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Steyer, NRG’s Crane share visions for energy industry’s future

Two of the energy industry’s most visible agents of change delivered messages here yesterday on policies and business models they believe are needed to reshape how energy is generated and how it’s used. Billionaire climate activist Tom Steyer and NRG Inc.’s David Crane delivered separate keynote speeches as part of the Clean Energy Challenge, a competition among early-stage companies and student teams from around the Midwest who were pitching business models for a share of $500,000 in prizes. Crane, the outspoken CEO of the nation’s largest independent power generator, covered a broad range of topics during a lunchtime question-and-answer session. And many of his answers revolved a central theme — his belief that today’s electric power business won’t be recognizable in five, 10 or 20 years, and that distributed generation will gradually supplant the current centralized power system. "The fact that distributed […]

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British solar plan to shift to rooftop installations

British Energy Minister Greg Barker said Friday the government wants to install solar panels on top of the more than 900 square miles of south-facing rooftops. "There is massive potential to turn our large buildings into power stations and we must seize the opportunity this offers to boost our economy as part of our long term economic plan," he said in a statement . Barker said the measure is part of the so-called Solar Strategy, touted as the first plan of its kind for the country’s renewable energy sector. He said the strategy envisions a shift away from large-scale solar farms to one that expands the market on top of the estimated 250,000 hectares of south-facing commercial rooftops in the country. The British government estimates there are about 2.7 gigawatts worth of solar capacity installed in the country. The Solar Strategy calls for as […]

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Excessive consumption

Just 80% of global private consumption is snapped up by 20% of the world population living in the richest countries, which is “left overs” for 80% of the population (5.6 billion people), residing in poorer countries and in the process of development, with only 20% of world production. Only the U.S., with 4.5% of the world population consumes 40% of all available resources. Large-scale consumption is synonymous with degradation of natural ecosystems; more physical production is the result, clear and evident, more pollution, more waste (disposal) and less preserved environment, compromising greatly in the quality of life for all. Not coincidentally, etymologically the word “consume” means “exhausted”. While the richest exaggerate consumption, the poorest suffer the consequences of close environmental imbalance. Over the past 30 years, global consumption of goods grew at an annual average of 2.3%; in some East Asian countries this rate exceeds the threshold of 6%. […]

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ITER: How a new star will be born

The ITER project is truly at the frontier of knowledge, a collective effort to explore the tantalising future of free, clean and inexhaustible energy offered by nuclear fusion. Where the Large Hadron Collider at CERN pushes the boundaries of physics to find the origins of matter, the ITER project seeks to give humans an endless stream of power which could have potentially game-changing consequences for the entire planet. In this article, Robert Arnoux from ITER offers us his vision of nuclear fusion. Opinion: A new star will soon be born, a star unlike any other … a man-made star. ITER— both the Latin word for “The Way” and the acronym of International Thermonuclear Experimental Reactor—will light up in the early years of the coming decade. From a scientific and technological point of view, it will be one of mankind’s major accomplishments. The creation of an artificial star and the […]

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Oil Holds Onto Gains in Asian Trade, US Jobs Data in Focus

By Eric Yep Crude-oil futures held on to overnight gains in Asian trading hours Friday ahead of key U.S. jobs data and amid some doubts over the re-opening of Libya’s eastern oil export terminals. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $100.45 a barrel at 0514 GMT, up $0.16 in the Globex electronic session. May Brent crude on London’s ICE Futures exchange rose $0.04 to $106.19 a barrel. Financial markets expect the U.S. Labor Department’s March jobs report due later Friday to shed light on the state of the world’s largest economy, with forecasts of an increase in hiring after the recent winter slowdown. Crude prices are likely to rally on better demand prospects, with the International Monetary Fund’s managing director Christine Largarde suggesting that there would be no hard landing in the Chinese economy, analyst Tan Chee Tat at […]

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Iran, six powers start expert-level nuclear talks in Vienna

VIENNA (Reuters) – Iran and six world powers began an expert-level meeting about Tehran’s nuclear program on Thursday, part of efforts to reach an agreement by late July on how to resolve a decade-old dispute that has stirred fears of a Middle East war. The meeting in Vienna of nuclear and other experts from Iran and the United States, France, Germany, Russia, China and Britain was to prepare for a new round of higher-level negotiations next week, also in the Austrian capital. A spokesman for European Union foreign policy chief Catherine Ashton – whose office is coordinating contacts with Iran on behalf of the big powers – confirmed that the meeting had started but gave no details. Officials earlier said they were expected to last until Saturday. The April 8-9 meeting of chief negotiators – including Ashton and Iranian Foreign Minister Mohammad Javad Zarif – will be the third […]

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Natural Gas Prices Rise on Concerns About Dwindling Stockpiles

Natural gas prices rose for a second day on concerns about producers’ ability to replenish stockpiles that were depleted over the winter. Thursday’s gains came after government data showed U.S. gas inventories fell to an 11-year low last week. The decline was also unusually large for late March, when warmer temperatures typically reduce demand for the heating fuel. Natural gas for May delivery ended up 2.4%, at $4.47 a million British thermal units on the New York Mercantile Exchange. Prices have risen 4.5% over the last two days. The U.S. Energy Information Administration reported that inventories fell 74 billion cubic feet in the week ended March 28, to just 822 billion cubic feet. The drop heightened concerns that gas prices remain too low to convince producers to pump out enough gas this spring and summer to refill storage. "The market seems to think […]

