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7 things everyone knows about energy that just ain't so (2013 Edition)

Mark Twain once said, "It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so." And, there are many, many things that the public and policymakers know for sure about energy that just ain’t so. That list is very long indeed and getting longer as the fossil fuel industry (which has little interest in intellectual honesty) continues its skillful manipulation of a gullible and sometimes careless media. Below I’ve listed seven whoppers that it would be charitable to call misleading. Longtime readers will recognize that I’ve addressed them before in various pieces. But I thought that it would be useful to review the worst of the worst of 2013 as the year ends. Here are seven things everyone knows about energy that just ain’t so: 1. Worldwide oil production has been growing by leaps and bounds in […]

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7 things everyone knows about energy that just ain’t so (2013 Edition)

Mark Twain once said, "It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so." And, there are many, many things that the public and policymakers know for sure about energy that just ain’t so. That list is very long indeed and getting longer as the fossil fuel industry (which has little interest in intellectual honesty) continues its skillful manipulation of a gullible and sometimes careless media. Below I’ve listed seven whoppers that it would be charitable to call misleading. Longtime readers will recognize that I’ve addressed them before in various pieces. But I thought that it would be useful to review the worst of the worst of 2013 as the year ends. Here are seven things everyone knows about energy that just ain’t so: 1. Worldwide oil production has been growing by leaps and bounds in […]

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Global Cereal Crop Production May be Maxed Out on 30 Percent of Farms

Global Cereal Crop Production May be Maxed Out on 30 Percent of Farms Recent research conducted by the University of Nebraska suggests that nearly one-third of global rice, wheat and corn crops have reached their maximum yields in farmers’ fields. A field of unharvested wheat is seen in Labastide d’Armagnac village in Landes, southwestern France, Recent research conducted by the University of Nebraska suggests that nearly one-third of global rice, wheat and corn crops have reached their maximum yields in farmers’ fields. The revelation raises concerns about the ability to meet food production needs amid a rising global population. Production of cereal crops has decreased or plateaued recently, the researchers report, noting that the projections typically used to ensure food security amid a growing population are based […]

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US Oil Settles At 2-month High On Inventory Decline

U.S. crude oil futures settled on Friday with their highest gain in more than two months driven by the fourth straight weekly decline in oil inventories while Brent drew support from civil unrest in Africa that has cut off supplies. Brent crude’s gains were capped as traders sold contracts to unwind the spread between the European benchmark and its American counterpart. Brent’s rise was also checked after government forces said they had defeated South Sudanese rebels in the capital of the country’s major oil producing state, after four days of intense fighting. By Friday afternoon, the government said it was ready for a ceasefire. Escalating violence in South Sudan had threatened to reduce its crude output further, adding to supply outages in Libya, where production is running at a mere 250,000 barrels per day (bpd). Prices were supported by U.S. government data that showed crude oil stocks […]

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Oil Futures Finish Above $100 On Strong Demand Indications

Oil futures closed above $100 a barrel for the first time in two months after a government report showed significant demand for both crude oil and petroleum products, exceeding expectations. Light, sweet crude for February delivery settled up 77 cents, or 0.8%, at $100.32 a barrel on the New York Mercantile Exchange, the highest price since Oct. 18. Prices rose 1% this week. Brent crude on the ICE futures exchange gained 20 cents, or 0.2%, to settle at $112.18 a barrel. Domestic crude-oil stockpiles dropped 4.7 million barrels to 367.6 million barrels last week, the U.S. Energy Information Administration said Friday. Traders and analysts surveyed by The Wall Street Journal had expected […]

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Oil closes above $100 on upbeat economic outlook

Oil prices closed above $100 a barrel Friday, the first time it crossed that threshold since October. Benchmark U.S. oil for February delivery rose 77 cents to close at $100.32 in trading on the New York Mercantile Exchange. The price of oil got a boost from a drop in applications for unemployment benefits, the latest sign of recovery in the U.S. job market, and expectations of a decline in U.S. crude stockpiles. Optimism about the U.S. economic recovery lifted expectations for the country’s energy demand. The last time oil traded above $100 a barrel was Oct. 21. The last day it closed above $100 a barrel was Oct. 18. During the abridged holiday trading week, oil gained $1. A report from the Energy Department’s Energy Information Administration released Friday showed that U.S. crude stockpiles fell 4.7 million barrels last week to 367.6 million barrels. The supply fell in the […]

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Crude Rises Above $100 as U.S. Supplies Fall

