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Car bombs kill at least eight at Libya army academy in Benghazi

Several car bombs exploded at a Libyan army academy in the eastern city of Benghazi on Monday, killing at least eight people and wounding more than a dozen, hospital sources and a security official said. Instability in the eastern city is just part of the struggle a weak central government faces in controlling armed groups, militias and brigades of former rebels who once battled Muammar Gaddafi and now refuse to disarm. A first bomb exploded at the academy’s front gate as people were leaving a graduation ceremony, security officials said. One or two other bombs exploded almost at the same time, wounding at least 13 persons. No group claimed responsibility for the bombing in Benghazi, where Libyan armed forces have been battling militants from hardline Islamist groups such as Ansar al Sharia, listed as a foreign terrorist organization by Washington. Most countries have closed their […]

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Government Sends Soldiers to a Protest Site in Caracas

The government on Monday deployed hundreds of soldiers in a part of Caracas where weeks of often violent protests have taken place, and a top official boasted that the area had been “liberated.” The operation centered on a public square, Plaza Francia, in the city’s well-off Altamira district, where virtually every night up to hundreds of young protesters gathered to engage in battles with the police and National Guard troops, building barricades to block streets and throwing rocks and gas bombs at security forces, who responded with tear gas and plastic buckshot. The deployment extended into other nearby neighborhoods where residents had been active in the protests and had barricaded many streets. Soldiers, some armed with assault weapons, were stationed in the plaza and on many of the major streets in the area, which has long been an opposition stronghold. Municipal workers removed barricades and cleaned up the trash […]

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Shell Nigeria Oil Terminal Remains Closed After Leak Found

Exports from a major oil terminal in Nigeria operated by a unit of Royal Dutch Shell PLC (RDSA) remain shut-in nearly two weeks after the discovery of a leak in the export pipeline, a spokesman for the company said Monday. Company employees at the Shell Petroleum Development Co have observed a small sheen around the export line to the Forcados oil terminal in the Western Niger Delta during helicopter flyovers. But a spokesman for Shell said less than 15 barrels of oil had spilled since the leak was first spotted March 4. Nigeria is Africa’s largest oil producer, but leaks from the country’s large network of pipelines–often blamed on oil theft–frequently disrupt its oil exports. Last month, SPDC said it shut its 150,000 barrel-a-day Nembe Creek trunkline because of an oil-theft related leak. Write to Sarah Kent at [email protected]

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Venezuela unrest toll rises as soldier is shot in head

A Venezuela National Guard captain died on Monday after being shot in the head during a demonstration, the military said, the 29th fatality in six weeks of clashes between protesters and security forces. General Padrino Lopez, head of the armed forces’ strategic operational command, said the captain was shot late on Sunday at a street barricade set up by demonstrators in the central city of Maracay, in Aragua state. "He was another victim of terrorist violence," Lopez said on Twitter, calling for an end to the confrontations. "Our armed forces don’t repress peaceful protests, they protect them." Since early February, students and hardline opposition leaders have been calling supporters onto the streets to protest against President Nicolas Maduro and his socialist government. The demonstrators are demanding political change and an end to high inflation, shortages of basic foods and one of the worst rates of violent […]

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Air Canada suspends Venezuela flights over 'civil unrest'

Air Canada says it will continue to monitor the situation "with the objective of resuming operations" Air Canada has suspended flights to and from Venezuela, citing concerns over security. The airline said it would consider resuming operations once the situation in Venezuela had stabilised. It operated three return flights between Toronto and Caracas per week. Twenty-nine people – from both sides of the political divide – have been killed in six weeks of protests against high inflation, crime and the shortage of many staples in Venezuela. "Due to ongoing civil unrest in Venezuela, Air Canada can no longer ensure the safety of its operation and has suspended flights to Caracas until further notice," says the Canadian airline in a statement. It says customers who have not begun their travel "may obtain refunds". Others may be rebooked on other airlines. Retaliation Several international airlines have reduced operations in recent weeks […]

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Air Canada suspends Venezuela flights over ‘civil unrest’

Air Canada says it will continue to monitor the situation "with the objective of resuming operations" Air Canada has suspended flights to and from Venezuela, citing concerns over security. The airline said it would consider resuming operations once the situation in Venezuela had stabilised. It operated three return flights between Toronto and Caracas per week. Twenty-nine people – from both sides of the political divide – have been killed in six weeks of protests against high inflation, crime and the shortage of many staples in Venezuela. "Due to ongoing civil unrest in Venezuela, Air Canada can no longer ensure the safety of its operation and has suspended flights to Caracas until further notice," says the Canadian airline in a statement. It says customers who have not begun their travel "may obtain refunds". Others may be rebooked on other airlines. Retaliation Several international airlines have reduced operations in recent weeks […]

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China FDI data indicates sharp slowdown in February