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Weekly Natural Gas Storage Report

Working gas in storage was 822 Bcf as of Friday, March 28, 2014, according to EIA estimates. This represents a net decline of 74 Bcf from the previous week. Stocks were 878 Bcf less than last year at this time and 992 Bcf below the 5-year average of 1,814 Bcf. In the East Region, stocks were 448 Bcf below the 5-year average following net withdrawals of 46 Bcf. Stocks in the Producing Region were 410 Bcf below the 5-year average of 762 Bcf after a net withdrawal of 24 Bcf. Stocks in the West Region were 134 Bcf below the 5-year average after a net drawdown of 4 Bcf. At 822 Bcf, total working gas is below the 5-year historical range. The shaded area indicates the range between the historical minimum and maximum values for the weekly series from 2009 through 2013. Source: Form EIA-912, "Weekly Underground Natural Gas […]

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Libya Rebels Report Accord ‘in Principle’ to Reopen Ports

The prospects for a recovery in Libyan oil exports moved closer after rebels blocking shipments from the country’s east said they agreed in principle with the government to allow a resumption. The rebels’ Executive Office for Barqa, representing the eastern region of Cyrenaica, reached an accord that four terminals halted since July can reopen, Ali Al-Hasy, a spokesman for the group, said April 2. Barqa politicians indicated the ports could operate within 24 to 48 hours, Sliman Qajam, a member of the energy committee in Libya’s government, said by phone yesterday from Tripoli, the capital. Libyan oil production plunged by more than 1 million barrels a day in the past year as protests halted oil fields and ports. Brent crude futures, used to price more than half of the world’s oil, are near the lowest level since November amid speculation that the export terminals may re-open, adding to supply. […]

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Libya sees 'good intentions' in talks with rebels, no deal yet

Libya has seen "good intentions" at indirect talks with eastern rebels which might lead to the lifting of their blockage of major oil ports within days, acting oil minister Omar Shakmak said on Thursday. Hopes have been building in oil markets that an eight-month blockage of major oil exports ports will end ever since rebels and the government said they were close to an agreement. Any deal will help the OPEC member halt its slide into instability as the weak central government has seemed unable to control militias who helped oust Muammar Gaddafi in 2011 but kept their guns and made political demands on the state. "There are good intentions," Shakmak told reporters in the eastern city of Benghazi, adding that tribal leaders and local leaders were working hard to negotiate with the port rebels. He did not elaborate. The government also gave no update, […]

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Libya sees ‘good intentions’ in talks with rebels, no deal yet

Libya has seen "good intentions" at indirect talks with eastern rebels which might lead to the lifting of their blockage of major oil ports within days, acting oil minister Omar Shakmak said on Thursday. Hopes have been building in oil markets that an eight-month blockage of major oil exports ports will end ever since rebels and the government said they were close to an agreement. Any deal will help the OPEC member halt its slide into instability as the weak central government has seemed unable to control militias who helped oust Muammar Gaddafi in 2011 but kept their guns and made political demands on the state. "There are good intentions," Shakmak told reporters in the eastern city of Benghazi, adding that tribal leaders and local leaders were working hard to negotiate with the port rebels. He did not elaborate. The government also gave no update, […]

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Mexico Seeks Flexible Tax Model for Oil Industry

;Mexico is seeking to draw up a flexible tax framework for private companies interested in the opening of the country’s oil and gas industry, in a bid to become a competitive option for investors in the North American energy sector. The government and the main conservative opposition are in early talks on a blueprint that completes the historic constitutional changes passed last December. The legislation, which is the cornerstone of President Enrique Peña Nieto’s plans to lift economic growth, opens the door for the return of private firms to exploration and production activities in Mexico after a 75-year absence. The tax framework is important because it defines how much money will be paid to private investors for taking exploratory and production risks, and how much will end up in the hands of the state as the original owner of the oil and gas resources. Investors are awaiting the […]

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China Runs Into Natural-Resources Pushback

Strategists have long feared that China’s quest for natural resources would lead to ever-higher prices, a breakdown in trade and perhaps even wars. But a stunning rebuke to Chinese manipulation last week at the World Trade Organization is a sign that the global system is far more resilient than the worriers have claimed. The ruling made public on March 26 centered on the Chinese strategy of restricting exports of raw materials—most notably rare earth elements such as cerium and neodymium used in high-tech defense and energy systems—to give Chinese companies a leg up and inflict damage on other resource consumers. The WTO panel declared the restrictions illegal and opened the door to retaliatory tariffs from the United States, Japan and others. Analysts from elite universities to the Pentagon have worried that China is "locking up" commodities from crude oil to copper, building a mercantilist alternative to the system of […]

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Westinghouse, Ukraine Near Deal on Nuclear Fuel for Reactors