West Texas Intermediate crude rose above $100 a barrel for the first time in two months after a government report showed U.S. supplies fell to the lowest level since September. Prices capped a second weekly gain. Stockpiles decreased to 367.6 million barrels in the week ended Dec. 20, the Energy Information Administration said. Supplies of gasoline and distillate fuel, including diesel and heating oil, also dropped amid rising demand. Refineries operated at the highest rate in five months. “We are seeing lower crude and product inventories and good demand, and $100 should be a pretty firm number for a while,” said Michael Lynch , president of Strategic Energy & Economic Research in Winchester, Massachusetts . “It supports expectations that the economy is getting stronger and demand should be higher.” WTI for February delivery rose 77 cents, or 0.8 percent, to $100.32 a barrel on the New […]

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For Big Oil, Asset-Sale Options Shrink

Big Oil looks set to go on a diet. Europe’s largest oil and gas companies plan on shedding assets next year, hoping proceeds will bridge the gap between operating cash flows and ambitious capital-spending budgets and shareholder payouts. Finding buyers may require some creative thinking. Over the past four quarters, Europe’s five major oil companies— BP , 12/18/13 HEARD ON THE STREET: Busy BP S… More quote details and news » BP.LN in Your Value Your Change Short position Royal Dutch Shell , RDSB.LN -0.04% Royal Dutch Shell PLC B U.K.: London GBp 2264.50 -1.00 -0.04% Dec. 27, 2013 3:49 pm Volume : 1.82M […]

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Natural Gas Declines Ahead of Storage Report

Natural gas prices slipped Friday as more-moderate weather forecasts suggested demand for gas-powered indoor heating could fall next week. The price decline came ahead of a weekly government storage report, set to be released at 10:30 a.m. EST, and the expiration of the January contract at 2:30 p.m. EST. Natural gas for January delivery fell 5 cents, or 1.1%, to $4.383 a million British thermal units on the New York Mercantile Exchange. The more-actively traded February contract recently traded down 5.5 cents, or 1.2%, at $4.421/mmBtu. While cold air from Canada is expected to bring a "threat of significant cold" to the Midwest in the next six to 10 days, the western, eastern and southern U.S. […]

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Officials: Iran talks hit bump over enrichment

Iran is taking steps to improve its ability to speed up uranium enrichment that could delay implementation of a nuclear deal with six world powers because Tehran’s moves are opposed by the United States and its allies. Iran’s nuclear chief, Ali Akbar Salehi, said late Thursday that his country is building a new generation of centrifuges for uranium enrichment but they need further tests before they can be mass produced. His comments appeared aimed at countering criticism from Iranian hardliners by showing their country’s nuclear program is moving ahead and has not been halted by the accord. But two officials familiar with Iran’s nuclear activities said Tehran has gone even further by interpreting a provision of the interim Geneva nuclear deal in a way rejected by many, if not all, of the six powers that sealed the Geneva deal with Iran. They told The Associated Press […]

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Iraq troops arrest Sunni MP, kill five people -police

Iraqi security forces arrested a Sunni Muslim member of parliament in the western city of Ramadi and clashed with his bodyguards on Saturday, killing at least five people, police sources said. The dead included three bodyguards, a sister and a brother of the lawmaker, Ahmed al-Alwani, a member of the Sunni-backed Iraqiya bloc who has been critical of Prime Minister Nuri al-Maliki, the sources said. "Army troops with police special forces were trying to arrest Alwani from his house, but fierce fighting erupted. Five bodies, including one woman, were taken to Falluja hospital," one police source said. Police said a two-hour firefight broke out when bodyguards and members of Alwani’s tribe resisted police and army forces who went to arrest Alwani on charges of "terrorism" from his house in the center of Ramadi. Alwani has been an influential figure in a Sunni protest movement centered […]

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Maliki targets protesters as Anbar security crisis deepens

Maliki targets protesters as Anbar security crisis deepens Tensions are rising in Anbar province between Sunni protesters and Iraq’s Shia-dominated central government, as pressure is mounting on Prime Minister Nouri al-Maliki to push back against a rising tide of violence.Protesters in Anbar have rejected renewed threats from Maliki, who claims the demonstrations have been infiltrated by terrorists and has warned of imminent crackdowns. It has been a full year since protesters in Sunni-majority provinces across Iraq took to the streets to decry the… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

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Muslim Brotherhood Supporters Defy Egyptian Crackdown

Defying the widening crackdown against them, supporters of the Muslim Brotherhood marched in cities across Egypt on Friday, protesting the government’s decision to declare the group a terrorist organization and clashing with security forces in several places. At least three people were killed in Cairo, Damietta and Minya on Friday, as officers fired tear gas and birdshot at protesters who threw rocks, burned tires and set fire to police vehicles. The Interior Ministry, which oversees the police, said it had arrested 265 people across the country, illustrating the government’s resolve to move forcefully against the Brotherhood, the government’s principal political opponent. Most of the group’s leadership and thousands of its members are already in prison, having been rounded up during a sustained assault on the movement after the military ousted President Mohamed Morsi, a Brotherhood leader, in July. The state’s security services have killed hundreds of Mr. […]

