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Alaska prepares for potential LNG future

Alaska Gov. Sean Parnell said a Senate vote in favor of a liquefied natural gas project was a vote in favor of his state’s economic future. The Alaska State Senate passed Bill 138 and sent it to the House of Representatives for approval. Parnell said the bill creates a framework for the state to become a co-owner of an LNG project planned by BP, Exxon Mobil, ConocoPhillips and pipeline company TransCanada Corp. Parnell said in a statement he applauded the vote. "Our legislation paves the way for Alaskans to become owners in the project and ensures an open, public process going forward," he said in a statement Tuesday. The Senate bill passed 15-5, with four state Democrats and one Republican voting in opposition. Opponents, like Minority Leader Sen. Hollis French, said the bill makes it possible for the state to eventually cede its stake in the project to the […]

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Winter's snowy barrage hammers US road budgets

In Michigan’s way-up-north Keweenaw Peninsula, where 200 inches of snow in a single season elicits barely a shrug, officials know there’s nothing in the budget more important than keeping the roads passable. Yet even they have been caught short this merciless winter. Houghton County planned to spend around $2.1 million for plowing, salting and related maintenance, which experience suggested would be plenty, but has overshot it by $500,000 and counting. State and local governments across a huge swath of the nation, from the Great Plains to the Upper Midwest and the Deep South to New England, are experiencing sticker shock after one of the coldest, snowiest, iciest winters in memory. Many have spent two or three times as much as they budgeted for clearing roads. More bad weather could send costs higher. Even as Thursday’s official arrival of […]

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Winter’s snowy barrage hammers US road budgets

In Michigan’s way-up-north Keweenaw Peninsula, where 200 inches of snow in a single season elicits barely a shrug, officials know there’s nothing in the budget more important than keeping the roads passable. Yet even they have been caught short this merciless winter. Houghton County planned to spend around $2.1 million for plowing, salting and related maintenance, which experience suggested would be plenty, but has overshot it by $500,000 and counting. State and local governments across a huge swath of the nation, from the Great Plains to the Upper Midwest and the Deep South to New England, are experiencing sticker shock after one of the coldest, snowiest, iciest winters in memory. Many have spent two or three times as much as they budgeted for clearing roads. More bad weather could send costs higher. Even as Thursday’s official arrival of […]

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Obama Keystone Choice Pits Donors Against At-Risk Senate

President Barack Obama ’s advisers are lining up against the proposed Keystone XL oil pipeline. Top Democratic donors oppose the project. And Obama himself dismisses claims that it will create many jobs. Yet there’s still one big obstacle to the president saying no to Keystone: election-year politics. If Obama rejects the pipeline, it might sink Democratic candidates in states with big energy industries, such as Louisiana and Alaska . That could cost Democrats control of the Senate — a risk that’s likely to weigh heavily on any decision the president makes, to approve the pipeline, reject it or wait until […]

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BP’s Gulf Redemption May Take Decade to Bestow Barrels

BP ’s bids for its first new U.S. offshore leases in two years may not add any barrels of production until the middle of the next decade. The owner of the deep-water Macondo well that spewed millions of barrels of crude into the Gulf of Mexico during a 2010 blowout was the highest bidder on 24 blocks offered for lease by the Interior Department, Tommy Beaudreau, director of the Bureau of Ocean Energy Management , said in a conference call yesterday. The tracts are part of an area twice the size of Maine that attracted more than $1 billion in bids from oil and natural gas producers. It was only last week that BP received the U.S. Environmental Protection Agency’s blessing to resume competing for federal drilling rights after the London-based company was barred from winning new leases in 2012 because of safety concerns. Although BP has regained credibility with […]

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Wildcatters Rush Spindletop in Return to East Texas Oil

A drilling crew poses for a photo atop Spindletop Hill in Beaumont, Texas, in 1901. Close Source: Texas Energy Museum/Newsmakers via Getty Images A drilling crew poses for a photo atop Spindletop Hill in Beaumont, Texas, in 1901. A drilling crew poses for a photo atop Spindletop Hill in Beaumont, Texas, in 1901. Close Source: Texas Energy Museum/Newsmakers via Getty Images The famous Lucas Gusher blows out oil on January 10, 1901, on Spindletop Hill in Beaumont, Texas. The famous Lucas Gusher blows out oil on January 10, 1901, on Spindletop Hill in Beaumont, Texas. Close Photographer: David Wethe/Bloomberg Mark Plummer, founder and Chief Executive Officer of closely held Chestnut Exploration & Production, visits for the… Read More Mark Plummer, founder and Chief Executive Officer of closely held Chestnut Exploration & Production, visits for the first time in person […]

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U.S. current account gap hits 14-year low in fourth quarter

WASHINGTON (Reuters) – The U.S. current account deficit tumbled to a 14-year low in the fourth quarter as exports touched a record high, a government report showed on Wednesday. The Commerce Department said the current account gap, which measures the flow of goods, services and investments into and out of the country, narrowed to $81.1 billion. That was the smallest since the third quarter of 1999 and followed a revised $96.4 billion gap in the third quarter. It represented 1.9 percent of gross domestic product, the smallest share since the third quarter of 1997. That was down from 2.3 percent in the July-September period. Economists polled by Reuters had forecast the current account deficit narrowing to $88 billion in the final three months of 2013 from a previously reported $94.84 billion in the prior period. For all of 2013, the current account deficit averaged 2.3 percent of GDP, the […]

