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China to ease one-child policy early next year

Changes to China’s strict one-child policy, which will allow more parents to have a second child, will begin to roll out early next year, state media said. The policy change is expected to go into force in some areas of China in the first quarter of 2014, Yang Wenzhuang, a director at the National Health and Family Planning Commission, told the official Xinhua news agency. Beijing said last month it would allow millions of families to have two children, the most radical relaxation of its strict one-child policy in close to three decades. The move is part of a plan to raise fertility rates and ease the financial burden on China’s rapidly ageing population. Authorities were in the process of calculating the number of eligible couples, Yang said. China’s largely rubber-stamp parliament, the National People’s Congress, is expected to formally approve the new policy later this […]

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Exclusive: China commits $6.5 billion for Pakistani nuclear project

China has committed $6.5 billion to finance the construction of a major nuclear power project in Pakistan’s port city of Karachi as it seeks to strengthen ties with its strategic partner, Pakistani officials said. Pakistani Prime Minister Nawaz Sharif broke ground on the $9.59 billion project last month but officials have provided few details of how they plan to finance it. Financing documents seen by Reuters showed China National Nuclear Cooperation (CNNC) has promised to grant a loan of at least $6.5 billion to finance the project which will have two reactors with a capacity of 1,100 megawatts each. Two members of the government’s energy team and three sources close to the deal confirmed this. CNNC was not available for comment. "China has complete confidence in Pakistan’s capacity to run a nuclear power plant with all checks in place," said Ansar Parvez, chairman of the Pakistan […]

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Wind Farms in Maine Stir a Power Struggle

This state’s tree-filled hinterlands, long known for producing forest products and potatoes, are also suited for an export that has churned up debate: wind power. The recent appetite for wind power comes largely from Massachusetts and Connecticut, where laws require use of more renewable power. The two states combined have 70% of New England’s population but little open space to build wind farms. Developers have turned to Maine, where they say land is expansive and strong winds plentiful. Maine already leads the region with more than 400 megawatts of wind power installed, according to the American Wind Energy Association, which said 1 megawatt of wind power can cover about 290 homes. Recently signed long-term contracts with utilities in Massachusetts and Connecticut could more than double that output in the next few years. Many locals welcome the development, helped by financial rewards tied to the projects, and the […]

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Gasoline Price Takes Off in U.S.

Gasoline futures are climbing in response to signs of unseasonably strong demand for the fuel. Prices surged 5.9% last week to a three-month high after the U.S. Energy Information Administration reported that gasoline demand was the highest in more than five years. Gasoline prices usually fall in the winter as bad weather keeps drivers off the road. However, an improving U.S. economy and appetite overseas for relatively cheaper U.S. gasoline have led to stronger-than-expected demand this year. "It’s been a huge momentum shift" as market watchers switched their focus from high gasoline production to demand growth, said Jim Ritterbusch , president of energy-advisory firm Ritterbusch & Associates. "The macroeconomic guidance has been positive for gasoline demand," Mr. Ritterbusch said, citing gains in the U.S. economy and lower unemployment. On Wednesday, the Federal Reserve said it would scale back its $85 billion in monthly bond purchases, signaling that the economy […]

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EIA: U.S. Retail Gasoline Price Up 3.2 Cents in Week to $3.271/Gallon

The national average retail price of regular gasoline rose 3.2 cents to $3.271 a gallon in the week ended Monday, the Energy Information Administration said. The rise follows a drop of 5.4 cents a gallon over the previous three weeks. Prices are the highest since Dec. 2 and are 1.4 cents above a year earlier. The current price marks the first time gasoline has topped the year-earlier level since July 29, EIA data show. In early October, when prices were at the lowest level since January, they lagged the year-earlier level by 48.3 cents a gallon. The latest price gain comes as reformulated gasoline blendstock futures on the New York Mercantile Exchange climbed 5.8%, or 15.38 cents a gallon, in five straight gains last week, amid signs of improving gasoline demand. Prices ended Friday at their highest level since Sept. 9. Current gasoline prices are […]

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US Should Tap the Offshore Goldmine

This opinion piece presents the opinions of the author. It does not necessarily reflect the views of Rigzone. Back in 2011, at a fundraiser in San Francisco, President Obama remarked that “We have lost our ambition, our imagination, and our willingness to do the things that built the Golden Gate Bridge.” Since his comments there has no doubt been a dramatic increase in domestic production of oil, natural gas and renewable energy. Through the combined power of state-level regulatory regimes, technologies like deepwater drilling and hydraulic fracturing, and private-land ownership the United States has become one of the world’s leading oil and natural gas producers. But we should recognize that the majority of this progress has taken place despite action or inaction from the federal government, not because of it. Many worthy, large-scale energy projects on par with the achievement of the construction of the Golden Gate Bridge […]

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German biofuel consumption plunges 8.9% in year to October: BAFA