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Leaders Say South Sudan May Be Closer to Peace Pact

Regional leaders in East Africa announced Friday that they had made progress on a peace deal to help end the crisis in South Sudan, but there was no indication that either side in the conflict was abiding by a cease-fire. Clashes between the rebels and the military continued as government forces launched a major offensive to retake a city in an oil-producing region. Soon after, the military announced that it had seized control of the city, Malakal, the capital of Upper Nile State and the scene of intense fighting in recent days. “The push against Malakal began at 6:30 a.m. and was done by noon,” said Col. Philip Aguer, a spokesman for the military. Having recaptured the strategic city of Bor this week, the government seemed to have the upper hand, however fleetingly, in the seesaw battle for control of this two-year-old country. Clashes began […]

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South Sudan Violence Hits Oil Industry

Days of clashes in South Sudan have hit the country’s largest source of revenue as oil production was halted in Unity state after foreign workers fled the oil fields over fears of more fighting in the region. "Unfortunately, the workers have closed the oil. Nobody closed it from us here," said former army General James Koang Chuol, who defected last week and took control of Bentiu, the capital of Unity state. "It is those technicians, fearing what is going on in South Sudan… yesterday they evacuated the area," he said, adding that production has been declining all week. A spokesman for the South Sudanese army said Wednesday that government forces are preparing to launch an imminent offensive to recapture the town. Foreign workers are key to the functioning of South Sudan’s oil industry, which provides the country with its only significant export and is the main source […]

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Israeli fuel strategy leans on gas

Israeli fuel strategy leans on gas Israel plans to cut oil use in transportation by 60 percent by 2025, an aggressive target by world standards, and will tap into its newfound natural gas deposits to make it happen. It is also investing heavily to help start-ups developing battery and biofuel technologies, and is offering an annual $1 million (R10.34 million) prize to innovators in the field, almost on par with winning a Nobel. Eyal Rosner, spokesman for the project in prime minister Benjamin Netanyahu’s office, said: “The intent is to make Israel a power centre that has knowledge and industry in the field, and from there to serve as a catalyst for the rest of the world in making the switch. The Fuel Choices Initiative programme has a 10-year budget of 1.5 billion shekels (R4.44 billion). Rosner switching from oil would bring consumer […]

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China formally eases one-child policy, abolishes labor camps

China formally approved on Saturday easing its decades-long one-child policy and the abolition of a controversial labor camp system, the official Xinhua news agency reported. Both were among a sweeping raft of reforms announced last month after a meeting of the ruling Communist Party that mapped out policy for the next decade. Under the new policy, couples will be allowed to have two children if one of the parents is an only child. Previously, a couple could generally only have a second child if both parents were only children. The plan was envisioned by the government about five years ago, with officials worried that the strict controls were undermining economic growth and contributing to a rapidly ageing population China had no hope of supporting financially. The resolution, formally approved by China’s largely rubber- stamp parliament on Saturday, will allow local legislatures to decide when to implement […]

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Markets on Edge as China Moves to Curb Risky Lending

HONG KONG — China’s financial system is in danger of becoming too big to bail out. Official bank lending has more than doubled since the global financial crisis, growing nearly twice as fast as the overall economy. The even bigger problem, however, appears to come from the rise of a shadow banking system that has allowed a number of companies and individuals, often with political connections, to borrow from state-controlled banks at low interest rates and relend the money at much higher rates to private businesses desperate for credit at almost any price. Now, in an effort to wean the banks and the economy off their addiction to such risky practices, Beijing has pledged to deliver what amounts to the country’s most sweeping financial overhaul in decades. Markets will play the “decisive” role in directing the economy, policy makers promised last month after a key plenum meeting of the […]

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China’s Dependency on natural gas imports rises

China’s Dependency on natural gas imports rises Nation seeks to reduce use of fossil fuels in move to improve air quality     China’s Dependency on natural gas imports rises A vessel, loaded with more than 60,000 tons of imported LNG, docks at a port in Putian, Fujian province. China imports a growing amount of natural gas to meet domestic demand. In the first 10 months of 2013, the country’s natural gas use was at 134.3 billion cubic meters. Provided to China Daily   China’s dependency on natural gas imports will continue to increase as the country is trying to reduce its fossil fuel consumption and improve air quality, experts said. Up to 32 percent of China’s natural gas use this year will depend on imports, Wang Xiaokun, an analyst at domestic commodities consultancy Sublime China Information Group Co Ltd, said on Tuesday. […]

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The U.S. Monthly Energy Review