BEIJING (Reuters) – China drew $19.3 billion in foreign direct investment (FDI) in the first two months of 2014, up 10.4 percent from a year earlier, the Commerce Ministry said on Tuesday, indicating a sharp slowdown in February due to the Lunar New Year holidays. Ministry spokesman Shen Danyang told a media briefing that the ministry did not release data for February alone due to seasonal distortions caused by the Lunar New Year holidays, when factories, offices and shops often close for long periods. Based on the published data, FDI in February alone was $8.6 billion, up 4.1 percent from a year earlier, slowing sharply from a 16.1 percent increase in January. FDI from the top 10 Asian economies rose 11.6 percent in the first two months to $16.9 billion, while investment from the United States jumped 43.3 percent to $711 million and investment from the European Union fell […]

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Global deepwater rig market seen recovering by 2016, 2017

The global deepwater rig market, which has drawn the attention of Wall Street because of recent sharp declines in bids and dayrates, could see higher demand and rates by 2016 and 2017, analysts said.
New construction in the past few years has led a number of semisubmersibles and drillships starting to debut in the market at the same time that demand has weakened, largely because of the rising costs of oil services. That was the message delivered earlier this month at IHS CERAWeek in Houston, when Chevron CEO John Watson cited a fivefold increase in offshore rig costs in the last decade. These factors have led to a notable slide in current dayrate bids to $400,000 or below for highly capable floating semisubmersibles that can work in water depths of 10,000-12,000 feet. That class of rigs was getting close to $500,000/day or above last year, International Strategy & Investment Group analyst Jud Bailey said in a recent report.

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API Celebrates First U.S. Hydraulic Fracturing Job

With birthday cards and a social media campaign, API celebrated the 65th birthday of the technology that has spurred an energy revolution in America: hydraulic fracturing or fracking. “Americans have long been energy pioneers, from the 1800’s when the first wells were drilled to today,” said API Director of Upstream and Industry Operations Erik Milito. “As part of that history, on March 17, 1949, we developed the technology to safely unlock shale and other tight formations, and now the U.S. is the world’s largest producer of oil and natural gas.” The birthday cards feature a black and white photo of one of the world’s first commercially fractured wells located in Duncan, Oklahoma. Despite the 1940’s theme, API is commemorating the occasion on a distinctly modern platform – the internet. Digital birthday cards will connect readers to a blog with more information on the history and success of hydraulic fracturing, […]

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Defying Sanctions, Putin Moves Swiftly to Annex Crimea

Moving swiftly in the face of international condemnation, President Vladimir V. Putin on Tuesday notified Russia’s Parliament of his intention to make Crimea a part of the Russian Federation, defying the United States and Europe just hours after they imposed their first financial sanctions against Moscow since the crisis in Ukraine began. The Kremlin announced Mr. Putin’s decision only hours after he formally recognized Crimea as a “sovereign and independent state” late Monday night, after a vote to secede from Ukraine that was hastily organized and conducted under the watch of thousands of Russian special operations troops. Mr. Putin is scheduled to address both houses of Parliament on Tuesday afternoon and, according to reports, could outline his vision for annexing a region that has been under the authority of Kiev since 1954 and part of an independent Ukraine since the Soviet Union collapsed in 1991. Mr. Putin’s […]

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Release oil from US reserve to hurt Russia

Russia’s seizure of Crimea has prompted political leaders in Europe and North America to seek meaningful measures to convince Russia to pull back its troops. In particular, they seek measures that would affect Russia immediately, putting internal pressure on the country’s leaders to stop their aggression while leaving the rest of the world unharmed. Some propose accelerating natural gas exports from the US to Europe. However, this is no better than computer “vapourware” because the gas would not arrive for years. A viable alternative to gas exports is releasing oil from the US Strategic Petroleum Reserve (SPR). These stocks are available today and could have a speedy impact on Russia. Given that the country depends on oil and natural gas exports for its survival, such an action would have a quick and significant effect if the release depresses oil prices. The SPR now holds 694m barrels of crude. The […]

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Ukraine works to protect gas infrastructure

The Ukrainian government said Monday it was taking special security precautions to ensure gas pipeline infrastructure was protected during conflict with Russia. Ukrainian opposition leader Dmitry Yarosh said Sunday he’d destroy the Soviet-era gas transmission network through Ukraine in response to Russian "occupiers," Russian news agency RT reported. European consumers get about a quarter of their natural gas from Russia, though the bulk of that heads through Ukraine’s pipeline system. The Ukrainian Interior Ministry said Monday it was taking the necessary security precautions. "The National Guard and Security Service of Ukraine have put in place special protective measures concerning the gas transmission and distribution system of Ukraine," a statement carried by Russian news agency RIA Novosti said. "This decision was made to ensure the safety and smooth operation of critical infrastructure in the country." Conflict erupted in Ukraine in November when ousted President Viktor Yanukovych , a Kremlin ally, […]

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Commodities Cushioned From Crimea Crisis by Ample Supply

