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Sudan Offers to Help Protect South Sudan Oil Regions

South Sudan, on the brink of civil war less than three years after winning its independence from Sudan, received a visit Monday from its former ruler as fighting spread to the oil regions that both countries depend on for survival. Sudan’s President Omar al-Bashir met with his counterpart, Salva Kiir, in the South Sudan capital of Juba. Although the two were on opposite ends of a civil war less than a decade ago, they now depend on each other to produce crude and export it to the outside world. The two presidents discussed the possibility of forming a joint force to protect South Sudan’s oil fields from rebels, according to Rabie Abdelaty, the spokesman for Sudan’s information ministry. "We need to put in place a force to protect our shared interests in the oil sector," he said. South Sudan’s foreign ministry had no immediate comment on whether Mr. Kiir […]

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South Sudan Peace Talks Start as Two Sides Say Deal Possible

South Sudan’s government and rebels said they were optimistic they could negotiate an end to a three-week-old conflict that the United Nations says has killed thousands of people and forced 200,000 to flee their homes. Talks resume today in the Ethiopian capital, Addis Ababa, to end the violence that has shaken the world’s newest nation. Chinese Foreign Minister Wang Yi said yesterday he was “ready to directly engage” the warring parties to end fighting between President Salva Kiir’s government and insurgents loyal to former Vice President Riek Machar . “We believe we can achieve full reconciliation,” the rebels’ chief negotiator, Taban Deng Gai, said at a press conference in Addis Ababa. South Sudanese Information Minister Michael Makuei said: “We have come for peace and we will go back to our people with peace.” Conflict broke out on Dec. 15 after Kiir accused Machar of trying to stage a coup, […]

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Oil prices bolstered by severe US cold snap

KUALA LUMPUR, Malaysia (AP) — The price of oil rose Tuesday, with unusually cold weather in the U.S. expected to fuel demand. Benchmark U.S. oil for February delivery was up 27 cents to $93.70 a barrel at mid-afternoon Kuala Lumpur time in electronic trading on the New York Mercantile Exchange. The contract fell 53 cents to settle at $93.43 a barrel on Monday. Brent crude, used to set prices for international varieties of crude, rose 66 cents to $107.39 in London. Crude prices were bolstered by the cold wave in the U.S., the world’s top oil consumer, as consumption of heating oil is expected to surge. Dangerously cold polar air snapped decades-old records, spreading Tuesday from the Midwest to southern and eastern parts of the U.S. and eastern Canada. Many cities came to a virtual standstill, with flights cancelled and schools and businesses shuttered due to the severe cold. […]

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EIA: U.S. Retail Gasoline Price Holds at 11-Week High

he national average retail price of regular gasoline inched up 0.1 cent to $3.332 a gallon in the week ended Monday, the Energy Information Administration said. The slight increase kept prices at their highest level since Oct. 21 for a second straight week. Prices have gained 9.3 cents, or 2.9%, in the past three weeks. The current price is 3.3 cents, or 1%, above the year earlier level, maintaining for a second week the biggest year-on-year price premium since July 29. In early October, when prices were at the lowest level since January 2013, they lagged the year-earlier level by 48.3 cents a gallon. The slim uptick comes as front-month reformulated gasoline blendstock futures on the New York Mercantile Exchange have dropped for six straight sessions and stand at a three week low. Nationwide gasoline inventories stand at the highest level since early August, the […]

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Icy Weather Threatens Oil Output From Texas To North Dakota

The severe cold weather sweeping across the central United States is threatening to curtail some oil production, if only briefly, as it disrupts traffic, strands wells and interrupts drilling and fracking operations. Weather stations recorded some of the coldest temperatures in two decades in the Midwest, threatening lives, closing businesses and schools and causing thousands of flights to be canceled. Arctic cold air was also spreading across Texas on Monday with temperatures in the oil country near Midland approaching a record low that was set more than 40 years ago. But forecasts from weather site AccuWeather say temperatures will swing back to normal levels in Texas and North Dakota by Wednesday, limiting the cold front’s impact on oil and gas production. "We’re going to see a turnaround and temperatures will recover across the upper […]

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US Senator Urges Plan To Increase Crude Oil Railcar Safety

U.S. Senator Charles Schumer on Monday will renew a call on federal authorities for a plan to retrofit or phase out certain older models of tank cars involved in a series of hazardous material spills during derailments. The New York Democrat will say that incidents involving the older DOT-111 tank cars require a corresponding increase in safety measures, according to a release from his office. Schumer will call on the U.S. Department of Transportation to finish a rulemaking process that will impose requirements on freight rail carriers to phase out or retrofit the cars to avoid potential explosions, oil spills or other dangerous occurrences. Schumer made similar demands last summer after the deadly derailment and explosion of a tanker train in Lac-Megantic, Quebec, which killed 47 people. In the latest incident involving DOT-111 cars, a 106-car BNSF crude train crashed into a […]

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China's economy projected to grow steadily, dynamically: economists

