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Devon Energy to buy Eagle Ford assets for $6 billion

Devon Energy Corp . has reached a definitive agreement to purchase Eagle Ford assets from Woodlands, Tex.-based independent GeoSouthern Energy for $6 billion in cash. The transaction is expected to close in first-quarter 2014. Current production in the assets consists of 53,000 boe/d and 82,000 net acres including at least 1,200 undrilled locations. The risked recoverable resource is estimated at 400 million boe, with the majority as proved reserves. The acreage is in the largely contiguous Lavaca and DeWitt counties in Texas, the latter of which holds acreage that’s largely derisked. Oklahoma City-based Devon stated the acreage position demonstrates the highest average initial production rates in the entire play, as average estimated ultimate recoveries in DeWitt County are more than 800,000 boe/well. Devon said it expects the assets to grow at a compound growth rate of 25%/year over the next several years, reaching a peak production rate of 140,000 […]

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Texas' Permian Basin, Where Output Peaked in '70s, Now a Hot Site for Horizontal Drilling

One of Texas’ oldest oil fields, in decline for decades, has become one of the hottest places in the country to drill for crude, as energy companies create clusters of wells with layers of horizontal branches. The Permian Basin—86,000 square miles centered on Midland, Texas—has been pumping oil since the 1920s, though production peaked at about 2 million barrels a day in the early 1970s. For decades, geologists have known that oil could be found in different layers of rock piled up like a stack of geologic pancakes. But now drillers are starting to tap those layers simultaneously from a single site—and are committing billions of dollars to do so. …]

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Texas’ Permian Basin, Where Output Peaked in ’70s, Now a Hot Site for Horizontal Drilling

One of Texas’ oldest oil fields, in decline for decades, has become one of the hottest places in the country to drill for crude, as energy companies create clusters of wells with layers of horizontal branches. The Permian Basin—86,000 square miles centered on Midland, Texas—has been pumping oil since the 1920s, though production peaked at about 2 million barrels a day in the early 1970s. For decades, geologists have known that oil could be found in different layers of rock piled up like a stack of geologic pancakes. But now drillers are starting to tap those layers simultaneously from a single site—and are committing billions of dollars to do so. …]

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Canada woos EU with oil study

LONDON, Nov. 20 (UPI) — Canadian Natural Resources Minister Joe Oliver said from London energy standards in the European Union discriminate against Canadian crude oil grades. “Canada supports the EU Commission’s objective of reducing greenhouse gas emissions for transportation fuels but believes it must be based on science and facts,” Oliver said Tuesday from London. “Unfortunately, the Fuel Quality Directive, as currently drafted, is unscientific and discriminatory … harm[s] the European refinery industry and [does] not achieve its environmental objective.” The European directive ranks conventional crude oil, bitumen, known also as oil sands, and shale oil according to the amount of greenhouse gas emissions. The values are used to determine which grade contributes how much to total emissions. The European Union aims to cut its emissions from fuel by 6 percent of their 2010 levels by 2020. The Canadian government last week published a report saying oil sands in […]

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Wood Mackenzie: Expand Russia's energy horizons

Ian Thom, a Russian analyst at energy consultant group Wood Mackenzie , said there isn’t enough focus on unconventional resources in the Russian energy sector. “There has been comparatively less commitment to unconventional resources in Russia,” he said in a statement Tuesday from Moscow. Wood Mackenzie said there’s too much focus in Russia on conventional onshore projects instead of tight oil, liquefied natural gas and arctic developments, which may be more difficult to exploit. Thom said Russian reserves represent about 15 percent of the global oil and natural gas production while its energy sector accounts for 7 percent of the global capital expenditure, funds used by a company to acquire or upgrade its assets. Russia has focused its own efforts on arctic exploration and LNG options for Asian economies. Thom said there has been some attention to those reserves from international investors but production […]

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Wood Mackenzie: Expand Russia’s energy horizons

Ian Thom, a Russian analyst at energy consultant group Wood Mackenzie , said there isn’t enough focus on unconventional resources in the Russian energy sector. “There has been comparatively less commitment to unconventional resources in Russia,” he said in a statement Tuesday from Moscow. Wood Mackenzie said there’s too much focus in Russia on conventional onshore projects instead of tight oil, liquefied natural gas and arctic developments, which may be more difficult to exploit. Thom said Russian reserves represent about 15 percent of the global oil and natural gas production while its energy sector accounts for 7 percent of the global capital expenditure, funds used by a company to acquire or upgrade its assets. Russia has focused its own efforts on arctic exploration and LNG options for Asian economies. Thom said there has been some attention to those reserves from international investors but production […]

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Beneath the Hype: Track Records and Physical Evidence Cast Doubts on Stories of Oil Plenty

Last week the International Energy Agency in Paris released its annual World Energy Outlook, which projects energy trends out to 2035. As it did last year, the 2013 WEO had plenty of good news for Americans: “The net North American requirement for crude imports all but disappears by 2035 and the region becomes a larger exporter of oil products.” Before we celebrate the end of the Middle East’s dominant role in global energy, however, a quick review of the IEA’s track record on its projections might be in order. Further, an analysis of a few key global oil production factors exposes the unstable foundation upon which hopes for North American oil independence are built. Following the two global oil crises of the 1970s, the IEA was upbeat about oil supply looking out a quarter century into the future. […]

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Surviving Climate Change: Is a Green Energy Revolution on the Global Agenda?

