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China May Have Deployed More Solar in 2013 Alone Than America Has Installed Altogether

China has the fastest train in the world, the most megacities in the world, and the biggest population . Now China can boast a new record: It has installed the most solar PV in one year. Preliminary figures released by Bloomberg New Energy Finance (BNEF)  show that China installed 12,000 megawatts of solar in 2013 — beating Germany’s record of 8,000 megawatts in 2010. These figures merit a major caveat, however. China is a very tough country to track and estimates differ significantly. China’s Renewable Energy Industries Association puts its preliminary estimate between 9,500 megawatts and 10,660 megawatts. GTM Research has not released its figures yet; it’s waiting for a final number on actual grid connections. The range of projections varies, but they all tell the same story: China’s domestic solar market is now a major force. In comparison, the booming U.S. market […]

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Royal Dutch Shell suspends Arctic drilling plans

Royal Dutch Shell is to suspend its controversial drilling in Arctic waters off Alaska as part of a multibillion-dollar scaling back of spending on new projects under Ben van Beurden, chief executive. The Anglo-Dutch oil major said on Thursday that a US court appeals decision this month that challenged the granting of licences in the Chukchi Sea off northwest Alaska had prompted it to suspend plans for further exploration in the area. “This is a disappointing outcome, but the lack of a clear path forward means that I am not prepared to commit further resources for drilling in Alaska in 2014,” said Mr van Beurden. Shell’s retreat on plans to resume Arctic drilling this summer came as Mr van Beurden , who took over as chief executive of Shell this month, set out plans for sharp cuts in the company’s investment spending […]

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Shell Suspends U.S. Arctic Project

Royal Dutch Shell PLC on Thursday said it would suspend drilling in the U.S. Arctic, as it reported a 71% decline in fourth-quarter profit largely because of rising costs and lower oil and gas volumes. The oil major’s decision to halt a project in offshore Alaska comes after a federal appeals court ruled last week that the U.S. government improperly relied on "inadequate information" in the process of awarding licenses for exploration there , which the company said Thursday "raises substantial obstacles to Shell’s plans." "This is a disappointing outcome, but the lack of a clear path forward means that I am not prepared to commit further resources for drilling in Alaska in 2014," Shell Chief Executive Ben van Beurden said. "We will look to relevant agencies and the court to resolve their open legal issues as quickly as possible." Mr. van Beurden’s comments came in a statement accompanying […]

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Texas Vies With Saudi Arabian Oil in California Supply: Freight

Texas is poised to join Saudi Arabia as a supplier of oil to California as the mounting glut of crude on the U.S. Gulf Coast makes the trade profitable. Kinder Morgan Energy Partners LP , the pipeline operator that’s buying U.S. oil tankers, said it’s in talks to ship Texas crude to California through the Panama Canal. The 4,500-mile voyage would cost about $10 a barrel, broker Poten & Partners Inc. estimates, making Texas crude competitive with imports traveling 11,400 miles from Saudi Arabia, the West Coast’s largest supplier, data compiled by Bloomberg show. Until now, a U.S. law that makes domestic shipping more expensive left Californians buying oil from the Middle East instead. If a shortage of qualifying ships can be overcome, Texas crude will become affordable on the West Coast as the highest domestic output in a quarter century creates a surplus of light […]

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Shell Profit Drops 48% as Oil and Gas Production Declines

Royal Dutch Shell Plc (RDSA) , Europe’s largest oil company, said profit plunged 48 percent on exploration expenses and lower production. Profit excluding one-time items and inventory changes was $2.9 billion in the fourth quarter, down from $5.6 billion a year earlier. That matches the drop Shell forecast on Jan. 17 because of losses in the Americas, lower refining margins and production disruptions in Nigeria and elsewhere. “Its Americas growth strategy –- the home for 50 percent of past investment –- woefully underdelivering under the weight of dead capital,” Lucas Herrmann, a London-based analyst at Deutsche Bank AG, said before the earnings report. “Corporate change could release huge value.” Chief Executive Officer Ben van Beurden, who took over from Peter Voser this year, has accelerated asset sales with two deals announced this month. He must cut record spending to reduce costs and win investor confidence after […]

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Shell Pledges Spending Cuts, Asset Sales to Restore Profit

Royal Dutch Shell Plc (RDSA) Chief Executive Officer Ben van Beurden promised to slash capital spending and accelerate asset sales to revive earnings at Europe’s largest oil producer. Shell, which made its first profit warning in a decade this month, dropped targets for cash flow , postponed plans to drill in Alaska and pledged to restructure its shale operations in North America, it said today in a statement. The Hague-based company also raised its dividend. “We have lost some momentum in operational delivery, and we can sharpen up in a number of areas,” van Beurden said in the statement. “2014 will be a year where we are changing emphasis, to improve our returns and cash flow performance.” Van Beurden, who took over from Peter Voser at the start of the year, is trying to win investor confidence after the company’s fourth-quarter profit […]

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The Coming Economic Collapse Will Be Far Worse Than Most Realize