Biofuel consumption in Germany was 2.9 million mt in the calendar year to October, down 8.9% compared with the first 10 months in 2012, according to the most recent data released by the country’s federal economics agency BAFA. The drop came despite a 0.5% tick upwards in total road fuel consumption to 43.75 million mt during the same period, and blending rates were lower for all biofuel types, the data released Friday showed. One positive indicator for biofuel was a 9.5% increase in biodiesel consumption to 189,978 mt. ETBE usage also jumped 26.7% to 33,121 mt in the month of October, bringing the total for the year to 266,945 mt, a 2.6% rise. The total amount of biodiesel consumed in the year was 1.79 million mt, down 10.6%. Meanwhile, ethanol consumption in October was 90,438 mt, down 9.7%, and in the year to October, […]

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These Charts Happened: 2013 In Climate And Energy Graphs

From advances in renewable power to the clear impacts of climate change, to denying the lot of it, climate and energy issues in 2013 are sometimes best expressed through graphs. Here are eight of the best from throughout the year: Global Temperatures Keep Going Up Carbon Final The chart above shows how dramatically temperatures have spiked in recent years, largely due to greenhouse gas pollution. The blue line shows global temperature levels over the last 11,300 years, and that spike right at the end shows what “temperature is changing 50 times faster than it did during the time modern civilization and agriculture developed” actually looks like. The red line is the best estimate scientists have for what the temperature is likely to be in the near future if we continue on our current trend. The more greenhouse gases are emitted, the more they trap heat within the atmosphere before […]

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Peak Oil, Check. Peak Gas, Check. Peak Food? What?

Food may run out long before the oil does. A study by scientists at the University of Nebraska warns of " abrupt plateaus or declines " in industrial agricultural production. As much as "31% of total global rice, wheat and maize production" has experienced "yield plateaus or abrupt decreases in yield gain, including rice in eastern Asia and wheat in northwest Europe." The declines and plateaus in production have become prevalent despite increasing investment in agriculture, which could mean that maximum potential yields under the industrial model of agribusiness have already occurred. Crop yields in "major cereal-producing regions have not increased for long periods of time following an earlier period of steady linear increase." The paper makes for ominous reading. Production levels have already flattened out with "no case of a return to the previous rising yield trend" for key regions amounting to "33% of global rice and 27% […]

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WTI Trades Near Two-Month High on U.S. Growth, Sudan Fued

West Texas Intermediate traded near a two-month high on signs of stronger economic growth in the U.S., the world’s largest oil consumer, while violence in South Sudan sparked concern supplies may be disrupted. Futures were little changed in New York after gaining 2.8 percent last week. The International Monetary Fund is raising its outlook for the U.S. economy, Managing Director Christine Lagarde said yesterday. South Sudan evacuated some oil employees and plans a partial shutdown of facilities amid escalating unrest. OPEC won’t need to cut output as global demand growth will absorb additional crude supply, the group’s three biggest producers said on Dec. 21. “Expectations of increased demand in the U.S.” are buoying crude, said Michael Poulsen, an analyst at Global Risk Management Ltd. in Middelfart, Denmark . “ Oil prices are supported due to the increased unrest in South Sudan,” which “seems to be on the edge of […]

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OPEC Ministers See No 2014 Glut Amid Signs of Demand Growth

Oil ministers from OPEC’s three biggest members rejected the possibility of a glut in global crude supply next year amid an increase in U.S. output and efforts by Iran and Libya to add barrels to the market. The Organization of Petroleum Exporting Countries, which provides about 40 percent of the world’s oil, won’t need to cut production in 2014 because growth in demand can absorb the additional crude, the ministers from Saudi Arabia, Iraq and Kuwait said yesterday after a meeting of Arab oil exporters in Doha, Qatar. U.S. benchmark West Texas Intermediate crude climbed to a two-month high on Dec. 20 after a report showed the U.S. economy expanded in the third quarter at a faster rate than previously estimated. WTI for February delivery rose 28 cents to $99.32 a barrel in New York. “Do you know why WTI traded near $100 […]

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Iran Nuclear Talks to Resume Before New Year

Talks between Iran and six major powers on implementing last month’s nuclear deal will resume after Christmas, a spokeswoman for European Union foreign policy chief Catherine Ashton said Monday. Baroness Ashton spoke with Iranian Foreign Minister Javad Zarif on Sunday, the spokeswoman said, after experts held three days of fresh implementation talks in Geneva. "There will be a break in technical talks over Christmas," said the spokeswoman, Maja Kocijancic. "We expect that technical talks will resume before the new year." The Nov. 24 confidence-building deal saw Iran agreeing to curtail some of its nuclear activities in exchange for a modest relaxing of international sanctions on the country. The agreement was seen as a first step toward a comprehensive accord the two sides hope to sign within 12 months. However, a number of issues must still be completed from the November agreement including when the confidence-building deal enters into force […]