The US Monthly Energy Review  is now up with all the US Oil and Gas data for November. US (estimated) Crude + Condensate production was 8,002 kb/d for November. I think that will be revised later because the Bakken had a bad month in November. Crude Oil Total The average, so far this year, has been 7,438 kb/d and if December production is as much as November then the average for 2013 will be about 7,485 kb/d. AEO 2014 estimated 2013 production at 7,756 kb/d so it would appear that they are already a bit high with their prediction. Natural gas liquids, along with natural gas is supposed to be a major player in our drive for “energy independence”, is up about 1 million barrels per day since 2006. In the chart below I have charted Net Imports along with Total Field Production, (NGLs + Crude) and Petroleum Products […]

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US propane, propylene stocks last week 31% less than year-ago level: EIA

US propane and propylene stocks are 31% under were they stood in 2012 on increasing exports, cold weather and changing infrastructure, Energy Information Administration data released Friday showed. The stocks fell 2.51 million barrels to 47.44 million barrels for the week ended December 20 (See story, 1627 GMT). Midcontinent stocks, for which Conway, Kansas, is the price marker, are down 35.9% from last year at 15.14 million barrels. Meanwhile, Gulf Coast stocks are down 31% and currently stand at 25.88 million barrels. Assessments at Mont Belvieu, Texas, the NGL hub of the US, are representative of the Gulf Coast supply and demand fundamentals. Prices at Conway have surged 74.3% over the past year while Mont Belvieu prices have climbed 44%. Conway was marked at $1.4685/gal Friday while Mont Belvieu propane was trading at $1.28/gal. Increasing export capacity has been the strongest pulling factor on […]

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Alaska to withhold gas project terms until companies reach commercial agreement

Alaska will withhold an offer of special state fiscal terms for a large North Slope gas pipeline and liquefied natural gas project until companies working on the project reach agreement on terms among themselves to proceed with the project, a spokeswoman for Governor Sean Parnell said Friday. Parnell mentioned his frustration with North Slope producers and TransCanada over the glacial pace of the project in a budget briefing two weeks ago, and his position was affirmed Friday by his spokeswoman, Sharon Leighow. BP, ConocoPhillips, ExxonMobil and TransCanada say they need an agreement with the state covering tax and royalty terms before proceeding with the project, which is estimated to cost $45 billion to $65 billion. Parnell said, however, he wants to see more progress on the project first. "I want to see commercial terms agreed on between the companies or steps toward a […]

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Analysts predict more drilling in US shale plays in 2014

With thousands of shale and other unconventional wells drilled in the US this year, could 2014 possibly get any better? Most analysts seem to think so. If more equals better, then 2014 will likely be another sizzling year for the drill bit in the US, with a cascade of funds chasing a horde of anticipated initial public offerings, expanded oil-company development programs, greater drilling efficiencies and more horizontal wells than ever, analysts and upstream experts say. "The focus will continue to be on the core resource plays," Topeka Capital Markets analyst Gabriele Sorbara said. "Dollars are going into development mode." To that end, "I think you’ll see a robust IPO market," Sorbara said, as private operators gear up to grow in established plays such as the Permian Basin in West Texas, the Eagle Ford in South Texas, the Bakken in North Dakota and Montana, […]

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California could experience 'historic' drought in 2014

California water authorities told Al Jazeera Friday that barring a series of heavy storms, California faces a drought next year that would restrict residents’ access to water and hurt agricultural production in the heartland in the long-term. "On the horizon, there is a chance we will receive some rain and snowfall in Northern California. We’re hoping the storm door will open," Bill Croyle, drought manager at the California Department of Water Resources, said. "We’re coming close to meeting some thresholds where we are in a drought. We’re looking at making recommendations after the January or February snow forecast," he said. California’s wine industry worries about the prospect of an ecological disaster. "It has a potential to be a historic drought," said David Graves, managing member of Sonoma Valley, Calif.’s Saintsbury Winery, which is associated with the trade group Napa Valley Vintners Association. For the past two years, California has […]

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California could experience ‘historic’ drought in 2014

California water authorities told Al Jazeera Friday that barring a series of heavy storms, California faces a drought next year that would restrict residents’ access to water and hurt agricultural production in the heartland in the long-term. "On the horizon, there is a chance we will receive some rain and snowfall in Northern California. We’re hoping the storm door will open," Bill Croyle, drought manager at the California Department of Water Resources, said. "We’re coming close to meeting some thresholds where we are in a drought. We’re looking at making recommendations after the January or February snow forecast," he said. California’s wine industry worries about the prospect of an ecological disaster. "It has a potential to be a historic drought," said David Graves, managing member of Sonoma Valley, Calif.’s Saintsbury Winery, which is associated with the trade group Napa Valley Vintners Association. For the past two years, California has […]

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Shell Renews Option for Factory Site in Western Pennsylvania