Citizens of the U.S. and world are heading into a future that few have prepared.  It will also turn out to be much worse than most realize as it will be unlike anything we have witnessed in the past. Part of the reason we are in such a bad fix has to do with the compartmentalization and specialization of our modern educational and economic system.  There are many intelligent people in the market doing smart things, however they have no clue on what the hell is going on in other industries or professions. For example, there are many precious metal analysts that I have much respect for, but who fail to understand the energy industry.  Now, I would imagine there are a few analysts in the precious metal Biz that do understand the ramifications of Peak Oil, but it’s more rewarding for them […]

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U.S. Oil Futures Rise on Hopes of Cushing Supply Declines

-U.S. oil futures climbed to near a one-month high Tuesday as traders bet that government data will soon show that supplies at a key storage hub declined for the first time since late December. Investors are also awaiting an announcement Wednesday from the Federal Reserve on whether the U.S. central bank will further reduce its signature bond-buying program, a measure that has helped lift crude prices. Light, sweet crude for March delivery rose $1.69, or 1.8%, to $97.41 a barrel on the New York Mercantile Exchange. Nymex crude rebounded after losing $1.60, or 1.6%, over the past two sessions and posted its highest settlement so far this […]

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Oil Flat Ahead of Fed, EIA Data

Crude-oil futures traded in a narrow range in Asian hours Wednesday as markets wait for the outcome of the U.S. Federal Reserve meeting and weekly oil-inventory data. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $97.29 a barrel at 0608 GMT, down $0.12 in the Globex electronic session. March Brent crude on London’s ICE Futures exchange rose $0.07 to $107.48 a barrel. U.S. crude-oil stockpiles for the week ended Jan. 24 rose by roughly 4.7 million barrels last week, data from the American Petroleum Institute, a trade group, showed late Tuesday. The API data also showed that distillate or diesel inventories declined by 1.8 million barrels, indicating strong demand levels due to the ongoing winter storm. Meanwhile, the closely-watched survey from the Energy Information Administration is scheduled to be released at 10:30 a.m. EST Wednesday. Estimates from 11 analysts surveyed showed […]

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WTI Slips From Four-Week High Before Supply Data, Fed

West Texas Intermediate retreated from the highest price in four weeks before U.S. government data forecast to show crude inventories rose and the Federal Reserve ’s decision on the pace of monetary stimulus. Futures slipped as much as 0.5 percent in New York . Crude stockpiles probably increased by 2.25 million barrels last week, according to a Bloomberg News survey before an Energy Information Administration report today. Inventories advanced by 4.75 million barrels, the industry-funded American Petroleum Institute said yesterday. The Fed, concluding a two-day meeting today, will probably agree to keep scaling back bond purchases, a Bloomberg survey showed. “Market participants are all awaiting the two important events of the day, U.S. oil inventories and the Fed statement,” said Michael Poulsen, an analyst at Global Risk Management Ltd. in Middelfart, Denmark . “Given the continuously cold temperatures, a build on crude and gasoline and a draw on distillate […]

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Natural Gas Rebounds After Biggest Drop in Almost Nine Months

Natural gas rose in New York , rebounding from the biggest drop in almost nine months. Futures for February delivery climbed as much as 2.3 percent to $4.956 per million British thermal units in electronic trading on the New York Mercantile Exchange , and were at $4.932 at 2:48 p.m. in Singapore. Gas slid 6.5 percent yesterday, the most since May 2, after soaring to $5.442, the highest price since Feb. 16, 2010. The volume of all futures traded was about 58 percent below the 100-day average. Temperatures will continue to fall behind an “Arctic blast” that swept through the eastern third of the U.S., according to a forecast from the National Weather Service at 3:46 p.m. New York time yesterday. The system will also drop snow, sleet and freezing rain from South Texas to the Carolinas. “The combination of falling temperatures and gusty winds will make for bitter […]

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Ethanol Gains as Gas Pipeline Outage May Curb Output

Ethanol gained the most in five weeks on speculation that natural gas pipeline shutdowns will force distillers to reduce production. Futures rose 2.1 percent, snapping the longest streak of losses since July, as TransCanada Corp. (TRP) shut three pipelines after an explosion and fire 50 kilometers (31 miles) south of Winnipeg, Manitoba. Natural gas is used to power ethanol plants. “That pipeline up in Canada is affecting things,” said Mike Blackford, a consultant at INTL FCStone in Des Moines , Iowa . “That may cause some of these plants to slow down.” Denatured ethanol for February delivery advanced 3.7 cents to settle at $1.794 a gallon on the Chicago Board of Trade. Today’s increase was biggest on a percentage basis since Dec. 19. Futures have fallen 25 percent in the past year. Gasoline for February delivery rose 0.61 cent to $2.6278 a gallon on the New York Mercantile Exchange. […]

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Conway propane moves lower on correction: trade

