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Mexico’s President Signs Energy Overhaul Into Law

Mexican President Enrique Peña Nieto signed into law Friday a bill that ends the monopoly of state-owned Petróleos Mexicanos in oil and gas, opening new horizons for private-sector investment in the world’s ninth-largest oil producer. The energy bill, Mr. Peña Nieto’s wager to lift stagnant oil production and unleash economic growth, was passed by lawmakers in just 10 days. Congress gave final approval on Thursday of last week after two days of debates, and a required majority of state legislatures, 26 of the country’s 31, approved the constitutional amendment by this week. "This year, we Mexicans have decided to overcome myths and taboos in order to take a large stride toward the future," Mr. Peña Nieto said in a speech at the National Palace. Mr. Peña Nieto became the first president in more than 50 years to propose and pass in Congress changes to the constitution on the […]

Posted On : Published By : Tom Whipple
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Venezuela to raise domestic gas prices?

Venezuelan President Nicolas Maduro signaled he wants to raise gasoline prices, which are considered among the cheapest in the world at about 5 cents a gallon. "Without a doubt there’s a distortion that we need to correct," Maduro said Wednesday, in reference to the country’s highly subsidized gasoline. His comments came during a rare meeting with opposition political leaders, the Wall Street Journal reports. While the government should continue offering "special" prices for the domestic market, the president said, the subsidy "should be an advantage, not a disadvantage." The gasoline subsidy costs Venezuela about $12.5 billion a year. The president spoke of a "plan that should take us some three years for setting prices of hydrocarbons and their derivatives in the national market." Maduro added it should be a "progressive plan with national consensus." Violent riots erupted the last time the Venezuelan government […]

Posted On : Published By : Tom Whipple
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China reveals Rmb300bn cash injection to calm lenders

China has made a fresh attempt to head off a cash squeeze by announcing the injection of Rmb300bn of emergency money into its financial system, in an uncomfortable echo of a crunch earlier this year which rattled global markets. China’s central bank said it had provided funds to cash-strapped lenders over three consecutive days, disclosing more detail than on Thursday when it first confirmed it had made the highly unusual move of “short term liquidity operations”. China’s interbank lending rates soared dangerously high on Friday. Fears of a Chinese “hard” economic landing are top of many international investors’ 2014 worry lists, but financial markets have so far seen little danger of the country’s growth prospects being seriously derailed. Global stocks have been buoyed instead this week by the smooth launch of US Federal Reserve plans to “taper” , or scale back its asset purchases. “This may put China back […]

Posted On : Published By : Tom Whipple
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Court Finds Pa. Gas Drilling Rule Violates State's Constitution

Court Finds Pa. Gas Drilling Rule Violates State’s Constitution The Pennsylvania Supreme Court ruled Thursday that several provisions of Act 13, signed last year by Gov. Tom Corbett to overhaul the state’s oil and gas laws, violates the Environmental Rights Amendment to the Pennsylvania Constitution. The court ruled 4-2 that Act 13 violates Section 27 of the declaration of rights in Pennsylvania’s constitution, which states that citizens have a right to clean air, pure water and the preservation of the natural, scenic, historic and esthetic values of the environment. Chief Justice Ronald D. Castille noted that “we agree with the citizens that, as an exercise of the police power, Sections 3215(b)(4) and (d), 3303, and 3304 are incompatible with the Commonwealth’s duty as trustee of Pennsylvania’s public natural resources.” Justices Castille, Debra McCloskey Todd and Seamus P. McCaffrey stated in the ruling that Act 13’s zoning provisions, which […]

Posted On : Published By : Tom Whipple
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Court Finds Pa. Gas Drilling Rule Violates State’s Constitution

Court Finds Pa. Gas Drilling Rule Violates State’s Constitution The Pennsylvania Supreme Court ruled Thursday that several provisions of Act 13, signed last year by Gov. Tom Corbett to overhaul the state’s oil and gas laws, violates the Environmental Rights Amendment to the Pennsylvania Constitution. The court ruled 4-2 that Act 13 violates Section 27 of the declaration of rights in Pennsylvania’s constitution, which states that citizens have a right to clean air, pure water and the preservation of the natural, scenic, historic and esthetic values of the environment. Chief Justice Ronald D. Castille noted that “we agree with the citizens that, as an exercise of the police power, Sections 3215(b)(4) and (d), 3303, and 3304 are incompatible with the Commonwealth’s duty as trustee of Pennsylvania’s public natural resources.” Justices Castille, Debra McCloskey Todd and Seamus P. McCaffrey stated in the ruling that Act 13’s zoning provisions, which […]