Unprecedented natural gas reserves in Europe , record global grain output and the threat of mutual economic calamity from oil sanctions are cushioning commodity prices even as the Ukraine-Russia conflict spurs a gold rally. While U.K. gas prices, a European benchmark, rose 5.1 percent since the crisis began at the end of February, they are still the lowest for this time of year since 2010. Brent crude fell 1 percent. After wheat advanced 15 percent and corn 4.6 percent, both remain about a quarter below the peaks in 2010, the last time Russia and Ukraine curbed shipments. Gold reached a six-month high on March 14 as demand for a haven grew. Abundant supply is limiting some price swings caused by Russia ’s incursion into Crimea, where a majority in a disputed vote yesterday chose to join Russia, preliminary results show. Europe gets about a third of its gas from […]

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Oil Futures in Narrow Range

On the New York Mercantile Exchange light, sweet crude futures for delivery in April traded at $99.14 a barrel at 0558 GMT–up $0.25 in the Globex electronic session. May Brent crude on London’s ICE Futures exchange rose $0.07 to $108.28 a barrel. The U.S. and the European Union have rejected the results of the Crimean referendum and the looming threat of additional sanctions on Russia raised some concerns about Russia’s energy exports. "With the overwhelming pro-Russian vote in the region clashing with the West’s assertions that the referendum is not valid expect further geopolitical risk-related support this week," ANZ said in a note. The market already reflects a slightly bullish sentiment priced in last week and any big reactions are unlikely unless there is a large military escalation or announcement of large-scale economic sanctions, oil traders said. Meanwhile, the slowing pace of economic growth in China and rising oil […]

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WTI Trades Near Three-Day High After Crimea Vote; Brent Steady

West Texas Intermediate crude traded near the highest price in three days amid speculation that Crimea’s vote to split from Ukraine may heighten tensions between Russia and the West. Brent was steady in London . Futures were little changed in New York after rising for a second day on March 14. The U.S. and the European Union warned Russia not to annex Crimea after the referendum, setting the stage for sanctions against the world’s biggest energy producer. Libya ’s production fell after protesters closed a pipeline carrying crude from Sharara, the country’s second-largest field, according to state-run National Oil Corp. “With the overwhelming pro-Russian vote in the region clashing with the West’s assertions that the referendum is not valid, expect further geopolitical risk-related support this week,” Mark Pervan , the head of commodity research at Australia & New Zealand Banking Group Ltd., said in a note today. WTI for […]

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Shale gas and oil boom not sustainable

How much faith can we put in our ability to decipher all the numbers out there telling us the US is closing in on its cornering of the global oil market? There’s another side to the story of the relentless US shale boom, one that says that some of the numbers are misunderstood, while others are simply preposterous. The truth of the matter is that the industry has to make such a big deal out of shale because it’s all that’s left. There are some good things happening behind the fairy tale numbers, though—it’s just a matter of deciphering them from a sober perspective.   In a second exclusive interview with James Stafford of  Oilprice.com , energy expert Arthur Berman discusses:   Why US gas supply growth rests solely on Marcellus When Bakken and Eagle […]

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Blinkered to threat of rising oil prices

Oil production in Australia peaked in 2000. It would have peaked worldwide too by now, had it not been for the shale oil boom in the US. Some interesting work by this country’s most unrelenting peak oil proponent, retired engineer Matt Mushalik, shows that without shale oil – which accounts for 1.5 million barrels a day – world oil production last year was back at 2005 levels. It seems a monumental economic crisis may have been averted. Still, the price of crude oil has stubbornly hovered around its present mark of $US108 a barrel for the past three years even as shale oil production has ramped up. For motorists in Australia, should consensus predictions of a falling Australian dollar come to pass, prices will head higher at the petrol pump in coming years. This currency effect, however, is a sideshow compared with the big question of world oil prices […]

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Star Wars Adds Fighting Spirit as Iran Urged to Resist Sanctions

A Iranian demonstrator holds a photo of Supreme Leader Ayatollah Ali Khamenei during a rally to mark the 34th anniversary of the 1979 U.S. embassy takeover in Tehran, Iran, on November 4, 2013. Close Close Open Photographer: Majid Saeedi/Getty Images A Iranian demonstrator holds a photo of Supreme Leader Ayatollah Ali Khamenei during a rally to mark the 34th anniversary of the 1979 U.S. embassy takeover in Tehran, Iran, on November 4, 2013. Red-hot furnaces, oil rigs that glint in the sun, tankers carving through silver seas, all set to the Star Wars soundtrack. This, suggests ’s state television, is what an “economy of resistance” looks like. While the music is Hollywood, the four-minute broadcasts reflect the vision of Supreme Leader Ayatollah Ali Khamenei, who authored a defiant February decree that sought the overhaul of an economy that remains crippled by global sanctions . Buccaneering […]

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Easing Sanctions Drive Iran's Petrochemical Sales to Asia