Conway propane continued to slide on Tuesday morning as the market corrects from all-time high levels, sources said. Conway propane was heard trading at $2.25/gal, which was 65 cents lower from Monday’s assessment. "I think we had a tad of fear in the market last week," a Gulf Coast trader said. Article continues below… Request a free trial of: Oilgram News Oilgram News Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology Daily futures summary Weekly API statistics, and much more Request a trial to Oilgram News Request More Information Conway propane hit a record high of $4.95/gal on Thursday as a tight Conway market saw a strong demand pull from cold weather. Enterprise was heard to have taken […]

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‘Fragile Five’ Is the Latest Club of Emerging Nations in Turmoil

The long-running boom in emerging markets came to be identified, if not propped up, by wide acceptance of the term BRICs, shorthand for the fast-growing countries Brazil, Russia, India and China. Recent turmoil in these and similar markets has produced a rival expression: the Fragile Five. The new name, as coined by a little-known research analyst at Morgan Stanley last summer, identifies Turkey, Brazil, India, South Africa and Indonesia as economies that have become too dependent on skittish foreign investment to finance their growth ambitions. The term has caught on in large degree because it highlights the strains that occur when countries place too much emphasis on stoking fast rates of economic growth. The new catchphrase also raises pressing questions about not just the BRICs but about emerging markets in general. The Morgan Stanley report came out in August, when there were reports […]

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Big Oil Companies Struggle to Justify Soaring Project Costs

Chevron Corp. , Exxon Mobil Corp. and Royal Dutch Shell PLC spent more than $120 billion in 2013 to boost their oil and gas output—about the same cost in today’s dollars as putting a man on the moon. But the three oil giants have little to show for all their big spending. Oil and gas production are down despite combined capital expenses of a half-trillion dollars in the past five years. Each company is expected to report later this week a profit decline for 2013 compared with 2012, even though oil prices are high. One of the biggest problems: Costs are soaring for many of the new "megaprojects" to tap petroleum deposits needed to replenish depleting fields. Plans under way to pump oil using man-made islands in the Caspian Sea could cost a consortium that includes Exxon and Shell $40 billion, up from the original budget of $10 billion. […]

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The globalization of pollution

THE NEXT time you’re in Los Angeles, take a deep breath. A significant portion of the pollution you’ll breathe into your lungs came from across the Pacific Ocean. Decades ago, Angelenos’ respiratory tracts may have been burned by the accumulation of local pollutants in and around Southern California’s valleys and basins. Since then, federal and state pollution controls did much to clean up the air. But a study in the Proceedings of the National Academy of Sciences finds that neither federal nor state authorities can as effectively restrain one pollution source: China. Chinese and American researchers estimated the amount and ultimate destination of smog-forming gases and particulates that Chinese factories pumped out in their production of export goods. Up to a quarter of the sulfate pollution in the western United States wafted over from those factories. Their emissions add a day of substandard air in the Los Angeles area […]

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Siege tactics in Syria come under scrutiny

The World Food Program has said it is poised to enter besieged areas with 500 bags of family rations and 500 sacks of wheat. But the aid trucks remain stranded outside Homs, and on Tuesday, the U.S. government laid the blame squarely on the government. “The only reason this assistance has not been delivered is that the regime has refused to let the convoy through,” said State Department spokesman Edgar Vasquez, rejecting government claims that rebel snipers and armed groups were preventing entry. “The regime’s actions speak volumes to how little they value the lives of innocent civilians.” Syrian Deputy Foreign Minister Faisal Mekdad, in Geneva, said the government wanted to be sure the aid deliveries would not go to “armed groups” or “terrorists,” Reuters news service reported. “We want them to go to the women and children. We are still waiting for these assurances,” he said. Several areas […]

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Oryx encouraged by Kurdish oil prospects

Henry Legarre, chief operating officer at Oryx Petroleum, said his company was encouraged by results of drilling operations in the Kurdish north of Iraq. Oryx, which has headquarters in Alberta, Canada, said it completed drilling an exploration well in the Banan prospect in the Kurdish region of Iraq. The company said a third-party survey of the prospect in 2013 put the prospective oil resources at 102 million barrels of oil. Its Demir Dagh appraisal well in the region should be completed during the second quarter of 2014. "Observations during drilling of all wells on the Demir Dagh structure continue to be encouraging," Legarre said in a statement Monday. Both wells are in the Hawler license area in the Kurdish north. The Korean National Oil Corp., a minority partner for Oryx at Hawler, announced in March it made an oil discovery at the site. […]

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Iraqi airstrikes, artillery target militants in Fallujah; at least 7 dead in city

Iraqi government forces battling al-Qaeda-linked militants intensified airstrikes and artillery fire on the rebel-held city of Fallujah on Sunday, and at least seven people were killed there, according to hospital officials and tribal leaders. Religious and tribal leaders in the city, 30 miles west of Baghdad, said they feared an imminent assault by the army to expel militants and end a three-week standoff that has driven thousands of people from their homes. The al-Qaeda-linked Islamic State of Iraq and the Levant, which is also fighting in neighboring Syria, took control of Fallujah and parts of nearby Ramadi, the provincial capital, on Jan. 1 with the help of sympathetic armed tribesmen. epa04044646 Icebreaker ‘Goermitz’ of the Stralsund Waterways and Shipping Office breaks floes in the access route to the Peenestrom harbour in Wolgast, Germany, 27 January 2014. Weather forcasts predict even more snow in the eastern regions of […]