A week after the most powerful “super typhoon” ever recorded pummeled the Philippines, killing  thousands  in a single province, and three weeks after the northern Chinese city of Harbin suffered a devastating “ airpocalypse ,” suffocating the city with coal-plant pollution, government leaders beware!  Although individual events like these cannot be attributed with absolute certainty to increased fossil fuel use and climate change, they are the type of disasters that, scientists tell us, will become a pervasive part of life on a planet being transformed by the massive consumption of carbon-based fuels.  If, as is now the case, governments across the planet back an  extension of the carbon age  and ever increasing reliance on “unconventional” fossil fuels  like tar sands and shale gas, we should all expect trouble.  In fact, we should expect mass upheavals leading to a green energy revolution. None of us can predict the future, but […]

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Daniel Yergin: Oil Prices Have Been Falling But Fracking Will Limit the Decline

When Americans take to the road this Thanksgiving holiday they will be paying about 6% less for gasoline than they paid a year ago. That’s because the price of crude oil has fallen. Increased oil production due to fracking–the technology that breaks up shale rock buried deep inside the earth to release oil and natural gas reserves–has boosted U.S. oil output, and, in turn, reduced prices. Crude oil is trading near $93 a barrel, a five-month low, and gasoline prices are averaging $3.21 a gallon for regular unleaded, according to AAA. Natural gas is trading at $3.55 per million BTU, a few cents below the year-ago price. What happens next to oil prices will, as always, depend on supply and demand fundamentals…and politics. For crude oil, “the floor is established by the costs of these unconventional resources…at $60 or $70″ a barrel,” says […]

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Volkswagen combines XL1 powertrain with up! for the twin up! concept plug-in diesel hybrid; 214 mpg

Volkswagen combines XL1 powertrain with up! for the twin up! concept plug-in diesel hybrid; 214 mpg DB2013AL12826_small Introducing the twin up! Click to enlarge. Volkswagen presented the twin up! concept car at the Tokyo Motor Show. Equipped with a plug-in hybrid system from the super-efficient XL1 ( earlier post ), the four-seater based on the up! city car achieves combined fuel consumption of 1.1 liters per 100 km (214 mpg US ) (NEDC), with corresponding CO 2 emissions of 27 g/km. All new Volkswagen vehicles are configured to accept alternative drive systems as well as conventional ones, making installation of the compact XL1 plug-in hybrid system in the twin up! relatively easy. The only modification made in the production version was to lengthen the up!’s extremely short front overhang by 30 mm. The drive unit of the twin up! (system power: 55 kW) is mounted at the front of […]

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Oil Futures Gain on Bernanke Remarks

Oil futures are higher in Asian hours Wednesday after comments from the U.S. Federal Reserve chief suggested that the Fed’s easy policy will stay for an extended period. Ben Bernanke’s comments are also weakening the greenback against other major currencies and giving some lift to dollar-denominated oil futures. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $93.59 a barrel at 0559 GMT, up $0.25 in the Globex electronic session. January Brent crude on London’s ICE Futures exchange rose $0.17 to $107.09 a barrel. The gains in oil may be short-lived with investors jittery ahead of the U.S. Energy Information Administration’s weekly release of data on petroleum inventories Wednesday, which is expected to show a ninth straight week of increases amid strong domestic production. Analysts are expecting a rise of 700,000 barrels according to a survey of analysts by The Wall Street […]

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Natural Gas Down 1.7% as High Supply Trumps Near-Term Weather

–Gas down 2.8% in two days amid high supplies –Demand boost on cold snap priced into market –Temperature outlook beyond next week uncertain By David Bird NEW YORK–Natural-gas futures dropped 1.7% Tuesday as high supplies overshadowed a cold snap forecast for key consumer markets in coming days. Traders said the market has priced in expectations of below-normal temperatures from the Midwest through the south and east. But the outlook beyond the next six to 10 days continues to be uncertain, providing incentive for market participants to take to the sidelines. “The real cold weather is expected to last four to five days,” said Gene McGillian, broker and analyst at Tradition Energy in Stamford, Conn. “That’s taking a little bite of the rally.” For a second straight day, prices climbed early, only to find a lack of follow-through buying. Natural gas for December delivery on the New York Mercantile Exchange […]

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Ethanol Climbs Amid Speculation That Gasoline Demand Will Rise

Ethanol gained for a second day on speculation that increased demand for gasoline will spur consumption of the biofuel. The additive’s discount to the motor fuel contracted 4.83 cents to 80.35 cents a gallon, higher than the 57.15 cents averaged so far this year. Gasoline demand over the past four weeks was 4.7 percent above a year ago as of Nov. 8, data from the Energy Information Administration show. “It’s tight,” said Julie Ward, an assistant vice president at R.J. O’Brien & Associates, a broker in Des Moines , Iowa . “Demand is still good. With ethanol trading almost a buck under gasoline, refiners should be blending as much as they can.” Denatured ethanol for December delivery rose 3.1 cents, or 1.7 percent, to $1.836 a gallon on the Chicago Board of Trade, the highest settlement since Oct. 25. Prices have fallen 16 percent this year. Gasoline for December […]

