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China’s smog threatens health of global coal projects

SHANGHAI (Reuters) – A choking smog across much of northern China threatens not just the health of local residents, but also of major coal projects globally that are still on the drawing board. Beijing’s plans to tackle pollution largely target coal-fired power, which will hit already slowing demand in the world’s top importer of the fuel. With China’s coal demand the primary driver for a slew of mine investments over the past decade, this trend could derail a list of capital intensive coal projects from Australia to Indonesia and Mozambique. Even without the environmental drive, new railways from mines to ports, falling investment in coal-fired generation and slowing power demand growth could see China’s miners export some of their surplus output at competitive prices, hitting regional miners and the viability of new projects. This is a major shift for a country that built an average of two coal-fired power […]

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Texas town evacuated after Chevron pipeline explosion

HOUSTON (Reuters) – A pipeline operated by Chevron Corp exploded in rural Milford, Texas, on Thursday and while no injuries were reported residents of the town of 700 were asked to evacuate, said company and emergency officials. Chevron did not identify the line, but it is the majority owner of a 2,295-mile common-carrier pipeline system that transports natural gas liquids from New Mexico and Texas to Mont Belvieu, Texas for processing. Atlas Pipeline Partners has a 20 percent interest in the West Texas LPG Pipeline Limited Partnership, which is 80 percent owned by Chevron. Tom Hemrick, director of Hill County Emergency Management, told KTVT-TV in Dallas that a construction crew accidentally drilled into a 10-inch liquified petroleum gas (LPG) line. All workers on the construction crew were accounted for. "The fire is definitely getting smaller," Hemrick said. Another 14-inch line sits a few feet from the one that exploded […]

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North Dakota sends financial relief to oil, gas areas

BISMARCK, N.D., Nov. 14 (UPI) — North Dakota Gov. Jack Dalrymple said $12.2 million in funds were awarded to emergency services and fire districts in oil and gas producing parts of the state. “These grants are an important part of a larger state commitment to help the oil and gas region meet the challenges created by rapid growth,” he said in a statement Wednesday. Oil production from the Bakken and Three Forks shale reserve areas in western North Dakota are providing substantial stimulus to its economy. The federal government said the state’s gross domestic product in 2001 ranked 38th out of the 50 states. By 2012, the GDP per capita of $55,250 was 29 percent greater than the national average. North Dakota’s government said it committed approximately $2.6 billion to help support growth in the state’s oil and gas producing regions through 2015. Funds for emergency services were allocated […]

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Berkshire Acquires $3.7 Billion Exxon Mobil Stake

Berkshire Hathaway Inc. (BRK/A) reported a stake in Exxon Mobil Corp. (XOM) valued at about $3.7 billion as Warren Buffett ’s company disclosed its largest new holding since adding International Business Machines Corp. in 2011. Buffett’s company owned 40.1 million shares of Exxon on Sept. 30, Omaha, Nebraska-based Berkshire said today in a regulatory filing. The world’s biggest oil company by market value closed at $93.22 today in New York . It rose to $93.90 in extended trading at 5:14 p.m., after the filing. Berkshire has benefited this year as its stock picks rallied along with the broader market, affirming a strategy of favoring equities instead of bonds amid near record-low interest rates. Buffett has tracked Exxon and bought its stock in the past, holding a stake in the Irving, Texas-based energy producer as recently as 2011. Exxon Mobil “is undervalued, in his opinion, and pretty much being ignored […]

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Ethanol Futures Rise After Output Gain Fails to Replenish Stocks

Ethanol gained for a sixth straight session after a government report showed that rising U.S. output wasn’t enough to boost supplies. Ethanol increased 0.5 percent as inventories declined 12,000 barrels to 15.2 million barrels in the week ended Nov. 8, the Energy Information Administration said today. Production jumped 2.8 percent to 927,000 barrels a day, the highest level since Feb. 10, 2012, Ethanol’s discount to gasoline widened 4.67 cents to 90.57 cents after stockpiles of the motor fuel dropped, sending gasoline prices to a four-week high. “Demand is outpacing output, leaving little room to replenish stockpiles,” Renato Dias, a Campinas, Brazil-based analyst for Intl FCStone Inc., said in a telephone interview. Denatured ethanol for December settlement extended its longest winning streak since May, advancing 0.9 cent to close at $1.778 a gallon on the Chicago Board of Trade. Prices have dropped 19 percent this year. Ethanol output will rise […]

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State Eyes Refinery As Ticket To Shale Gas Boom