A U.S.-based energy company and Ukraine are on the verge of signing a deal that would lessen Russia’s influence and give the West greater leverage on the former Soviet republic. Westinghouse Electric Co. of Pennsylvania said on Thursday it is in negotiations to extend its contract with Ukraine energy operator Energoatom to supply nuclear fuel for reactors, a deal that would bolster the country’s commitment to long-term cooperation with the West. The talks come after the administration has extended the welcome mat to the interim Ukraine government as Kiev looks to strike deals with Western partners. In March, Ukraine’s Prime Minister Arseniy Yatsenyuk met with President Barack Obama before meeting with Westinghouse officials in Pennsylvania. "Westinghouse is currently in discussions with Energoatom to agree on an amended fuel supply contract," Westinghouse spokesman Hans Korteweg said. Ilona Zayets, a spokeswoman for state-owned Energoatom, said the two sides are in final […]

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Fracking is depleting water supplies in America's driest areas, report shows

America’s oil and gas rush is depleting water supplies in the driest and most drought -prone areas of the country, from Texas to California , new research has found. Of the nearly 40,000 oil and gas wells drilled since 2011, three-quarters were located in areas where water is scarce, and 55% were in areas experiencing drought, the report by the Ceres investor network found . Fracking those wells used 97bn gallons of water, raising new concerns about unforeseen costs of America’s energy rush. "Hydraulic fracturing is increasing competitive pressures for water in some of the country’s most water-stressed and drought-ridden regions," said Mindy Lubber, president of the Ceres green investors’ network. Without new tougher regulations on water use, she warned industry could be on a "collision course" with other water users. "It’s a wake-up call," said Prof James Famiglietti, a hydrologist at the University of California, Irvine. "We understand […]

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Fracking is depleting water supplies in America’s driest areas, report shows

America’s oil and gas rush is depleting water supplies in the driest and most drought -prone areas of the country, from Texas to California , new research has found. Of the nearly 40,000 oil and gas wells drilled since 2011, three-quarters were located in areas where water is scarce, and 55% were in areas experiencing drought, the report by the Ceres investor network found . Fracking those wells used 97bn gallons of water, raising new concerns about unforeseen costs of America’s energy rush. "Hydraulic fracturing is increasing competitive pressures for water in some of the country’s most water-stressed and drought-ridden regions," said Mindy Lubber, president of the Ceres green investors’ network. Without new tougher regulations on water use, she warned industry could be on a "collision course" with other water users. "It’s a wake-up call," said Prof James Famiglietti, a hydrologist at the University of California, Irvine. "We understand […]

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2014_Bakken_Oil_Output_11MM_Barrels_A_Day

Oil production in North Dakota and Montana’s Bakken and Three Forks formations will average 1.1 million barrels per day this year, according to estimates announced Wednesday by a research firm. Wood Mackenzie anticipates that oil production in the North Dakota and Montana sections of the Bakken and Three Forks formations will grow to 1.7 million barrels per day in 2020. "We’re very confident on the future of the Bakken," said Jonathan Garrett, an analyst at Wood Mackenzie. He added that the expected lifetime of a Bakken well is 25 years to 30 years. Wood Mackenzie projects that $15 billion will be spent on drilling and completion of wells by Bakken participants in 2014. The research firm also said there is close to $118 billion in remaining value in the American portions of the Bakken and Three Forks formations, which also stretch into […]

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Rail congestion, cold weather raise ethanol spot prices

Source: U.S. Energy Information Administration based on Oil Price Information Service (ethanol prices) and Thomson Reuters (RBOB prices). Note: RBOB is reformulated blendstock for oxygenate blending gasoline, a motor gasoline blending component intended for blending oxygenates to produce finished reformulated gasoline. Ethanol spot prices have increased steadily since early February. By late March, New York Harbor (NYH) spot ethanol prices exceeded prices for RBOB (the petroleum component of gasoline) by more than $1 per gallon. Ethanol spot prices in Chicago and Gulf Coast markets also rose above NYH RBOB prices. The premium of New York Harbor over Chicago spot ethanol prices, which averaged 25 cents per gallon in January (close to the typical transportation costs of moving ethanol from production centers in the Midwest to terminals on the East Coast in recent years) widened to $1 per gallon in early March. Logistical constraints in and around ethanol production centers […]

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Power Stations Switch to Gas, But Coal Stays on the Menu

Power utilities American Electric Power Co. and Southern Co. say the U.S. needs to keep coal in the mix for electricity generation because it’s cheap and plentiful. “Coal has to be part of the puzzle,” Nick Akins, chairman and chief executive of power giant AEP said Thursday at The Wall Street Journal’s ECOnomics conference in Santa Barbara, Calif. The dirtiest of the fossil fuels, coal has lost major market-share to natural gas in recent years as power generators switching to burning gas to create electricity. Columbus, Ohio-based AEP plans to shut down up to 6,000 megawatts of coal-fired power plants by 2016 – enough to light between 3 million and 6 million homes – mostly so it can comply with tighter federal pollution limits. By 2020, the company will generate about 46% of its electricity from coal, down from 60% today. But Mr. Akins argued the U.S. has so […]

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Ethanol, Railroad Groups Clash Over Shipment Snarls