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WTI Gains for Second Day as U.S. Fuel Stockpiles Seen Shrinking

West Texas Intermediate rose for a second day amid speculation U.S. fuel supplies declined and after the Federal Reserve signaled it will maintain steps to sustain the economic recovery. Futures climbed as much as 0.4 percent in New York. A “preponderance of data” would be needed before the central bank started removing stimulus, Fed Chairman Ben S. Bernanke said yesterday. Gasoline and distillate inventories probably shrank last week, while crude stockpiles expanded, according to a Bloomberg News survey before data from the Energy Information Administration today. World powers and Iran are resuming talks in Geneva over the Persian Gulf nation’s nuclear program. “It’s not surprising, in the absence of any other factors, that there is a little bit of positive sentiment in the market on a risk-reward basis, particularly for short-term traders,” said Michael McCarthy, a chief strategist at CMC Markets in Sydney. “But all of this could be […]

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WTI Oil Rises From 5-Month Low as Refinery Use Climbing

West Texas Intermediate oil rose from a five-month low on speculation that demand for crude increased as refineries boosted production after ending seasonal maintenance. Futures advanced 0.3 percent. An Energy Information Administration report tomorrow will probably show that refineries utilized 89.2 percent of capacity last week, up 0.5 percentage point from Nov. 8, according to a Bloomberg survey. Crude supplies gained a ninth week in the poll. Talks between Iran and the five permanent members of the United Nations Security Council plus Germany will resume tomorrow in Geneva. “I’ve changed my outlook for WTI from bearish to bullish,” said Stephen Schork , president of the Schork Group Inc. in Villanova, Pennsylvania . “We are coming out of turnaround season and can expect refiners to boost operating rates, which will increase crude demand.” WTI for December delivery rose 31 cents to settle at $93.34 a barrel on the New York […]

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World powers, Iran make new attempt to clinch nuclear deal

GENEVA (Reuters) – World powers aim to clinch a preliminary deal to curb Iran’s nuclear program in politically charged talks resuming in Geneva on Wednesday to end a long standoff and head off the risk of a wider Middle East war. The United States, Russia, China, France, Britain and Germany came tantalizingly close to winning concessions from Iran on the scope of its nuclear work in return for some sanctions relief at negotiations in the Swiss city on November 7-9. Top policymakers from the sextet have since said that an interim accord on confidence-building steps to start defusing a decade of suspicion and hostility between the West and Iran could finally be within reach. But diplomats caution that differences remain and could still prevent an agreement during the talks Wednesday through Friday. "There is a good chance. There is a hope the Iranians realize it’s a good deal and […]

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A look at Iran nuclear sites from mine to reactor

AP Photo Nuclear talks resume Wednesday between Iran and world powers after the last round stalled over issues that include Iran’s planned heavy water reactor and the levels of uranium enrichment. Iran later agreed to provide U.N. nuclear inspectors with greater information and access, but it’s uncertain whether the concessions will be enough to push envoys in Geneva closer to a deal. Iran seeks a rollback in U.S.-led economic sanctions, while the West is pressing it to curb its uranium enrichment – the process to make nuclear fuel. In the past decade, Iran’s nuclear program has advanced on many fronts and more facilities are planned. —- RAISED AT TALKS – ARAK HEAVY WATER REACTOR: Such reactors can run on non-enriched uranium as fuel and uses a molecular variant of water as a coolant. Heavy water reactors also produce more plutonium byproducts than conventional reactors. Plutonium can be used in […]

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Iran says sees good chance of success at Geneva nuclear talks

DUBAI/ROME (Reuters) – The protracted dispute over Iran’s nuclear program can now be resolved and world powers should seize a "historic opportunity" to clinch a deal, Iranian Foreign Minister Mohammad Javad Zarif said in remarks released on Tuesday. Iran is to meet with the six powers on Wednesday in Geneva for a third round of negotiations in a month, nearly two weeks after the sides neared an initial accord that would curb Iran’s nuclear activity in exchange for limited relief from sanctions. In Washington, President Barack Obama attempted to build support for a prospective Iran deal with skeptical members of the U.S. Senate, some of whom have been considering adding new sanctions on Tehran in a move that the White House argues would harm diplomatic efforts. In another sign of a thaw between the West and Iran, David Cameron telephoned Hassan Rouhani, marking the first time a British prime […]

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Wave of attacks in Iraqi capital kills at least 24

BAGHDAD (AP) — A wave of attacks, mostly by car bombs, hit mainly Shiite and commercial areas of Baghdad on Wednesday morning, killing at least 24 people and wounding 87, Iraqi officials said. The bombings were part of a surge in violence that has rocked Iraq over the past months as insurgents seek to thwart the Shiite-led government’s efforts to stabilize the country. Five of Wednesday’s attacks were carried out by parked car bombs while at least one was carried out by a remotely detonated bomb, police officials said. The deadliest attack was in the central Sadria neighborhood, where a parked car bomb went off at an outdoor market, killing five shoppers and wounding 15, they said. Other attacks took place in Hurriyah, Shaab, Tobchi, Karrada, Azamiyah and Amil neighborhoods. Medical officials confirmed the causality figures. All officials spoke on condition of anonymity as they were not authorized to […]