Royal Dutch Shell PLC said on Thursday that it has renewed an option to buy the site of a proposed $2 billion ethylene plant in western Pennsylvania. Demolition of a zinc-oxide refinery on the site in Monaca, Pa., is scheduled to begin early next year at Shell’s expense, said company spokeswoman Kimberly Windon. The land in Beaver County is owned by Horsehead Holding Corp. ZINC +1.97% Horsehead Holding Corp. U.S.: Nasdaq $ 16.53 +0.32 +1.97% Dec. 27, 2013 4:00 pm […]

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Labor shortage threatens Canada's $50 billion gas-export plans

Energy companies trying to raise almost $50 billion for Canada’s first network of natural-gas export terminals will face an even more basic challenge: finding the workers to build them. Housing complexes boasting an indoor golf driving range, a two-story gymnasium and a private movie theater are among perks that companies are mulling to lure tradesmen to Canada’s remote, snow-swept West Coast and mitigate wage inflation that could blow up project budgets. Labor shortages in the country already have pushed wages for some oil and gas workers as much as 60 percent higher than their counterparts in the U.S., according to U.S. and Canadian labor data. “The lack of skilled workers is a major component for the reason why you’re often behind schedule and over budget,” said Geoff Hill, partner and oil and gas leader at financial advisers Deloitte Canada in Calgary. A dearth of labor for oil sands and […]

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Labor shortage threatens Canada’s $50 billion gas-export plans

Energy companies trying to raise almost $50 billion for Canada’s first network of natural-gas export terminals will face an even more basic challenge: finding the workers to build them. Housing complexes boasting an indoor golf driving range, a two-story gymnasium and a private movie theater are among perks that companies are mulling to lure tradesmen to Canada’s remote, snow-swept West Coast and mitigate wage inflation that could blow up project budgets. Labor shortages in the country already have pushed wages for some oil and gas workers as much as 60 percent higher than their counterparts in the U.S., according to U.S. and Canadian labor data. “The lack of skilled workers is a major component for the reason why you’re often behind schedule and over budget,” said Geoff Hill, partner and oil and gas leader at financial advisers Deloitte Canada in Calgary. A dearth of labor for oil sands and […]

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Total’s Five French Oil Refineries Resuming Work as Strikes End

All five of Total SA (FP) ’s refineries in France are resuming operations after employees at Gonfreville voted to return to work, the last to come back after a strike that began two weeks ago, the CGT union said. All facilities are resuming activity, Eric Sellini, a CGT union representative, said by phone today. The 247,000 barrel-a-day refinery at Gonfreville in northern France, Total’s largest in the country, is the third site since yesterday where staff have ended industrial action. Officials at Paris-based Total haven’t returned two phone calls and an e-mail seeking comment on the plant’s status. European diesel traded near the highest in two months this week, boosted by the strikes, which began on Dec. 13. “We estimate that France will have lost about 5.1 million barrels of distillates and 2.5 million barrels of gasoline production during those strikes,” Olivier Jakob , managing director of Petromatrix GmbH […]

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Britain faces storm chaos and outages

Gales and Heavy Rain Threaten Festive Getaway Britain has been hit by a fresh band of stormy weather, with more than 17,500 homes thought to be without power and rail services across the south of England disrupted. Winds of 102mph hit parts of Britain on Thursday night, adding to the difficulties caused by storms on Christmas Eve which brought chaos to the train networks and left hundreds of flights grounded at Gatwick airport. Gusts of 102mph were recorded in the Welsh village of Aberdaron, while wind speeds of more than 70mph hit parts of Yorkshire and Scotland, the Met Office said. Tony Glover, of the Energy Networks Association, said conditions for those without power were “horrendous”, but that network companies were working “incredibly hard, around the clock” to get them reconnected. He added: “The flooding is a major issue for us and getting a cherry picker out into a […]

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NASA Glenn develops automated flywheel pulse-and-glide system; improving fuel economy up to 40-100%

26 December 2013 Schematic drawing showing the experimental setup of the existing open-cell approach using (a) ionic liquid as electrolyte and (b) using Li metal as lithium source and Li 2 O as solid electrolyte; (c) schematic drawing showing the setup of the new liquid cell battery. Credit: ACS, Gu et al. Click to enlarge. Researchers at the Pacific Northwest National Laboratory have led a multi-institutional effort to develop a transmission electron microscopy (TEM) technique that can provide insights into the structural and chemical evolution of electrode materials of real batteries in real time. In a paper published in the ACS journal Nano Letters , the authors note that TEM studies of lithium-ion batteries over the past few years have used an open-cell configuration in which the electrolyte is either solid lithium oxide or an ionic liquid, which is point-contacted with the electrode. This cell design is inherently different […]

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How Economic Arguments Against Nuclear Highlight Environmentalist Delusions

Two weeks ago, four of the world’s most respected climate scientists took the extraordinary step of sending an open letter to their long-time friends and colleagues in the environmental movement, urging them to reverse their longstanding opposition to nuclear power. The scientists told AP and CNN they felt the need to make public their displeasure after years of trying and failing to reason privately with green leaders, who believe solar, wind, and efficiency are enough to power the planet. The letter came at a time when mainstream environmental groups like Natural Resource Defense Council (NRDC) and Center for American Progress (CAP) were at pains to differentiate themselves from shrill antinuclear activists, like Helen Caldicott and Greenpeace. In a debate over Pandora’s Promise , moderated by the New York Times ’s Andrew Revkin, Bobby Kennedy Jr. chose not to repeat the claim he made a year earlier – that Chernobyl had killed a million […]

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Will Russia frack for oil?