An ethanol plant in Stockton, Calif. Analysts say a backup of railcars has kept ethanol from making it to coastal refineries that mix it into gasoline. U.S. ethanol and railroad industry groups clashed Thursday over transportation constraints that have triggered soaring prices for the biofuel in recent weeks. Renewable Fuels Association President Bob Dinneen said in a letter to the Association of American Railroads that the "sheer chaos" of the rail system has pushed up prices for ethanol—a corn-based biofuel that is blended into gasoline—and caused consumers to pay more at the pump. The higher costs, he argued, have damaged the image of the ethanol industry. Ethanol prices have jumped in recent weeks as supplies have declined amid transportation snarls. A bitterly cold winter and rising crude-oil shipments have slowed rail traffic in the Midwest. Most ethanol is made from corn grown in that region. The backup of railcars […]

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EU puts emphasis on Southern Gas Corridor

The Southern Gas Corridor of transit networks is a necessary ingredient for energy security, a joint U.S.-European Union statement said. European Commission President Manuel Barroso in 2009 said the transit networks envisioned under the system would provide the "building blocks" for regional energy security. A 2009 move by Russian energy company Gazprom to cut gas supplies through Ukraine because of contractual disputes sparked concerns about Russia’s grip on the energy sector. European consumers get about a quarter of their gas needs met by Russia, though most of that runs through the Soviet-era transit system in Ukraine. EU Energy Commissioner Gunther Oettinger met Wednesday in Brussels with U.S. Secretary of State John Kerry to discuss renewed concerns about energy security in the wake of the Ukrainian upheaval. "The [joint U.S.-EU Energy] Council reaffirmed the importance of the Southern Gas Corridor to bring gas to Europe," they […]

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WTI Crude Drops Amid Speculation Demand May Slow; Brent Steady

West Texas Intermediate fell for a fourth day, the longest losing streak in three months, amid speculation reduced Chinese and U.S. growth will curb demand in the world’s biggest oil users. Brent was steady in London . Futures dropped as much as 0.5 percent in New York. China outlined a package of measures to support its economy amid continuing signs of a slowdown. A gauge of U.S. fuel consumption slid to the lowest level since June, government data show, as investors weigh comments from Federal Reserve Chair Janet Yellen that stimulus will be needed for “some time to come.” NATO vowed to boost support for eastern European nations unnerved by Russia ’s annexation of Crimea. “You take out the geopolitical risks, Yellen’s comments, add reduced economic performance in China and it’s an environment that’s not supportive of high prices,” said Jonathan Barratt , the chief executive officer of Barratt’s […]

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Oil Remains Under Pressure, Brent-WTI Spread at $5.40/bbl

Crude-oil futures remained weak in Asian trading hours Thursday after this week’s sell-off, with the Brent-WTI spread hovering at around $5 a barrel, its narrowest in over six months. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $99.44 a barrel at 0527 GMT, down $0.18 in the Globex electronic session. May Brent crude on London’s ICE Futures exchange rose $0.11 to $104.90 a barrel. Nymex WTI crude prices stayed under $100 a barrel in spite of U.S. crude-oil inventories falling unexpectedly for the week ended March 28. The Brent-WTI spread was at $5.40 a barrel. U.S. crude stockpiles fell by 2.4 million barrels to 380.1 million barrels, data from the U.S. Energy Information Administration showed. Analysts had expected an increase of 700,000 barrels. Brent crude-oil prices struggled to stay in positive territory and mostly traded under $105 a […]

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U.S. Pump Prices Seen Extending Gains From 6-Month High: Energy

U.S. consumers are paying the most in six months for gasoline because of declining supplies and rising costs for the ethanol added to the fuel. Prices probably will keep climbing, the largest U.S. motoring group said. Gasoline, averaging $3.561 a gallon at the pump, already costs the most since September, according to AAA. Prices for ethanol, the fuel additive mandated by the government, are the highest in more than seven years after freezing weather and a shortage of rail cars slowed distribution and reduced inventories. Supplies of gasoline were the least since November in the week ended March 28 and demand was 2.2 percent above a year ago during a period of seasonal refinery repairs, according to the Energy Information Administration. Prices for ethanol derived from corn and blended with gasoline at a ratio of at least 10 percent, may extend gains as distillers take plants offline for routine […]

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Natural-Gas Futures Rise Ahead of Stockpiles Data

-Natural-gas futures rose Wednesday with traders expecting another drop in natural-gas stockpiles to be announced Thursday. Natural gas for May delivery settled up 8.8 cents at $4.364 a million British thermal units on the New York Mercantile Exchange. The gains ended a string of three-straight losing sessions that had seen gas drop below $4.28/MMBtu. Analysts and traders surveyed by The Wall Street Journal expect natural-gas stockpiles to fall by 75 billion cubic feet in the data to be released Thursday at 10:30 a.m. ET by the U.S. Energy Information Administration. That level of withdrawal would be 20 billion cubic feet more than the prior week at a time when stockpiles are already at an 11-year low. The expectations probably led to the price backlash, market observers said. "I think this is a classic battle," said Phil Flynn, senior market analyst at the Price Futures Group […]

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Iran, Russia working to seal $20 billion oil-for-goods deal: sources