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New Canadian Resources Minister to Face Keystone Pipeline Challenge

Greg Rickford, the man Canadian Prime Minister Stephen Harper has selected to take over as Canada’s Resources Minister, immediately takes on one of the biggest challenges facing the Canadian economy: the stalled effort to get approval for Keystone XL. Under the Conservative government, the resources job has emerged as a high-profile role, responsible for the push to get landlocked Alberta crude to markets around the world. Pipeline construction has taken on heightened importance as Canada’s largest buyer of crude, the U.S., experiences an energy boom of its own toward a path of energy self-sufficiency. The job of Resources Minister became vacant after Joe Oliver was moved from that post to Finance, to fill the vacancy left by the resignation Tuesday of Jim Flaherty. Mr. Rickford was a junior minister in the cabinet, with responsibility for science policy and northern development in Canada’s largest province, Ontario. A key part of […]

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“The Oil and Gas Weapon Won’t Work”: Davis & Leggett on Ukraine

Lt. Col. Daniel Davis & Jeremy Leggett in  The National Interest : “After many weeks of political chaos and bloodshed in Kiev, Moscow sent soldiers across the frontier into the Crimea on February 27, claiming it aimed to protect the Russian-speaking population.” “Writing in the  Washington Post  on March 7, former US Secretary of State Condoleezza Rice captured the essence of many in the US who advocate using oil as a weapon against Russia. She wrote that “soon, North America’s bounty of oil and gas will swamp Moscow’s capacity. Authorizing the Keystone XL pipeline and championing natural gas exports would signal that we intend to do precisely that.” Secretary Rice’s assumptions regarding the state of US tight oil and gas as “bountiful” are common among many opinion leaders in the West. They also happen to be wrong. Before contemplating the use of US oil and gas as a strategic weapon, […]

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“The Oil and Gas Weapon Won’t Work”: Davis & Leggett on Ukraine

Lt. Col. Daniel Davis & Jeremy Leggett in  The National Interest : “After many weeks of political chaos and bloodshed in Kiev, Moscow sent soldiers across the frontier into the Crimea on February 27, claiming it aimed to protect the Russian-speaking population.” “Writing in the  Washington Post  on March 7, former US Secretary of State Condoleezza Rice captured the essence of many in the US who advocate using oil as a weapon against Russia. She wrote that “soon, North America’s bounty of oil and gas will swamp Moscow’s capacity. Authorizing the Keystone XL pipeline and championing natural gas exports would signal that we intend to do precisely that.” Secretary Rice’s assumptions regarding the state of US tight oil and gas as “bountiful” are common among many opinion leaders in the West. They also happen to be wrong. Before contemplating the use of US oil and gas as a strategic weapon, […]

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Report: Climate change stunting fish

Climate change may be stunting fish growth, a new study  said. Fish sizes in the North Sea have shrunk dramatically, and scientists believe warmer ocean temperatures and less oxygenated water could be the causes.  The body sizes of several North Sea species have decreased by as much as 29 percent over a period of four decades, according to the report published in the April issue of Global Change Biology. The report presents evidence gathered as researchers followed six commercial fish species in the North Sea over 40 years. Their evidence showed that as water temperatures increased by 1 to 2 degrees Celsius, an accompanying reduction in fish size was observed. It is generally accepted among scientists that decreased body size is a universal response to increasing temperatures, known as the ‘temperature size rule,’ the report said. But before this report, led by scientists at Scotland’s University of Aberdeen, there […]

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Ukraine crisis: Russia faces fresh sanctions over Crimea

Crimean pro-Russian forces seized two naval bases on Wednesday European Union leaders are due to meet in Brussels to discuss further targeted sanctions in response to Russia’s annexation of Crimea from Ukraine. It comes as UN chief Ban Ki-moon visits Russian leaders in Moscow to urge a diplomatic solution to the crisis. Tensions remain high in Crimea – pro-Russia forces seized two bases on Wednesday, including Ukraine’s navy HQ in Sevastopol. Ukraine’s navy commander was detained, but has now been released. Crimean leaders signed a treaty with Moscow on Tuesday to absorb the peninsula – an autonomous republic in southern Ukraine – into Russia, following a disputed referendum on Sunday. Russia’s Foreign Minister Sergei Lavrov said the political process was expected to be completed this week, Russia’s Interfax news agency reports. The lower house will vote on ratifying the Crimea treaty on Thursday, and the upper house on Friday. […]

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UK urges EU to cut energy reliance on Russia

The British government is pushing EU leaders to back a new energy security plan to wean Europe off Russian energy over the next 25 years by ramping up imports from new sources, including shale gas from the US and natural gas from Iraq. The proposal, distributed to European capitals ahead of a summit in Brussels beginning on Thursday, also calls for speeding up development of a pipeline route through Azerbaijan and Turkey that would bring gas to Europe from the Caspian Sea, avoiding Russian territory. “ Crises in Ukraine in 2006, 2009 and more recently have repeatedly illustrated the need to ensure Europe is not over-reliant on a limited number of sources of energy or vulnerable to external pressure,” reads the paper, referring to the current stand-off with Russia as well as previous crises where state-owned Gazprom cut off supplies to Ukrainian pipelines over pricing and unpaid debts. […]

