Category:

So Far, Russia's Oil and Gas Allow It to Act Badly

Of all the lessons one might draw from Russia’s bullying of Ukraine, this may be the most coldblooded of all: If you want to behave badly, it helps to have a lot of oil and gas. Much will be forgiven, or at least ignored. European nations, international energy companies and China are all, in their own ways, driving home the point. The Europeans are afraid of pushing economic sanctions against Moscow too far lest they be cut off from the Russian natural gas that provides a significant share of their energy. The international energy companies are busy reassuring the Russians that they will keep working to help develop Russian energy supplies, the Ukraine crisis notwithstanding. And the Chinese—well, they may be on the verge of completing a deal that has been under negotiation for 10 years to begin buying a lot of Russian natural gas. Russian officials said last […]

Posted On : Published By : Tom Whipple
Category:

So Far, Russia’s Oil and Gas Allow It to Act Badly

Of all the lessons one might draw from Russia’s bullying of Ukraine, this may be the most coldblooded of all: If you want to behave badly, it helps to have a lot of oil and gas. Much will be forgiven, or at least ignored. European nations, international energy companies and China are all, in their own ways, driving home the point. The Europeans are afraid of pushing economic sanctions against Moscow too far lest they be cut off from the Russian natural gas that provides a significant share of their energy. The international energy companies are busy reassuring the Russians that they will keep working to help develop Russian energy supplies, the Ukraine crisis notwithstanding. And the Chinese—well, they may be on the verge of completing a deal that has been under negotiation for 10 years to begin buying a lot of Russian natural gas. Russian officials said last […]

Posted On : Published By : Tom Whipple
Category:

Kremlin welcomes EU's 'positive tune' on energy

A spokesman for the Kremlin said Monday the Russian government was optimistic about energy security in Eastern Europe following talks with the European Union.Russian President Vladimir Putin had warned European leaders the region’s energy security was at risk because of Ukraine’s mounting natural gas debt. European consumers get about a quarter of their gas needs met by Russian energy company Gazprom, though most of that gas runs through the Soviet-era transit network in Ukraine. Kremlin spokesman Dmitry Peskov said Putin had reassurances from European Commission President Jose Manuel Barroso that both sides could work together for the sake of European energy security. "We have noted the positive tune of the European Commission about dialogue," the spokesman said. Putin said he’d hold off on making any decisions based on Ukraine’s gas debt for now. Gazprom in 2009 cut gas supplies briefly through Ukraine in response […]

Posted On : Published By : Tom Whipple
Category:

Kremlin welcomes EU’s ‘positive tune’ on energy

A spokesman for the Kremlin said Monday the Russian government was optimistic about energy security in Eastern Europe following talks with the European Union.Russian President Vladimir Putin had warned European leaders the region’s energy security was at risk because of Ukraine’s mounting natural gas debt. European consumers get about a quarter of their gas needs met by Russian energy company Gazprom, though most of that gas runs through the Soviet-era transit network in Ukraine. Kremlin spokesman Dmitry Peskov said Putin had reassurances from European Commission President Jose Manuel Barroso that both sides could work together for the sake of European energy security. "We have noted the positive tune of the European Commission about dialogue," the spokesman said. Putin said he’d hold off on making any decisions based on Ukraine’s gas debt for now. Gazprom in 2009 cut gas supplies briefly through Ukraine in response […]

Posted On : Published By : Tom Whipple
Category:

Turkey to get more gas from Russia

Turkish Energy Minister Taner Yildiz said Monday his country agreed to increase gas capacity through the Blue Stream pipeline by more than 18 percent.Yildiz said Monday from Ankara his country would take on more natural gas from Russia at what he said was an affordable price. "We agreed with Russia on increasing capacity of the Blue Stream gas pipeline from 565 billion to 670 billion cubic feet per year," he said Russian energy company Gazprom counts Turkey as its second-largest energy importer. The 754-mile Blue Stream stretches across the Black Sea. Turkey serves as a major regional energy hub, hosting portions of the second-longest oil pipeline in the world, Baku-Tbilisi-Ceyhan. Turkey will also host a rival European gas network from Azerbaijan, which the European Union sees as a way to break Russia’s grip on the regional energy sector. The Kremlin says European energy security is at risk because of […]