One of my stranger speaker invitations recently was earlier this month in Moscow to an Adam Smith conference on Russia EOR (enhanced oil recovery), where I found myself in the ironic position of giving a presentation to reassure the audience that fracking,for oil was safe. Skip to next paragraph Recent posts Fracking is fracking and there is little or no difference between the methods used for gas or oil. Oil fracking in it’s modern form of horizontal drilling and hydraulic fracturing using less chemicals than before was introduced by Harold Hamm in the North Dakota Bakken about ten years ago and the impact on US oil is now well known. The Bakken turned around the idea that US oil had peaked, and the technology rippled out to the Eagle Ford, Permian and Niobrara formations. One of the nails in the Peak Oil coffin has been the realisation by even […]

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Brent Crude Drops in Thin Trade After Unsuccessful Run at $112 a Barrel

-Brent crude-oil was trading lower Friday in thin holiday trade, after making an unsuccessful run at early-December highs above $112 a barrel. Low volumes are likely to continue until after New Year, with many traders away from their desks. Brent crude for February delivery fell 18 cents to $111.80 a barrel on ICE Futures Europe, having briefly traded above $112 a barrel. U.S. crude-oil futures were down just one cent at $99.54 a barrel on the New York Mercantile Exchange. Strikes at Total SA (TOT) refineries in France have had a small downward effect on the price of Brent crude, but resolution to the disputes appeared to have been reached over recent days. Brent remains supported by the effects of ethnic violence in South Sudan, an east African oil producer. The effect on the country’s output is putting some upward pressure on international prices, say analysts. […]

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Crude oil prices extend rise on South Sudan worry

Oil prices rose further above $99 on Friday as violence in South Sudan stoked concerns about the African nation’s oil production. Benchmark U.S. oil for February delivery gained 27 cents to $99.82 in electronic trading on the New York Mercantile Exchange. Oil prices gained nearly 3 percent last week as optimism about the U.S. economic recovery lifted expectations for the country’s energy demand. Worries over instability in South Sudan have led some analysts to predict the contract may top $100 a barrel for the first time since mid-October. On Tuesday, the U.N. Security Council voted to increase U.N. peacekeeping forces in South Sudan by nearly 80 percent. Brent crude, a benchmark for international oils, was off 20 cents at $111.78 per barrel in London. In other energy futures trading on Nymex: – Wholesale gasoline shed 1 cent to $2.81 a gallon. – Heating oil was down […]

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WTI Swings on U.S. Jobless Claims as Supply Seen Falling

West Texas Intermediate swung between gains and losses after fewer Americans than projected filed for unemployment benefits and before data forecast to show crude inventories declined. Futures were little changed in New York and are poised for a second weekly increase. U.S. jobless claims dropped by 42,000 to 338,000 last week, Labor Department data showed yesterday. Crude stockpiles slid by 2.65 million barrels, a fourth weekly decline, according to a Bloomberg News survey before a report from the Energy Information Administration today. “The jobless claims data are better than expected and the U.S. is doing fine,” Olivier Jakob , managing director of Petromatrix GmbH in Zug, Switzerland , said today by phone. “The volume is so light that it is difficult to trade.” WTI for February delivery gained 2 cents to $99.57 a barrel in electronic trading on the New York Mercantile Exchange as of 11:09 a.m. London time. […]

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Worst Fuel Oil Loss Since 2011 Seen Easing on Import Cut: Energy

Refining losses from producing fuel oil in Asia are poised to narrow as imports from western countries and Iran decline while global economic growth boosts demand for transportation fuels. Cargoes of the ship and power-station fuel cost an average $10.20 a barrel below Dubai crude this month, the largest monthly discount since April 2011, according to data compiled by Bloomberg. That gap , known as the crack spread, will narrow to minus $8 a barrel in the first quarter of 2014, according to the median estimate in a survey of five analysts and traders. A recovery in fuel oil, which refiners typically produce at a loss after making gasoline and diesel, will help boost margins at companies including South Korea ’s S-Oil Corp. (010950) and Royal Dutch Shell Plc. (RDSA) Iran, once the second-biggest supplier to China , has cut exports by 67 percent compared with […]