China would maintain steady and dynamic economic growth in 2014 on the back of its ongoing reforms, economists said at a forum here Monday. The forum was co-organized by the New York-based National Committee on U.S.-China Relations and China Center for Economic Research (CCER) with Peking University (PKU). CCEr economist Lu Feng said China was likely to maintain steady growth of 7.5 percent to 8 percent in real terms in 2014. He said three factors would affect China’s macro-economic performance during the year: the impacts of the external environment, its fight against pollution and its prudent macro-economic policy. "China’s exports are estimated to pick up modestly in 2014 from the preceding year, possibly reaching double-digit growth," Lu told Xinhua at a press conference, citing an expected improvement in the global economy, which would benefit Chinese export sectors. Lu also highlighted China’s macro-economic policy, […]

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China’s economy projected to grow steadily, dynamically: economists

China would maintain steady and dynamic economic growth in 2014 on the back of its ongoing reforms, economists said at a forum here Monday. The forum was co-organized by the New York-based National Committee on U.S.-China Relations and China Center for Economic Research (CCER) with Peking University (PKU). CCEr economist Lu Feng said China was likely to maintain steady growth of 7.5 percent to 8 percent in real terms in 2014. He said three factors would affect China’s macro-economic performance during the year: the impacts of the external environment, its fight against pollution and its prudent macro-economic policy. "China’s exports are estimated to pick up modestly in 2014 from the preceding year, possibly reaching double-digit growth," Lu told Xinhua at a press conference, citing an expected improvement in the global economy, which would benefit Chinese export sectors. Lu also highlighted China’s macro-economic policy, […]

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Study: Dead sea creatures cover 98 percent of ocean floor off California coast; up from 1 percent before Fukushima

The Pacific Ocean appears to be dying, according to a new study recently published in the journal Proceedings of the National Academy of Sciences . Scientists from the Monterey Bay Aquarium Research Institute (MBARI) in California recently discovered that the number of dead sea creatures blanketing the floor of the Pacific is higher than it has ever been in the 24 years that monitoring has taken place, a phenomenon that the data suggests is a direct consequence of nuclear fallout from Fukushima. Though the researchers involved with the work have been reluctant to pin Fukushima as a potential cause — National Geographic , which covered the study recently, did not even mention Fukushima — the timing of the discovery suggests that Fukushima is, perhaps, the cause. According to the data, this sudden explosion in so-called "sea snot," which is the name given to the masses […]

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Fresh Signs of a Cooling Economy in China

Growth in China’s services industries slowed in December, separate surveys have found, echoing a slowdown in manufacturing and confirming views that the economy lost steam at the end of last year. HSBC on Monday released its purchasing managers’ index for services, compiled by Markit Economics, showing a drop to 50.9 in December, its lowest level since August 2011, from 52.5 in November. But the figure remained above the 50-point level that indicates expansion in activity. New business growth was the slowest in six months. A similar survey by China’s National Bureau of Statistics, released Friday, also showed a slowdown in service sector growth in December, to a four-month low of 54.6, from the previous month’s 56. Indexes from the government and HSBC last week showed that China’s factory activity slowed in December, suggesting the moderation in the country’s growth in the final quarter of 2013 was broad-based. […]

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India urges Asian unity for fair LNG pricing

Indian Prime Minister Manmohan Singh urged Asian buyers of imported liquefied natural gas to unite to demand fair pricing. LNG prices in Asia are higher than those in Europe and North America because the cost in Asia is linked to crude oil prices under long-term contracts. Speaking at the dedication of Petronet’s Kochi LNG terminal in Kerala Saturday, Singh said Asia "has been the driver of the global LNG demand in recent times. It is therefore important that major buyers of LNG in Asia come together to demand a fair pricing mechanism for gas being imported from outside of Asia." "I hope to see India contribute towards an effort of this kind in the future," the prime minister added. Gas buyers from India, China, South Korea, Japan and Taiwan met in December to discuss how they could use their collective purchasing power to […]

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Coal surge sullies Germany's clean energy image

The share of electricity generated from coal rose in Germany last year as the country seeks to achieve its ambitious aim of switching off all nuclear power plants by 2022. Industry figures published Tuesday show that bituminous coal and lignite together contributed 45.5 percent of Germany’s gross energy output in 2013, up from 44 percent the previous year. Environmentalists criticize the increasing use of coal, saying it is a "dirty" source because of the large amount of carbon dioxide released when it is burned. Heavily subsidized renewable sources such as wind, solar, biomass and hydropower also increased their contribution to 23.4 percent, up from 22.8 percent in 2012. The share of nuclear power dropped to 15.4 percent from 15.8 percent. © 2014 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy […]

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Coal surge sullies Germany’s clean energy image

The share of electricity generated from coal rose in Germany last year as the country seeks to achieve its ambitious aim of switching off all nuclear power plants by 2022. Industry figures published Tuesday show that bituminous coal and lignite together contributed 45.5 percent of Germany’s gross energy output in 2013, up from 44 percent the previous year. Environmentalists criticize the increasing use of coal, saying it is a "dirty" source because of the large amount of carbon dioxide released when it is burned. Heavily subsidized renewable sources such as wind, solar, biomass and hydropower also increased their contribution to 23.4 percent, up from 22.8 percent in 2012. The share of nuclear power dropped to 15.4 percent from 15.8 percent. © 2014 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy […]