Iran and Russia have made progress toward an oil-for-goods deal that sources said could be worth up to $20 billion and enable Tehran to boost vital energy exports in defiance of Western sanctions, people familiar with the negotiations told Reuters. In January, Reuters reported that Moscow and Tehran were discussing a barter deal that would see Moscow buy up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods. The United States has said such a deal would raise "serious concerns" and be inconsistent with the nuclear talks between world powers and Iran. A Russian source said Moscow had "prepared all documents from its side", adding that completion of a deal was awaiting agreement on what oil price to lock in. The source said the two sides were looking at a barter arrangement that would see Iranian oil exchanged for industrial […]

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UN envoy warns of 'divisive' Iraq election campaign

Campaigning for Iraq’s April 30 elections will be "highly divisive" as parties appeal to their sectarian bases at a time of worsening violence, the UN’s envoy to Baghdad has warned. Nickolay Mladenov also pushed for Iraqi leaders to urgently pass a much-delayed annual budget within two weeks, noting that further postponing the spending bill would badly impact on drawing much-needed business and investment to the country. His remarks came as campaigning officially began on Tuesday for the parliamentary polls, Iraq’s first since March 2010, with Prime Minister Nuri al-Maliki eyeing a third term with bloodshed at its highest level since the country emerged from a brutal sectarian war in 2008. "Campaigning will be highly divisive," Mladenov told AFP from his office in Baghdad’s heavily-fortified Green Zone complex, which is also home to parliament and the American and British embassies. "Everyone is […]

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UN envoy warns of ‘divisive’ Iraq election campaign

Campaigning for Iraq’s April 30 elections will be "highly divisive" as parties appeal to their sectarian bases at a time of worsening violence, the UN’s envoy to Baghdad has warned. Nickolay Mladenov also pushed for Iraqi leaders to urgently pass a much-delayed annual budget within two weeks, noting that further postponing the spending bill would badly impact on drawing much-needed business and investment to the country. His remarks came as campaigning officially began on Tuesday for the parliamentary polls, Iraq’s first since March 2010, with Prime Minister Nuri al-Maliki eyeing a third term with bloodshed at its highest level since the country emerged from a brutal sectarian war in 2008. "Campaigning will be highly divisive," Mladenov told AFP from his office in Baghdad’s heavily-fortified Green Zone complex, which is also home to parliament and the American and British embassies. "Everyone is […]

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Kurdistan ‘goodwill’ exports stalled

Due to pipeline sabotage, and amidst an enduring political impasse, the KRG has postponed its plans to begin exporting through federal channels. Oil tanks at Turkey’s Mediterranean port of Ceyhan, which is run by state-owned Petroleum Pipeline Corporation (BOTAS), where oil exports from the Iraqi central government and, separately, from the KRG, are sent. (UMIT BEKTAS/Reuters) Iraq’s autonomous Kurdistan region has delayed its plans to begin exporting oil through federal channels, blaming increased violence that has crippled the Iraq-Turkey Pipeline (ITP).Kurdistan Regional Government (KRG) Prime Minister Nechirvan Barzani had announced that the region would start exporting 100,000 barrels per day (bpd) on April 1 in a "goodwill gesture" to ease tension with Baghdad over oil disputes, which have prevented the passage of a 2014 budget and hampered the full activa… This content is for registered users. Please login to continue. If you are not a registered user, you may […]

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Russian oil company Tatneft says it's considering a return to Libya.

Russian state-controlled oil company Tatneft said it’s planning to resume operations in Libya, which were idled at the onset of the Libyan revolution in 2011. Tatneft in February 2011 suspended geological exploration in Libya as civil war began. Staff were returned in February 2013, but later pulled out of the country following an October 2013 attack on the Russian embassy in Tripoli. The company, in its latest financial report, said it’s been working since last year to return to work in Libya. "Starting in February 2013 the group has been working to resume operations in Libya, including returning staff to Tripoli and continuing supplier negotiations," the company said . "The group expects to re-launch its operations in Libya in 2014." Tatneft’s Libyan subsidiary operates in central Libya through a bilateral exploration and production sharing agreement with the National Oil Corp. of Libya. Internal conflicts have […]

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Russian oil company Tatneft says it’s considering a return to Libya.

Russian state-controlled oil company Tatneft said it’s planning to resume operations in Libya, which were idled at the onset of the Libyan revolution in 2011. Tatneft in February 2011 suspended geological exploration in Libya as civil war began. Staff were returned in February 2013, but later pulled out of the country following an October 2013 attack on the Russian embassy in Tripoli. The company, in its latest financial report, said it’s been working since last year to return to work in Libya. "Starting in February 2013 the group has been working to resume operations in Libya, including returning staff to Tripoli and continuing supplier negotiations," the company said . "The group expects to re-launch its operations in Libya in 2014." Tatneft’s Libyan subsidiary operates in central Libya through a bilateral exploration and production sharing agreement with the National Oil Corp. of Libya. Internal conflicts have […]

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Oman Eyes Minority Stake in India LNG Project