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Beirut Bombs Strike at Iran as Assad’s Ally

BEIRUT, Lebanon — A double bombing struck the Iranian Embassy compound in Beirut on Tuesday, in the deadliest assault on Iran’s interests since it emerged as the most forceful backer of the Syrian government against an armed insurgency. The frontal attack struck a symbol of the country’s powerful influence in Lebanon and neighboring Syria. The Abdullah Azzam Brigades, an offshoot of Al Qaeda that operates in Lebanon, claimed responsibility for the bombings, which killed at least 23 people, including an Iranian diplomat. Syria, Iran and Hezbollah, the Lebanese militant organization, pointed fingers at Israel and Saudi Arabia, and officials said it was unclear who had carried out the attack. Regardless, it was quickly seen as retaliation against Iran and Hezbollah, Iran’s ally, for supporting the Syrian government. The double bombing highlighted the risks and costs that Iran faces over Syria, which some analysts have called Iran’s Vietnam. Others say […]

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Snam Says First Gas Flows Coming from Libya After Stoppage

By Liam Moloney ROME–Snam SpA (SRG.MI), Italy’s biggest natural gas grid operator by pipelines, Wednesday said it is registering the first gas imports from Libya arriving in Sicily after unrest in the North African country blocked flows last week. Libyan gas flows are registered in the Sicilian Gela entry point, said Snam in a message sent via Twitter. It expects 3.5 million cubic meters of gas Wednesday, it added. Eni SpA (E), Italy’s biggest energy company by market value, said Nov. 11 that protesters in Libya had stopped gas exports to Italy. The protesters had blocked the key gas terminal of Mellitah, which is jointly run by Eni and the Libyan National Oil Co. The terminal facilitates gas exports via the Greenstream pipeline that can supply more than 10% of gas demand in Italy. Write to Liam Moloney at [email protected]

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Syrian troops capture key town near Lebanon border

AP Photo DAMASCUS, Syria (AP) — Syrian government troops captured a key town near the Lebanese border from rebels on Tuesday, days after launching a broad offensive in the mountainous western region, state media, activists and the army said. The attack on Qara began Friday morning in what appeared to be an operation aimed at cutting off rebel supply lines to Lebanon. The Qara route is particularly important to rebels entrenched in suburbs around Damascus, and also lies on the main north-south highway linking the capital to government strongholds along the Mediterranean coast. State TV reported troops were “in full control,” while the army said in a statement it had captured the town Tuesday morning and that “large numbers of terrorists who took positions in the city were wiped out.” The Syrian government refers to all armed opposition fighters as terrorists. “This achievement aims to strengthen control of supply […]

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Car bomb attack kills 10 Egyptian soldiers in Sinai

ISMAILIA, Egypt (Reuters) – Ten Egyptian soldiers were killed and 35 wounded in a car bomb attack near the North Sinai city of El-Arish on Wednesday, a security official said. The attack was one of the deadliest in the Sinai Peninsula, which is near Israel and the Palestinian-run Gaza Strip, since al Qaeda-inspired militants began stepping up assaults following the army’s ouster of Islamist President Mohamed Mursi in July. The soldiers were traveling in a convoy on the road to the Rafah border crossing with Gaza. There was no immediate claim of responsibility. A Sinai-based militant group, Ansar Bayt al-Maqdis, said it assassinated a high-ranking security officer in Cairo on Sunday, according to a statement posted on a militant Islamist website. That group has also said it was behind a failed suicide attack on Egypt’s interior minister in September. In a separate incident on Wednesday, three people were wounded […]

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Venezuela's congress grants Maduro decree powers

CARACAS, Venezuela (AP) — The Venezuelan congress granted President Nicolas Maduro emergency decree powers Tuesday that will strengthen the embattled leader’s hand as he goes after businesses the government accuses of sabotaging Latin America’s biggest oil economy. With the National Assembly’s vote, widely expected since Maduro requested expanded powers a month ago, the president will be able to enact laws without consulting congress for up to a year. The same tactic was employed four times by Maduro’s mentor and predecessor, the late Hugo Chavez, to promulgate dozens of laws that dramatically boosted state control over the economy. But unlike the charismatic Chavez, who had near-absolute command over his party, doubts about Maduro’s leadership have risen since he defeated opposition leader Henrique Capriles by a razor-thin margin in April’s presidential election and as worsening shortages of basic goods and galloping inflation have eroded popular support for his rule In what […]

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Venezuela’s congress grants Maduro decree powers

CARACAS, Venezuela (AP) — The Venezuelan congress granted President Nicolas Maduro emergency decree powers Tuesday that will strengthen the embattled leader’s hand as he goes after businesses the government accuses of sabotaging Latin America’s biggest oil economy. With the National Assembly’s vote, widely expected since Maduro requested expanded powers a month ago, the president will be able to enact laws without consulting congress for up to a year. The same tactic was employed four times by Maduro’s mentor and predecessor, the late Hugo Chavez, to promulgate dozens of laws that dramatically boosted state control over the economy. But unlike the charismatic Chavez, who had near-absolute command over his party, doubts about Maduro’s leadership have risen since he defeated opposition leader Henrique Capriles by a razor-thin margin in April’s presidential election and as worsening shortages of basic goods and galloping inflation have eroded popular support for his rule In what […]

