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First section of South Stream pipeline manufactured

The first section of pipeline for the planned South Stream natural gas network for Europe has been manufactured, Russian energy company Gazprom said. Gazprom said pipe No. 1 — a 39-foot long, 32-inch diameter section — was produced from the Vyksa Steel Works plant in eastern Russia. South Stream is a gas transit network Gazprom plans as a way to avoid geopolitically-sensitive territory in Ukraine. Russian President Vladimir Putin said European energy security is at risk because Kiev is struggling to pay its gas bills. Ukraine hosts the bulk of the Russian natural gas bound for European consumers. Gazprom said Tuesday the first sections of pipe are scheduled for summer delivery in Bulgaria. Construction of the first leg of the pipeline is scheduled for late 2014. Gazprom Chairman Alexei Miller met in Strasbourg, France, with European Energy Commissioner Gunter Oettinger to discuss energy issues […]

Posted On : Published By : Tom Whipple
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Poland referred to EU court for violating environmental rules

The European Commission said Wednesday it referred Poland to a regional court of justice for violating rules on greenhouse gases. "The European Commission has decided to refer Poland to the EU Court of Justice for failing to notify to the Commission what penalties have been put in place in case the EU rules for companies and personnel undertaking certain activities with fluorinated gases are not observed," the commission said in a statement . European law requires companies to take steps to reduce the amount of fluorinated gases, a harmful pollutant, leaked into the atmosphere. The European Commission said it sent a request to Poland to address the issue in November. The ruling follows a series of scathing reports from the Intergovernmental Panel on Climate Change warning that global climate change is out of control. The European Commission said action to curb the release of […]

Posted On : Published By : Tom Whipple
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LNG answer to European energy woes, Hoeven says

The United States can help allay European energy security fears by making more liquefied natural gas available, U.S. Sen. John Hoeven , R-N.D., said from Oslo. Hoeven met with Norwegian leaders to address energy security fears in the region. He said that, while Norway has a key role to play as one of the top oil and gas suppliers in the region, it can’t solve the problem alone. "The only real, long-term solution is to make additional liquefied natural gas supplies available, and this means the United States has a strong role to play as a world leader," he said Tuesday. U.S. lawmakers have said the abundance of natural gas from shale reserves could help meet the demands of a European energy market dependent on Russia. Ongoing crises over Ukraine have put European natural gas supplies at risk because the bulk of their Russian gas supplies run through the […]

Posted On : Published By : Tom Whipple
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ABCs of LNG

Current debates over LNG export often ignore its primary benefits, such as enabling gas to be produced for sale to markets beyond the realistic reach of pipelines. It also allows gas to compete with petroleum liquids where energy density is important, such as in powering ships, trains and land vehicles.  The international reaction to Russia’s annexation of Ukraine’s Crimean peninsula has put a spotlight on liquefied natural gas (LNG), which was already under debate in the US as a mechanism for exporting increasingly abundant shale gas. Meanwhile, LNG is emerging as a fuel in its own right, rather than just a means of transporting gas from source to market. What links these trends is LNG’s capability to enable natural gas to approach the convenience and energy density of petroleum. The big driver for this is economic: UK Brent crude is currently over $100 per barrel , while natural gas in the […]

Posted On : Published By : Tom Whipple
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Oil Futures Mixed After China Data

On the New York Mercantile Exchange light, sweet crude futures for delivery in May traded at $103.81 a barrel at 0515 GMT, up $0.06 in the Globex electronic session. June Brent crude on London’s ICE Futures exchange fell $0.16 to $109.20 a barrel. China’s gross domestic product rose 7.4% on year in the first quarter–down from 7.7% growth in the fourth quarter last year, China’s National Bureau of Statistics said Wednesday. The reading was slightly higher than a median 7.3% gain forecast by a Wall Street Journal poll of 16 economists. "The data is better than expected, but could only have a minor positive impact," said Gnanasekar Thiagarajan, Director of Commtrendz Research in Mumbai. "The upside [for oil] seems limited due to abundant supplies." Crude-oil prices remain elevated although they have declined from their earlier highs of this month. Prices had surged on rising geopolitical tensions in Ukraine. Oil […]