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Toyota opens CES with strong affirmation of hydrogen fuel cell vehicles; “staggering” rate of cost reduction; FCV on sale in US in 2015

Toyota opens CES with strong affirmation of hydrogen fuel cell vehicles; “staggering” rate of cost reduction; FCV on sale in US in 2015 Toyota opened the 2014 Consumer Electronics Show (CES) with a strong affirmation of the benefits of and potential for hydrogen fuel cell technology. “ We aren’t trying to re-invent the wheel; just everything necessary to make them turn, ” said Bob Carter, senior vice president of automotive operations for Toyota Motor Sales (TMS), USA, Inc. “ Fuel cell electric vehicles will be in our future sooner than many people believe, and in much greater numbers than anyone expected. ” Toyota showcased both its latest fuel cell vehicle […]

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Category: Uncategorized

Peak Oil Denial: Nonsense Keeps Rolling Along # 3

118_1897               Happy New Year to all! At the risk of starting a cat fight where truth may too quickly become a casualty, why don’t we more forcefully challenge those who deny peak oil (and global warming) and who do so for reasons that generally ignore reality in favor of narrowly-defined interests? Those motivations will ultimately do nothing but promote more eventual harm by denying the truths to those who clearly need them the most…. Of course, we run the risk of getting bogged down in he said/she-said arguments that quickly devolve into the lowest forms of ‘debate’, but why let those types of offerings go unchallenged? They feed on themselves, and it is tiresome and time-consuming to have to rebut all the nonsense. But if we don’t, uninformed readers and listeners have no reason to at least consider the possibility that there […]

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Oil Futures Rise On Middle East Supply Disruption Fears

Brent crude futures rose Monday as bargain hunters came out to feast upon the six-week lows hit in the previous session. News from Libya remains key to near-term price direction after reports of a key western field restart on the weekend were offset by a fresh protest at another facility. Brent crude for February delivery rose 96 cents to $107.85 a barrel on ICE Futures Europe. U.S. crude-oil futures were 54 cents higher at $94.50 a barrel on the New York Mercantile Exchange. Disruptions to Libya’s oil supply, caused by protesters, including workers and armed militia, have resulted in the country’s output falling to below 250,000 barrels a day, compared with 1.6 million barrels a day in 2011 before the conflict that led to the fall of Moammar Gadhafi. Oil has started flowing again from one of Libya’s largest oil fields, Sharara. However, protesters began blocking a separate oil […]

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Brent Rises for First Time in Five Days on U.S. Cold Snap

Brent crude advanced for the first time in five days amid freezing weather and signs of economic recovery in the U.S. and concern that clashes in Iraq may disrupt oil exports. Futures advanced as much as 1 percent in London . The coldest air in almost 20 years is sweeping over the central U.S. toward the East Coast, bolstering energy demand. U.S. service industries probably rebounded last month, according to a Bloomberg forecast before data today. Iraqi security forces, militias or tribesmen may start an attack to retake Fallujah from al-Qaeda-linked militants, a government official said. “The recent gain in prices is likely a combination of the cold weather in the U.S., wobbly security situation in Iraq and traders finding their feet in 2014,” said Michael Poulsen, an analyst at Global Risk Management Ltd. in Middelfart, Denmark . “Liquidity is still rather subdued.” Brent for February settlement gained as […]

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Hedge Funds Raise ICE Brent Crude Net-Longs to 10-Week High

Hedge funds and other money managers raised net bullish bets on Brent crude to the highest level in 10 weeks, according to data from ICE Futures Europe . Speculative bets that prices will rise, in futures and options combined, outnumbered short positions by 136,611 lots in the week ended Dec. 31, the London-based exchange said today in its weekly Commitments of Traders report. The addition of 7,670 contracts, or 6 percent, is a second weekly increase and brings the net-long position to the highest since Oct. 22. Bearish positions by producers, merchants, processors and users of the North Sea crude outnumbered bullish wagers by 242,398 contracts, a reduction in their net-short position by 202 lots. Brent futures declined 1 percent to $110.80 a barrel in the week to Dec. 31, capping their first annual loss in five years, and were at $107.78 as of 12:03 p.m. London time. ICE […]

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Oil production at Libya's Sharara field rises to 205,000 b/d

Oil production at the major Sharara field in the west of Libya has risen to 205,000 b/d, a senior official at Libya’s state-owned NOC said Monday, but there are no signs of any significant increase in crude exports from the troubled North African country. Output at the 350,000 b/d Sharara field restarted on Saturday after protesters at the facility agreed to halt their blockade. The field had been shut in by protests and strike action since the end of October, with production having been disrupted on and off by strikes since June. NOC executive board member Mustafa Sanalla told Platts Monday: "Today production is 205,000 b/d from Sharara." Operated by Akakus, a joint venture between NOC and Spain’s Repsol, Sharara is one of Libya’s major onshore oil fields and feeds the 230,000 b/d Zawiya crude export terminal, Libya’s second-largest. While the terminal has been […]

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Oil production at Libya’s Sharara field rises to 205,000 b/d