Easing sanctions on Iran are already driving up Iran’s petrochemical sales to Asia, a top Iranian oil official said Thursday. The news is the latest sign that an interim nuclear deal between six world powers and Iran is giving a breather to Iran’s battered economy. "We have [made] some progress" in selling petrochemicals to Asia. Petrochemicals are one of the country’s main sources of exports revenue after crude oil, Mohammad-Hossein Peyvandi, the deputy head of the state-owned National Iranian Petrochemical Co., said in an interview with The Wall Street Journal. As part of the nuclear deal, the U.S. suspended sanctions on 14 major Iranian petrochemical companies, making it less risky both politically and legally for Asian buyers to purchase their products. Still, Mr. Peyvandi said the domestic industry could further benefit from the return of European Union companies—which are still banned from providing technology to Iran. The official said […]

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Easing Sanctions Drive Iran’s Petrochemical Sales to Asia

Easing sanctions on Iran are already driving up Iran’s petrochemical sales to Asia, a top Iranian oil official said Thursday. The news is the latest sign that an interim nuclear deal between six world powers and Iran is giving a breather to Iran’s battered economy. "We have [made] some progress" in selling petrochemicals to Asia. Petrochemicals are one of the country’s main sources of exports revenue after crude oil, Mohammad-Hossein Peyvandi, the deputy head of the state-owned National Iranian Petrochemical Co., said in an interview with The Wall Street Journal. As part of the nuclear deal, the U.S. suspended sanctions on 14 major Iranian petrochemical companies, making it less risky both politically and legally for Asian buyers to purchase their products. Still, Mr. Peyvandi said the domestic industry could further benefit from the return of European Union companies—which are still banned from providing technology to Iran. The official said […]

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Embassy of the United States Baghdad, Iraq

The United States continues to accelerate delivery of weapons and ammunition to Iraq consistent with our Strategic Framework Agreement and long-term security partnership. These deliveries are made in response to specific Iraqi requests and pursuant to a holistic counter-terrorism policy that incorporates political, economic, and security measures. On the security side, it is essential that Iraqi Security Forces (ISF) are equipped with modern and effective weaponry given the serious threat the Islamic State of Iraq and the Levant (ISIL) now poses to Iraq and the region. The United States is determined to help the ISF respond to this threat and protect the population in coordination with local leaders and tribes. Earlier this month, the United States delivered nearly 100 Hellfire missiles together with hundreds of thousands of rounds of ammunition and M4 rifles. These deliveries addressed a critical assessment of needs conducted jointly by Iraq and U.S. security experts, […]

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Saudi Arabia: besieged and fearful

The Saudi regime has long been considered a pillar of political stability in the Middle East, a country that commanded respect and prudence from all its neighbors. This is no longer true, and the first ones to recognize this are those who are important internal players in the regime. Today, they feel besieged on all sides and quite fearful of the consequences of turmoil in the Middle East for the survival of the regime. Dhee Ayn in Hejaz (also known as Aqabat al-Baha or the Marble Village). A 400-year-old village built on a marble mountain visible for several kilometers as one approaches the village. Even from a distance the place can easily be located by its white glow. The houses of the village itself are not made of marble, but of flake stones and slate. Photo by Hejazi Israel (2010). Via Wikimedia Commons .   This turn-around derives from […]

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Nigeria: Pipeline Vandals Engage Police in Shootout

Pandemonium broke out, weekend, along Ikate-Akute area of Ogun State following a shootout between operatives of the Inspector General of Police Special Task Force on Anti Pipeline Vandalism Unit and pipeline vandals. A suspected pipeline vandal was arrested, while others reportedly escaped, abandoning five of their operational speed boats with 4,000 empty 50-litre jerry cans. The vandals, said to be numbering over 12, reportedly stormed the spot apparently to vandalise a Nigerian National Petroleum Corporation, NNPC, petroleum pipeline on Saturday morning, when the operatives swooped on them. During interrogation, the arrested suspect, who identified himself as Abbey Daniel, said he indulged in vandalism to save Nigerians from fuel scarcity. He said: "I am terribly sorry. But we did it in an attempt to help Nigerians to get fuel, which has become scarce. "Since the scarcity, Nigerians have been suffering, particularly artisans. And since there is high demand for fuel […]

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Syrian Government Forces Seize Town in a Deep Blow to Opposition

When Syrian government forces on Sunday swept into Yabrud, a town long held by rebels near the Lebanese border, it was a symbolic turning point for insurgents and government supporters alike in a conflict now heading into its fourth year. Yabrud was a rallying point for the government and its allies in the Lebanese militia Hezbollah, who were instrumental in the fight, just as they were when they helped take another crucial border town, Qusayr, last spring. Thirteen Syrian nuns had been held hostage by insurgents in Yabrud until last week, and the government had long said that the town harbored a factory that was making the car bombs that have killed scores in southern Beirut in recent months. For Syrian opposition […]

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U.S. Navy SEALs Take Control of Oil Tanker Hijacked in Libya