A Brazilian conglomerate unveiled a proposal Thursday to build a multibillion-dollar natural-gas refining complex in West Virginia—the biggest such development in the state as it tries to profit from the region’s drilling boom. The proposed project by Odebrecht Group, a privately held São Paolo-based engineering, construction and petrochemical company, would include a plant known as an ethane cracker, where natural gas is turned into ethylene, a chemical-industry feedstock. The complex would also include three plants to produce polyethylene, which is used to make numerous products, from plastic bags to pipes. Odebrecht said the project is subject to securing both financing and long-term contracts to obtain ethane through pipelines, as well as regulatory approvals. A company spokeswoman declined to provide further details on the project’s cost or timing. Drilling in the Marcellus Shale and Utica Shale—massive natural-gas deposits beneath parts of West Virginia, Pennsylvania and Ohio—have made Appalachia one of […]

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US coal production rises more than 2% year on year, week on week

Washington (Platts)–14Nov2013/307 pm EST/2007 GMT US coal production totaled about 19.8 million st in the week that ended Saturday, the Energy Information Administration said Thursday. This production estimate, based on railcar loadings, is 2.4% higher than the previous week’s estimate and 2.8% above output in the comparable week in 2012, EIA said. Coal production east of the Mississippi River totaled 8.1 million st while output west of the Mississippi totaled 11.7 million st, it said. Article continues below… Request a free trial of: Coal Trader Coal Outlook Platts Coal Trader provides:The latest prices for key benchmark coals Daily pricing for tons and allowances for SO2 and NOx emissions The exclusive Platts OTC Broker Index, a market assessment compiled from three of the largest and most respected coal brokers What happened in yesterday’s OTC markets, and why An analysis of coal price trends in all major U.S. producing areas Details […]

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Will Mexico amend its constitution to drill for oil?

M exico’s oil industry is in a bad way. The country’s once massive petroleum reserves have basically been sucked dry. Production is plummeting , and the state oil monopoly, Petróleos Mexicanos (Pemex) is hemorrhaging money . Unless something is done soon, for the first time in decades Mexico could fall from its coveted spot among the world’s top 10 oil producers. At the same time that classic oil drilling is stalling, the country is sitting on top of fuel sources that are harder to tap: massive amounts of shale oil and gas , as well as deep-water reserves in the Gulf—just like the ones the United States drills. (What, you thought those geological formations stopped at the border?) So why isn’t Mexico going after the same resources that have been so lucrative for its northern neighbor? According to President Enrique Peña Nieto, there’s just one thing standing in the […]

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Gazprom Says Europe Exports to Hit 5-Year High

MOSCOW—Russian state natural gas firm OAO Gazprom OGZPY +2.40% Gazprom OAO ADS U.S.: OTCBB $ 8.96 +0.21 +2.40% Nov. 14, 2013 3:58 pm Volume (Delayed 15m) : 1.37M AFTER HOURS $ 8.84 -0.12 -1.34% Nov. 12, 2013 4:07 pm Volume (Delayed 15m): 419,636 P/E Ratio 2.65 Market Cap $103.25 Billion Dividend Yield 6.24% Rev. per Employee $384,616 11/14/13 Paul McCartney Asks Vladimir P… 11/14/13 Gazprom Says Europe Exports to… 11/12/13 Russia, Vietnam Sign 17 Deals … More quote details and news » OGZPY in Your Value Your Change Short position Thursday said it was on track to deliver its highest volumes of gas to Europe this year since 2008, as demand for its pipeline gas spiked amid lower supplies of liquefied gas delivered by tanker. Gazprom profits slumped last year as sales in Europe dropped due to increased competition and lower demand. But exports to Europe were up 15.6% […]

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Gazprom Raises Concerns Over Gas Transit to Europe via Ukraine

By James Marson MOSCOW–Ukraine is taking gas from its underground storages, which could have a “negative effect” on gas transit to Europe, a senior executive from Russian state gas firm OAO Gazprom (GAZP.RS) said Thursday. Ukraine said this week that it stopped taking gas from Gazprom at the start of November as it had sufficient supplies until the end of the year. “That means domestic production and underground storages are used to provide for the needs of the domestic market,” said Pavel Oderov, head of Gazprom’s International Business Department. He said gas reserves in storage are needed to ensure gas transit to Europe. Russia accounts for one-quarter of Europe’s gas needs, the bulk of which flows via Ukraine. Supplies to Europe were disrupted in 2006 and 2009 amid price and contract disputes between Ukraine and Russia. Ukraine owes $1.3 billion for gas deliveries, and Gazprom is considering granting an […]

Posted On : Published By : Tom Whipple