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Afren finds major oil deposit off Nigeria

LONDON, Nov. 19 (UPI) — Afren, an energy company focused on African reserves, said Tuesday it encountered more oil than it expected in a frontier area off the coast of Nigeria. Afren said it encountered oil at prospecting lease 310 off the coast of Nigeria. It said the results from the exploratory drilling operation were “significantly” better than it expected. The company said Tuesday it drilled its Ogo-1 well to a total depth of 10,518 feet and encountered an oil layer measuring 524 feet thick. Based on that data, the company said it expected the prospect holds at least 774 million barrels of oil equivalent. Afren, headquartered in London, said the Ogo prospect represented a wildcat opportunity, meaning it was located in an area not proven to hold oil reserves, in an underexplored area off the Nigerian coast. It said preliminary data show there may be “several prospects” in […]

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Bolivia says it's on track to develop nuclear power

LA PAZ, Bolivia, Nov. 19 (UPI) — Bolivia is on track to develop a national nuclear power program for peaceful civilian purposes that include building electricity export capacity in the country, official media reported. Ever since Bolivian President Evo Morales outlined plans in October for a long-delayed nuclear power generation program, officials in La Paz have been pursuing follow-up discussions with Argentina, a future partner and experienced nuclear power producer, Bolivian news reports said. Bolivia’s nuclear energy approach is evolving into a two-pronged policy that’s set to lead to a more vigorous government pursuit of a domestic nuclear power generation program and exploration, development and export of the country’s numerous deposits, reports in Los Tiempos and other local media said. The U.N. International Atomic Energy Agency in Vienna notes on its website that not all data about Bolivia’s uranium deposits are readily available. Morales told an energy conference in […]

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Bolivia says it’s on track to develop nuclear power

LA PAZ, Bolivia, Nov. 19 (UPI) — Bolivia is on track to develop a national nuclear power program for peaceful civilian purposes that include building electricity export capacity in the country, official media reported. Ever since Bolivian President Evo Morales outlined plans in October for a long-delayed nuclear power generation program, officials in La Paz have been pursuing follow-up discussions with Argentina, a future partner and experienced nuclear power producer, Bolivian news reports said. Bolivia’s nuclear energy approach is evolving into a two-pronged policy that’s set to lead to a more vigorous government pursuit of a domestic nuclear power generation program and exploration, development and export of the country’s numerous deposits, reports in Los Tiempos and other local media said. The U.N. International Atomic Energy Agency in Vienna notes on its website that not all data about Bolivia’s uranium deposits are readily available. Morales told an energy conference in […]

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Japan Trade Deficit Widens as Fossil Fuel Imports Surge: Economy

Oil Refinery Japan posted its biggest October trade deficit on record, as a revival in exports to the U.S. and China was overwhelmed by the nation’s soaring costs for imported fuel in the wake of the nuclear industry’s shutdown. The shortfall of 1.09 trillion yen ($10.9 billion) extended a record run of deficits to 16 months, and was larger than all 28 forecasts in a Bloomberg News survey, a finance ministry report showed today in Tokyo . Imports (JNTBIMPY) climbed 26.1 percent from a year earlier, while exports gained 18.6 percent. The yen’s slide has helped boost profit forecasts and pushed up stock prices of exporters such as Toyota Motor Corp, while at the same time raising the cost of imports. The deficits are likely to continue and may drag on growth in the world’s third-largest economy, according to economist Norio Miyagawa . “Exports are rebounding on a pick-up […]

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In Oklahoma, water, fracking – and a swarm of quakes

NORMAN, Oklahoma (Reuters) – Seismologist Austin Holland wants to start an earthquake. From his office a few feet below the earth’s surface – a basement at the University of Oklahoma in Norman – Holland, who tracks quakes for the Oklahoma Geological Survey, is digging into a complex riddle: Is a dramatic rise in the size and number of quakes in his state related to oil and gas production activity? And, if so, what can be done to stop it? As part of his wide-ranging research, Holland is proposing to inject pressurized water into porous rock in an area already known to be earthquake-prone, to see whether injections of oil industry wastewater are contributing to a "swarm" of earthquakes rocking the state. "This is a dramatic new rate of seismicity," Holland said in an interview. "We can’t guarantee the earthquakes aren’t a coincidence (unrelated to oil and gas work)," he […]

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Export nod frustrates Freeport LNG

HOUSTON, Nov. 19 (UPI) — Freeport LNG Chief Executive Officer Michael Smith said he was disappointed with conditions set by the U.S. Department of Energy for a planned Texas terminal. The Department of Energy last week gave Freeport LNG the authority to ship liquefied natural gas from a planned Texas facility to countries that do not have a free trade agreement with the United States. The approval was for 1 billion cubic feet per day less than what the company sought. “We’re quite disappointed in the order itself,” Smith told the Platts energy news service Monday. “They’re basically making the rules up as they go along.” The Department of Energy is obligated to pass export applications for countries with a U.S. free trade agreement but may restrict or otherwise modify applications for exports to countries that don’t have such agreements. Smith said he was frustrated with the lack of […]

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Vitol, Shell Ask Judge to Halt Release of Oil Documents