Posted On : Published By : Tom Whipple
Category:

Ukraine peace deal falters as rebels show no sign of surrender

An international agreement to avert wider conflict in Ukraine was faltering on Monday, with pro-Moscow separatist gunmen showing no sign of surrendering government buildings they have seized. U.S. and European officials say they will hold Moscow responsible and impose new economic sanctions if the separatists do not clear out of government buildings they have occupied across swathes of eastern Ukraine over the past two weeks. Washington, which signed last week’s accord in Geneva along with Moscow, Kiev and the European Union, said it would decide "in days" on additional sanctions if Russia does not take steps to implement the agreement. U.S. Secretary of State John Kerry urged his Russian counterpart, Sergei Lavrov, on Monday to help carry out the deal, including by "publicly calling on separatists to vacate illegal buildings and checkpoints", spokeswoman Jen Psaki said. "If they don’t take steps in the coming days, […]

Posted On : Published By : Tom Whipple
Category:

Freedom to frack plan set to spark UK backlash

Energy companies are to be given the freedom to “ frack ” for shale gas under private land in a move that is set to provoke a backlash from environmentalists, residents and some MPs. In an attempt to kick-start the fledgling shale industry, the coalition will include an infrastructure bill in the Queen’s Speech to change trespass laws, allowing companies to drill without permission in return for only minimal compensation to landowners. The bill will also give new freedoms to the Highways Agency in an attempt to get more major roads built, as well as planning reforms designed to fast-track new developments. The legislation, expected in the Queen’s Speech on June 3, comes as David Cameron and George Osborne prepare to defend the coalition’s mixed record on transforming Britain’s ageing infrastructure. The prime minister and chancellor will announce on Tuesday that 200 projects worth £36bn will start construction in […]

Posted On : Published By : Tom Whipple
Category:

British shale sector not in prime time

A British government report on the shale oil and natural gas sector suggests the infrastructure and labor pool isn’t yet in place for full utilization.The British Geological Survey last year estimated the Bowland shale formation in the north of the country contains 1.3 quadrillion cubic feet of natural gas. The government says shale could ensure energy security for a country where net natural gas imports are on pace to increase from 45 percent of demand in 2011 to 76 percent by 2030. A report from BGS, which the Sunday Telegraph says is expected later this week, may suggest shale could provide a source of major economic stimulus, though the nation’s energy sector lacks the workforce and the equipment to adequately develop the reserves. British energy companies Cuadrilla Resources and IGas are frontiers in shale development in the country. Sam Laidlaw, chief executive officer at […]

Posted On : Published By : Tom Whipple
Category:

Oil Supply, Oil Price and the Economy

There has been considerable debate lately on what effect the supply and price of oil is having on the economy. It is, to my mind, a lot more serious than the vast majority of economists believe. In fact one can just look at what is happening today to see the effect of a constrained oil supply and high oil prices. Just look at the unemployment rate: Real unemployment is double what it was in 2007. And it is creeping higher. If you have not watched Oil Supply and Demand Forecasting with Steven Kopits   then you have missed the best and most informative video that has come along since this whole debate started over a decade ago. I have just finished watching it for the third time. This time I made notes. Kopits makes it very clear that oil is a binding constraint on economic growth. Of course that […]

Posted On : Published By : ASPO-USA
Category:

Peak Oil: Energy Supply Nonsense 1

Apparently, the possibility that some innovations might be introduced, if they aren’t already in an undefined but probably—or at least likely—manner in certain instances where there could be some potentially good news provided that certain other events fall into place exactly as some are hoping for at some point, but in a good way (just not consistent with facts or reality, but why quibble), then by golly we might possibly see oil prices drop, which, coupled with the distinct possibility that certain savings could be achieved immediately after magic happens, could result in something good—perhaps. (Of course, lower oil prices would lead to lower profits and lower investment funds available and thus end a lot of exploration and production, but hey! Prices will be lower.) We won’t have anything to buy, but it will be cheaper…. That’s the essential point offered in a recent addition to the endless parade […]

Posted On : Published By : ASPO-USA