Oil production at the major Sharara field in the west of Libya has risen to 205,000 b/d, a senior official at Libya’s state-owned NOC said Monday, but there are no signs of any significant increase in crude exports from the troubled North African country. Output at the 350,000 b/d Sharara field restarted on Saturday after protesters at the facility agreed to halt their blockade. The field had been shut in by protests and strike action since the end of October, with production having been disrupted on and off by strikes since June. NOC executive board member Mustafa Sanalla told Platts Monday: "Today production is 205,000 b/d from Sharara." Operated by Akakus, a joint venture between NOC and Spain’s Repsol, Sharara is one of Libya’s major onshore oil fields and feeds the 230,000 b/d Zawiya crude export terminal, Libya’s second-largest. While the terminal has been […]

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Iraqis Make Gains Against Militants in Key City

Iraqi security forces and their tribal allies made gains in heavy fighting on Sunday in Ramadi, reclaiming parts of the city from Sunni militants aligned with Al Qaeda, security officials and tribal leaders said. But the insurgents appeared to maintain control of much of Falluja, another important city in Anbar Province, and had the upper hand in fighting on its outskirts. The government’s efforts to retake Falluja were set back by the apparent defection of some tribal militias, who are now siding with the Qaeda-linked militants, according to officials. The fight in Falluja is complicated by the widespread disenchantment of Sunnis in Iraq toward the policies of the Shiite-dominated government of Prime Minister Nuri Kamal al-Maliki. Some armed tribesmen with little sympathy for Al Qaeda and its desire to set up a Sunni Islamic state in Iraq have now apparently decided that the government is their greater […]

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Libya bars oil tanker headed to militia-held port

A Defense Ministry official says Libya’s navy has prevented a Malta-flagged oil tanker from entering its territorial waters apparently en route to a militia that has shut down oil terminals for months in a challenge to the government. Spokesman Abdul-Razak al-Shabahi told The Associated Press on Monday that the tanker tried to enter the northeastern city of Misrata’s port the previous night. He says the tanker and its cargo were not meant for the government. Libya’s eastern militia is demanding more autonomy from the government in Tripoli and a share of oil revenues. Last summer, its fighters shut down most of the country’s terminals and mediation has failed. The government has threatened to use force if the militia attempts to bring in oil before the standoff is resolved. © 2014 The Associated Press . All rights reserved. This material may not be published, broadcast, rewritten […]

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Iraqi air force strikes city to try to oust al Qaeda

Iraqi government forces battling an al Qaeda offensive near the Syrian border launched an air strike on Ramadi city on Sunday killing 25 Islamist militants, according to local officials. Government officials in western Anbar province met tribal leaders to urge them to help repel al Qaeda-linked militants who have taken over parts of Ramadi and Falluja, strategic Iraqi cities on the Euphrates River. Al Qaeda’s Islamic State of Iraq and the Levant (ISIL) has been steadily tightening its grip in the vast Anbar province in recent months in a bid to create a Sunni Muslim state straddling the frontier with Syria. But last week’s capture of positions in Ramadi and large parts of Falluja was the first time in years that Sunni insurgents had taken ground in the province’s major cities and held their positions for days. Local officials and tribal leaders in Ramadi said that […]

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U.S. Won't Send Troops to Iraq to Fight al-Qaeda

Secretary of State John Kerry said the U.S. won’t send troops to Iraq to help the government battle al-Qaeda-linked militants who have seized control of much of the city of Fallujah and nearby towns. “This is a fight that belongs to the Iraqis,” Kerry said at a news conference in Jerusalem today. “We’re going to do everything that is possible to help them,” while stopping short of putting boots on the ground, he said. The U.S. is in touch with tribal leaders in the region “who are showing great courage” against militants, he said. There is little appetite in the U.S. for renewed military involvement in Iraq, where 4,489 Americans were killed and 51,778 wounded in action after President George W. Bush ’s administration invaded the country almost 11 years ago. Obama has listed ending direct U.S. military action in Iraq two years ago as one of his main […]

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U.S. Won’t Send Troops to Iraq to Fight al-Qaeda

Secretary of State John Kerry said the U.S. won’t send troops to Iraq to help the government battle al-Qaeda-linked militants who have seized control of much of the city of Fallujah and nearby towns. “This is a fight that belongs to the Iraqis,” Kerry said at a news conference in Jerusalem today. “We’re going to do everything that is possible to help them,” while stopping short of putting boots on the ground, he said. The U.S. is in touch with tribal leaders in the region “who are showing great courage” against militants, he said. There is little appetite in the U.S. for renewed military involvement in Iraq, where 4,489 Americans were killed and 51,778 wounded in action after President George W. Bush ’s administration invaded the country almost 11 years ago. Obama has listed ending direct U.S. military action in Iraq two years ago as one of his main […]

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Syria rebel infighting spreads to city in east