Some of the world’s largest oil traders including Vitol Group, Morgan Stanley and Royal Dutch Shell Plc (RDSA) are asking a judge to stop the disclosure of millions of records gathered by the top U.S. commodity regulator during its nationwide investigation of the crude markets. The haul includes e-mails, depositions, trading records and audio files obtained by the U.S. Commodity Futures Trading Commission since its probe of the oil market began in December 2007. The companies are appealing an Oct. 25 order by U.S. District Judge William H. Pauley that would allow the handover of the trove to lawyers leading a civil case alleging market manipulation by firms controlled by Norwegian billionaire John Fredriksen. The battle over the records reveals for the first time the breadth of the CFTC’s investigation. The agency told Pauley in August that 5.7 million documents and almost 200,000 audio files had been sent to […]

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US natural gas exports into Mexico to continue growth

Natural gas imports into Mexico from the US—its largest supplier—increased 24% to 1.69 bcfd in 2012, according to data from the US Energy Information Administration cited by Mayer Brown Practices in a legal update on US Federal Energy Regulatory Commission permitting of NET Mexico Pipeline Partners LLC’s cross-border gas export project. FERC issued a Presidential Permit and Granting Authorization Nov. 8 (under Section 3 of the Natural Gas Act) allowing NET Mexico, a subsidiary of NET Midstream, Houston, to build a 2.1-bcfd gas export site at the US-Mexico border. According to the FERC order, the export hub will be supplied by a 120-mile, 42-in OD intrastate pipeline NET Mexico is planning to build from the Agua Dulce Hub in Nueces County, Tex. Exports would enter Mexico’s Los Ramones Pipeline, which has yet to be built ( OGJ Online, May 21, 2013 ). The FERC order adds that the export […]

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BP adds two more rigs to Gulf of Mexico program

BP PLC has added two more drilling rigs to its deepwater Gulf of Mexico fleet. The company said it now accounts for a record nine rigs in the region. The West Auriga has started development drilling in Mississippi Canyon’s Thunder Horse field. The ultradeepwater drillship , provided by Seadrill Ltd. under a long-term contract, can operate in as much as 12,000 ft of water. Thunder Horse achieved production of more than 200,000 boe/d in 2008 ( OGJ Online, Dec. 22, 2008 ). A reconstructed drilling rig has resumed development drilling at the Mad Dog field complex, replacing the platform’s original rig that was toppled and sent to the seafloor by Hurricane Ike in 2008 ( OGJ, Oct. 27, 2008, p. 64 ). The spar was installed in 4,734 ft of water on Green Canyon Block 782 and began production in 2005. BP said it expects to invest at least […]

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Arctic oil spill is certain if drilling goes ahead, says top scientist

Arctic oil spill pollution risks : Cairn Energy Leiv Eiriksson oil rig An oil rig off Greenland’s coast in the Arctic waters. Photograph: Greenpeace A serious oil spill in the Arctic is a “dead cert” if drilling goes ahead, with potentially devastating consequences for the pristine region, according to a leading marine scientist who played a key role in analysis of BP’s Deepwater Horizon oil spill. The warning came as Russia filed court orders this week to have Greenpeace activists and journalists kept in prison for a further three months in prison before their trial over a protest at Arctic oil dirlling . Concerns about the potentially dire consequences of drilling for oil in the region have intensified as the Russian government and others have begun exploration under the Arctic seas. In such a cold region, any spill would be much more troublesome, because the oil would not naturally […]

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Ukraine, Gazprom make amends

KIEV, Ukraine, Nov. 19 (UPI) — Ukrainian Energy Minister Eduard Stavytsky said a deal was reached with Russian energy company Gazprom that may avert a winter gas crisis. Gazprom in 2009 cut gas supplies to Ukraine following contractual disputes over payments. In early November, Gazprom said Ukraine had more than $880 million in unsettled debt from its August natural gas bills, sparking fears of another gas spat. Stavytsky said Monday both sides reached an agreement that may stave off another payment row. “We have reached a compromise that will allow Ukraine to timely pay for the natural resources that we receive under the new schedule that has been signed, and meet the needs of all of our partners — on behalf of the supplier of gas — Gazprom and on behalf of the transit [country],” he was quoted by the National News Agency of Ukraine as saying. The minister […]

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Imminent peak oil could burst US, global economic bubble – study

Earth insight badge Person using petrol pump Petrol prices have continued to rise as oil prices hit new highs. Photograph: Lewis Whyld/PA A new multi-disciplinary study led by the University of Maryland calls for immediate action by government, private and commercial sectors to reduce vulnerability to the imminent threat of global peak oil , which could put the entire US economy and other major industrial economies at risk. The peer-reviewed study contradicts the recent claims within the oil industry that peak oil has been indefinitely offset by shale gas and other unconventional oil and gas resources. A report by the World Energy Council (WEC) last month, for instance, stated that peak oil was unlikely to be realised within the next forty years at least. This is due to global reserves being 25 per cent higher than in 1993. According to the WEC report, 80% of global energy is currently […]

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Will the real International Energy Agency please stand up?

