the weekend off.

–17 best pun store names.

–How high oil prices could squelch a recovery.

–Santa Claus China is coming to town (…51% urbanization and rising).

–Amazing cakes that look like other foods.

–Obstacles facing US wind energy.

–Infographic on the Facebook IPO.

–Burning America’s future by Bill McKibben.

–Council puts signs on trees not to put signs on trees.

–UK gas hub faces rising challenge from Europe.

–US on path to energy self-sufficiency in 20 years.

–20 predictions for life 100 years from now.

–Natural gas glut fuels export debate.

–Infographic about the Black Market.

–The pleasures and pitfalls for off-the-grid solar.

–Ben Franklin’s 200 synonyms for…being tipsy.

The Burrito Deluxe Award of the Week goes to natural gas storage levels, both here and in the UK. The UK sees storage still over 80% full, more than double the level it was this time last year as a mild winter reigns. Meanwhile, the storage surplus to last year in the US has swollen to a whopping 539 Bcf.   

The Burnt Burrito Award of the Week goes to aforementioned gasoline demand, which has just reached a level not seen since 2001. The implications of this is an economy that is merely staggering along, as opposed to strong.

Have a gregarious weekend!

Boba Fett = Somali pirates. The ultimate modern day comparison to the notorious bounty hunter Boba Fett has to be Somali pirates. As discussed previously on the burrito (while referencing another cult movie), the cold-blooded killers on the east coast of Africa have hijacked tankers carrying as much as 2 million barrels of oil, and cost the global shipping industry $9 billion a year. However, in signs that the dark side may be losing its luster, the number of successful attacks by the pirates have fallen substantially in the last year.

Han Solo and Chewbacca = WTI and Brent crude oil.  The theme of pirates continues as we turn to Han and Chewie, who for this purpose represent global crude benchmarks. Despite their very different backgrounds and characteristics, the two have been thrust together as partners. And due to their familiarity, they have become very close.

Although a fatal flaw in one of them (= Han = WTI crude) has led them to become separated (in a frozen-in-carbonite kind-of-way), just as in the Return of the Jedi they will ultimately be reunited (and thus should be the case for Brent and WTI once the conundrum facing the Keystone XL pipeline and Cushing supply glut is resolved).  This also makes the global crude market the Millennium Falcon, the vehicle by which our two scoundrels travel.

The Empire Strikes Back = CFTC. Otherwise known as the Commodities Futures Trading Commission, the regulatory board of futures and options - the CFTC – moved to strike back against speculation late last year, by voting through a proposal to limit the number of contracts a single firm can hold. The problem this poses is that it could lead to higher prices due to its limiting ability on traders to hedge positions. The new caps are set to take effect later this year, or possibly early next. 

The Phantom Menace = geopolitical tension. The invisible 800-pound gorilla in the crude complex is the threat of the phantom menace - that of geopolitical tension. This has been on the rise from various factions of late, from Iran due to their development of nuclear weapons (and subsequent threats to close the Strait of Hormuz), to uprisings in Nigeria in response to the end of fuel subsidies (resulting in the government backpedaling on this decision).

Add this to Syria uprising and sporadic bouts of tension in countries such as Iraq and Kazakhstan, and this leaves the phantom menace to keep crude prices elevated and on tenterhooks.    

Ewoks = Opec. A somewhat wild and unruly rabble, but one that is able to coordinate their efforts when needed, the Ewoks represent Opec. The most dominant character in the Ewoks - Wicket – represents the country in the cartel who wields the most power…Iran (tee hee) ……Saudi Arabia.

There you have it. I think I covered most of the main characters in these past two posts. Thanks for playing…and may the force be with you!

Crude had already been pressured back into double-digitdom by the likely delay to an oil embargo on Iran by the EU, while natural gas has plundered lower and lower on moderate weather outlooks, and both rampant storage surpluses and supply. But enough from me, let’s hit the treats.  

–10 significant oil and gas discoveries in 2011.

–Great posts on the costs and benefits of the Keystone pipeline.

–File under nasty: 11 things with more germs than toilet seats.

–Germany installed more solar panels in December than the US did all year.

 –Natural gas price drop won’t derail shale drilling, while shale bubble inflates on record land prices.

–Nine more awesome miniatures.

–US consumers spent a record amount on gasoline in 2011.

–Infographic: Apple (the company) vs. Apples (the fruit).

–India targets 33 Gigawatts of solar power by 2022.

–To avoid a rising sea level, Maldives President may move entire nation to Australia.

–Doctors urge fracking moratorium.

–Which are better: electric cars or natural gas vehicles?

–100 healthy remedies that are freely available in your home.

–Naked oil. (excellent piece by a Director at the Int’l Petroleum Exchange).

–Interactive map of the US showing GHG emissions for 2010 for large facilities.

–US routes as a subway map. (h/t Jeff Sullivan)

The Burrito Deluxe Award of the Week goes to this winter. The lack of frigid conditions may be killing heating demand for natural gas, but it sure makes it a more pleasant environment to live in! 

The Burnt Burrito Award of the Week goes to the euro, which has sold off to a level not seen since September 2010 on continued concerns about the Euro region debt crisis.

May you have a shenanigan-filled weekend!