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Gasoline Futures Jump to Three-Month High on Refinery Shutdowns

son. Delta Air Lines Inc.’s (DAL) Pennsylvania refinery, which serves the New York Harbor area, delivery point for futures contracts, plans to shut units next week for work. AAA, the biggest U.S. motoring club, said the number of automobile travelers from Dec. 21 to Jan. 1 will increase to a record 85.8 million. “Delta is a contributing factor and demand has been fairly good,” said Andrew Lebow , a senior vice president at Jefferies Bache LLC in New York. Gasoline for January delivery rose 0.58 cent to $2.82 a gallon on the New York Mercantile Exchange , the highest settlement since Sept. 6. Trading volume was 43 percent below the 100-day average as of 3:25 p.m. The futures […]

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Natural Gas Rises on Expectations For Continued Robust Demand

Natural gas prices inched up 0.4% Thursday as colder-than-average weather forecasts are seen keeping demand high for gas-powered heating. Natural gas for January delivery, which expires Friday, settled 1.7 cents higher at $4.433 a million British thermal units on the New York Mercantile Exchange. The more-actively traded February contract climbed 0.7 cent, or 0.2%, at $4.476/mmBtu. The eastern two-thirds of the U.S. will see a bout of below-normal temperatures in the next six to 10 days, according to Andover, Mass.-based weather forecaster WSI Corp. "In the first two weeks of the new year, it looks like we’ll see some cold across the east," said Gene McGillian, trader and broker for Tradition Energy in Stamford, Conn. "Supportive weather fundamentals are the […]

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Syria's Assad 'has secret Iraq oil lifeline'

The Syrian government of President Bashar al-Assad has received substantial imports of Iraqi crude oil from an Egyptian port in the last nine months, shipping and payments documents show, part of an under-the-radar trade that has kept his military running despite Western sanctions. Assad’s government has been blacklisted by Western powers for its role in the two-and-a-half year civil war, forcing Damascus to rely on strategic ally Iran as its main supplier of crude oil. An exclusive Reuters examination based on previously undisclosed commercial documents about Syrian oil purchases shows however that Iran is no longer acting alone. Dozens of shipping and payment documents viewed by Reuters show that millions of barrels of crude delivered to Assad’s government on Iranian ships have actually come from Iraq, through Lebanese and Egyptian trading companies. The trade, which is denied by the firms involved, […]

Posted On : Published By : Tom Whipple
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Syria’s Assad ‘has secret Iraq oil lifeline’

The Syrian government of President Bashar al-Assad has received substantial imports of Iraqi crude oil from an Egyptian port in the last nine months, shipping and payments documents show, part of an under-the-radar trade that has kept his military running despite Western sanctions. Assad’s government has been blacklisted by Western powers for its role in the two-and-a-half year civil war, forcing Damascus to rely on strategic ally Iran as its main supplier of crude oil. An exclusive Reuters examination based on previously undisclosed commercial documents about Syrian oil purchases shows however that Iran is no longer acting alone. Dozens of shipping and payment documents viewed by Reuters show that millions of barrels of crude delivered to Assad’s government on Iranian ships have actually come from Iraq, through Lebanese and Egyptian trading companies. The trade, which is denied by the firms involved, […]

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Beirut bomb kills anti-Assad Lebanese former minister, at least 4 others

Former Lebanese minister Mohammed Shattah, who opposed Syrian President Bashar al-Assad, was killed in an explosion that targeted his convoy in Beirut on Friday along with at least four other people, security sources said. Shattah, a Sunni Muslim, was also an opposition figure and an adviser to former prime minister Saad al-Hariri. Sources at the explosion site said Shattah was on his way to attend a meeting when the explosion went off. A Reuters witness at the scene said his car was "totally destroyed. It is a wreck." The sound of the blast was heard across the city at around 9:40 a.m. (0740 GMT), and a plume of black smoke was seen rising in the downtown business and hotel district. Ambulances could be seen taking victims from the area, a Reuters witness said. A restaurant and a coffee shop were destroyed in the blast, and several cars […]

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Iran says it is developing new centrifuges

Iran’s nuclear chief said the country is building a new generation of centrifuges for uranium enrichment but that they need further tests before they can be mass produced, apparently trying to counter hard-liner criticism of its nuclear deal with word powers. Under a landmark nuclear deal reached last month in Geneva, Iran promised not to bring new centrifuges into operation for six months, part of temporary limitations on its uranium enrichment program in return for the easing of some sanctions. But the deal does not stop it from developing centrifuges. Salehi’s comments appeared aimed at showing the country is moving ahead with its nuclear program into order to fend off criticism by Iranian hard-liners, who have denounced the deal, calling it a surrender in the face of Western pressure. The government of new President Hassan Rouhani says the deal recognizes Iran’s right to enrich uranium. […]