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Provinces get additional oil revenue

The Iraqi Cabinet has increased revenue redistribution to oil and gas producing provinces, adding another $5.8 billion to the petrodollar allocation – and the ballooning draft 2014 budget – and heading off an exacerbating chorus of protest from provincial officials such as Basra and Missan, which had threatened to shut in production. The Cabinet decision follows weeks of protest and the formation of a coalition of governors of oil-producing provinces that publicly demanded action by the c…

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Arabtec Expands Into Iraq With Baghdad Office

The Dubai firm has started looking for candidates for senior management posts including for the position of CEO. By Neil Churchill 1 hour ago Arabtec has announced plans to open an office in Baghdad in an effort to capitalise on Iraq’s growing oil and gas infrastructure. The Dubai construction firm said it expects Iraq to become its most lucrative construction market and it is already in advanced talks with a number of clients for large-scale projects in the country. An Arabtec statement said a major reason for the new office is to pave the way for its recently formed JV with Samsung Engineering and the soon to be announced JV with GS Engineering and Construction. “We see great potential for Arabtec in Iraq. Our physical presence there will enable us to capitalize on the significant new business opportunities that are available particularly in oil and gas and infrastructure,” said […]

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Iraq locked into vicious cycle on investment, says OECD

Iraq will lose out on investment that could create jobs and spur economic growth unless it pulls itself out of a “vicious cycle”, says an Organisation for Economic Cooperation and Development official. The private sector regards Iraq as high risk, so it limits itself to projects with the potential of high returns. That means the manufacturing projects that can create jobs and sustainable economic growth are less likely to come to the country, said Anders Jönsson, a policy analyst at the OECD “There appears to be something of a vicious cycle in Iraq today,” Mr Jönsson said at the Iraq Finance forum in Dubai yesterday. “What Iraq needs to do is to lower this bar and to lower the risks so more projects get done.” The high bar today is stifling projects from public-private partnerships to even simple landfills, he said. Investors’ perceptions are grounded in regulatory, security and […]

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Iraq eyes return to Opec quota system

Excess gas is burned off near workers at the Rumala oil field a project with CNOOC Iraq has for the first time begun preparing for a return to the Opec production quota system , in a shift of policy that reduces the prospect of oversupply and lower prices in global oil markets. Iraq , whose oil industry has recovered rapidly since the US-led invasion a decade ago, is expected to be one of the largest sources of supply growth in the oil market over the next decade. With North American output also rising rapidly due to the shale revolution, some analysts have raised the prospect of a supply glut unless Opec , the cartel of oil exporters, can control production. Until now Iraq has insisted that other members of the producers’ group, which controls around a third of the world’s oil production, should accommodate its growth. But speaking to […]

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Iraq advances new unit, improvement plans at Basra refinery

Iraq is nearing the start-up of a gasoline-producing unit that will boost overall processing capacity to more than 210,000 b/d at state-owned South Refineries Co.’s 140,000-b/d refinery in Basra Province. The 70,000-b/d unit is designed to help the country’s manufacturing sector to meet rising local need for oil-derived products, Iraq’s Minister of Oil Abdul Karim Laibi said in a Jan. 28 release from the ministry. Commissioning of the unit comes as part of a series of projects being implemented by the oil ministry to increase processing capacity at the refinery ( OGJ Online, Dec. 20, 2011 ), which also will include improvements to existing isomerization and naphtha units at the plant, Laibi said. No specific timeframes were disclosed for either the unit’s start-up or future improvement projects at the refinery.

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Iraq and Iran plot oil revolution in challenge to Saudi Arabia

Iraq and Iran plot oil revolution in challenge to Saudi Arabia British oil giants BP and Royal Dutch Shell are also poised to benefit from Iraq’s ambitious production plans. Both companies are already managing two huge oil fields in southern Iraq which are vital if Baghdad is to achieve its goal. However, even if Iraq is able to achieve its target of boost production capacity it is unlikely to be able to put in place sufficient pipeline and port infrastructure to export the additional crude. Iraq’s main export terminal for loading oil tankers at Al Faw near Basra will require billions of pounds worth of improvements in addition to the refurbishment of its pipeline network. Iraq’s ambitious plan could see it clash increasingly with the regime in Saudi Arabia, which has used its influence in OPEC over the last decade to keep oil prices above $100 a barrel. Saudi […]

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Rebels in Syria Claim Control of Resources

Islamist rebels and extremist groups have seized control of most of Syria’s oil and gas resources, a rare generator of cash in the country’s war-battered economy, and are now using the proceeds to underwrite their fights against one another as well as President Bashar al-Assad, American officials say. While the oil and gas fields are in serious decline, control of them has bolstered the fortunes of the Islamic State of Iraq and Syria , or ISIS, and the Nusra Front, both of which are offshoots of Al Qaeda. The Islamic State of Iraq and Syria is even selling fuel to the Assad government, lending weight to allegations by opposition leaders that it is secretly […]