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For Iraq's Kurds, Only Baghdad Foils Energy Windfall

;Just two decades ago, Erbil was a dangerous town, attacked on one side by Iraqi dictator Saddam Hussein and on the other by warring Kurdish tribes. Today, this vibrant capital of Kurdistan, a semi- autonomous region in Iraq, is peaceful as expectations of an energy windfall are creating a boom and helping to refashion a traditional society and an ancient landscape. Hoteliers including Hilton and Kempinski are erecting buildings that now soar above the city’s 7,000-year-old Citadel. New shopping malls compete with the medieval bazaar. And Erbil’s historic downtown is ringed by luxury villas, residential towers and commercial offices, driven by a 20-fold surge in property prices since U.S. forces invaded Iraq in 2003. "A decade ago, Erbil was more like a big village," said Tahir Osman, deputy governor of Erbil Province who helped forge an urban development plan that calls for a Grand-Prix race track. "My dream […]

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For Iraq’s Kurds, Only Baghdad Foils Energy Windfall

;Just two decades ago, Erbil was a dangerous town, attacked on one side by Iraqi dictator Saddam Hussein and on the other by warring Kurdish tribes. Today, this vibrant capital of Kurdistan, a semi- autonomous region in Iraq, is peaceful as expectations of an energy windfall are creating a boom and helping to refashion a traditional society and an ancient landscape. Hoteliers including Hilton and Kempinski are erecting buildings that now soar above the city’s 7,000-year-old Citadel. New shopping malls compete with the medieval bazaar. And Erbil’s historic downtown is ringed by luxury villas, residential towers and commercial offices, driven by a 20-fold surge in property prices since U.S. forces invaded Iraq in 2003. "A decade ago, Erbil was more like a big village," said Tahir Osman, deputy governor of Erbil Province who helped forge an urban development plan that calls for a Grand-Prix race track. "My dream […]

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Libya Should Use Force to Reopen Seized Oil Ports -Minister

Libya should use force to reopen oil ports closed since July by a tribal autonomy movement, the country’s oil minister said Saturday, confirming that closed Marsa al-Hariga terminal near Tobruk will resume shipments soon. "This is my opinion as an oil minister…force should be used," Abdelbari al-Arusi said on the sidelines of an energy meeting in Doha, but he didn’t say when such action might be taken. Libya, which is currently producing around 250,000 barrels a day, could struggle to regain its market share once it restores output to 1.6 million barrels a day, he said. Earlier this month, government officials and lawmakers said an agreement had been reached between tribal leaders to reopen the port in exchange for greater regional oversight of oil exports. But on Sunday Ibrahim al-Jathran, the leader of a large militia that is blocking several ports, said his group wouldn’t reopen […]

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South Sudan Unrest Threatens Oil Flow

Two United Nations peacekeepers were killed in an assault on their base in South Sudan along with 20 civilians who were sheltering there. They were the first U.N. casualties in a week of violence that has spread from the capital to energy-producing regions, spurring Beijing to move to evacuate some Chinese oil workers. What began Sunday night as a clash between army factions has spiraled into nationwide ethnic fighting that threatens to chase away foreign oil companies and choke the lifeblood of the fledgling nation’s economy. Some 500 people have been killed and more than 30,000 forced from their homes. Many civilians, including hundreds of oil workers, have sought shelter in bases belonging to the U.N. peacekeeping mission, which has reported fighting in six of the country’s 10 states. The U.N. said Friday that its base in the town of Akobo, in Jonglei state, had been attacked overnight "by […]

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Americans Evacuated From South Sudan

; American citizens were evacuated from a contested area of South Sudan on Sunday after a local rebel commander provided assurances that there would be no interference, Western officials said. The evacuation, which involved about 15 Americans, was carried out by helicopter from the United Nations compound in Bor, in Jonglei State, which is surrounded by 2,000 armed youths. It came one day after American Special Operations forces tried to evacuate the Americans there, only to turn back after the three Osprey aircraft being used for the mission ran into heavy small-arms fire. Four American service members were wounded in that episode . “We were able to evacuate all Americans who presented themselves at the U.N. camp in Bor,” a State Department official said. “We will continue to work to confirm whether there are any remaining American citizens in Bor who need to be evacuated.” The Sunday evacuation […]

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South Sudan Aid Agencies Need $1.1 Billion, Official Says

South Sudan will need $1.1 billion of humanitarian aid in 2014 after violence in the past week displaced 62,000 people, the United Nations said. The escalating crisis in South Sudan makes it “crucial that aid agencies get money needed to respond early in the year,” UN Assistant Secretary-General Toby Lanzer said on his Twitter page from Juba, capital of the nation that was split off from Sudan in 2011, becoming independent. The fighting in South Sudan, which broke out on Dec. 15, has already claimed as many as 500 lives, including UN peacekeepers. A rebel force linked to deposed Vice President Riek Machar and led by General James Kong Chol last week captured Bor, the capital of Jonglei state, and said it has taken control of the oil-rich nation. Machar, who is being hunted by security forces, has called for President Salva Kiir to step down for failing to […]