Oman is in talks with India to buy a minority stake in Petronet LNG Ltd. ‘s planned liquefied natural gas terminal off India’s east coast, the middle-eastern nation’s oil and gas minister said Wednesday. Mohammed Bin Hamad Al Rumhy told reporters on the sidelines of an event that Oman wants to buy a 10% to 20% stake in the 5 million tonne a year LNG terminal at Gangavaram, in the state of Andhra Pradesh. The stake could be bought through an investment or pension fund, he added. "Petronet’s track record in the terminal business is attractive……..There are synergies (as well)," he said. Indian state-run companies Corp. , Indian Oil Corp. , Bharat Petroleum Corp. and GAIL hold a 12.5% stake each in Petronet. French power company GDF Suez owns 10% and the Asian Development Bank another 5.2%. The rest is held by public, insurance companies and mutual funds. […]

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Seesi in Egypt Savior Role Carries Burden of Hope Amid Blackouts

Egyptians look at a row of portraits of deputy prime minister Abdel-Fattah al-Seesi supporting him to run for presidency in the upcoming elections, in Alexandria. Another evening, another power cut at Raouf Fayez’s jewelry store in Cairo’s sprawling Shoubra neighborhood. Flanked by darkened shops, his window display is empty of the gold ornaments that Fayez hasn’t felt safe showcasing since the 2011 uprising against Hosni Mubarak . Overlooking the scene from a poster on a neighbor’s balcony is the man who Fayez hopes can finally make it all better: Abdel-Fattah al-Seesi, who shed his military uniform last week […]

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Nigeria: Fuel Scarcity Looms As Warri Refinery Shuts Down

The nation’s pioneer crude oil refining plant, Warri Refinery and Petrochemical Company (WRPC), has again been shut down. LEADERSHIP learnt that the plant was shut down last Friday following some operational challenges, especially at some of its strategic units. It was learnt that hitches with some major units, particularly Fluid Cracking Catalyst (FCC), regarded as heart of refining operation, Topping and Reforming units, made the shutdown of the plant inevitable. Findings showed, for instance, that Catalyst, a feedstock of FCC unit, was in short supply while there was a haulage crisis at Topping Unit (TU), whose fate was said to have impacted the Reforming Unit (RU). The latest development coincided with the vandalisation of the pipeline which conveys crude oil from the various fields of Chevron Nigeria Ltd (CNL) in Escravos to Warri and Kaduna refineries. The pipeline, known as System 2C, is reported to have been ruptured by […]

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Growing service sector won't avert China slowdown

A robust services sector will not stop China’s economy from slowing into the middle of the year, analysts said after modest government stimulus was seen as a signal authorities want to steady growth to keep their reform drive on track. Two surveys on Thursday showing growth in the service sector offered some relief after a run of disappointing data this year, but did little to alter the view that the world’s second-largest economy has lost more momentum than expected in 2014. On Wednesday, the government said it would accelerate construction of rail projects and cut taxes for small firms, the first concrete action this year to boost activity. "The scale of the stimulus is modest, likely aimed at smoothing GDP growth at around the 7.5 percent target, rather than another round of massive stimulus," HSBC economists said in a report. The targeted moves showed authorities wanted […]

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Growing service sector won’t avert China slowdown

A robust services sector will not stop China’s economy from slowing into the middle of the year, analysts said after modest government stimulus was seen as a signal authorities want to steady growth to keep their reform drive on track. Two surveys on Thursday showing growth in the service sector offered some relief after a run of disappointing data this year, but did little to alter the view that the world’s second-largest economy has lost more momentum than expected in 2014. On Wednesday, the government said it would accelerate construction of rail projects and cut taxes for small firms, the first concrete action this year to boost activity. "The scale of the stimulus is modest, likely aimed at smoothing GDP growth at around the 7.5 percent target, rather than another round of massive stimulus," HSBC economists said in a report. The targeted moves showed authorities wanted […]

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China Considers More Electric-Car Incentives: Official

China may exempt electric-car buyers from paying purchase taxes as part of expanded state measures to bolster sales of such vehicles after past incentives failed to spur demand, Vice Premier Ma Kai said. The government may cut or waive the 10 percent auto-purchase tax for new-energy vehicles — China’s term for electric cars, plug-in hybrids and fuel-cell vehicles — and slow down the reduction of government subsidies beyond 2015, according to comments from Vice Premier Ma Kai posted on the Chinaev.org website. Ma also urged local governments to help companies develop electric-car rental services. Shares of BYD Co. (1211) , China’s biggest maker of electric cars, rose in Hong Kong trading amid mounting signs the government is stepping up efforts to fight the thickening pollution that’s choking its people. Last month, Premier Li Keqiang declared war on smog and Hangzhou became the sixth Chinese city to impose restrictions on […]

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Asian Gas Demand Spawns Floating Superfactories

A rendering of Prelude, which when completed is expected to be the largest floating structure ever built. High costs are driving energy companies into the sea. In an effort to cut expenses, an increasing number of natural-gas producers are planning to pack entire gas-production plants onto superships bigger than aircraft carriers instead of building expensive land-based industrial complexes. These huge floating gas factories are creating a multibillion-dollar market for Asian shipyards, especially South Korea’s Hyundai Heavy Industries Co. , Samsung Heavy Industries Co. and Co. The new fleet of floating liquefied natural-gas vessels, or FLNGs, also demonstrates how the global race to provide cheaper gas supplies to Asian economies is pushing the boundaries of technology in the oil-and-gas sector. Oil-and-gas exploration is going deeper and farther into the oceans, and the size of gas discoveries is shrinking, making it more economical to build a single floating facility and move […]