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Argentina's Shale Industry Lures International Oil Companies

More The whole world knows that shale revolutionized the U.S. energy industry. Now oil and gas executives are salivating when they think of Argentina’s booming shale industry. Argentina ranks second in the world, behind China, in potentially recoverable shale-gas reserves, with 802 trillion cubic feet, according to a study last October by the U.S. Energy Information Administration. Argentina also ranks fourth in shale oil with an estimated 27 billion barrels. In July, YPF and Chevron inked a deal to spend $1.2 billion to further develop shale oil and gas resources in the Vaca Muerta  formation. The deal calls for an initial phase in which 100 wells will be drilled in a 5,000-acre tract in the Loma La Lata Norte and Loma Campana areas. Chevron said the deal gives it the chance to grow production beyond its 2017 target of 3.3 million barrels per day. Chevron says shale will help […]

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Argentina’s Shale Industry Lures International Oil Companies

More The whole world knows that shale revolutionized the U.S. energy industry. Now oil and gas executives are salivating when they think of Argentina’s booming shale industry. Argentina ranks second in the world, behind China, in potentially recoverable shale-gas reserves, with 802 trillion cubic feet, according to a study last October by the U.S. Energy Information Administration. Argentina also ranks fourth in shale oil with an estimated 27 billion barrels. In July, YPF and Chevron inked a deal to spend $1.2 billion to further develop shale oil and gas resources in the Vaca Muerta  formation. The deal calls for an initial phase in which 100 wells will be drilled in a 5,000-acre tract in the Loma La Lata Norte and Loma Campana areas. Chevron said the deal gives it the chance to grow production beyond its 2017 target of 3.3 million barrels per day. Chevron says shale will help […]

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Shell sells stake in Brazilian field for $1bn

Royal Dutch Shell said on Wednesday it had agreed to sell a stake in one of its Brazilian offshore assets to Qatar’s state-owned oil and gas company for $1bn. The disposal of a 23 per cent share in Parque das Conchas project, also dubbed BC-10, to Qatari Petroleum International comes with the Anglo-Dutch major expected to step up efforts to raise cash in 2014 and 2015. Shell, Europe’s largest oil company by market value, has been accused by investors of spending too much in recent years and Ben van Beurden, new chief executive, who took the reins at the start of this year, is under pressure to improve capital discipline. As part of that, Shell is expected to sell some $15bn worth of assets over the next two years in one of the largest disposal programmes in its history. Already this year it has announced the sale of a […]

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Shell Sells Stake in Offshore Brazil Oilfield for $1 Billion

Royal Dutch Shell Plc (RDSA) sold part of its stake in an offshore Brazil oilfield as Europe’s largest oil company steps up disposals to offset capital spending. Shell agreed to sell a 23 percent stake in the Parque das Conchas field, or BC-10, to Qatar Petroleum International Ltd. for about $1 billion, it said in a statement today. The Hague-based company will retain a 50 percent stake and will continue to operate the field, it said. Shell is selling assets to bring down its net capital investment, or spending on projects adjusted for acquisitions and disposals, which climbed to a record $45 billion last year. Shell issued its first profit warning in a decade this month, saying fourth-quarter earnings will be about half those of a year earlier as the cost of projects rises. The BC-10 field is currently producing about 50,000 barrels of oil equivalent a day. The […]

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Toyota Output Sets Industry Record

Toyota Motor Corp. said Wednesday it produced more than 10 million vehicles world-wide last year, making it the first auto maker to post annual output above that threshold. The record volume comes as the Japanese car maker is setting its sights on exceeding that same number in vehicles sold this year–which would also be an industry record–counting on solid demand in the world’s two biggest auto markets, China and the U.S. Toyota has rebounded after several tough years, encompassing the 2008 recession, several large global recalls and production disruptions following the 2011 earthquake and tsunami. The company said it produced 10.12 million vehicles globally in 2013, up 2.1% from the previous year. Higher output in the Americas and Europe offset sluggish production in its home market. Output in Japan fell 3.9% to 3.36 million, though still higher than the three million level the company aims […]

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China's first direct coal liquefaction line produces 866,000 tonnes

China’s first direct coal-to-oil project, operated by the country’s leading coal producer, Shenhua Group, produced 866,000 tonnes of oil products last year. The direct coal liquefaction line is located in Ejin Horo Banner, Ordos City in northern Inner Mongolia Autonomous Region. It produces 3,000 tonnes of oil products with consumption of nearly 10,000 tonnes of coal per day, said Shenhua Coal Liquefaction and Chemical Co., Ltd. With an investment of 12.6 billion yuan (2.06 billion U.S. dollars), Shenhua Group began construction of the project in 2004, using self-developed technologies. The project began trial production at the end of 2009 with a designed annual capacity of 1.08 million tonnes of diesel, naphtha and liquefied petroleum gas. Proven coal reserves around Ordos are estimated at 160 billion tonnes, or 11.4 percent of the country’s total coal reserves. As part of its clean energy strategy, China has […]

