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China pushing for new-energy cars, but challenges abound

In his government work report during the Two Sessions, Premier Li Keqiang said tackling air pollution was at the top of the government’s list. To attain this goal, a multi-pronged strategy is needed. One solution is to develop new energy vehicles, something easier said than done. A green solution to a chronic problem. New energy vehicles are rapidly becoming a new trend, after the number of smoggy days in the country hit a record high of 52 last year. During the Two Sessions, some industry experts predicted 2014 would witness a surge in the sale of new energy cars. "This year might be a critical year for the popularity of electric cars. I remember 2003 marked the rise of families buying cars because of the SARS outbreak. And this year, due to the prevalent smog, electric vehicles might see a boom in sales," said […]

Posted On : Published By : Tom Whipple
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ASIA THERMAL COAL: Chinese buyers draw back as domestic market buckles

"Shenhua has achieved what it wanted by cutting prices. It may not want to cut its prices again this month," said a Shanghai-based trader. Smaller and medium-sized coal producers in China were among the most aggressive sellers in Friday’s market, as some seek to unload their remaining stock with a view to existing the business, said sources in China. In the seaborne market for China, April-arrival high-ash Australian cargoes were heard to trade this week at around $75.50/mt CFR in a thin market as Chinese buyers drove hard bargains. A Capesize cargo of Australian 5,500 kcal/kg NAR coal was being offered Friday at slightly above $76/mt CFR South China for April arrival, while bids were at $75.50/mt CFR, as heard through broker Starfuels. "The arbitrage into China for imported thermal coal is closed," said one market participant in Singapore. April-May delivery cargoes of 5,500 kcal/kg NAR Australian thermal coal […]

Posted On : Published By : Tom Whipple
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Keystone XL pipeline's strategic worth debated

A former White House official said the Keystone XL pipeline could be a strategic asset, though Sierra Club’s director said it’s not worth the climate threats. The U.S. Senate Foreign Relations Committee heard testimony Thursday over whether or not the proposed Keystone XL oil pipeline from Canada is in the national interest. Proposed more than five years ago by pipeline company TransCanada, the project has become the scapegoat for debates over U.S. energy policy. James Jones , a retired Marine general who served as national security adviser to President Obama , told the Senate approving Keystone XL would rival "international bullies" who are using energy as a weapon. With geopolitical tensions in Ukraine tied to Russia’s influence over Eastern European energy markets, Jones said denying Keystone would help the Kremlin’s position. "There is no doubt in my mind that the outcome [of the Keystone […]

Posted On : Published By : Tom Whipple
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Keystone XL pipeline’s strategic worth debated

A former White House official said the Keystone XL pipeline could be a strategic asset, though Sierra Club’s director said it’s not worth the climate threats. The U.S. Senate Foreign Relations Committee heard testimony Thursday over whether or not the proposed Keystone XL oil pipeline from Canada is in the national interest. Proposed more than five years ago by pipeline company TransCanada, the project has become the scapegoat for debates over U.S. energy policy. James Jones , a retired Marine general who served as national security adviser to President Obama , told the Senate approving Keystone XL would rival "international bullies" who are using energy as a weapon. With geopolitical tensions in Ukraine tied to Russia’s influence over Eastern European energy markets, Jones said denying Keystone would help the Kremlin’s position. "There is no doubt in my mind that the outcome [of the Keystone […]

Posted On : Published By : Tom Whipple
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U.S. rail industry sees exponential growth in oil delivery

The Association of American Railroads said 285 million barrels of crude oil were delivered on the U.S. rail system last year, a 74 percent increase from 2012. The AAR reported fourth quarter 2013 rail deliveries of crude oil were 108,590 carloads, or the equivalent of about 76 million barrels of oil. For full 2013, the AAR said Thursday 407,642 railcars, or about 285 million barrels of oil, traveled on the U.S. rail network, a 74 percent increase from the previous year. Industry officials said the accelerated pace of U.S. oil production has strained the existing pipeline capacity, prompting energy companies to rely on rail as an alternate delivery method. The U.S. Energy Information Administration said in its short-term market report, published earlier this week, U.S. crude oil production should reach 8.4 million barrels per day by the end of 2014, a 12 percent increase […]

Posted On : Published By : Tom Whipple
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Surge in Oil From U.S., Canada Helps Meet Demand