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Golfers to Indiana Jones Choke on Smog From Sumatra Fires

As smoke from Indonesia ’s burning forests drifted across the Strait of Malacca into Singapore last June, the pollution index shot up and Ong Eng Tong’s golf course shut down. “Once the PSI reaches 150 or 200, they have to close,” said Ong, a 71-year-old independent energy consultant. His Singapore Island Country Club was overwhelmed as the Pollutant Standards Index surged on June 21 to a record 401, a “hazardous” reading in a city averaging less than 50 on most days. “I stayed indoors and turned on the air-con.” This year may be worse, stoked by drought and El Nino. Backed by activists including Harrison Ford, Singapore is pushing fines for culprits overseas. Even Indonesia is faulting last month’s local response to blazes that sickened 50,000 in Sumatra, where fires are set to turn forests into crop fields. Burning in the region’s peatlands emitted as much […]

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Old Math Casts Doubt on Accuracy of Oil Reserve Estimates

Jan Arps is the most influential oilman you’ve never heard of. In 1945, Arps, then a 33-year-old petroleum engineer for British-American Oil Producing Co., published a formula to predict how much crude a well will produce and when it will run dry. The Arps method has become one of the most widely used measures in the industry. Companies rely on it to predict the profitability of drilling, secure loans and report reserves to regulators. When Representative Ed Royce, a California Republican, said at a March 26 hearing in Washington that the U.S. should start exporting its oil to undermine Russian influence, his forecast of “increasing U.S. energy production” can be traced back to Arps. The problem is the Arps equation has been twisted to apply to shale technology, which didn’t exist when Arps died in 1976. John Lee , a University of Houston engineering professor and an authority on […]

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Murkowski leads effort to push Keystone XL pipeline, LNG exports

U.S. Sen. Lisa Murkowski unveiled a measure that would facilitate the construction of the Keystone XL oil pipeline and fast-track liquefied natural gas exports. Murkwoski, R-Alaska, ranking member on the Senate Energy Committee, joined Sen. John Hoeven , R-N.D., and John Barrasso, R-Wyo., in introducing the Energy Security Act as an amendment to a bill that would extend unemployment assistance. The measure authorizes pipeline company TransCanada to build the Keystone XL oil pipeline. Keystone XL needs federal approval as a cross-border pipeline, though the Senate leaders said lawmakers have the authority to act under the foreign Commerce Clause. The amendment also calls on the Department of Energy to approve applications to export liquefied natural gas to Ukraine, Japan and NATO allies that don’t have a free-trade agreement with the United States. Current law requires a consideration of public interest before granting LNG export licenses to […]

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U.S. House puts energy at top of budget plan

A budget proposal puts U.S. energy production at the top of the list of ways to generate new revenue, the House Natural Resources Committee chairman said. House Natural Resources Committee Chairman Doc Hastings , R-Wash, said a budget offered by House Budget Committee Chairman Paul Ryan recognizes U.S. energy reserves as a source of economic stimulus. "It prioritizes expanded American energy production and recognizes that new energy development is one of the best ways to raise new revenue, put Americans back to work, bolster the economy, lower gasoline prices, and create good-paying jobs," Hastings said . Ryan, R-Wisc., said his budget proposal would cut $5.1 trillion in government spending. His proposal calls for more competition in the energy sector, fewer corporate subsidies, and a strengthening of U.S. energy security through greater production. Rep. Chris Van Hollen , D-Md., ranking member of the budget committee, said […]

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Net energy imports in 2013 lowest in more than 20 years

Total U.S. net imports of energy, measured in terms of energy content, declined in 2013 to their lowest level in more than two decades. Growth in the production of oil and natural gas displaced imports and supported increased petroleum product exports, driving most of the decline. A large drop in energy imports together with a smaller increase in energy exports led to a 19% decrease in net energy imports from 2012 to 2013. Total energy imports declined faster—down 9% from 2012 to 2013—than in the previous year, while export growth slowed. Crude oil production grew 15%, about the same pace as in 2012, which led imports of crude oil to decrease by 12%, accounting for much of the overall decline in imports. These data reflect only the energy content of energy trade. For more information on the value of energy trade, see a previous series of Today in Energy […]

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Foreign Frackers Now Find Comfort in Water-Hungry Spain

A few years ago, fracking in Spain seemed as likely as bullfighting in Britain. These days, energy companies from Texas, Canada and Ireland are going after exploration and drilling permits in hopes of capitalizing on geology that indicates Spain has a sizable chunk of the 883 trillion cubic feet of natural gas in shale estimated to sit under Europe . What’s changed? A sluggish economy for one — the energy industry estimates fracking could eventually create tens of thousands of jobs in a nation with an unemployment rate of 26 percent. Unlocking gas deposits might ease what consumers pay for the heating fuel. It’s about triple the U.S. price. As important, the national government, with the economy in mind, took a pro-fracking stance even as regional and local authorities harden what’s long been widespread European environmental opposition to oil and gas development of any kind. In December, two years […]