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Shell Pulls Out of Ukraine Deal Near Crimea

Royal Dutch Shell PLC said Wednesday that it withdrew from negotiations over an offshore exploration deal in the Black Sea, west of Crimea. Shell made the decision to pull out in January, a spokesman said. The Anglo-Dutch energy major was part of a group of companies including Exxon Mobil Corp. that struck a deal with the Ukraine government to develop the offshore Skifska oil-and-gas field. "In the Ukraine, we maintain our interest in the Skifska license, but it is on hold due to current circumstances," Exxon Senior Vice President Andrew Swiger told analysts at a meeting earlier this month. The Ukrainian government announced the deal in 2012, but a Shell spokesman said Wednesday that Shell still hadn’t signed the agreement at the time it pulled out in January. The spokesman said Shell is still pursuing other Ukraine projects, including exploration for "tight" natural gas in […]

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Peak Oil Depletion Scenarios

In 1972, the Club of Rome attempted to shock stakeholders, politicians and policy makers with its Limits to Growth study forecast of All Liquids Peak Oil:  117-Mbd in 1995.  They attempted to promote awareness natural resources are finite, but in jeopardy with growing global population.  This was underscored in 1974 with M K Hubbert’s similar prediction:  111-Mbd in 1995 (excluding NGL, deep sea, polar, Orinoco & tar sands). Because OPEC manipulation truncated both these predictions, Colin Campbell attempted to update the long-term prospects for All Liquids .  The Irish geologist stunned many when in 1989 he declared present All Liquids flow (65.5-Mbd) would never again re-attain its 1979 pre-crisis Peak of 67-Mbd ( ) .  Well, he was very wrong (88-Mbd today).  This episode made it quite clear the uncertainty & price volatility caused by such pessimistic reports (even by well-intentioned professionals) required formal addressing by the […]

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The global Transition tipping point has arrived

Last Friday, I posted an exclusive report about a new NASA-backed scientific research project at the US National Socio-Environmental Synthesis Center (Sesync) to model the risks of civilisational collapse, based on analysis of the key factors involved in the rise and fall of past civilisations. The story went viral and was quickly picked up by other news outlets around the world which, however, often offered rather misleading headlines. ‘Nasa-backed study says humanity is pretty much screwed’, said . ‘Nasa-funded study says modern society doomed, like the dodo’, said the . Are we doomed? Doom is not the import of this study, nor of my own original research on these issues as encapsulated in my book, A User’s Guide to the Crisis of Civilisation: And How to Save It . Rather what we are seeing, as I’ve argued in detail before , are escalating, interconnected symptoms of the unsustainability of […]

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Oil Rangebound in Asian Trade Ahead U.S. Stockpile Data

Crude-oil futures moved in a narrow price range in Asian trading hours Wednesday ahead of the weekly U.S. oil inventory report and the conclusion of the Federal Reserve policy meeting. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $99.48 a barrel at 0537 GMT, down $0.22 in the Globex electronic session. May Brent crude on London’s ICE Futures exchange fell $0.06 to $106.73 a barrel. Oil markets were calmer after Russian President Vladimir Putin said Moscow has no interest in Ukraine’s remaining territories after annexing Crimea. Nymex WTI maintained its price level above $99 a barrel after rising overnight on reports that the capacity of the Seaway pipeline will be expanded by May-June to further lower stockpiles in the delivery hub of Cushing, Okla. This amounts to further downward pressure on Cushing stocks and the market is still […]

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Oil slightly lower ahead of US stockpiles report

The price of oil was down slightly Wednesday as energy markets waited for the latest figures on U.S. crude and fuel stockpiles. Benchmark U.S. crude for April delivery was down 20 cents at $99.50 a barrel at 0605 GMT in electronic trading on the New York Mercantile Exchange. The contract gained $1.62 to $99.70 on Tuesday after strong U.S. factory data and an apparent easing in tensions over Ukraine. Investors are awaiting fresh information on U.S. stockpiles of crude and refined products, which give a weekly indication about the strength of demand in the world’s biggest economy. Statistics for the week ended March 14 are expected to show a rise of 2.6 million barrels in crude oil stocks and a decline of 1.6 million barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos. Brent crude, used to set prices […]

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WTI Crude Rises on Seaway Expansion as Brent Gap Shrinks

West Texas Intermediate crude rose, narrowing its discount to Brent to the least in a week, after Enterprise Products Partners LP said it would more than double the capacity of its Seaway pipeline as early as May. Prices increased as much as 1.4 percent. The expanded line will be able to move more than 850,000 barrels a day of oil to Houston from Cushing, Oklahoma , the delivery point for WTI futures. Cushing stockpiles tumbled to a two-year low last week and are expected to drop again in a government report tomorrow, according to analysts’ forecasts. Brent gained less than WTI on speculation sanctions on Russia won’t disrupt oil shipments. “The Seaway news is the trigger,” said Tom Finlon, Jupiter, Florida-based director of Energy Analytics Group LLC. “This story clearly explains why WTI is firmer than Brent. Seaway expansion will draw more crude away from Cushing.” WTI for April […]

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Natural Gas Sags on Demand Uncertainty