The dramatic increase in oil supply from the U.S. and Canada—coupled with a surprise surge in Iraqi output—helped stave off global demand pressures brought on by a cold U.S. winter and geopolitical concerns over rising tensions between Russia and Ukraine. The International Energy Agency, a watchdog for the world’s biggest energy consumers, said North American output helped mitigate a bigger-than-expected draw from global crude inventories, caused by a colder than usual winter in the U.S. also helped keep global markets supplied, and prices in check. In recent years, new drilling and extraction techniques employed across North America—from shale-oil deposits in Texas to oil-sands reserves in Alberta—have boosted global supply. amid big, recent output disruptions. U.S. and European economic sanctions against Iran have choked off a big chunk of Iranian oil to world markets, and Libyan unrest has all but shut off that country’s once-prodigious oil shipments. Recent worry centered […]

Posted On : Published By : Tom Whipple
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Baker Hughes: US drilling rig count spikes to 1,792

The US drilling rig count increased 17 units to 1,809 rigs working during the week ended Mar. 14, reported. The 40-unit rise over the past 2 weeks has enabled the US the eclipse the 1,800 mark for the first time since December 2012. Land-based rigs received an 18-unit boost to 1,737 while offshore rigs edged down a unit to 54. Rigs drilling in inland waters were unchanged from a week ago at 18. Mirroring the rise in land rigs, oil rigs gained 18 units to 1,461. Gas rigs dropped a unit to 344. Rigs considered unclassified were unchanged at 4. rigs climbed 10 units to 1,212 as directional drilling rigs rose 6 units to 204. It was a different story in Canada, where its rig count plummeted 65 units to 522, a vast majority of which were oil rigs. The 62-unit drop in those rigs to 327 came with […]

Posted On : Published By : Tom Whipple
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Fracking Waste Injection Wells Put Millions of Californians at Risk of Increased Earthquakes

Oil companies are increasing California’s earthquake risk by injecting billions of gallons of oil and gas wastewater a year into hundreds of disposal wells near active faults around Los Angeles, Bakersfield and other major cities, according to a new report from Earthworks , the Center for Biological Diversity and Clean Water Action . A boom in hydraulic fracturing— fracking —in California would worsen the danger of earthquakes, the report finds, by greatly increasing oil wastewater production and underground injection. Extracting the Monterey Shale’s oil could produce almost 9 trillion gallons of contaminated wastewater, the report estimates. That could expose California to a surge in damaging earthquakes like those seen in Oklahoma, Texas and other states experiencing rapidly increased fracking and wastewater production . The report, On Shaky Ground: Fracking, Acidizing and Increased Earthquake Risk in California finds that millions of Californians live in areas threatened by oil industry-induced earthquakes. […]

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CEOs of Biggest Russian Firms Could Be Hit by Sanctions -Paper

The CEOs of Russia’s two largest firms are on a list of those who may be hit next week with European and U.S. sanctions over the Crimea crisis, a German newspaper said on Friday, suggesting tougher than expected measures against Russia’s elite. Moscow shipped more troops and armour into Crimea on Friday and repeated its threat to invade other parts of Ukraine, showing no sign of heeding Western pleas to back off from the worst East-West confrontation since the Cold War. Russia’s stock markets tumbled and the cost of insuring its debt soared on the last day of trading before pro-Moscow authorities in Crimea hold a vote to join Russia, a move all but certain to lead to U.S. and European Union sanctions on Monday. European officials told Reuters the EU was working on a five page list of 120-130 Russians who could […]

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Russian companies withdraw billions from west, say Moscow bankers

Russian companies are pulling billions out of western banks, fearful that any US sanctions over the Crimean crisis could lead to an asset freeze, according to bankers in Moscow. and VTB , Russia’s giant partly state-owned banks, as well as industrial companies, such as energy group Lukoil , are among those repatriating cash from western lenders with operations in the US. VTB has also cancelled a planned US investor summit next month, according to bankers. The flight comes as last-ditch diplomatic talks between Russia’s foreign minister and the US secretary of state to resolve the tensions in Ukraine ended without an agreement. In depth Battle for Ukraine Viktor Yanukovich has been ousted but Russia is flexing its military muscle, fearing a threat to its interests in Ukraine Markets were […]

Posted On : Published By : Tom Whipple