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China’s first direct coal liquefaction line produces 866,000 tonnes

China’s first direct coal-to-oil project, operated by the country’s leading coal producer, Shenhua Group, produced 866,000 tonnes of oil products last year. The direct coal liquefaction line is located in Ejin Horo Banner, Ordos City in northern Inner Mongolia Autonomous Region. It produces 3,000 tonnes of oil products with consumption of nearly 10,000 tonnes of coal per day, said Shenhua Coal Liquefaction and Chemical Co., Ltd. With an investment of 12.6 billion yuan (2.06 billion U.S. dollars), Shenhua Group began construction of the project in 2004, using self-developed technologies. The project began trial production at the end of 2009 with a designed annual capacity of 1.08 million tonnes of diesel, naphtha and liquefied petroleum gas. Proven coal reserves around Ordos are estimated at 160 billion tonnes, or 11.4 percent of the country’s total coal reserves. As part of its clean energy strategy, China has […]

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Indian lawmaker group calls for boosting renewable electricity

India has 7.5 million households without access to electricity, a new report by a group of Indian lawmakers says. The report, submitted Monday to Indian Prime Minister Manmohan Singh by the lawmakers, known as the Climate Parliament Group of MPs, notes that per capita electricity consumption in the country’s rural households was 8 units per month compared to 24 units in urban households. "The reason for such low level of consumption is not low demand, but poor access to energy. In spite of a number of programs and schemes for rural electrification, India has one of the lowest levels of access to modern energy," Press Trust of India quotes the report, "RE-Energising India: Policy, Regulatory and Financial Initiatives to Augment Renewable Energy Deployment in India," as saying. Noting the Indian government in 2001-02 had pledged to provide "electricity for all by 2012," a […]

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Shell Plans Boat to Tap Gas Fields

Royal Dutch Shell PLC says it has a way to spend less on tapping remote natural-gas fields. There’s just one catch: It will cost at least $10 billion, according to people who have worked on the project. Shipyard workers in South Korea are building a hull for the Anglo-Dutch company that stretches more than 1,600 feet from bow to stern. The boat will drop anchor in a natural-gas field, chill the gas into liquid and pump it into tankers. The vessel, christened Prelude, will produce enough natural gas to supply Hong Kong for a year, according to Shell. The company says the giant project will help Shell develop gas fields that are too small or far-flung to justify the pricey pipelines and onshore processing plants needed for offshore gas fields. Shell hasn’t announced a completion date for Prelude, now a bright red hull afloat in the shipyard, but it […]

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Fracking Boom Keeps Home Heating Bills in Check

Freezing temperatures are creating near-record demand for natural gas in the U.S. as shivering Americans turn up the heat and plug in their electric blankets. Natural-gas prices have jumped in response, topping $5 per million British thermal units for the first time since 2010 as fuel has been pulled from underground storage vaults to keep furnaces running and electric utilities humming. But compared with past cold snaps, such as in 2000, the price surge has been muted, according to utilities and other big gas users. That is good news for businesses and consumers. Manufacturers that consume large amounts of the fuel—steelmakers, for example—say they have trouble planning for sharp price changes. And homeowners on fixed incomes can be hit especially hard when utilities raise prices. In the short term, higher prices help gas drillers, many of which have been losing money on wells in a supply glut. Over the […]

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North Dakota Reacts to Drilling Critics

North Dakotans have strongly backed oil drilling in their state, but attempts to drill wells near historic sites—including a ranch once used by Teddy Roosevelt—have sparked enough of an outcry that regulators are considering greater citizen input into how and where companies may operate. Last week, North Dakota’s Industrial Commission, which regulates the oil industry, highlighted 18 areas for possible protection because of their cultural, recreational, scenic or spiritual significance. Within a buffer zone, drilling wouldn’t be banned but be subjected to heightened public and possibly regulatory scrutiny. On Wednesday, a panel studying the issue is set to recommend policies on how to give the public more voice in where drilling is allowed, among other issues. The furor over historical sites was sparked in January 2013 when the Industrial Commission dismissed objections from nearby landowners and Native Americans and approved Hess Corp.’s application to drill wells near the Killdeer […]

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Falling Gasoline Hurts Exxon Plea for U.S. Crude Exports

Photographer: Daniel Acker/Bloomberg Exxon Mobil Corp. (XOM) ’s push to export U.S. oil overseas is facing a new obstacle: falling gasoline prices. A flood of new oil from Texas to the Great Plains has swamped refineries, driving down prices at the pump 10 percent since March, while global oil prices have hovered at about $107 a barrel. That suggests the world crude market is having waning influence on U.S. gasoline, which instead is beginning to track lower-priced domestic oil. U.S. supplies are having a greater impact because they’re making up a bigger part of the gasoline market, supplying about 53 percent today, compared with 34 percent less than three years ago. As cheaper oil translates to cheaper gasoline, Exxon and ConocoPhillips will have a tougher time convincing legislators that ending export restrictions that date back to 1970s oil shortages would benefit the nation, said Sandy Fielden, director of energy […]