United States Navy commandos seized a fugitive oil tanker in the Mediterranean waters southeast of Cyprus on Monday morning, thwarting an attempt by a breakaway Libyan militia to sell its contents on the black market, the Pentagon said. No one was hurt in the operation, the Pentagon said in a statement. The fugitive tanker, called the Morning Glory, had sailed into the Libyan port of Sidra under a North Korean flag but North Korea disavowed the ship and denied providing any authorization. News reports have said it was operated by a company based in Alexandria, Egypt, and that after leaving Libyan waters it appeared to have sailed the Mediterranean in search of a buyer for its oil. In a statement early Monday morning, the Pentagon said that the Libyan and Cypriot governments had requested American help in seizing control of the tanker. President Obama authorized the operation […]

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U.S. Navy SEALs board tanker carrying oil from Libya rebel port

U.S. Navy SEALs boarded and took control of an oil tanker late on Sunday that escaped earlier this month from a Libyan port with armed men at the helm, the U.S. Department of Defense said. Libyan anti-government rebels, who are calling for a greater share of oil wealth and autonomy, had managed to load crude oil onto the 37,000 tonne-tanker, which escaped the Libyan navy, embarrassing the weak central government and prompting parliament to vote the prime minister out of office. No one was hurt in the boarding operation, approved by U.S. President Barack Obama, requested by the Libyan and Cypriot governments and conducted in international waters southeast of Cyprus, Pentagon Press Secretary John Kirby said. "The Morning Glory is carrying a cargo of oil owned by the Libyan government National Oil Company. The ship and its cargo were illicitly obtained" from the Libyan port of Es […]

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Partition of Libya looms as fight for oil sparks vicious new divide

No one paid much attention to the 21,000-tonne oil tanker Morning Glory as it churned back and forth along the north African coast earlier this month. Tankers are a common sight, carrying Libya ‘s oil exports around the world. But on 1 March it switched off its satellite transponder and vanished from world shipping maps. Eight days later it appeared at Libya’s biggest oil port, Es Sider, blockaded since the summer by a rebel militia. Within a week its arrival would see a prime minister sacked and Libya on the brink of civil war. Four hundred miles away in the capital Tripoli, prime minister Ali Zeidan, 63, a lawyer and former dissident based in Geneva, was alarmed. He had come to the job 15 months before with high expectations. Libya, freed with Nato help from the Muammar Gaddafi dictatorship, had everything going for it, with Africa ‘s largest oil […]

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Nigeria Navy destroys 260 illegal oil refineries

The Nigerian Navy says it destroyed 260 illegal oil refineries and burned 100,000 tons of contraband fuel to try to halt oil thefts bedeviling the economy of Africa’s biggest petroleum producer. Commanding officer Capt. Musa Gemu said sailors of the NNS Delta destroyed the refineries in the Warri South-West area of southern Delta region Friday night and arrested five suspects. He spoke Saturday night. Similar missions in the past have failed to slow estimated daily thefts of 200,000 barrels worth more than $20 million. Critics and analysts say most is stolen by politically-connected criminal cartels for sale on the international market. The small-time criminals targeted in such attacks can reconstruct crudely built sites in days. Shell Nigeria, the biggest operator, says it lost $1 billion to oil thefts in 2013.

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Venezuela's Maduro gives ultimatum to protesters amid 'economic crisis'

Venezuela’s central bank president acknowledged on Sunday that his country was undergoing an "economic crisis" but said measures like a new market-based currency mechanism would help bring rapid improvements. The announcement came amid continuing street protests against the government of President Nicolas Maduro. Unrest has been fueled by a 56 percent annual inflation rate and regular shortages of consumer goods. Late Saturday, Maduro warned protesters in Caracas to clear a square they have made their stronghold , or face eviction by security forces. Plaza Altamira, in upscale east Caracas, has been a focus of anti-government protests and violence during six weeks of unrest around Venezuela that has killed 28 people. "I’m giving the Chuckys, the killers, just a few hours," Maduro said, using the name of a murderous child-doll in a horror film to describe anti-government demonstrators who have made the normally genteel 1940s square a base of operations. "If they don’t […]

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Venezuela’s Maduro gives ultimatum to protesters amid ‘economic crisis’

Venezuela’s central bank president acknowledged on Sunday that his country was undergoing an "economic crisis" but said measures like a new market-based currency mechanism would help bring rapid improvements. The announcement came amid continuing street protests against the government of President Nicolas Maduro. Unrest has been fueled by a 56 percent annual inflation rate and regular shortages of consumer goods. Late Saturday, Maduro warned protesters in Caracas to clear a square they have made their stronghold , or face eviction by security forces. Plaza Altamira, in upscale east Caracas, has been a focus of anti-government protests and violence during six weeks of unrest around Venezuela that has killed 28 people. "I’m giving the Chuckys, the killers, just a few hours," Maduro said, using the name of a murderous child-doll in a horror film to describe anti-government demonstrators who have made the normally genteel 1940s square a base of operations. "If they don’t […]

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Witnesses disagree on Keystone XL’s potential US security impacts