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Saudi Oil Minister Naimi Sees Crude Stable in 2014

Saudi Arabian Oil Minister Ali al-Naimi said Saturday that he is optimistic crude-oil prices will remain stable next year after the Organization of the Petroleum Exporting Countries decided earlier this month to keep its output ceiling unchanged. "The ceiling of the group was kept unchanged because the oil market is in a stable condition and oil prices are suitable for everyone," Mr. Naimi said at an energy meeting in Doha. "I’m optimistic about the future, as I see that the stability of the petroleum market will continue next year." Some officials from OPEC, a group of some of the world’s largest oil producers, have been publicly and privately jostling over whether the group should collectively cut back production in the event that global oil output rises significantly, threatening to weaken prices. Gulf OPEC officials have said that Saudi Arabia, the cartel’s kingpin, won’t unilaterally cut oil […]

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Tension Rises at Egyptian Universities

Clashes between the police and students in Egypt have intensified in recent weeks, partly shutting some of the country’s top universities and taking a heavy toll on demonstrators. At least two students have been killed and hundreds more injured or arrested since early November. Since the start of the Arab Spring protests, in 2010, Egyptian universities have experienced their fair share of tumult. But recently the situation has reached a fever pitch. The ouster of President Mohamed Morsi in July triggered student protests against the military-backed government, resulting in a crackdown by security forces. The Association for Freedom of Thought and Expression, an Egyptian group that monitors academic freedom, has denounced a “widespread violation of universities’ independence and the rights and freedoms of their students.” Protests have taken place at universities across the country — most notably at the Islamic university of Al-Azhar and at Cairo University. […]

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Militant group in Egypt's Sinai warns military

An al-Qaida-inspired group in Egypt’s volatile Sinai has warned the country’s military and police, urging troops to desert their ranks or face death at the hands of its fighters. Ansar Jerusalem, or Ansar Beit al-Maqdis as the group is known, said in a statement on militant websites Monday that it considers Egyptian troops to be infidels because they answer to a secular government. If the warning is ignored, Ansar Jerusalem says it "will be more determined to fight" the military and police. Like other Sinai-based militant groups, Ansar Jerusalem has been blamed for rising attacks against Egypt’s forces since a July coup toppled the country’s former Islamist president, Mohammed Morsi. The group has also said it was behind a September suicide bombing that targeted Egypt’s interior minister, who escaped unharmed. © 2013 The Associated Press . All rights reserved. This material may not be published, broadcast, […]

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Militant group in Egypt’s Sinai warns military

An al-Qaida-inspired group in Egypt’s volatile Sinai has warned the country’s military and police, urging troops to desert their ranks or face death at the hands of its fighters. Ansar Jerusalem, or Ansar Beit al-Maqdis as the group is known, said in a statement on militant websites Monday that it considers Egyptian troops to be infidels because they answer to a secular government. If the warning is ignored, Ansar Jerusalem says it "will be more determined to fight" the military and police. Like other Sinai-based militant groups, Ansar Jerusalem has been blamed for rising attacks against Egypt’s forces since a July coup toppled the country’s former Islamist president, Mohammed Morsi. The group has also said it was behind a September suicide bombing that targeted Egypt’s interior minister, who escaped unharmed. © 2013 The Associated Press . All rights reserved. This material may not be published, broadcast, […]

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China cash squeeze worsens despite central bank efforts

China’s cash squeeze worsened on Monday despite the central bank’s repeated attempts to calm financial markets with emergency money injections. The seven-day bond repurchase rate, an important gauge of short-term liquidity, climbed to 8.8 per cent in early trading, up about 60 basis points from its average on Friday, a signal that banks are still hoarding cash . The continued tightening of monetary conditions in the face of the central bank’s liquidity injections raises the spectre of a repeat of the Chinese cash crunch earlier this year that exposed fragility in the world’s second-biggest economy and spooked global investors. Traders and analysts have praised the central bank’s more aggressive response to the current liquidity squeeze, but concerns are mounting as its actions appear to have been largely ineffectual so far. Late on Friday the People’s Bank of China announced it had conducted Rmb300bn ($49bn) of “short-term liquidity operations” , […]

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China Rates Approach Crisis Levels Despite Central Bank Measures

An exceptional bid by China’s central bank to curb soaring interest rates and relieve pressure on the financial system appeared to have come up short on Monday, as Chinese money market rates shrugged off the measure and continued to approach the crisis levels seen in June. The central bank, the People’s Bank of China, said late Friday that it had provided more than 300 billion renminbi, or about $50 billion, in short-term funds to selected banks over a three-day period that week. Rates continued to surge on Monday, however, in China’s money markets — a key source of short-term funding for commercial banks and also for financial institutions engaged in risky, off-balance-sheet shadow lending. One key rate, the seven-day repurchase rate, rose as high as 10 percent on Monday. That was double the rate of a week earlier and the highest level since June, when the […]