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BP Continued Suspension From New U.S. Contracts Sought

BP Plc. (BP/) ’s suspension from new government contracts and oil leases after the 2010 Gulf of Mexico oil spill should continue because, government lawyers argued, the company hasn’t demonstrated it’s a responsible contractor. BP is fighting a 2012 ban imposed on 20 affiliates by the U.S. Environmental Protection Agency , which prevents all BP entities from bidding on any new government supply contracts or oil leases. The suspension, which doesn’t affect BP’s earlier government contracts, was imposed after the agency determined the London-based company hadn’t fully corrected problems that led to the fatal explosion aboard the Deepwater Horizon drilling rig and the worst offshore spill in U.S. history. “Given this history, it was wholly reasonable” for the agency to “conclude that BP’s latest round of plans and promises is insufficient to demonstrate that BP is a responsible federal contractor,” Robert G. Dreher, acting assistant attorney general of the […]

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U.S. solar sector expanding, study finds

U.S. Energy Secretary Ernest Moniz said the number of jobs created in the U.S. solar power sector suggests it is an "exciting time" for the industry. A report published by The Solar Foundation, a 37-year-old non-profit focused on solar power, said there were 142,698 people in the United States employed in the solar industry as of November, a 19.9 percent increase since September 2012. "This is an exciting time for the solar industry in the United States, made even more clear by the latest industry job figures," Moniz said in a statement issued Monday after the report was released. The report said the employment rate in the U.S. solar industry grew 10 times faster than the national average. The Solar Foundation’s census report for 2013 finds 77 percent of the jobs reported in the sector since September 2012 were new jobs. Employment in the […]

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Oil Futures Rebound

Crude-oil futures staged a minor technical rebound in Asian hours Tuesday after a sharp overnight drop, as markets focus on the upcoming meeting of the U.S. Federal Reserve later this week. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $95.88 a barrel at 0546 GMT, up $0.16 in the Globex electronic session. March Brent crude on London’s ICE Futures exchange rose $0.29 to $106.98 a barrel. Asian financial markets appeared to stabilize after the recent global selloff but investors remain cautious as further winding down of bond purchases by the U.S. Fed remains in focus. A reduction in the Fed’s buying program will boost the U.S. dollar and put pressure on oil prices. Oil markets also assessed stronger U.S. fuel demand as a second wave of extreme cold swept the country this month. Goldman Sachs said the impact of the cold […]

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WTI Crude Declines for Second Day on Home Sales Report

West Texas Intermediate crude fell for a second day as purchases of new U.S. homes missed forecasts, raising concern that fuel demand may slow in the world’s leading consumer of oil. Prices dropped the most in two weeks. Home sales decreased 7 percent to a 414,000 annualized pace in December, the Commerce Department reported, lower than any estimate of economists surveyed by Bloomberg. WTI also declined on speculation the Federal Reserve will decide to curb stimulus further at a meeting this week. “The U.S. economy is not as strong as people thought and the perception of demand is weak,” said Gordy Elliott, a risk-management specialist at Intl FC Stone LLC in St. Louis Park , Minnesota . “There is anticipation that the Fed will lessen stimulus.” WTI for March delivery slid 92 cents, or 1 percent, to end at $95.72 a barrel on the New York Mercantile Exchange , […]

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Natural Gas Rebounds After Biggest Drop in Almost Nine Months

Natural gas rose in New York , rebounding from the biggest drop in almost nine months. Futures for February delivery climbed as much as 2.3 percent to $4.956 per million British thermal units in electronic trading on the New York Mercantile Exchange , and were at $4.932 at 2:48 p.m. in Singapore. Gas slid 6.5 percent yesterday, the most since May 2, after soaring to $5.442, the highest price since Feb. 16, 2010. The volume of all futures traded was about 58 percent below the 100-day average. Temperatures will continue to fall behind an “Arctic blast” that swept through the eastern third of the U.S., according to a forecast from the National Weather Service at 3:46 p.m. New York time yesterday. The system will also drop snow, sleet and freezing rain from South Texas to the Carolinas. “The combination of falling temperatures and gusty winds will make for bitter […]

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OPEC Can Handle Higher Oil Output From Iran

;OPEC could easily accommodate increased oil production from Iran when sanctions limiting its output are lifted, the cartel’s head said Monday, brushing off concerns it could split up because of oversupply. "This, we will overcome," Abdalla Salem el-Badri, secretary general of the Organization of the Petroleum Exporting Countries, told reporters on the side of an oil conference at Chatham House in London, U.K. Iran said last month it wanted to produce 4 million barrels of oil a day when sanctions are lifted, up from about 2.6 million barrels a day. Libya, whose output has more than halved to 650,000 barrels a day due to strikes, is also expected to return to normal when the crisis is resolved. "When Iran will come [back], when Libya will come [back], I don’t think there will be difficulty for OPEC," Mr. el-Badri said. Iraq, another OPEC member, has also been ramping up production […]