Clashes between Syrian rebels and their rivals from an al-Qaida-linked faction spread on Monday from the country’s opposition-held areas in the north to a key eastern city, activists said. The rebel-on-rebel fighting in the eastern city of Raqqa – a long-time bastion of an al-Qaida-linked group known as the Islamic State in Iraq and the Levant – reflects a widening war within a war in Syria, this one against radical extremists. It also suggests emboldened rebels are trying to completely overrun their al-Qaida rivals. The infighting has been the most serious since armed groups initially rose to try overthrow the rule of Syrian President Bashar Assad. The clashes erupted in the northern provinces of Aleppo and Idlib on Friday after residents there accused ISIL fighters of killing a popular doctor. An activist group, the British-based Syrian Observatory for Human Rights estimated that at least […]

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Fallout From Syria Conflict Takes Rising Toll on Mideast

Spiraling violence and advances by al Qaeda-linked fighters in Iraq, Syria and Lebanon are underscoring the cost of Syria’s civil war as it increasingly spills over the country’s borders. The rise of the Islamist forces in Iraq is particularly worrisome to the Obama administration. In response, U.S. officials said Sunday they were seeking to boost military support—though they emphasized no troops—for Iraqi Prime Minister Nouri al-Maliki to help in his campaign to push back al Qaeda. U.S. officials are also considering new military aid for Lebanon, which is plagued by rising sectarian violence. Resurgent al Qaeda-allied forces battled Sunday in both Iraq and in neighboring Syria. Fighters in Iraq’s Anbar Province pillaged American weapons from armories after taking control of the town of Fallujah and skirmished with Iraqi government troops on the road to Baghdad, said residents and officials there. In Syria, al Qaeda-linked militants battled as well—but this […]

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The Muslim Brotherhood, Back in a Fight to Survive

They hide in safe houses on the outskirts of this city, talk only fleetingly on cellphones and avoid the cafes where they used to meet. Heavy scarves obscure their identities when they venture out to join protests. The leaders of the Muslim Brotherhood, now outlawed, have adjusted to life underground, even while hundreds of their fellow members have been arrested in this city since the military deposed President Mohamed Morsi, a Brotherhood leader, and the Egyptian government branded the group a terrorist movement. Yet, rather than crack and disintegrate under the pressure, members say, the group has fallen back on the organizational structure that sustained it for decades as a banned and secretive movement. It is becoming more decentralized, but also more cohesive and rigid, as its members abandon activities like preaching and social work and shift their attention to a virtually singular goal: resistance to […]

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Brazil’s big oil dreams begin to sour

“It’s funny, a few years ago, everybody loved Brazil,” said Roger Tissot, a veteran consultant on Latin America energy. “And now it seems the love is gone.” Brazil once saw itself as an up-and-coming oil power that would help meet the world’s demand, but it now faces a hard reality and might have to scale back its pretensions, former energy officials, oil executives and advisers say. The country’s deep-sea bonanza has suddenly become less alluring to big, rich oil companies that had been excited about Brazil. Other promising prospects around the world have emerged instead, from fields in Africa to the shale deposits unlocked by hydraulic fracking in the United States to the tar sands of Canada. “These companies have the financial muscle and engineering capacity and technologies to move around the world,” said Ramon Espinasa, an oil specialist at the Inter-American Development Bank in Washington. “They are able […]

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South Sudan general killed in fighting, rebels say

Rebels in South Sudan said Sunday they had killed an army general during fighting near the town of Bor, at the same time direct negotiations between warring factions began in the Ethiopian capital, Addis Ababa. Rebel spokesman Moses Ruai said the general, Lual Mayok, was killed along with his deputy in an ambush on Friday, and said he was in charge of government troops trying to recapture Bor, capital of Jonglei state, situated 130 miles north of the capital Juba. "Our forces are well organized. They are not just hit-and-run. The next target is now Juba, but I cannot tell you exactly when they will attack Juba, but they are heading there," the rebel spokesman said. South Sudan’s Defense Minister Kuol Manyang Juuk dismissed the claim, saying there was no general of that name in the country’s armed forces. "I have no information of any general killed," he told […]

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Talks Don't Halt South Sudan Conflict

South Sudan’s warring parties began talks Friday with mediators in Ethiopia, as both sides ignored calls for a cease-fire. Negotiators met separately with representatives from the regional trade block, known as the Inter-Governmental Authority on Development, or IGAD in Addis Ababa. These preliminary talks aim to narrow differences that have led to clashes killing more than 1,000 people and displacing nearly 200,000. The mediators hope both sides of the conflict can hold direct talks on Saturday, according to a spokesman for Ethiopia’s foreign ministry, Dina Mufti. The modest beginning marks a breakthrough for African-led efforts to end more than two weeks of fighting in the world’s youngest nation. The conflict—which pits the country’s President Salva Kiir, against his former deputy, Riek Machar —threatens to render South Sudan along ethnic lines and upend its oil industry. Energy exports account for nearly all of South Sudan’s exports and foreign revenue. […]

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Talks Don’t Halt South Sudan Conflict