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Beijing to "resolutely control" population growth

Curbing the explosive growth of its population will be a top priority for the Beijing municipal government, Mayor of the Chinese capital Wang Anshun has said. "To resolutely control the population’s excessive growth is the key to solving multiple problems, such as traffic and environmental problems," said Wang on Sunday at a session of the Communist Party of China (CPC) Beijing committee. Beijing will give full play to the restructuring of industries and upgrading of service industries to slow down population growth, he added. Since 2000, Beijing’s permanent population has increased by an average of nearly 600,000 annually to reach 20.69 million at the end of 2012, far exceeding the previously planned target of keeping the population at 18 million by 2020. The population of Beijing is about 2.6 times that of London and 2.5 times that of New York. The metropolis faces traffic […]

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Beijing to “resolutely control” population growth

Curbing the explosive growth of its population will be a top priority for the Beijing municipal government, Mayor of the Chinese capital Wang Anshun has said. "To resolutely control the population’s excessive growth is the key to solving multiple problems, such as traffic and environmental problems," said Wang on Sunday at a session of the Communist Party of China (CPC) Beijing committee. Beijing will give full play to the restructuring of industries and upgrading of service industries to slow down population growth, he added. Since 2000, Beijing’s permanent population has increased by an average of nearly 600,000 annually to reach 20.69 million at the end of 2012, far exceeding the previously planned target of keeping the population at 18 million by 2020. The population of Beijing is about 2.6 times that of London and 2.5 times that of New York. The metropolis faces traffic […]

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Gasoline Price Takes Off in U.S.

Gasoline futures are climbing in response to signs of unseasonably strong demand for the fuel. Prices surged 5.9% last week to a three-month high after the U.S. Energy Information Administration reported that gasoline demand was the highest in more than five years. Gasoline prices usually fall in the winter as bad weather keeps drivers off the road. However, an improving U.S. economy and appetite overseas for relatively cheaper U.S. gasoline have led to stronger-than-expected demand this year. "It’s been a huge momentum shift" as market watchers switched their focus from high gasoline production to demand growth, said Jim Ritterbusch , president of energy-advisory firm Ritterbusch & Associates. "The macroeconomic guidance has been positive for gasoline demand," Mr. Ritterbusch said, citing gains in the U.S. economy and lower unemployment. On Wednesday, the Federal Reserve said it would scale back its $85 billion in monthly bond purchases, signaling that the economy […]

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U.S. Won't Tighten Pipeline Rules

The U.S. Transportation Department doesn’t plan to change regulations to better protect underground pipelines from riverbed erosion, a year after Congress ordered it to evaluate its policies in the wake of pipeline breaks that spilled hazardous liquids into waterways. The department’s Pipeline and Hazardous Materials Safety Administration said its review found that over the past two decades, riverbed erosion contributed to just one in every 200 significant hazardous-liquid incidents involving pipelines. The agency, which oversees pipeline safety, said in a recent letter to Congress that its "existing legislative authority is adequate to address the risks of hazardous liquid pipeline failures at major river crossings." The agency said that after its review, it sees no need to change existing regulations. The letter could spell the end of efforts by pipeline-safety advocates to enhance protections against "scouring," in which flooding or rapid currents strip away layers of earth from a river’s […]

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U.S. Won’t Tighten Pipeline Rules

The U.S. Transportation Department doesn’t plan to change regulations to better protect underground pipelines from riverbed erosion, a year after Congress ordered it to evaluate its policies in the wake of pipeline breaks that spilled hazardous liquids into waterways. The department’s Pipeline and Hazardous Materials Safety Administration said its review found that over the past two decades, riverbed erosion contributed to just one in every 200 significant hazardous-liquid incidents involving pipelines. The agency, which oversees pipeline safety, said in a recent letter to Congress that its "existing legislative authority is adequate to address the risks of hazardous liquid pipeline failures at major river crossings." The agency said that after its review, it sees no need to change existing regulations. The letter could spell the end of efforts by pipeline-safety advocates to enhance protections against "scouring," in which flooding or rapid currents strip away layers of earth from a river’s […]

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Canada Ice Storm Leaves Crews Scrambling to Restore Electricity

Repair crews are working around the clock to restore electricity to more than 500,000 households in Ontario and Quebec after an ice storm snapped branches, brought down power lines and crimped travel in Canada ’s two most populous provinces. More than 400 flights were canceled yesterday at Toronto’s Pearson International Airport, according to the airport’s website , with dozens more scrapped in Ottawa and Montreal . The storm left up to 30 millimeters (1.2 inches) of ice in the Toronto area and may dump as much as 10 millimeters in southeastern Quebec today, Environment Canada said. In Toronto, Canada’s biggest city, about 264,000 Toronto Hydro customers were without power as of 8:42 p.m. local time yesterday, the utility said in a message on Twitter. All streetcar service in the city — on what would have been one of the year’s busiest shopping days — was suspended due to icy […]

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Will US Light Tight Oil Save The World?