It was as if the International Energy Agency were appearing on the old American television game show To Tell the Truth last week as it offered a third contradictory forecast in the space of a year. You may recall that on To Tell the Truth the host would begin by reading a statement from a person with an unusual story or profession. Then, a celebrity panel would question three contestants who claimed to be that person. Afterwards, the panelists would vote on whom they believed was the real person. Finally, the host would say, “Will the real [name of person] please stand up?” (Some episodes are still available here on YouTube.) The difference is that the contestants on To Tell the Truth would try to tell similar, plausible stories so as to stump the panel. In the non-game-show world of energy forecasting, the IEA–a consortium of 28 countries, all […]

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Oil little changed near $93 a barrel

BANGKOK (AP) — Oil was little changed below $93 a barrel Tuesday, awaiting new cues from U.S. economic indicators and the resumption of negotiations in Geneva meant to curb Iran’s nuclear program. Benchmark U.S. crude for December delivery was down 7 cents at $92.96 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell 81 cents to $93.03 on Monday. Oil has traded between $93 and $96 a barrel over the past two weeks, and is down from nearly $110 a barrel in early October due to ample supplies and tepid demand. U.S. retail sales due Wednesday might halt oil’s recent slide if the figures show increased demand for gasoline. Iran, meanwhile, will resume talks this week in Geneva with the U.S., Britain, France, Russia, China and Germany aimed at resolving a decade-long standoff over Iran’s nuclear program. The powers […]

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WTI Crude Drops for Second Day as Investors Weigh Stimulus Taper

West Texas Intermediate oil fell for a second day as investors weighed the prospect that the U.S. will taper economic stimulus. Crude stockpiles declined after eight weeks of increases, according to a Bloomberg News survey. Futures lost as much as 0.3 percent in New York before a speech by Fed Chairman Ben S. Bernanke in Washington , as investors speculated if he will support the case for maintaining bond purchases. Prices dropped to a five-month low yesterday after comments from the Federal Reserve Bank of New York President William C. Dudley that raised the prospect the central bank will reduce stimulus. “Tapering won’t happen — they can’t back down, they have to keep going,” said Jonathan Barratt , the chief executive officer of Barratt’s Bulletin in Sydney. “The stockpile builds have been happening and eventually you will see some demand pick-up, but it has to be sustained.” WTI for […]

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WTI Falls as Dudley Bolsters Concern That Fed Will Taper

West Texas Intermediate fell to a five-month low and the discount to Brent widened after comments by Federal Reserve Bank of New York President William C. Dudley added to speculation that the central bank will reduce stimulus. Futures dropped 0.9 percent. The New York Fed chief pointed to payrolls growth as a positive sign in the text of remarks given in Flushing, New York, today. The policy-setting Federal Open Market Committee is buying $85 billion of bonds every month to spur growth and has said it plans to slow the purchases when the economy improves. WTI’s discount to Brent ended the day at the widest level in almost eight months. “We dropped about a dollar after Dudley said he was upbeat about the economy,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago . “The good news about the economy will strengthen calls for a tapering […]

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Ethanol Futures Advance as Fuel Consumption Outpaces Supply

Ethanol futures climbed for the seventh time in eight days as the highest production rates in 21 months fail to replenish stockpiles. Futures rose as much as 2 percent as supply has been at record seasonal lows most of this year even as output increased amid cheaper prices for corn, the primary ingredient used to make the additive in the U.S., data compiled by Bloomberg show. “The front-end has its own set of issues to deal with on supply and demand,” said Will Babler, a broker at Atten Babler Risk Management LLC in Galena, Illinois . “Even with really high production rates, supply is still tight.” Denatured ethanol for December delivery jumped 3.2 cents, or 1.8 percent, to $1.809 a gallon at 12:10 p.m. New York time on the Chicago Board of Trade. Futures have dropped 17 percent this year. Gasoline for December delivery rose 0.13 cent to $2.659 […]

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Demonstrators at Warsaw climate summit demand emission cuts

WARSAW, Poland, Nov. 18 (UPI) — Climate change demonstrators took to the streets of Warsaw during the weekend as host Poland comes under fire from critics at the U.N. COP19 climate summit. Chanting “Change the system, not the climate,” and “Justice and positive energy for all,” nearly 1,000 people marched through Warsaw Saturday as part of the international “March for Climate and Social Justice,” the Polish broadcaster TVN 24 reported. The event caused traffic congestion in the heart of the city as it wound its way from the Palace of Culture and Science, passed over the Poniatowski Bridge along Jerusalem Avenue and past the National Stadium, where the UN climate summit is being held. The march ended at Skaryszewski Park near the National Stadium, where demonstrators set up an “eco-park.” At the head of the procession was a large inflatable globe, emphasizing the demonstrators’ point decisions made to reduce […]

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Israelis Embrace French President for Iran Position

JERUSALEM — President François Hollande’s trip to Israel and the Palestinian territories, like all state visits, was planned months ago. But coming days before France and other world powers prepared to resume the nuclear talks with Iran in Geneva, the three-day visit that started on Sunday could not have come at a more opportune time for Israel — or for France, according to some Israeli officials. The warm greetings exchanged by the French and Israeli leaders gave an international boost to Prime Minister Benjamin Netanyahu of Israel, who has been conducting a campaign against a deal he calls “dangerous” even before the final details have been negotiated. At the same time, a senior Israeli official said, the country’s praise for Mr. Hollande’s tough stance at the nuclear talks “will provide a boost to France and even more motivation for it to stay the course.” For years, France has been […]