South Sudan’s warring parties began talks Friday with mediators in Ethiopia, as both sides ignored calls for a cease-fire. Negotiators met separately with representatives from the regional trade block, known as the Inter-Governmental Authority on Development, or IGAD in Addis Ababa. These preliminary talks aim to narrow differences that have led to clashes killing more than 1,000 people and displacing nearly 200,000. The mediators hope both sides of the conflict can hold direct talks on Saturday, according to a spokesman for Ethiopia’s foreign ministry, Dina Mufti. The modest beginning marks a breakthrough for African-led efforts to end more than two weeks of fighting in the world’s youngest nation. The conflict—which pits the country’s President Salva Kiir, against his former deputy, Riek Machar —threatens to render South Sudan along ethnic lines and upend its oil industry. Energy exports account for nearly all of South Sudan’s exports and foreign revenue. […]

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Palestinian utility secures Leviathan natural gas

Partners developing the Leviathan natural gas field in the Mediterranean Sea said Monday a Palestinian utility company is the first to secure a supply contract. Delek Drilling Ltd. and Avner Oil Exploration said they signed a 20-year supply agreement with the Palestine Power Generation Co. "According to the agreement, the purchaser will acquire natural gas from the sellers for power plant operating needs that the purchaser intends to build near Jenin in the northern West Bank," the developers said in a statement. Delek and Avner said the Palestinian company secured 167 billion cubic feet of natural gas from Leviathan under the terms of the agreement. Natural gas prices will be pegged to market prices for Brent crude oil. Delek and Avner said the deal is dependent on development of Leviathan and applicable regulations. Leviathan, with 18 trillion cubic feet of natural gas […]

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Oil flowing again from Yemeni pipeline damaged by saboteurs

Repairs were made and oil was flowing again from a pipeline damaged by saboteurs in Yemen’s central Marib province, a provincial leader said. Ali al-Fatimi said Sunday engineers managed to repair damage to the line, which was attacked last week. Oil deliveries though the pipeline resumed at an undisclosed rate, the official Saba News Agency reported. Saba said the pipeline was "attacked by saboteurs" but didn’t indicate who was responsible. The Marib provincial leader said local officials and citizens had been able to provide security following the the attack. Yemen is struggling to control violence amid threats from al-Qaida, southern separatists and northern Shiite rebels. Energy company Yemen LNG said its facilities at the Balhaf export terminal were attacked by unnamed saboteurs in December. Al-Qaida took credit for a December attack on the Yemeni Defense Ministry. Pastor prays for ‘plantation called New York […]

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Companies drill for more oil in Argentina

A successful oil exploration program in Argentina should lead to a promising development opportunity, Andes Energia’s Alejandro Jotayan said Monday. Jotayan, chief executive officer of the company based in London, said its partners at YPF, an energy company in Argentina, started the exploration campaign in the Vaca Muerta, Chachao and Agrio reserve areas in the Neuquen basin. "A successful program will provide Andes and YPF with the opportunity to develop a large and promising area with unconventional and conventional resources potential," he said in a statement published by energy news website Rigzone. Andes said the exploration campaign targets an area already shown to contain oil. Energy consultant group Wood Mackenzie described the Vaca Muerta region as one of the best shale reserve areas in the world. Vaca Muerta, located in Neuquen province, holds 741 million barrels of recoverable oil, the U.S. Energy Information Administration […]

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Uganda Receives 10 Oil-Output Applications for Albertine Graben

Uganda , the country with sub-Saharan Africa’s fourth-largest oil reserves, received 10 production applications for 21 discoveries in the Albertine Graben region as the nation moves closer to starting output in 2017. Tullow Oil Plc, Total SA, and China National Offshore Oil Corp. all sought licenses, according to a statement today on the website of Uganda’s Petroleum Exploration and Production Department in Entebbe near the capital, Kampala. The government is in talks with Tullow about its eight applications, CNOOC got its first license in September, and Total’s request was made in December, the notice shows. Total may submit five more applications this year in Exploration Area 1, and one for EA 1A, according to the statement. Tullow has until the end of April to appraise the Waraga discovery in Exploration Area 2, where it is the operator, and is also drilling at Waraga-3, a second appraisal well, the department […]

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China makes fresh bid to curb shadow banking, contain debt risk

China’s cabinet has published guidelines strengthening regulation of risky off-balance-sheet lending in a new effort to address growing financial risks from an explosion in debt. The State Council’s guidelines call for tighter regulation of banks’ off-balance-sheet lending and say that trust companies – the biggest non-bank players in what’s called "shadow banking" – should return to their original purpose as asset managers and not engage in "credit-type" business. A copy of the council’s Document 107, dated December 11, was obtained by Reuters. There’s been no official confirmation of the document, which was addressed to government agencies at the central and local level. An index of the biggest mainland stocks .CSI300 closed at its lowest level in five months on Monday, as concerns about the new regulations weighed down the market. .SS China’s policymakers are concerned that the country’s economy has become overly reliant on borrowing to […]

Posted On : Published By : Tom Whipple
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Falling Chinese domestic thermal coal prices pose risk for imports

Chinese domestic thermal coal prices have fallen further, fuelling speculation that some power utilities might be looking to walk away from existing contracts for imported material, sources said Monday. "I have heard rumours maybe that some power plants in China are renegotiating or defaulting on some shipments. But that is just a rumour," a Singapore-based source said. "If I had sold February arrivals [cargoes of 5,500 kcal/kg NAR imported coal] above $84/mt, I would be slightly panicking as I think the Chinese expect levels to get back down to about $79-80/mt CFR south China or maybe lower," he added. Late last week, a Singapore-based trader said falling domestic prices could lead to some possible defaults by Chinese imported thermal coal buyers on existing contracts in the coming weeks. Capesize cargoes of 5,500 kcal/kg NAR Australian coal were heard being offered at around Yuan 620/mt […]