Natural gas slipped Tuesday as traders weighed forecasts for colder-than-average weather against expectations that robust demand for the heating fuel would subside once spring arrives. Natural gas for April delivery settled down 8 cents, or 1.8%, at $4.456 a million British thermal units on the New York Mercantile Exchange. Unusually cold temperatures, which have fueled record demand for natural gas this winter, are projected to continue in the next six to 10 days. About half of U.S. households use natural gas as their primary heating fuel, according to the U.S. Energy Information Administration. But with natural-gas stockpiles already at 11-year lows, analysts question how much lower supplies could fall this month before temperatures rise and demand subsides, allowing producers to begin refilling inventories. As of March 7, […]

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BG Group: LNG markets tight

British energy company BG Group said Tuesday demand for liquefied natural gas globally is expected to outpace production for the long haul. "Limited supply growth in 2013, the prospect that overall production will remain stalled in 2014 and strong demand growth in Asia suggests the global LNG market will continue to tighten, in line with our long-held view," BG Group Vice President for Global LNG Markets Andrew Walker said in a statement. Walker said the European economy last year received about 35 million tons of LNG, the lowest volume in nearly 10 years. He said that was in part because supplies were diverted to Asian and Latin American economies, where demand was increasing. Pipeline deliveries of natural gas increased last year in Europe, he added. BG Group, which published its annual overview for the LNG market Tuesday, said 67 million tons of new capacity from Australian projects could mark […]

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UN: Thousands killed and abused in S Sudan

Politically-fueled ethnic violence in South Sudan since mid-December has led to the brutal killing and abuse of thousands of civilians and sparked a government campaign to vilify the United Nations and harass UN personnel, the UN peacekeeping chief has said. Herve Ladsous told the UN Security Council on Tuesday that despite a January 23 ceasefire agreement, forces loyal to President Salva Kiir and rebel soldiers loyal to dismissed former vice president Riek Machar "continue to prioritise the pursuit of military gains over talks towards a comprehensive political settlement." Fighting that broke out December 15 among presidential guards in the capital Juba quickly spread across the country and took on ethnic dimensions between the more populous Dinka tribe who support Kiir and the Nuer tribe loyal to Machar. He said prelimiary inquiry reports indicate that atrocities and very severe human rights violations were committed by both sides in the conflict, and he warned that the longer the fighting goes on "the […]

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Israel bombs Syrian posts over Golan attack on its troops

Israel attacked several Syrian military sites on Wednesday in retaliation for a roadside bombing that wounded four of its troops on the occupied Golan Heights on Tuesday, the Israeli military said. It said targets included a Syrian military headquarters, a training facility and artillery batteries. Aircraft carried out the overnight strike, said Lieutenant-Colonel Peter Lerner, an Israeli military spokesman. He described targets as military facilities on the Syrian-held side of the Golan. Israel captured the Golan from Syria in the 1967 war and annexed it in a move not recognized abroad. Tuesday’s wounding of the soldiers as they patrolled the separation line on the strategic plateau marked Israel’s worst casualties there since an insurgency erupted in Syria more than three years ago. Israel blamed Damascus for the roadside bombing, though parts of the Syrian-held side of the Golan are controlled by rebels, including al Qaeda-inspired militants […]

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Nigerian Oil Officials Say Crude Theft Risks Crimping Production

Nigerian oil officials said unchecked theft from pipelines may crimp the African nation’s ability to meet its target of adding 30 percent to crude output by the end of the decade. Stealing and sabotage cost the country 300,000 barrels of oil a day last year, Andrew Yakubu, group managing director of state-owned Nigerian National Petroleum Corp., said today at a conference in Abuja, the capital. Nigeria must do more to maintain its position as Africa ’s biggest producer, he said, adding that the country has a target to raise production to 3 million barrels a day by 2020, from about 2.3 million now. The nation’s oil output fluctuated by as much as 420,000 barrels a day between 2011 and 2013 amid pipeline attacks that halted flows from some fields. Nigeria has responded to theft by starting air surveillance of pipelines and allocating 15 billion naira ($91 million) for security […]

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Iran Nuclear Talks Resume in Vienna Shadowed by Crimea Vote

Photographer: Scott Eells/Bloomberg The Geneva deal, which took effect in January, offered Iran as much as $7 billion in sanctions relief, including easing curbs on trade in petrochemicals and auto parts. Close Close Open Photographer: Scott Eells/Bloomberg The Geneva deal, which took effect in January, offered Iran as much as $7 billion in sanctions relief, including easing curbs on trade in petrochemicals and auto parts. The specter of Crimea hangs over ’s nuclear talks resuming today, as world powers locked in a confrontation over Russia ’s move to annex the region find themselves on the same side during negotiations with the Islamic Republic. Even as they clash over Ukraine, diplomats from Russia and the U.S. and European Union are seeking to build on November’s interim accord in Geneva, which froze some of Iran’s most sensitive nuclear work in return for limited sanctions relief. European Union foreign policy chief Catherine […]

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Japan's search for new energy supplies fuels business for contractors