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Natural Gas Futures Tumble From Four-Year High on Milder Weather

Natural gas futures plunged in New York, declining from the highest price in almost four years, as forecasts showed mostly normal weather on the East Coast in early February. Gas slid 6.5 percent, the most since May 2, after soaring to $5.442 per million British thermal units, the highest price since Feb. 16, 2010. Commodity Weather Group LLC in Bethesda, Maryland , said average or higher-than-usual temperatures would extend from Florida to Maine from Feb. 1 through Feb. 10 after frigid weather this week. “The market’s collapsed after pushing up to a four-year high,” said Gene McGillian , an analyst and broker at Tradition Energy in Stamford, Connecticut . “We’re going to see some volatility, with prices basically being pushed and pulled by the weather patterns.” Natural gas for February delivery fell 33.5 cents to settle at $4.847 per million British thermal units on the New York Mercantile Exchange […]

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Iran boasts of sanctions relief on oil sector

Sanctions relief in the wake of an interim nuclear deal clears the way for Iran to start exporting crude oil to more consumers, an Iranian executive said. Ali Akbar Safaei, director of the National Iranian Tanker Co., told Shana, Iran’s official oil news website, his company and the National Iranian Oil Co. were free from some U.S. sanctions. Some Western governments agreed to suspend sanctions on Iran for the duration of a six-month interim deal that calls on Iran to curb some of its nuclear activity. Safaei said the sanctions relief means Iran has leeway to export crude oil to China, India, Turkey, Taiwan, Japan and South Korea. "This [sanctions] relief is a green light for NITC but we expect the immediate return of NITC to international oil transportation markets besides these six countries," he was quoted as saying Sunday. There was no formal […]

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Iran Nuclear Talks Shift to New York in Mid-February

Iran and global powers will begin negotiations on a comprehensive agreement to end the decadelong dispute over Tehran’s nuclear program in mid-February in New York, Western and Iranian officials said on Monday. The meetings, whose dates aren’t yet fixed, will mark a shift from Geneva, where three rounds of talks were held beginning in October. That diplomacy resulted in November’s interim agreement that froze the most advanced parts of Iran’s nuclear program in exchange for some easing of Western sanctions on Tehran. However, officials said the hardest part of the talks lie ahead as the two sides seek to negotiate a final deal that would completely lift sanctions on Iran in return for Tehran scaling back much of its activities and settling remaining doubts about its pledge that it isn’t seeking to develop nuclear weapons. November’s agreement came into force on Jan. 20. The two sides have set a […]

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Weir Group gets Lukoil contract for maintenance at oil field in Iraq

The Weir Group, a Scottish oil services company, said it signed a $98 million contract to provide maintenance for the West Qurna-2 oil field in southern Iraq. Weir, which has headquarters in Glasgow, said it agreed to provide general maintenance and pipeline services for Russian oil company Lukoil at the field for two years. The Scottish company said it has already set up an $8 million service center at the Iraqi port city of Basra, one of the first maintenance facilities of its kind in the country. “This substantial contract demonstrates the importance of Weir’s long experience of working in Iraq and our reputation for delivering high-quality engineering services in support of the country’s developing oil field infrastructure,” Weir Chief Executive Officer Keith Cochrane said in a statement Friday. Weir said its operations in Iraq will help Lukoil produce an estimated 150,000 barrels […]

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Egypt’s Ruler Eyes Riskier Role: The Presidency

When Egypt’s first freely elected president, Mohamed Morsi, named Gen. Abdul-Fattah el-Sisi defense minister, the officer pledged to keep the military out of politics and make way for civilian democracy. A year later, General Sisi ousted Mr. Morsi, insisting the military was answering the people’s call to secure “their revolution.” Just three weeks later, he once again said he was turning to the people when he urged them to take to the streets to give him a personal “mandate” to crush Mr. Morsi’s base of support in the Muslim Brotherhood. Then on Monday, Field Marshal Sisi — he added the title the same day — took the first formal step to become Egypt’s next president, insisting he was yielding once again to “the free choice of the masses” and “the call of duty.” With that, […]

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Attempts to Send Food, Medicine to Besieged Homs Quarter Falter

Attempts to send convoys of food and medicine to thousands of people under siege in a rebel-held area of Homs failed Monday, lowering hopes about the regime’s commitment to confidence-building measures coming out of peace talks in Geneva. Syrian government and United Nations officials met for talks in Homs, Syria’s third-largest city, but they couldn’t agree how to implement a U.N. plan proposed to the regime more than a week ago. The regime insisted on Sunday in Geneva and on Monday in Homs that it would only discuss the evacuation of civilians. The opposition is demanding that aid be delivered before any evacuation, fearing that once some civilians leave, the government will launch a military offensive against rebels who remain. The government’s siege of the old quarter of Homs for the past 20 months has trapped an estimated 3,000 civilians and up to 4,000 rebels. Both the U.N. […]

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