Posted On : Published By : Tom Whipple
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The Congressman Who Went Off the Grid

When Roscoe Bartlett was in Congress, he latched onto a particularly apocalyptic issue, one almost no one else ever seemed to talk about: America’s dangerously vulnerable power grid. In speech after late-night speech on the House floor, Bartlett hectored the nearly empty chamber: If the United States doesn’t do something to protect the grid, and soon, a terrorist or an act of nature will put an end to life as we know it. Bartlett loved to conjure doomsday visions: Think post-Sandy New York City without power—but spread over a much larger area for months at a time. He once recounted a conversation he claimed to have had with unnamed Russian officials about how they could take out the United States: They would “detonate a nuclear weapon high above your country,” he recalled them saying, “and shut down your power grid—and your communications—for six months or so.” Bartlett never gained […]

Posted On : Published By : Tom Whipple
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Fearless Oil & Gas-Related Predictions for 2014

Well, it’s the end of the year 2013, and everyone and his or her brother is busy compiling a Top Ten Something-or-Other (take your pick: movies, songs, celebrity faux pas, football players, baseball players, basketball dunks, Miley Cyrus embarrassments, etc.)  list for 2013. Turns out I’m too lazy to compile my own Top Ten Energy Stories for 2013, because that would require going back through a year’s worth of stories and doing a bunch of time-consuming research.  I figured instead I’d compile my own list of Fearless Oil & Gas-Related Predictions for 2014, since I can just make those up off the top of my head, throw ‘em against the wall, and see which, if any of them, stick. So, here goes nothing: Prediction #1 :  Every day during 2014, an earthquake will take place somewhere on the face of the earth.  And every day, no […]

Posted On : Published By : ASPO-USA
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Fearless Oil & Gas-Related Predictions for 2014

Well, it’s the end of the year 2013, and everyone and his or her brother is busy compiling a Top Ten Something-or-Other (take your pick: movies, songs, celebrity faux pas, football players, baseball players, basketball dunks, Miley Cyrus embarrassments, etc.)  list for 2013. Turns out I’m too lazy to compile my own Top Ten Energy Stories for 2013, because that would require going back through a year’s worth of stories and doing a bunch of time-consuming research.  I figured instead I’d compile my own list of Fearless Oil & Gas-Related Predictions for 2014, since I can just make those up off the top of my head, throw ‘em against the wall, and see which, if any of them, stick. So, here goes nothing: Prediction #1 :  Every day during 2014, an earthquake will take place somewhere on the face of the earth.  And every day, no […]

Posted On : Published By : ASPO-USA
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‘Polar Pig’ Threatens Coldest U.S. Weather in Two Decades

The coldest air in almost 20 years is sweeping over the central U.S. toward the East Coast, threatening to topple temperature records, ignite energy demand and damage Great Plains winter wheat. Chicago’s high today won’t reach zero Fahrenheit (minus 18 Celsius) and may just hit that tomorrow, according to the National Weather Service . New York City ’s low will fall to 8, Washington will see 5 and Dallas ’s low will be 19. Orlando , Florida , may drop to freezing at 32 degrees. For the East, tomorrow will be even worse. Winter storms and frigid air add volatility to commodities trading and spot power markets. Natural gas futures in New York have surged 23 percent since Nov. 1 as the coldest start to the U.S. heating season in 13 years boosted fuel demand. Last week, as snow and cold gripped the nation, spot power […]

Posted On : Published By : Tom Whipple
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N.D. Gov. Dalrymple wants safety assurances from BNSF Railway

North Dakota Gov. Jack Dalrymple, citing a December derailment, said he’ll "pursue" BNSF Railway until he’s satisfied appropriate safety measures are in place. Dalrymple met with Burlington Northern and Santa Fe Railway Chairman and Chief Executive Officer Matt Ross at the company’s headquarters in Fort Worth, Texas, to discuss safety issues associated with rail delivery of crude oil. A BNSF train carrying oil derailed Dec. 30 about 25 miles west of Fargo, N.D., after colliding with a train carrying soybeans. No injuries were reported. "I wanted to ask BNSF more questions about the operation of trains that carry oil, their safety measures and about the tank cars used to ship North Dakota crude oil," Dalrymple said in a statement Friday. "We’re going to pursue this until we’re satisfied that the appropriate measures are in place for maximum public safety." Energy companies are […]

Posted On : Published By : Tom Whipple
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Colorado River Drought Forces a Painful Reckoning for States