Japan’s rush to diversify its energy supplies after the 2011 meltdowns at the Fukushima Daiichi nuclear plant is creating business opportunities for Japanese contractors that specialize in building energy facilities. A joint venture that includes Japanese engineering company Chiyoda Corp., said Tuesday that it had received a $6 billion contract to build a natural-gas liquefaction plant in Louisiana. Tokyo Electric Power Co. , which owns Fukushima Daiichi, is among the Cameron Liquefaction Project’s expected customers. Chiyoda’s partner is Chicago Bridge & Iron Co., which is based in The Hague. Japanese trading houses Mitsubishi Corp. and Mitsui & Co. are minority shareholders in the Hackberry, La., plant. The liquefied-natural-gas project is being led by San Diego’s Sempra Energy, and French utility GDF Suez SA is among […]

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Japan’s search for new energy supplies fuels business for contractors

Japan’s rush to diversify its energy supplies after the 2011 meltdowns at the Fukushima Daiichi nuclear plant is creating business opportunities for Japanese contractors that specialize in building energy facilities. A joint venture that includes Japanese engineering company Chiyoda Corp., said Tuesday that it had received a $6 billion contract to build a natural-gas liquefaction plant in Louisiana. Tokyo Electric Power Co. , which owns Fukushima Daiichi, is among the Cameron Liquefaction Project’s expected customers. Chiyoda’s partner is Chicago Bridge & Iron Co., which is based in The Hague. Japanese trading houses Mitsubishi Corp. and Mitsui & Co. are minority shareholders in the Hackberry, La., plant. The liquefied-natural-gas project is being led by San Diego’s Sempra Energy, and French utility GDF Suez SA is among […]

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Japan’s Coal Imports Rise, Raising Carbon Emissions

smaller Larger facebook twitter google plus linked in Email Print facebook twitter google plus linked in Email Print smaller Larger facebook twitter google plus linked in Email Print Japan is on a path to increase its carbon-dioxide emissions because it is shifting to coal imports from more expensive liquefied natural gas. Recent trade statistics suggest Japan’s LNG demand has peaked even though the country continues to go without any nuclear power plants in operation. Meanwhile, coal imports are moving higher. In February, Japan’s LNG imports fell 0.2% compared to the same month a year earlier, following a 0.6% slip in January, customs data released Wednesday showed. Imports of thermal coal used to generate electricity rose 4.8% in February year-on-year, following a 17% rise in January, according to the data. Japan’s CO2 emissions climbed to their second-highest level on record in the year ended in March 2013 because most nuclear […]

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China’s Shale Gas Development Potential

; China’s potential in shale gas production is nearly as staggering as its potential growth in demand  for natural gas. The U.S. Energy Information Administration estimates that China possesses by far the world’s largest reserves of technically recoverable shale gas. Although China’s shale gas industry is not as advanced  as the United States’, it could be the most advanced outside of North America. China’s target is to produce 60 billion to 100 billion cubic meters of shale gas by 2020, but there are severe limitations to hitting the target. China is more likely to produce somewhere around 25 billion cubic meters of shale gas by then. In total, China will realistically be able to access 275 billion cubic meters to perhaps 300 […]

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Are Natural-Gas Exports the Next Keystone?

A coalition of grassroots environmentalists are galvanizing around a fossil-fuel project and urging President Barack Obama to oppose it. Sound familiar? It’s not the Keystone XL pipeline, but the parameters of the fight—and the arguments—are awfully similar to the fight that’s been raging in Washington and throughout the country over the proposed pipeline for the last five years. The Sierra Club and 350.org , two advocacy organizations that have been key in rallying opposition to Keystone, helped organize a letter 16 groups sent Tuesday to the White House urging Mr. Obama to oppose exporting natural gas on the basis of global warming and are calling out one proposed project specifically. It’s the first organized letter by environmentalists urging the White House to oppose such an export policy, which Mr. Obama has so far supported. “We were told when the Keystone fight came up, there wasn’t a chance […]

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U.S. Gas Exports Unlikely to Ease Tensions Over Ukraine

LONDON—Natural gas exports from the U.S. are unlikely to help ease the tensions between Europe and Russia over Ukraine as the first such shipments are about two years away, a senior executive from oil and gas company BG Group PLC said Tuesday. The U.S. has vast supplies of cheap natural gas thanks to the fracking boom and could become one of the world’s top three exporters of liquefied natural gas by 2025, BG said. Over the past week, some U.S. politicians have urged the Obama administration to speed up oil and natural gas exports to weaken Russia’s hand over Ukraine. Russia supplies about 30% of Europe’s gas requirements, half of which transit via Ukraine, a factor some believe has stifled European opposition to Russia’s annexation of Crimea. Federal law places heavy restrictions on U.S. companies from exporting natural gas to countries, like those in Europe, that aren’t among its […]

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Louisiana's Gas Supply-Demand Balance: At A Crossroads

For more than 50 years, Louisiana has stood out as one of North America’s leading natural gas producers. Boasting pipeline and storage infrastructure to support widespread production from conventional onshore wells in-state and from neighboring Texas as well as offshore from the Gulf of Mexico, the Bayou State has long been at the crossroads of the United States’ natural gas industry. However, a number of factors could transform Louisiana from a key gas supplier to a major demand center. Production from conventional gas fields is declining while relatively new supplies from the Haynesville, Marcellus and other shale gas plays are poised to meet growing demand for gas-fired electricity in the Southeast, power for new petrochemical plants in the state and exports of liquefied natural gas (LNG) from new Gulf Coast terminals. In order to maintain its gas market equilibrium, Louisiana needs to tap new supply sources, concludes the new […]