There has been plenty of hoopla lately concerning the boom in shale (LTO) oil production. From the New York Times: Surge Seen in U.S. Oil Output, Lowering Gasoline Prices Domestic oil production will continue to soar for years to come, the Energy Department predicted on Monday, scaling to levels not seen in nearly half a century by 2016. The annual outlook by the department’s Energy Information Administration was cited by experts as confirmation that the United States was well on its way — far faster than anticipated even a year ago — to achieving virtual energy independence. What the EIA is actually predicting:   AEO2014 EARLY RELEASE OVERVIEW . The data is C+C. AEO 2014 The first two points were what was actually produced in 2011 and 2012 and the rest of the blue line is what they are predicting for the future. The orange line is what they predicted last year. […]

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If Mexico is the next Brazil in oil production, brace for disappointment

Recent reforms that would open oil exploration and development in Mexico to major oil companies for the first time in decades has the media all atwitter about the prospects of a reversal in declining Mexican oil output and a possible doubling of production. The reforms have brought out comparisons with Brazil which has a similar arrangement in which the country’s state-owned oil company works with major international oil giants to develop Brazil’s petroleum resources. Adding to the frothy atmosphere, former Brazilian President Luiz Inacio Lula da Silva proposed a partnership between Mexico and Brazil to develop oil resources in both countries. In a world with daily average oil prices hovering near record levels, such news might be welcome if only we could actually count on the accompanying optimistic production forecasts. But, it’s instructive to look at what actually happened in Brazil since the time its […]

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Former BP geologist: peak oil is here and it will ‘break economies’

A former British Petroleum ( BP ) geologist has warned that the age of cheap oil is long gone, bringing with it the danger of “continuous recession” and increased risk of conflict and hunger. At a lecture on ‘Geohazards’ earlier this month as part of the postgraduate Natural Hazards for Insurers course at University College London (UCL), Dr. Richard G. Miller, who worked for BP from 1985 before retiring in 2008, said that official data from the International Energy Agency (IEA), US Energy Information Administration (EIA), International Monetary Fund (IMF), among other sources, showed that conventional oil had most likely peaked around 2008. Dr. Miller critiqued the official industry line that global reserves will last […]

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Dramatic decline in industrial agriculture could herald ‘peak food’

Most conventional yield projection models are oblivious to the real world say US researchers Industrial agriculture could be hitting fundamental limits in its capacity to produce sufficient crops to feed an expanding global population according to new research published in Nature Communications . The study by scientists at the University of Nebraska-Lincoln argues that there have been abrupt declines or plateaus in the rate of production of major crops which undermine optimistic projections of constantly increasing crop yields. As much as “31% of total global rice, wheat and maize production” has experienced “yield plateaus or abrupt decreases in yield gain, including rice in eastern Asia and wheat in northwest Europe.” The declines and plateaus in production have become prevalent despite increasing investment in agriculture, which could mean that maximum potential yields […]

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WTI Oil Rises to 2-Month High as U.S. GDP Tops Forecasts

West Texas Intermediate crude climbed to a two-month high after a report showed the U.S. economy expanded in the third quarter at a faster rate than previously estimated. Futures rose 0.3 percent, capping a weekly gain of 2.8 percent. Gross domestic product increased at a 4.1 percent annualized rate, up from a previous estimate of 3.6 percent, Commerce Department figures showed. The Federal Reserve said Dec. 18 that it will taper its bond-buying program amid improved prospects for the job market. A government report this week showed fuel use was at the highest level since 2008. “The economy is improving,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “The Fed decision was a vote of confidence in the economy and for future fuel demand.” WTI for February delivery rose 28 cents to $99.32 a barrel on the New York Mercantile Exchange […]

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WTI-Brent Spread Narrowing as U.S. Exports Record Fuels: Energy

The price gap between the world’s two biggest oil benchmarks probably will narrow next year as U.S. exports of refined fuels reach a record and crude supply from the Middle East and North Africa expands. West Texas Intermediate, the U.S. benchmark, will average $6 a barrel less than Europe ’s Brent in 2014, from $11.65 now, according to Commerzbank AG. Goldman Sachs Group Inc. is predicting $9 and Barclays Plc $8.30. The world’s most-traded energy spread already contracted 39 percent from the eight-month high of $19.01 reached Nov. 27. While the U.S. is pumping the most crude oil in a quarter century, laws prohibit most exports, driving down costs for domestic refiners and spurring record shipments of everything from diesel to gasoline that will diminish stockpiles. The forecasters expect Brent prices to weaken as regional supply recovers, led by Iran and Libya. “The continuing arbitrage for oil products out […]