Witnesses at a US Senate Foreign Relations Committee hearing sharply disagreed on whether the proposed Keystone XL crude oil pipeline would help or hinder US security. The Mar. 13 hearing came days after the deadline for submitting public comments to the US Department of State, which is considering whether the project would be in the national interest ( OGJ Online, Mar. 6, 2014 ). “I hope this can be a balanced, thoughtful hearing—[one] that puts aside some of the politics that have surrounded this debate, and deal with the underlying question of what is in our national interest,” Robert Menendez (D-NJ), the committee’s chairman, said in his opening statement. DOS continues to deliberate that question, but the final decision whether to grant TransCanada Corp., the project’s sponsor, the necessary cross-border permit rests with US President Barack Obama. Mar. 12 marked 2,000 days since TransCanada submitted its original applications, noted […]

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Growth in US Hydrocarbon Production from Shale Resources Driven by Drilling Efficiency

Growth in US Hydrocarbon Production from Shale Resources Driven by Drilling Efficiency" alt="Growth in US Hydrocarbon Production from Shale Resources Driven by Drilling Efficiency thumbnail" align="right" border="0" style="padding: 0px; margin: 5px 0px 10px 15px; width: 226px; height: 170px;"/> <img alt="graph of new well production per rig, oil and natural gas, as explained in the article text" src="http://www.eia.gov/todayinenergy/images/2014.03.11/main.png" border="0"/> Source: U.S. Energy Information Administration, March 2014 Drilling Productivity Report The productivity of oil and natural gas wells is steadily increasing in many basins across the United States because of the increasing precision and efficiency of horizontal drilling and hydraulic fracturing in oil and natural gas extraction. Many resource-producing basins are experiencing an increasing yield over time in either oil (Bakken, Eagle Ford, Niobrara) or natural gas (Marcellus, Haynesville). The geology of each oil and natural gas resource play is diverse, […]

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Hess starting up North Dakota natgas plant, may boost Bakken output

Hess Corp will begin selling natural gas from its Tioga, North Dakota, plant this month, firing up the station weeks after severe weather delayed its expansion, the company said Friday. The plant’s start-up may help boost oil production from the prolific Bakken shale after about 100 producing wells had to be shut earlier this year to minimize flaring due to the delays, the state Industrial Commission said this week. "Due to the unusually harsh winter weather, we’re slightly behind our initial plans, but we expect to start selling residue gas this month," Hess spokesman John Roper said. The plant will be able to process 250 million cubic feet per day (mmcfd) when it starts operating, nearly twice as much as its initial design. The station had been shut since late last year as Hess worked on the expansion. North Dakota flares nearly 36 […]

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Unskilled and Destitute Are Hiring Targets for Fukushima Cleanup

Fukushima Daiichi workers boarding a bus to take them to the damaged nuclear plant. The workers are housed in a village where, they said, there was little to do. NARAHA, Japan — “Out of work? Nowhere to live? Nowhere to go? Nothing to eat?” the online ad reads. “Come to Fukushima.” That grim posting targeting the destitute, by a company seeking laborers for the ravaged Fukushima Daiichi nuclear plant, is one of the starkest indications yet of an increasingly troubled search for workers willing to carry out the hazardous decommissioning at the site. The plant’s operator, the Tokyo Electric Power Company, known as Tepco, has been shifting its attention away, leaving the complex cleanup to an often badly managed, poorly trained, demoralized and sometimes unskilled work force that has made some dangerous missteps. At the same time, the company is pouring its resources into another plant, Kashiwazaki-Kariwa, that it […]

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Squelching Efforts to Measure Fukushima Meltdown

In the chaotic, fearful weeks after the Fukushima nuclear crisis began, in March 2011, researchers struggled to measure the radioactive fallout unleashed on the public. Michio Aoyama’s initial findings were more startling than most. As a senior scientist at the Japanese government’s Meteorological Research Institute, he said levels of radioactive cesium 137 in the surface water of the Pacific Ocean could be 10,000 times as high as contamination after Chernobyl, the world’s worst nuclear accident. Two months later, as Mr. Aoyama prepared to publish his findings in a short, nonpeer-reviewed article for Nature, the director general of the institute called with an unusual demand — that Mr. Aoyama remove his own name from the paper. “He said there were points he didn’t understand, or want to understand,” the researcher recalled. […]

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Crimea parliament declares independence after vote

Crimea’s regional parliament has declared the region an independent state, after its residents voted overwhelmingly to break off from Ukraine and seek to join Russia, news agencies reported. Sunday’s referendum is not recognized by the West, and the United States and the European Union are preparing sanctions against Russia, whose troops have been occupying Crimea for several weeks. A delegation of Crimean lawmakers is set to travel to Moscow Monday for negotiations on how to proceed further. Russian lawmakers have suggested that formally annexing Crimea is just a matter of time.