Posted On : Published By : Tom Whipple
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Baker Hughes: US drilling rig count drops to 1,768

The US drilling rig count relinquished 14 units to settle at 1,768 rigs working during the week ended Dec. 20, Baker Hughes Inc. reported. A decline of 16 units in land rigs to 1,687 was nicked by a 2-unit increase in offshore rigs to 61. Rigs drilling in inland waters were unchanged from a week ago at 20. Oil rigs were also down 16 units, settling at 1,395. Gas rigs collected 3 more units to reach 372. Rigs considered unclassified gave up 1 unit to settle at 1 total.   Directional drilling rigs fell 7 units to 223 while horizontal drilling rigs were down 5 to 1,140. In Canada, a 28-unit drop in oil rigs brought that total to 227 and the country’s overall total to 398. Unchanged from a week ago were gas rigs at 171. Canada has 14 mores rigs compared with this week last year.   […]

Posted On : Published By : Tom Whipple
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Great Lakes coal traffic down 7.3% in November from a year ago

November coal traffic on the Great Lakes totaled 2,675,065 short tons, down 4.1% from October and down 7.3% from a year ago, according to data from the Lake Carriers’ Association. Year-to-date coal shipments on the lakes total 22.4 million st, down 2.7% compared with last year. The Cleveland-based association does not comment on its monthly coal figures, released Thursday. The largest terminal on the lake, the Midwest Energy Terminal in Superior, Wisconsin, shipped 1,556,945 st in November, down 4.9% from the prior month and down 6.5% from a year ago. Europe-bound exports from the terminal totaled 129,000 st in November, up 5.7% from October. Year-ago comparisons were not immediately available. Year-to-date coal exports from Superior total 1,504,000 st, up 20.1% from the same period last year, according to the association. Thunder Bay Terminals, in Thunder Bay, Ontario, shipped 33,382 st in November, down 33.1% […]

Posted On : Published By : Tom Whipple
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US growth of 4.1% validates Fed move

The US economy grew at its fastest rate in nearly two years in the third quarter of 2013 after revisions boosted the annualised rate of expansion from 3.6 to 4.1 per cent , days after the Federal Reserve said it would start scaling back its $85bn-a-month monetary stimulus. Critically, almost all of the upward revision was due to stronger consumption, which grew at an annualised rate of 2 per cent rather than 1.4 per cent. This suggests greater underlying momentum in the economy. US stocks reacted strongly to put the S&P 500 on pace for its biggest weekly gain in two months, while the dollar was stronger and Treasury yields hovered just below two-year peaks. The S&P was up 0.5 per cent to close at 1,818.31 in New York. The revision in growth adds to a series of recent data that suggests the US economy is accelerating and validates […]

Posted On : Published By : Tom Whipple
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Northern Gateway project welcomed — and called 'unsafe'

The Northern Gateway oil pipeline for western Canadian ports drew criticism despite support from the regulatory National Energy Board. Barry Robinson, a staff lawyer for advocacy group Ecojustice, said in a statement Thursday the project put the pristine western coastline at risk. "The Northern Gateway pipeline is an unsafe, unsustainable and unnecessary project, and it does not serve the national interest of this country," he said. Canadian pipeline company Enbridge received support from the energy board to build a pipeline designed to send 525,000 barrels of oil per day to ports in British Columbia. The Canadian Association of Petroleum Producers said that, with nearly all of the Canadian oil exports now headed to the United States building Northern Gateway to western Canadian ports was good for energy diversity. "Oil pipeline access to the West Coast will strengthen Canada’s ability to receive maximum value […]

Posted On : Published By : Tom Whipple
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Northern Gateway project welcomed — and called ‘unsafe’

The Northern Gateway oil pipeline for western Canadian ports drew criticism despite support from the regulatory National Energy Board. Barry Robinson, a staff lawyer for advocacy group Ecojustice, said in a statement Thursday the project put the pristine western coastline at risk. "The Northern Gateway pipeline is an unsafe, unsustainable and unnecessary project, and it does not serve the national interest of this country," he said. Canadian pipeline company Enbridge received support from the energy board to build a pipeline designed to send 525,000 barrels of oil per day to ports in British Columbia. The Canadian Association of Petroleum Producers said that, with nearly all of the Canadian oil exports now headed to the United States building Northern Gateway to western Canadian ports was good for energy diversity. "Oil pipeline access to the West Coast will strengthen Canada’s ability to receive maximum value […]

Posted On : Published By : Tom Whipple