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Louisiana’s Gas Supply-Demand Balance: At A Crossroads

For more than 50 years, Louisiana has stood out as one of North America’s leading natural gas producers. Boasting pipeline and storage infrastructure to support widespread production from conventional onshore wells in-state and from neighboring Texas as well as offshore from the Gulf of Mexico, the Bayou State has long been at the crossroads of the United States’ natural gas industry. However, a number of factors could transform Louisiana from a key gas supplier to a major demand center. Production from conventional gas fields is declining while relatively new supplies from the Haynesville, Marcellus and other shale gas plays are poised to meet growing demand for gas-fired electricity in the Southeast, power for new petrochemical plants in the state and exports of liquefied natural gas (LNG) from new Gulf Coast terminals. In order to maintain its gas market equilibrium, Louisiana needs to tap new supply sources, concludes the new […]

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New York, Bakken and crude oil by rail: where is the love?

The crude-by-rail industry is not feeling so much of the “love” in New York’s “I Love New York” slogan these days. Governor Cuomo has put a target on the backs of those moving Bakken oil in particular, which some recent tests have shown has the volatility of gasoline. That spells trouble for the crude, more of which is moving through the New York capital of Albany by rail and then barged down the Hudson River to East Coast refiners. It is access to more domestic crudes that has kept those plants open after pricey imports almost shuttered them a few years ago. New York’s crude-by-rail scrutiny is taking the form of a so-called “inspection blitz” of rail yards and terminals, along with a moratorium that has created uncertainty around projects to bring in more heavy oil. Granted, New York has reason to be concerned after several recent derailments in the state […]

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California Drought: Is this the big one?

Rainstorms finally arrived in California, after a 14 month drought with no significant rain. But the big reservoirs are still pitifully low, and snow pack is less than a quarter of normal. Hundreds of thousands of acres will not be planted, and food bills will likely go up in North America, and possibly around the world. This is the Radio Ecoshock special on the California drought, as a case study of what we can expect in many parts of the Earth. I’ve lined up 4 experts all with something new for you. Dr. Peter Gleick is a climate and water specialist who has been warning this could happen for years. Dr. Reagan Waskom is another water and agriculture expert from Colorado. We connect with boots-on-the ground water conservation specialist David Schroeder in Montclair, right on the edge of thirsty Los Angeles.  Finally, we get back to the big picture, […]

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After annexing Crimea, Russians move to carve up the spoils

While the people of Simferopol celebrated Russia’s annexation of Crimea , 10 minutes’ drive from the city centre on Balaklava Street another Russian invasion was under way – this time of a private business. A group of heavily-armed suspected Russian soldiers in ski masks on Tuesday stormed the Bogdan Avto-Salon, a Hyundai and Subaru dealership in a quiet suburb of the city, taking control of its offices and salesrooms. The men, who later stood guard along the salon’s perimeter fence, refused to identify themselves to reporters and waved them away with guns. Critics of Moscow have been warning for weeks now that Russia’s attacks on Ukrainian military facilities in Crimea were just the start, and that commercial business on the peninsula would be the next target. Events on Balaklava Street suggests they might be right. “It’s clear there’s going to be a new carve-up of property here now that […]

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GE, Boeing Among Firms Tracking Russia Sanction Fall-Out

Photographer: Alexander Astafyev/EPA Russian Prime Minister Dmitry Medvedev (L) meets with General Electric CEO Jeff Immelt at the Gorki residence, outside Moscow, on Feb. 11, 2014. GE Russia had earnings of $2.5 billion in 2012 and 3,400 employees, according to the company’s website. Close Close Open Photographer: Alexander Astafyev/EPA Russian Prime Minister Dmitry Medvedev (L) meets with General Electric CEO Jeff Immelt at the Gorki residence, outside Moscow, on Feb. 11, 2014. GE Russia had earnings of $2.5 billion in 2012 and 3,400 employees, according to the company’s website. Companies with investments in Russia — such as General Electric Co. (GE) and Boeing Co. (BA) — are growing concerned as the U.S. prepares to impose tougher sanctions over the crisis in Crimea that may spur retribution against corporate interests. Almost 100 chief executive officers with the Business Roundtable are set to meet in Washington today with Defense Secretary Chuck […]

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Exploring the “why” behind extreme energy

For eight months I’ve been travelling around England and Wales talking about ‘unconventional gas’ – shale gas , coal-bed methane [2] and underground coal gasification [3] , which the media often erroneously conflate as ‘fracking’ [4] . This intensive period of work began last June, and continued into 2014 to meet the continued requests for talks. In particular I’ve tried to tour those areas next in line for extreme energy [5] developments – South Wales [6] , The Marches [7] and the South Midlands [8] . Travelling has its fringe benefits. I get to read a lot; whiling away the hours on trains or in cafés, moving between consecutive events or home. 2013 […]

Posted On : Published By : ASPO-USA
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Solar Power More Economical Than Natural Gas, Coal, Nuclear In Texas

Yeah but the seven or eight cent per is based on Today’s price for gas. Almost everyone agrees, it’s almost impossible to make money at today’s gas prices. A person can make the argument that NG prices will never go much higher (than $4.50) in which cases energy companies will simply stop drilling for gas. Or one can hope for shortages on account of low prices hoping low prices will cure low prices. Solar technology is leaping forward both on the manufacturing and efficiency angles. Even if PV price stabilizes, in 2014 dollars, in a few years either NG is No More or it’s futures price makes it better suited to make plastics and fertilizer than burning to power that wall to wall TV. Depending on region, wind, hydro, geothermal Owning too much stigma, nuclear power […]

Posted On : Published By : ASPO-USA
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How do ex-Saudi Aramco geologist Dr Husseini's oil price spike predictions of USD 140 by 2016-17 stack up?