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Egypt: Police clash with pro-Morsi protesters

Egyptian security forces fired tear gas at dozens of supporters of ousted President Mohammed Morsi as authorities tighten security measures in the capital after renewed calls for mass rallies. Anti-riot police chased student protesters chanting against the military and the police at the Islamic Al-Azhar University on Friday. Similar clashes took place Thursday night, leaving one person dead, as anti-Morsi civilians joined in the fighting with protesters, according to Egypt’s official news agency. Clashes also erupted Friday in two other districts of the capital. Armored vehicles closed main squares and city centers in Cairo and other major cities after Morsi’s group, the Muslim Brotherhood, and its allies announced now protests in defiance of the interim government’s latest move labeling the group as a terrorist organization. © 2013 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more […]

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UN: 120,000 people displaced by S. Sudan violence

More than 120,000 people have been displaced by continuing violence in South Sudan, the United Nations said, as African leaders met Friday to find a political solution to a crisis that has exposed ethnic rifts within the country. Regional leaders under a bloc called IGAD are meeting Friday in the Kenyan capital of Nairobi to discuss South Sudan. That summit is expected to produce a roadmap for peace talks between South Sudanese President Salva Kiir and former Vice President Riek Machar, Kiir’s political rival who is accused of orchestrating a failed coup that the government says sparked unrest across the oil-producing East African country. "We in Kenya and the region are concerned with the loss of lives and resultant humanitarian crisis and would like to see the government taking the initiative to end hostilities," Kenyan President Uhuru Kenyatta said late Thursday. The […]

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Libya Says Oil Production Reaches 250,000 Bopd

Libya’s oil production was at 250,000 barrels per day as of December 25, according to an oil ministry statement on Thursday and carried by the state news agency LANA, and while that is up slightly from 224,000 at the end of November it is down sharply from July. Gas output was at 1.928 million cubic feet on December 25, the oil ministry said. The agency did not provide additional details. A mix of militias, tribesmen and political minorities, which are demanding a greater share of Libya’s oil wealth and more political power, have shut most oilfields and ports, cutting oil output from the 1.4 million bpd in July. The seizures have also cut Libya’s oil exports to 110,000 barrels a day from more than one million in July. Libya’s oil and gas industry association said on Tuesday it was optimistic the government would soon reach an agreement […]

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Cairo bomb blast deepens crisis in Egypt

Egyptian security officials inspect the damaged bus that was targeted by a bomb in Nasr City district, Cairo, Egypt A crude explosive device on a Cairo street injured five people on a bus on Thursday morning, deepening the sense of crisis in Egypt after a massive car bomb earlier this week which killed 16 people at a security headquarters in the northern town of Mansoura. The latest bloodshed came just hours after the military-backed government formally designated as a “terrorist organisation” the Muslim Brotherhood group of Mohamed Morsi , Egypt’s first elected president, ousted by a popularly backed coup in July. In a statement late on Wednesday night, clearly intended to seal the expulsion from politics of the Islamist group which led in elections held over the past three years, the government accused the Muslim Brotherhood of “terrorist” activities, including carrying out the Mansoura attack. It comes less than […]

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Algerian oil, gas output set to rise in next five years: Sonatrach

Algeria’s oil and gas production is expected to increase in the coming five years, reversing the decline in volumes seen in recent years, according to state oil and gas company Sonatrach. Speaking to reporters on the sidelines of the company’s general assembly earlier this week, Sonatrach head Abdelhamid Zerguine said Algeria’s hydrocarbons production was "showing signs of recovery." Algeria’s crude oil production stood at 1.14 million b/d in November, according to a Platts survey of OPEC and industry officials. This represents a drop of around 15% from average production of 1.3 to 1.4 million b/d for most of the period from 2005 to 2010. According to the US government’s Energy Information Administration Algeria’s gas production was 2.9 Tcf in 2011, having declined steadily since 2005 as its larger, more mature fields depleted. Zerguine said the decline in output seen over the last decade was […]

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The Five Richest Cities in the U.S.

While not quite going from feast to famine, the U.S. natural-gas market suddenly looks a lot different. Futures prices have soared of late to a two-and-a-half year high as cold weather caused a spike in heating demand, taking an unprecedented bite out of inventories. Last week’s report on underground gas stockpiles from the Energy Information Administration showed a drop of 285 billion cubic feet, shattering the previous weekly record established in January 2008. The report for the week ended Dec. 20, due Friday, should show a more typical reduction. As of the most recent report, underground storage stood at 3,248 billion cubic feet. That is 13% below last year’s level on the same date and more than 7% below the average of the past five years. There is no need to turn down the thermostat, though. Not too long ago, a stockpile of 3,000 billion cubic feet was considered […]

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