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Split on Accord on Iran Strains U.S.-Israel Ties

WASHINGTON — To the Israeli government, the preliminary deal with Iran that the Obama administration is trying to seal this week is a giveaway to a government that has spent two decades building a vast nuclear program. It enshrines the status quo — at a time when the Iranians are within reach of the technical capability to build a bomb — and rewards some unproven leaders with cash and sanctions relief. President Obama and his top aides see the same draft deal in sharply different terms. To them, it is a first effort to freeze the Iranian program, to buy some time to negotiate a more ambitious deal, and to stop two separate methods of developing a bomb, one involving uranium, the other plutonium. In return, the Iranians get modest relief from sanctions, but not what they desperately desire, the ability to again sell oil around the world. That […]

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Iran State Gas Company Faces Collapse, Hit by Sanctions

Iran’s national gas company said it is facing collapse, the latest sign of deepening economic distress from international sanctions as Tehran seeks urgent relief in talks with world powers. The chief executive officer of state-owned National Iranian Gas Company, Hamid Reza Araghi, said over the weekend that the company has declared bankruptcy, according to the semiofficial Mehr news agency. The report said the company had a debt of 100 trillion rials, or about $4 billion. The company tried to backtrack on the comments Monday. Majid Boujarzadeh, a spokesman reached by phone, denied it was bankrupt. But media reports also quoted Iran’s oil minister, Bijan Zangeneh, as saying the gas company “is destroyed.” The sanctions, aimed at preventing Iran from developing a nuclear weapon, have devastated the country’s critical energy industry. While gas is a relatively small income generator, oil exports, a major revenue source, have been slashed by nearly […]

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Iran president warns against "excessive demands" at nuclear talks

TEHRAN, Nov. 18 (Xinhua) — Iranian President Hassan Rouhani warned on Monday against what he called “excessive demands” by some powers at nuclear talks, saying that it will be detrimental to the negotiations, Press TV reported. “At the recent Geneva talks, good progress was made, but everyone must realize that excessive demands could complicate the process towards a win-win agreement,” Rouhani said in a telephone conversation with Russian President Vladimir Putin on Monday. “From our point of view, there should not be a situation in which the will of parties to reach mutually acceptable agreement is affected,” Rouhani was quoted as saying. The Iranian president did not expand on the “excessive demands, ” but western media reported on Monday that French President Francois Hollande has put forward some major demands to Iran ahead of nuclear talks between Iran and the P5+1 — the United States, China, Russia, Britain, France […]

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Iran president warns against “excessive demands” at nuclear talks

TEHRAN, Nov. 18 (Xinhua) — Iranian President Hassan Rouhani warned on Monday against what he called “excessive demands” by some powers at nuclear talks, saying that it will be detrimental to the negotiations, Press TV reported. “At the recent Geneva talks, good progress was made, but everyone must realize that excessive demands could complicate the process towards a win-win agreement,” Rouhani said in a telephone conversation with Russian President Vladimir Putin on Monday. “From our point of view, there should not be a situation in which the will of parties to reach mutually acceptable agreement is affected,” Rouhani was quoted as saying. The Iranian president did not expand on the “excessive demands, ” but western media reported on Monday that French President Francois Hollande has put forward some major demands to Iran ahead of nuclear talks between Iran and the P5+1 — the United States, China, Russia, Britain, France […]

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Russia invites Syrian opposition to Moscow for talks: FM

MOSCOW, Nov. 18 (Xinhua) — Russia has invited Syrian opposition groups to travel to Moscow for talks aimed at bridging their differences on the planned Geneva peace conference, Foreign Minister Sergei Lavrov said Monday. Leaders of the Istanbul-based Syrian National Coalition (SNC) ” did not refuse to come to Moscow, and they are studying our proposal,” Lavrov told a news briefing. He confirmed that Russian Deputy Foreign Minister Mikhail Bogdanov held talks with the SNC leaders in Istanbul last week. Russia’s mediation is to help the Syrian opposition to form a single delegation to the talks, which the United States and Russia are trying to convene in Geneva by the end of the year, Lavrov said. The proposed meeting is to “consolidate positive trends,” which included negotiations which have begun between the SNC, one of Kurdish groups and the so-called “internal opposition,” about finding common approaches to the peace […]

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Iran needs to extend natural gas pipeline network, official says

TEHRAN, Nov. 18 (UPI) — Iran needs more than 3,700 miles of pipeline installed to respond to domestic needs in the natural gas sector, a gas company director said Monday. Reza Almasi, managing director of the National Iranian Gas Transfer Co., said an extension of that length is needed on a gas pipeline network that now covers 21,000 miles, the Fars News Agency reported. Almasi said he was responding to a request from the federal government to overhaul the pipeline network to keep up with domestic demand for natural gas. “Up to the present, [the] gas pipeline network has been designed and built just to connect the feeding points and consumption markets without considering any alternative network for emergency situations, and construction of this extra network requires $15 billion to $20 billion dollars of investments,” he said. Taylor Swift diss by Victoria’s Secret model a misunderstanding Two hospitalized after […]

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