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Natural-Gas Futures Slip 0.9% From 2-1/2-Year High

Natural-gas futures prices fell 0.9% Friday as traders cashed in after Thursday’s near 5% jump to a 2-1/2-year high. Traders said market participants took to the sidelines ahead of a mixed weekend weather outlook. Forecasters at MDA Weather Services said a "potent winter storm" was expected to move through the Midwest to the Great Lakes region, while, unusually warm temperatures are expected in the east, including record high temperatures in the mid-Atlantic region. Natural gas for January delivery settled 4.2 cents lower, at $4.418 per million British thermal units on the New York Mercantile Exchange. Gas futures gained 1.5% on the week, the seventh straight weekly rise. Friday’s estimated trading volume in the front-month contract was less than half that […]

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NE US spot natural gas prices drop by up to $3.30/MMBtu on warmer weather

Some US Northeast spot natural gas prices sank as much as $3.30/MMBtu in trading Friday as weather forecasts called for temperatures well above seasonal norms. After being hit by multiple winter storms over the past two weeks, and with forecast temperatures dropping to as low as minus-1 Fahrenheit in Boston, temperatures are back on the rise in the Northeast. Boston is expected to see a high temperature around 54 degrees Sunday, 13 degrees above normal for this time of year. New York is forecast to see temperatures in the mid-50s to upper 60s, with Washington reaching into the low 70s. Platts unit Bentek Energy forecast total Northeast load to drop as low as 13 Bcf Sunday from 17 Bcf Friday. Prices at the Algonquin Gas Transmission city-gates dropped $3.30 to average in the lower $5.70s/MMBtu, with prices at Tennessee Gas Pipeline zone 6-200 leg […]

Posted On : Published By : Tom Whipple
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Libya Militias Fleeing Cities, Leaving Chaos

For the first time since the ouster of Col. Muammar el-Qaddafi in 2011, the independent militias that dominated Libya’s biggest cities and sometimes cowed the central government have fled from the streets, chased away by a combination of civilian protesters and armed groups. But instead of a triumph for the transitional government of Prime Minister Ali Zeidan, the retreat has marked a new stage in Libya’s descent into chaos. In Tripoli, the capital, the government is now struggling to fill the vacuum left by the sudden disappearance of the militias, which had controlled scores of government facilities and private properties. In Benghazi, it has been unable to slow an escalating campaign of assassinations and bombings that are believed to be the work of extremist militiamen who have gone underground; now the attacks are targeting the unit that passes for the government’s only security force. And where […]

Posted On : Published By : Tom Whipple
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At least 15 Iraqi army officers killed in ambush: sources

At least 15 Iraqi military officers were killed in an ambush on Saturday in western Iraq’s Sunni Muslim-dominated province of Anbar, military sources said. Several top-ranking officers were among those killed in the attack, the sources said. (Reporting by Kamal Namaa, writing by Suadad al-Salhy; Editing by Alison Williams)

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Cyprus likely partner as Israel mulls gas exports, but Turkey beckons

Israel is studying its options for exporting its natural gas riches in the eastern Mediterranean, but instability in neighboring Egypt and friction with former ally Turkey are blocking possible undersea pipeline links with them to take the gas to Europe. That leaves a joint export operation with neighboring Cyprus, which will be the next big offshore gas producer in the region, looking like the frontrunner — for now, at least, because war-divided Cyprus lies at the center of a long and seemingly intractable dispute with Turkey. Regional security problems are proving to be a major stumbling block in the Jewish state’s drive to capitalize on its newfound energy wealth, with the Israeli navy undergoing an expansion driven by the need to protect Israel’s offshore fields and infrastructure. A recent report by the U.S. Energy Information Administration observed territorial disputes in the eastern […]

Posted On : Published By : Tom Whipple
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Oil producing areas in South Sudan engulfed by conflict

The acting governor of oil-rich Unity state in South Sudan said at least 16 people were killed during clashes there between oil workers and rival tribes. Acting Unity state Gov. Mabaek Lang De Mading said hundreds of people have fled the area to U.N. safe havens and more than a dozen were killed after clashes erupted in the oil-rich state, the independent Sudan Tribune reports. The Sudanese newspaper said oil workers used spears, knives and sticks during the melee with tribal groups. Conflict erupted in South Sudan this week when Salva Kiir, the country’s president, accused former Vice President Riek Machar of staging a coup. South Sudan is the world’s newest nation. When it gained independence from Sudan in 2011, the landlocked country gained control over much of the oil producing regions but Sudan maintained its grip on export infrastructure. Chinese government […]

Posted On : Published By : Tom Whipple
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Petrobras declares commercial potential of two offshore fields