LAKE MEAD, Nev. — The sinuous Colorado River and its slew of man-made reservoirs from the Rockies to southern Arizona are being sapped by 14 years of drought nearly unrivaled in 1,250 years. The once broad and blue river has in many places dwindled to a murky brown trickle. Reservoirs have shrunk to less than half their capacities, the canyon walls around them ringed with white mineral deposits where water once lapped. Seeking to stretch their allotments of the river, regional water agencies are recycling sewage effluent, offering rebates to tear up grass lawns and subsidizing less thirsty appliances from dishwashers to shower heads. But many experts believe the current drought is only the harbinger of a new, drier era in which the Colorado’s flow will be substantially and permanently diminished. Faced with the shortage, federal authorities this year will for the first time decrease the amount of water […]

Posted On : Published By : Tom Whipple
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Water pollution in four states linked to oil and gas drilling

In at least four states that have nurtured the nation’s energy boom, hundreds of complaints have been made about well-water contamination from oil or gas drilling, and pollution was confirmed in a number of them, according to a review that casts doubt on industry suggestions that such problems rarely happen. The Associated Press requested data on drilling-related complaints in Pennsylvania, Ohio, West Virginia and Texas and found major differences in how the states report such problems. Texas provided the most detail, while the other states provided only general outlines. And while the confirmed problems represent only a tiny portion of the thousands of oil and gas wells drilled each year in the U.S., the lack of detail in some state reports could help fuel public confusion and mistrust. The AP found that Pennsylvania received 398 complaints in 2013 alleging that oil or natural gas drilling polluted or otherwise affected […]

Posted On : Published By : Tom Whipple
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New York real-time power prices remain volatile as loads exceed forecasts

New York electricity markets were feeling the brunt of a Nor’easter Friday, with real-time electricity prices in some zones coming in hundreds of dollars above Thursday’s levels, and loads for the state above forecasts. At the same time, New England, which saw incredibly strong day-ahead pricing in the bilateral and ISO markets, has been much less volatile. One reason for the differing price behavior has been loads. New England’s load has come in as much as 2,000 MW below forecasts, but New York has seen loads as much as 1,000 MW above state-wide forecasts and about 100 MW over forecasts for the Hudson Valley Zone. Zones in eastern New York saw real-time prices climb above $1,000/MWh from 9:30 am to 11:30 am EST, with Hudson Valley, Zone G seeing a five-minute increment above $2,500/MWh. The average real-time price for the hour that ended 11 […]

Posted On : Published By : Tom Whipple
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Pa. Asks State Supreme Court To Reconsider Decision On Oil, Gas Law

The state of Pennsylvania on Thursday asked the state Supreme Court to reconsider its December decision that struck down parts of an oil and gas law. The Pennsylvania Supreme Court voted 4-2 in mid-December saying key provisions in Act 13, a 2012 law that governs oil and gas drilling, is unconstitutional. In a state known for its shale gas bounty, the decision broadened the rights of local governments to restrict the controversial fracking process within their city limits, dealing a blow to oil and gas interests. The state is asking the Supreme Court to remand the case to a Pennsylvania court for further evidence, exhibit and testimony gathering. The state Department of Environmental Protection is also asking the court to reconsider its decision, saying its duty to protect public parks […]

Posted On : Published By : Tom Whipple
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Study Shows Fracking Is Bad for Babies

The energy industry has long insisted that hydraulic fracking — the practice of fracturing rock to extract gas and oil deep beneath the earth’s surface — is safe for people who live nearby. New research suggests this is not true for some of the most vulnerable humans: newborn infants. In a study presented today at the annual meeting of the American Economic Association in Philadelphia, the researchers — Janet Currie of Princeton University, Katherine Meckel of Columbia University, and John Deutch and Michael Greenstone of the Massachusetts Institute of Technology — looked at Pennsylvania birth records from 2004 to 2011 to assess the health of infants born within a 2.5-kilometer radius of natural-gas fracking sites. They found that proximity to fracking increased the likelihood of low birth weight by more than half, from about 5.6 percent to more than 9 percent. The chances of a low […]

Posted On : Published By : Tom Whipple
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In Bakken (ND) it is Now Mostly about McKenzie County

Figure 01: In this post I present an update to my previous posts over at The Oil Drum (The Red Queen series) on developments in tight oil production from the Bakken formation in North Dakota with some additional estimates, mainly presented in charts. The expansion is much about the differences between wells capable of producing, actual producing wells and idle wells (here defined as the difference between the number of wells capable of producing and the number of actual producing wells). Figure 01: The chart above […]

Posted On : Published By : Tom Whipple
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The deadly secret behind the Lac-Mégantic infernoAdd to …

An investigation into the disaster and its causes. The shrieking whistle of escaping gas continued for hours. Emergency crews ran for cover when they heard the noise, as they fought blasts of burning oil during the Lac-Mégantic rail disaster. The kettle-boil scream meant one thing: Oil vapours were shooting out of a derailed tank car and another fireball was about to rip from the broken train. It wasn’t until four days after the July 6 derailment that the fires finally subsided. But even before the inferno was extinguished and the burned-out town counted its 47 dead, rescue workers and rail, petroleum and government officials were asking the same troubling question: Why was the oil so explosive? The North Dakota crude that levelled Lac-Mégantic was classified as flammable, a long-standing practice for all oils moved by rail. Hazardous material experts and rail officials interviewed by The Globe and Mail say […]

Posted On : Published By : Tom Whipple