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Commodities Cushioned From Crimea Crisis by Ample Supply

Unprecedented natural gas reserves in Europe , record global grain output and the threat of mutual economic calamity from oil sanctions are cushioning commodity prices even as the Ukraine-Russia conflict spurs a gold rally. While U.K. gas prices, a European benchmark, rose 5.1 percent since the crisis began at the end of February, they are still the lowest for this time of year since 2010. Brent crude fell 1 percent. After wheat advanced 15 percent and corn 4.6 percent, both remain about a quarter below the peaks in 2010, the last time Russia and Ukraine curbed shipments. Gold reached a six-month high on March 14 as demand for a haven grew. Abundant supply is limiting some price swings caused by Russia ’s incursion into Crimea, where a majority in a disputed vote yesterday chose to join Russia, preliminary results show. Europe gets about a third of its gas from […]

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Russia’s $160 Billion Stick Hinders Crimean Sanctions

2014. Fireworks exploded and Russian flags fluttered above jubilant crowds Sunday after residents in Crimea voted overwhelmingly to secede from Ukraine and join Russia. The United States and Europe condemned the ballot as illegal and destabilizing and were expected to slap sanctions against Russia for it. (AP Photo/Vadim Ghirda) Close Close Open Pro-Russian people celebrate in Lenin Square, in Simferopol, Ukraine, Sunday, March 16, 2014. Fireworks exploded and Russian flags fluttered above jubilant crowds Sunday after residents in Crimea voted overwhelmingly to secede from Ukraine and join Russia. The United States and Europe condemned the ballot as illegal and destabilizing and were expected to slap sanctions against Russia for it. (AP Photo/Vadim Ghirda) As U.S. and European officials threaten sanctions in their face-off with Russia over , Vladimir Putin’s $160 billion in oil and natural gas exports […]

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16% of Natural Gas Consumed in Europe Flows Through Ukraine

. Europe, including all EU members plus Turkey, Norway, Switzerland, and the non-EU Balkan states, consumed 18.7 trillion cubic feet (Tcf) of natural gas in 2013. Russia supplied 30% (5.7 Tcf) of this volume, with a significant amount flowing through Ukraine. EIA estimates that 16% (3.0 Tcf) of the total natural gas consumed in Europe passed through Ukraine’s pipeline network, based on data reported by Gazprom and Eastern Bloc Energy. Two major pipeline systems carry Russian gas through Ukraine to Western Europe—the Bratstvo (Brotherhood) and Soyuz (Union) pipelines. The Bratstvo pipeline is Russia’s largest pipeline to Europe. It crosses from Ukraine to Slovakia and splits in two to supply northern and southern European […]

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Paris imposes partial motoring ban in battle to control pollution

France has enforced a partial motoring ban in Paris and surrounding areas from Monday morning as it battles to control dangerously high pollution levels. The move, the first of its kind since 1997, comes as a spell of unusually warm and windless weather has exacerbated the level of pollution in the French capital – now at its highest in 16 years, according to the European Environment Agency (EEA). More than 30 departments in France have been hit by maximum-level pollution alerts since Thursday. The ban from Monday will be enforced on private vehicles with petrol or diesel engines whose number plates end in an even number. It will then apply to vehicles with number plates ending in an odd number on Tuesday. Cars carrying three passengers or more will be exempt, as will taxis, buses, emergency vehicles and refrigerated lorries. All other lorries will be banned. “Our primary goal […]

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Paris takes drastic measures to fight toxic smog

PARIS (AP) — Paris is taking drastic measures to combat its worst air pollution in years, banning around half of the city’s cars and trucks from its streets in an attempt to reduce the toxic smog that’s shrouded the City of Light for more than a week. Cars with even-numbered license plates are prohibited from driving in Paris and its suburbs Monday, following a government decision over the weekend. Around 700 police were patrolling the morning rush hour handing out tickets to offenders. Taxis and commercial vehicles aren’t covered by the ban. It was the first time since 1997 that the emergency measure was taken. If the pollution persists, odd-numbered vehicles will be banned on Tuesday. Public transport has been made free for a fourth day to help deal with the pollution.

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Shale gas and oil boom not sustainable – Peak Oil

How much faith can we put in our ability to decipher all the numbers out there telling us the US is closing in on its cornering of the global oil market? There’s another side to the story of the relentless US shale boom, one that says that some of the numbers are misunderstood, while others are simply preposterous. The truth of the matter is that the industry has to make such a big deal out of shale because it’s all that’s left. There are some good things happening behind the fairy tale numbers, though—it’s just a matter of deciphering them from a sober perspective.   In a second exclusive interview with James Stafford of  Oilprice.com , energy expert Arthur Berman discusses:   Why US gas supply growth rests solely on Marcellus When Bakken and Eagle Ford will peak The eyebrow-raising predictions for the Permian Basin Why outrageous claims should have […]

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Net vs. gross energy: Is it wise to be complacent?