Brazil’s Petrobras energy company said it sent notices to the Brazilian government advising that two offshore oil and gas prospects have commercial potential. Petrobas, formally known as Petroleo Brasileiro, said Thursday it submitted declarations of the commercial potential of the Franco and Sul de Tupi prospects in the energy-rich Santos Basin to the National Petroleum, Natural Gas and Biofuels Agency. Petrobas estimated the Franco prospect, which it wants to rename as the Buzios field, contains about 3.1 billion barrels of oil equivalent. Petrobras said it expects to have five production systems started in the field by 2020. The Sul de Tupi, which the company wants to name the Sul de Lula field, may contain as much as 128 million barrels of oil equivalent, the company said. Petrobas said first oil should come from the Sul de Lula field by the first quarter […]

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South Sudan Unrest Threatens Oil Flow

Two United Nations peacekeepers were killed in an assault on their base in South Sudan along with 20 civilians who were sheltering there. They were the first U.N. casualties in a week of violence that has spread from the capital to energy-producing regions, spurring Beijing to move to evacuate some Chinese oil workers. What began Sunday night as a clash between army factions has spiraled into nationwide ethnic fighting that threatens to chase away foreign oil companies and choke the lifeblood of the fledgling nation’s economy. Some 500 people have been killed and more than 30,000 forced from their homes. Many civilians, including hundreds of oil workers, have sought shelter in bases belonging to the U.N. peacekeeping mission, which has reported fighting in six of the country’s 10 states. The U.N. said Friday that its base in the town of Akobo, in Jonglei state, had been attacked overnight "by […]

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South Sudan Steps Closer to Unraveling

The United Nations provided sobering details on Friday of an assault on a peacekeeping base in South Sudan that underscored the organization’s fragile ability to protect civilians in the country, where sectarian mayhem has escalated in recent days. Two thousand armed youths of Nuer ethnicity overran the facility the previous day, killing at least 11 ethnic Dinka civilians seeking refuge and two Indian peacekeepers who had tried to protect them, the United Nations said. The assault on the base in the town of Akobo in Jonglei State on Thursday was among a number of alarming developments that have increased the fear of an impending civil war in South Sudan, the world’s youngest country, where ethnic hatreds, initially obscured after independence from Sudan two years ago, have been reaggravated and inflamed. Between 35,000 and 40,000 civilians have taken refuge in at least three other United Nations peacekeeping bases in the […]

Posted On : Published By : Tom Whipple
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Nigerian President Gives OK for Oil Refineries Privatization

Nigerian President Goodluck Jonathan has approved the launch of the privatization process of the country’s four oil refineries, the Bureau of Public Enterprises said Friday. The BPE listed the refineries as the Port Harcourt Refining Company Ltd. I, Port Harcourt Refining Company Ltd. II, Kaduna Refining & Petrochemical Company Ltd. and Warri Refining & Petrochemical Company Ltd. The refineries with a combined capacity of 445,000 barrels a day have worked well below their installed capacities for years due to poor maintenance. As a result, Nigeria, Africa’s largest oil producer, relies on fuel imports to meet around 80% of its needs for gasoline, diesel and other petrochemicals. The two refineries in Port-Harcourt have a combined capacity of 210,000 barrels a day, Warri has a daily processing capacity of 125,000 barrels and Kaduna has a capacity of 110,000 barrels. Further details on […]

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Mexico's Left Opposes Reform on Energy

Mexican President Enrique Peña Nieto signed into law Friday a bill that ends the 75-year-old government monopoly in the oil and gas industry, even as the main leftist party is pledging to undo the law by organizing the country’s first-ever referendum. Mr. Peña Nieto became the first president in more than 50 years to propose and pass changes to the constitution on the subject of oil. The last one was Adolfo López Mateos in 1960, and that was to reinforce, rather than weaken, a state monopoly set up in 1938 when former President Lázaro Cárdenas expropriated the oil industry and turned oil into a nationalist symbol of Mexican sovereignty. "This year, we Mexicans have decided to overcome myths and taboos in order to take a large stride toward the future," said Mr. Peña Nieto in a speech at the National Palace. Supporters of the law say it will […]

Posted On : Published By : Tom Whipple
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Mexico’s Left Opposes Reform on Energy

Mexican President Enrique Peña Nieto signed into law Friday a bill that ends the 75-year-old government monopoly in the oil and gas industry, even as the main leftist party is pledging to undo the law by organizing the country’s first-ever referendum. Mr. Peña Nieto became the first president in more than 50 years to propose and pass changes to the constitution on the subject of oil. The last one was Adolfo López Mateos in 1960, and that was to reinforce, rather than weaken, a state monopoly set up in 1938 when former President Lázaro Cárdenas expropriated the oil industry and turned oil into a nationalist symbol of Mexican sovereignty. "This year, we Mexicans have decided to overcome myths and taboos in order to take a large stride toward the future," said Mr. Peña Nieto in a speech at the National Palace. Supporters of the law say it will […]

Posted On : Published By : Tom Whipple
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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