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Britain Confronts Gas Mother Lode With Fracking by Lord Browne

The hills of Lancashire, England, sit atop a mother lode of shale gas that may be extracted with hydraulic fracturing, or fracking. Photograph: Alan Clarke/Bloomberg Markets Close The hills of Lancashire, England, sit atop a mother lode of shale gas that may be extracted with hydraulic… Read More The hills of Lancashire, England, sit atop a mother lode of shale gas that may be extracted with hydraulic fracturing, or fracking. Photograph: Alan Clarke/Bloomberg Markets Close John Browne, a former CEO of BP, is a prime mover behind efforts exploit Britain’s natural gas through fracking. … Read More John Browne, a former CEO of BP, is a prime mover behind efforts exploit Britain’s natural gas through fracking. Photograph: Alan Clarke/Bloomberg Markets Close Andrew Pemberton, who keeps 130 cows, says he’s worried that his dairy business is located downstream from a proposed… Read More Andrew Pemberton, who keeps […]

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Gazprom chief Miller meets EU leaders

Russian energy company Gazprom said Wednesday its chief executive, Alexei Miller , went to Brussels to discuss his commitments to the European energy sector. Miller met in Brussels with European Commissioner for Energy Gunther Oettinger and German Foreign Minister Frank-Walter Steinmeier. Gazprom in a statement said both sides discussed a "wide range" of bilateral issues. "The parties confirmed their interest in maintaining the mutually beneficial relationship built over the decades of successful collaboration," the Russian company said in a statement . There was no public statement from Oettinger or the German foreign minister on the meeting with Miller. European leaders have tried to add a layer of diversity to a natural gas market that’s dependent on Russia. Ukraine’s role as a transit nation for Russian gas has added to concerns about European energy security. European officials have looked to supplies from gas-rich Azerbaijan as a […]

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Air pollution hits maximum level in southeast Britain

Air pollution in parts of Greater London and southeast England deteriorated on Thursday, hitting the maximum level on the government scale despite forecasts that it would start to abate. Defra, the environment department, forecasts that air pollution will be at or near 10 on its scale of one to 10 in East Anglia, through the Midlands, into easternmost Wales, on Merseyside and as far south as through London into northern Kent. A reading of 10 is classified as “very high”. Frank Kelly, professor of environmental health at King’s College London, said: “Today is going to be the worst day of the last couple of weeks.” He recommended that children be kept indoors in areas where pollution is high or very high. “The general understanding of the effects of air pollution on children is that it leads to a decrease in their lung growth,” he said. “This is precautionary […]

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Cuadrilla: UK Could Produce Shale Gas in 4 Years in Emergency

LONDON, April 2 (Reuters) – Shale gas production in Britain could begin within four years if the current crisis in Ukraine escalates to such an extent that a national state of emergency is declared, the chief executive of Cuadrilla Resources said. Britain is in the early stages of exploring for shale gas to counter its growing dependence on imports, and geologists have estimated it could have shale resources equivalent to several hundred years of demand. Cuadrilla is the only company in Britain so far to have used hydraulic fracturing, or fracking, in test wells in Lancashire. It is two to three years away from establishing whether its British shale gas operations are commercially viable, Chief Executive Francis Egan said at an event at think-tank Chatham House on Tuesday evening. If the Ukraine crisis worsens dramatically and Britain declares a state of national emergency and removes all constraints, "it would […]

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Oil Futures Choppy Ahead U.S. Crude Stockpile Report

Crude-oil futures fluctuated between gains and losses in Asian trading hours Wednesday after a sharp overnight drop that sent Nymex WTI below the $100 a barrel mark. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $99.58 a barrel at 0519 GMT, down $0.16 in the Globex electronic session. May Brent crude on London’s ICE Futures exchange was unchanged at $105.62 a barrel. "The selloff in both markets is likely the unwinding of recent long positions associated with the situation in Crimea," ANZ said. Late Tuesday, the American Petroleum Institute, a trade group, reported that U.S. crude-oil inventories unexpectedly fell by 5.8 million barrels for the week ended March 28. The more definitive oil inventory report from the U.S. Energy information Administration is due later today. U.S. oil stockpiles are expected to rise by 700,000 barrels last week, according […]

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Oil down slightly ahead of US inventories report

The price of oil was steady Wednesday after a big fall the day before as traders waited for a report on U.S. crude stockpiles. Benchmark U.S. crude for May delivery was down 2 cents to $99.71 a barrel at 0720 GMT in electronic trading on the New York Mercantile Exchange. The contract slid $1.84 to $99.74 on Tuesday, dented by soft Chinese manufacturing figures and expectations of another increase in U.S. crude stockpiles. Brent crude, used to set prices for international varieties of oil, was up 6 cents to $105.68 a barrel on the ICE exchange in London. Despite recent signs of weakening manufacturing in China, which could dent oil demand, there are new signs of life in the U.S. economy including a report from the U.S. Commerce Department earlier this week showing rising construction spending. But U.S. crude oil inventories due later Wednesday are expected to show demand […]

Posted On : Published By : Tom Whipple