Everyone knows that when a potential employer makes a job offer, the salary or wage he or she proposes isn’t what you’ll be taking home. What you’ll take home is your net pay. The number the employer offers you is your gross pay, and that’s just what it says on your pay stub. It’s not quite a perfect analogy with net energy versus gross energy. But it’s an everyday analogy that most people can understand. Net pay is what you have to pay your bills today. And, net energy is what society has in order to conduct its business (and its fun) on any given day. Net energy is what’s left after the energy sectors of the economy–oil and gas, coal, nuclear, hydroelectric, renewable energy industries, and farming which provides food for human and animal energy and crops for biofuels–expend the energy they must to extract energy from the […]

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Oil Futures Rise as U.S.-Russia Talks Break Down

On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $98.18 a barrel at 0536 GMT, down $0.02 in the Globex electronic session. April Brent crude on London’s ICE Futures exchange rose $0.18 to $107.57 a barrel. Worries over an economic slowdown in China have pressured industrial commodity prices and wider financial markets this week but the impact on oil has been limited by tensions in Ukraine and Libya. "While a weaker macro outlook would certainly reverberate in the oil market, Chinese demand is still supported by steady activity and a rise of new refining capacity," analyst Sijin Cheng at Barclays said in a note. She said China’s implied oil demand contracted 3.1% on-year in the first two months of 2014 to 9.97 million barrels a day, but imports also surged on stockpiling for new refineries and strategic reserves. Meanwhile, the U.S. is […]

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Brent Advances With WTI as IEA Foresees Rising Demand

Brent crude rebounded from a one-month low as the International Energy Agency boosted its demand forecast and as tensions grew in Ukraine. West Texas Intermediate climbed for a second day. Brent rose for the first time in three days. The IEA increased its forecast for 2014 global consumption by 95,000 barrels a day, citing economic growth. The U.S. and the European Union are threatening sanctions against Russia if it doesn’t back down from annexing Crimea, which is holding a referendum this weekend on whether to join Russia. “The IEA report certainly helps the market,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts . “It makes people more comfortable about demand. People are worried about the situation in Crimea.” Brent for April settlement, which expires today, rose $1.18, or 1.1 percent, to end at $108.57 a barrel on the London-based ICE Futures Europe exchange. The […]

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Natural Gas Advances But Down 4.2% for the Week

–April futures gain 1% to settle at $4.425/mmBtu –Prices still down 4.2% on week as traders look ahead to spring –Forecasting models disagree about late-March temperatures By Nicole Friedman NEW YORK–Natural gas snapped a three-day losing streak Friday as weather forecasts posted conflicting views on how much longer colder-than-average temperatures would last. Natural gas for April delivery settled up 4.2 cents, or 1%, at $4.425 a million British thermal units on the New York Mercantile Exchange. Frigid weather this winter has led to robust demand for gas-powered heating in homes and offices, eating away at natural-gas stockpiles. About half of U.S. households use natural gas as their primary heating fuel, according to the U.S. Energy Information Administration. As of March 7, inventories stood at their lowest level since 2003. The EIA said Tuesday that it expects stocks to fall from 1.001 trillion cubic feet as of March 7 to […]

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Oil Price Pressure to Ease Despite Global Tension-IEA

A surge in supply from Iraq and other oil producers should be more than sufficient to meet growing demand this year, reducing pressure on markets despite rising international tensions, the West’s energy watchdog said on Friday. "While international tensions may be on the rise, pressure on oil markets … seems set to ease," the International Energy Agency (IEA) said in its monthly oil market report. Oil prices briefly spiked at the beginning of March after Russia took control of Ukraine’s Crimea region. The United States announced a small 5 million barrel test release of its Strategic Petroleum Reserve this week as Washington and the European Union threaten sanctions against Russia. The Paris-based agency, which advises most of the largest energy-consuming countries on energy policy, said Iraq’s oil production surged by 530,000 barrels per day (bpd) in February to 3.62 million bpd, the highest since […]

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Gunmen kill 5 Egyptian soldiers north of Cairo

CAIRO (AP) — Egypt’s state news agency says gunmen have attacked a checkpoint manned by the military police in a suburb north of Cairo, killing five soldiers. Major General Mahmoud Yousri, chief of security of Qalubiya province, told MENA that the attackers stormed the checkpoint early Saturday in Shubra al-Kheima. Yousri said explosive disposal experts managed to defuse two bombs left behind by the attackers. Egypt has seen a spike in attacks on police and the military since the toppling of Islamist President Mohammed Morsi last year. Many of the deadliest attacks have been claimed by Sinai-based militants.

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UN: 9 million Syrians now displaced as conflict ticks into fourth year

On the eve of the third anniversary of unrest that led to the  Syrian civil war , the  United Nation’s refugee agency (UNHCR) said Friday  that the country now leads the world in forced displacement, with more than 9 million people uprootedas a result of the conflict. The total number of displaced people is comprised of over  2.5 million refugees  who are living in neighboring countries and 6.5 million internally displaced persons (IDPs) within  Syria , according to the UNHCR. The number of people uprooted — half of which are children — equals 40 percent of the country’s pre-war population. In crossing the 9 million mark, experts believe that Syria has overtaken Afghanistan as the world’s leader in forcibly displaced persons. “It is unconscionable that a humanitarian catastrophe of this scale is unfolding before our eyes with no meaningful progress to stop the bloodshed," said U.N. High Commissioner for Refugees […]

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