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Energy efficiency to slow China's growth in coal, oil consumption

China is expected to continue increasing energy efficiency this year, resulting in muted growth in oil and coal consumption, according to new projections unveiled by the National Energy Administration on Friday. Total energy consumption in China is expected to rise 3.2% year on year to 3.88 billion mt of coal equivalent or mtce this year, according to the NEA, which is under the purview of central economic planner the National Development and Reform Commission. In contrast, coal consumption will edge up 1.6% year on year to 3.8 billion mt while apparent demand for oil will rise 1.8% year on year to 510 million mt, the NEA said. Apparent demand for natural gas this year will increase 14.5% year on year to 193 billion cu m. China is estimated to use 0.71 mtce of energy to produce every Yuan 10,000 ($1,653) of GDP, an energy […]

Posted On : Published By : Tom Whipple
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Energy efficiency to slow China’s growth in coal, oil consumption

China is expected to continue increasing energy efficiency this year, resulting in muted growth in oil and coal consumption, according to new projections unveiled by the National Energy Administration on Friday. Total energy consumption in China is expected to rise 3.2% year on year to 3.88 billion mt of coal equivalent or mtce this year, according to the NEA, which is under the purview of central economic planner the National Development and Reform Commission. In contrast, coal consumption will edge up 1.6% year on year to 3.8 billion mt while apparent demand for oil will rise 1.8% year on year to 510 million mt, the NEA said. Apparent demand for natural gas this year will increase 14.5% year on year to 193 billion cu m. China is estimated to use 0.71 mtce of energy to produce every Yuan 10,000 ($1,653) of GDP, an energy […]

Posted On : Published By : Tom Whipple
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Propane freeze squeeze may harden resistance to U.S. oil exports

A shortage of propane heating fuel during a brutal U.S. cold snap this month threatens to sharpen the year’s most urgent energy policy debate – how much of its newfound shale oil and gas bounty should America export? Millions felt the pinch last week as another wave of biting, bitter cold strained already low propane supplies in the Midwest, causing prices to surge three-fold over two weeks to record highs and forcing suppliers to ration deliveries. While the shortage was likely caused by a confluence of events, including extraordinary cold, a temporary pipeline shut-down, and low stocks, some industry observers and at least one politician blamed the spike in part on soaring exports of liquefied petroleum gases (LPGs) such as propane. Unlike […]

Posted On : Published By : Tom Whipple
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U.S. Set for More Arctic Cold as Natural Gas Prices Surge

The U.S. will get another blast of freezing Arctic air this week, bringing snow and sleet as far south as Texas and helping push natural gas to a four-year high. “A very strong cold front will be bringing frigid conditions back to the central and eastern U.S.,” the Weather Service said in a bulletin on its website today at 3:01 a.m. eastern time. Subfreezing highs are expected “well into the Deep South,” with snow, sleet, and freezing rain expected by tomorrow near the Central Gulf Coast and becoming heavier over the Carolinas. “This rare winter storm will make many people who love snow very happy,” according to the report. January is on track to be the coldest month of the century in the lower 48 states, according to Commodity Weather Group LLC, after waves of freezing air swept across the country. Natural gas rose for a […]

Posted On : Published By : Tom Whipple
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EU Readies for Shale Gas Breakthrough

Ukraine in May hosts a summit to explore the potential for shale oil and natural gas in Europe. Ukraine and its Eastern European neighbors may host some of the more promising shale basins in the region. Now Spain and Germany are looking to explore their potential. With the European Union outlining recommendations for shale exploration, the region looks ripe for a breakthrough. Ukrainian company Nadra Ukrayny, along with co-sponsor International Gas Union, hosts a summit May 20-22 to discuss maximizing the benefits of shale exploration in the European community. Organizers say the event will have a pan-European focus, with strategy sessions focused on the shale potential from Eastern Europe to Great Britain. Weeks before Ukrainian President Viktor Yanukovych sparked major unrest with his November decision to back away from the EU, his government signed a $10 billion shale natural gas deal with U.S. supermajor Chevron. Under the terms of […]

Posted On : Published By : Tom Whipple
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Why Shale Oil Boosters Are Charlatans In Disguise

Something has bothered me of late: why is the price of crude oil still elevated? Other commodities have taken a battering since 2011. Gold, copper and iron ore – all are way down off their peaks. But oil has seemingly defied gravity. And that’s despite increased supply from shale oil in the U.S., still soft demand particularly in the developed world and declining rates of inflation growth across the globe. What gives? Well, shale oil proponents will say falling oil prices are just a matter of time. And that the boom in shale oil will reduce U.S. reliance on foreign oil, leading to cheaper local oil, which will free up household budgets and spur consumption as well as the broader economy. Perhaps … though I’d have thought all of that would already be reflected in prices. On the other side, you have "peak oil" supporters who suggest high oil […]

Posted On : Published By : ASPO-USA
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Crude Falls First Time in Five Days on Emerging Economies

West Texas Intermediate crude fell for the first time in five days as equities declined on concern that growth in emerging economies will slow, reducing fuel use. Futures decreased 0.7 percent. U.S. stocks dropped a fourth day as the MSCI Emerging Markets Index slid 1.4 percent, extending its loss for the year to 5.2 percent. Currencies from developing countries have tumbled, according to Bloomberg data, as signs of weakness in China’s economy added to speculation that stimulus curbs by the U.S. Federal Reserve will cut demand. “Concerns about the emerging-market outlook are weighing on sentiment for demand going forward,” said John Kilduff , a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “The situation is very volatile and we are seeing it impact all the markets.” WTI for March delivery dropped 68 cents to settle at $96.64 a barrel on the New York […]

Posted On : Published By : Tom Whipple
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WTI-Brent Spread Near Narrowest in Two Months on Keystone

West Texas Intermediate narrowed its discount to Brent to the least in more than two months following the start of a pipeline carrying crude out of the U.S. storage center in Cushing, Oklahoma . The spread between WTI and Brent on the ICE Futures Europe exchange shrank to $9.82 a barrel today, the smallest gap since Nov. 11. WTI advanced as much as 0.5 percent in a fifth daily gain in New York , the longest rally in seven weeks. The Gulf Coast line, the southern leg of the Keystone XL pipeline, was initially transporting 288,000 barrels of light, sweet crude a day to Nederland in Texas. “The Keystone XL south is about to increase arbitrage between Cushing and the Gulf Coast,” which will cause inventories at Cushing to decline, said Eugen Weinberg , head of commodities research at Commerzbank AG in Frankfurt . WTI’s discount of about $10 […]

Posted On : Published By : Tom Whipple