In an interview with ASPO USA in January 2014 Ex-Saudi Aramco geologist Dr. Sadad-Al-Husseini predicted oil price spikes of $140 by 2016/17. This post shows some graphs explaining why this could happen. Husseini:  My base oil price forecast in 2012 dollars still ranges between $105 and $120/barrel Brent with a volatility floor of $ 95/barrel and more probable upward spiking to $140/barrel within 2016/2017. Husseini did not elaborate how he arrived at that time frame but this question and answer give us a hint:   ASPO:  “In the larger context, how has your view of future world oil production supply evolved over the last four or five years? As a benchmark, I reference your slides from the 2009 Oil & Money Conference slides”   Husseini:  “The realities of the 2009 O&M forecast of a limited plateau of oil supplies have been pretty much vindicated since then. The oil plateau […]

Posted On : Published By : Tom Whipple
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How do ex-Saudi Aramco geologist Dr Husseini’s oil price spike predictions of USD 140 by 2016-17 stack up?

In an interview with ASPO USA in January 2014 Ex-Saudi Aramco geologist Dr. Sadad-Al-Husseini predicted oil price spikes of $140 by 2016/17. This post shows some graphs explaining why this could happen. Husseini:  My base oil price forecast in 2012 dollars still ranges between $105 and $120/barrel Brent with a volatility floor of $ 95/barrel and more probable upward spiking to $140/barrel within 2016/2017. Husseini did not elaborate how he arrived at that time frame but this question and answer give us a hint:   ASPO:  “In the larger context, how has your view of future world oil production supply evolved over the last four or five years? As a benchmark, I reference your slides from the 2009 Oil & Money Conference slides”   Husseini:  “The realities of the 2009 O&M forecast of a limited plateau of oil supplies have been pretty much vindicated since then. The oil plateau […]

Posted On : Published By : Tom Whipple
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Psychological Trigger Points For Crude Oil Demand Destruction

<img src="http://s7.addthis.com/static/btn/sm-share-en.gif" width="83" height="16" alt="Bookmark and Share" style="border:0"/> <img src="http://2.bp.blogspot.com/-hlL_Ax0fcZg/Uyh9250OnmI/AAAAAAAACCI/q2_QhL5AOjI/s1600/WhatWePay_p2.png" title="Psychological Trigger Points For Crude Oil Demand Destruction" alt="Psychological Trigger Points For Crude Oil Demand Destruction thumbnail" align="right" border="0" style="padding: 0px; margin: 5px 0px 10px 15px; width: 226px; height: 170px;"/> I’ve talked about demand destruction before in this blog. Demand destruction occurs when the marginal benefit of using more crude oil exceeds the marginal cost for people. Essentially, when oil prices go too high, people use less oil. On a personal level, this means that people may drive fewer miles by staying closer to home on the weekends, they might postpone a long-distance vacation, or they might start taking the bus or work from home instead of commuting by car. wrote a nice article on this phenomenon last year where they stated “in the rich world oil demand has already peaked: it has fallen since 2005.” While demand destruction […]

Posted On : Published By : Tom Whipple
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Oil Futures Mixed; Inventory Data, Fed Meeting in Focus

Crude-oil futures were mixed in Asian trading hours Tuesday as markets await weekly data on U.S. oil inventories and the outcome of the Federal Reserve meeting later this week. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $97.99 a barrel at 0607 GMT, down $0.09 in the Globex electronic session. May Brent crude on London’s ICE Futures exchange rose $0.30 to $106.54 a barrel. Oil prices dropped sharply overnight as the Ukraine crisis eased temporarily after Western sanctions on Russia were limited to specific individuals and officials. The situation could however escalate if Russia tries to encroach further into majority ethnic Russian territory in eastern Ukraine, prompting more severe economic sanctions. "The key point for the oil markets is that, in sharp contrast to Iran, Europe and Russia have a gun to each other’s head which should prevent either side from […]

Posted On : Published By : Tom Whipple
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Oil Futures Decline as Sanctions Leave Energy Exports Alone

–U.S., EU sanctions target Russian and Ukrainian officials –Russian oil and natural-gas exports unaffected by sanctions –April Nymex crude falls 0.8% to $98.08/barrel By Nicole Friedman NEW YORK–Oil futures slid Monday on expectations that Western sanctions in response to rising tensions between Russia and Ukraine are unlikely to affect oil and natural-gas supplies. Light, sweet crude for April delivery settled down 81 cents, or 0.8%, at $98.08 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange fell $1.97, or 1.8%, to $106.24 a barrel, its lowest settlement price since Feb. 4. The U.S. and European Union enacted sanctions against Russian and Ukrainian officials Monday in response to Moscow’s military intervention in Crimea. The U.S. sanctions prohibit Americans from conducting business with seven Russian officials and four Ukrainians. The EU imposed asset freezes and travel bans on 13 Russians and eight leaders from Ukraine’s […]

Posted On : Published By : Tom Whipple
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Natural Gas Advances Ahead of Continued Wintry Weather

–Colder-than-average weather to sweep central and eastern U.S. in next 6-10 days –April futures rise 2.5% to $4.536/mmBtu –Storage withdrawals expected to continue through first week of April By Nicole Friedman NEW YORK–Natural gas climbed Monday on outlooks for continued frigid weather through the end of the month, which is expected to keep demand robust for the heating fuel. Natural gas for April delivery settled up 11.1 cents, or 2.5%, at $4.536 a million British thermal units on the New York Mercantile Exchange. Colder-than-average weather has boosted demand for natural gas to record levels this winter, and revised forecasts Monday indicated that wintry temperatures are set to persist in the next two weeks. "Another impressive cold air mass" is projected to spread across the eastern two-thirds of the U.S. in the next six to 10 days, according to Andover, Mass.-based forecaster WSI Corp. On the East Coast, cities from […]

Posted On : Published By : Tom Whipple
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Deterioration in U.S.-Russian Relations May Disrupt Coming Talks With Iran

Tensions between the West and Russia over events in Ukraine have cast a shadow over the second round of talks set to begin on Tuesday in Vienna on a permanent nuclear agreement with Iran. Although the talks have no direct connection to Ukraine, their success hinges on solidarity among the so-called P5-plus-one countries — the five permanent members of the United Nations Security Council, which include Russia, plus Germany — in favor of a tough agreement with Iran to drastically scale back its nuclear program. If Russia signals that its cooperation with the West has weakened, that will reduce pressure on Iran to make concessions, said experts knowledgeable about the talks, which began last month with three days of meetings involving senior diplomats from each of the governments involved.

Posted On : Published By : Tom Whipple
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Iran Talks Resume Amid Ukraine Crisis

Iran and six major powers begin a fresh round of high-level nuclear talks in Vienna on Tuesday morning, with negotiators aiming to narrow gaps on a host of issues as the two sides seek a final, comprehensive agreement by mid-July. The talks, which aim to settle international concerns about Tehran’s nuclear activities in exchange for lifting the tight web of sanctions on Iran, are the first since tensions erupted within the six-power group over Ukraine. The European Union and U.S. imposed sanctions Monday on more than a dozen Russian officials as Moscow appeared set to recognize the independence of Ukraine’s Russian-speaking Crimea region. Iran, which has repeatedly said its nuclear activities are for purely peaceful purposes, is in talks with Russia, the U.S., France, Germany, the U.K. and China over its nuclear activities. U.S. and European officials say they hope the Ukraine crisis won’t complicate the Iran nuclear […]

Posted On : Published By : Tom Whipple
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China Could Lose Deal in Iran's South Pars Gas Field

China could lose a $4.7 billion contract to develop Iran’s giant South Pars gas field if delays on the project persist, an Iranian deputy oil minister said. The warning comes as Iran’s oil minister, Bijan Zanganeh, has vowed to shake up the country’s largest industry, which has suffered years of decline thanks to mismanagement and the effect of international sanctions. State-owned China National Petroleum Corp. was awarded a $4.7 billion project in South Pars in 2009, after international pressure forced France’s SA to pull out. The South Pars field is the largest gas reservoir in the world not mixed with oil. But in an interview with The Wall Street Journal, Mansour Moazami, Iran’s deputy oil minister for planning, said there had been "many, many, many delays for the contract in South Pars." "We are giving a first warning, a second warning. Maybe in the end, we will terminate the […]

Posted On : Published By : Tom Whipple
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China Could Lose Deal in Iran’s South Pars Gas Field

China could lose a $4.7 billion contract to develop Iran’s giant South Pars gas field if delays on the project persist, an Iranian deputy oil minister said. The warning comes as Iran’s oil minister, Bijan Zanganeh, has vowed to shake up the country’s largest industry, which has suffered years of decline thanks to mismanagement and the effect of international sanctions. State-owned China National Petroleum Corp. was awarded a $4.7 billion project in South Pars in 2009, after international pressure forced France’s SA to pull out. The South Pars field is the largest gas reservoir in the world not mixed with oil. But in an interview with The Wall Street Journal, Mansour Moazami, Iran’s deputy oil minister for planning, said there had been "many, many, many delays for the contract in South Pars." "We are giving a first warning, a second warning. Maybe in the end, we will terminate the […]

Posted On : Published By : Tom Whipple
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New Kurdish oil online for DNO International

Norwegian energy company DNO International said Monday it started producing oil from new wells in the Tawke field in the Kurdish region of Iraq. DNO said Tawke-21 and Tawke-22 were producing oil at a combined rate of 37,000 barrels per day. Executive Chairman Bijan Mossavar-Rahmani said in a statement production from the Tawke field was close to what the company can deliver through existing pipeline infrastructure and by road. "With the exceptional results from these latest wells … we are on track to meet our ambitious deliverability goal of 200,000 barrels per day in 2014," he said Monday. Genel Energy, led by former BP boss Tony Hayward , said in January an energy agreement between the semiautonomous Kurdistan Regional Government and Turkey, coupled with the completion of new pipeline infrastructure, should lead to a rise in oil exports from oil fields in the Kurdish region. Kurdish oil issues are […]

Posted On : Published By : Tom Whipple