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Oil Rises to 6-Week High as Ukraine Adds to Tight Market

West Texas Intermediate crude advanced to a six-week high amid concern that the crisis in Ukraine is escalating. Brent’s gains were limited by signs of slowing economic growth in China . Futures gained as much as 1 percent in New York. Ukraine began an offensive against separatists in its restive east, recapturing an airport amid claims that Russian special forces were supporting anti-government groups. China’s gross domestic product expanded by a seasonally adjusted 1.4 percent in the first quarter, down from 1.7 percent in the previous three months, according to the National Bureau of Statistics. “Oil is being driven more by the Ukraine situation,” said Guy Wolf, global head of market analytics at Marex Spectron Group in London, by e-mail. “Does this situation mean more intense disagreements elsewhere as in the Cold War ? In a tight market, such as WTI, anything can have an amplified effect.” WTI for […]

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Oil price gain tempered by China growth slowdown

The price of oil rose Wednesday as Ukraine took action against pro-Russian separatists in its east but slower Chinese growth tempered gains. Benchmark U.S. crude for May delivery was up 16 cents at $103.91 a barrel at 0835 GMT in electronic trading on the New York Mercantile Exchange. It closed Tuesday at $103.75, down 30 cents. Brent crude, used to set prices for international varieties of crude, was up 3 cents at $109.39 a barrel. Market concerns over Ukraine, which sent tanks and troops to reclaim government buildings occupied by pro-Russian gunmen in its eastern region, were offset by slower growth in China. A slump in China’s growth could reduce demand for crude. Officials from the U.S., Russia, Ukraine and the European Union are set to meet in Geneva on Thursday for negotiations aimed at persuading Russia to back off in Ukraine following its annexation of Crimea. Failing that, […]

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Gasoline Futures Hit 7 1/2-Month High on Supply Concerns

Gasoline futures rose Tuesday to their highest level since August on expectations that U.S. inventories would continue to shrink ahead of the summer-driving season. Front-month May reformulated gasoline blendstock, or RBOB, settled up 0.37 cent, or 0.1%, at $3.0421 a gallon, the highest price since Aug. 29. Meanwhile, U.S. oil prices fell from a six-week high as traders expected supplies to remain ample. Light, sweet crude for May delivery settled down 30 cents, or 0.3%, to $103.75 a barrel on the New York Mercantile Exchange. Brent crude for May delivery on the ICE futures exchange fell 33 cents, or 0.3%, to $108.74 a barrel. The May contract expired at settlement. Brent crude for June delivery rose 29 cents, or 0.3%, to $109.36 a barrel. Gasoline stockpiles have fallen for seven weeks and stood at their lowest point since […]

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Natural Gas Rises on Hopes for Early Spring Heating Demand

Natural-gas futures ended higher Tuesday as weather forecasts for colder-than-normal temperatures spurred hopes that the fuel would be needed to heat homes in much of the eastern U.S. through the end of the month. Natural gas for May delivery rose as much as 1.5% in morning trade but ended the day only 0.7 cent, or 0.2%, higher at $4.567 a million British thermal units on the New York Mercantile Exchange. Temperatures could be in the below-normal range for the Midwest and Eastern Seaboard through April 25 and remain cool in the Northeast almost until the end of the month, the U.S. National Oceanic and Atmospheric Administration said. Private forecast services had a more moderate view in the extended forecast, despite a cold blast over the Midwest and even parts of the South during the next few days that could bring near-freezing temperatures as far south as Texas. While the […]

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Iraq Shuts Down the Abu Ghraib Prison, Citing Security Concerns

The Iraqi government said Tuesday that it had closed the Abu Ghraib prison, the site of a notorious prisoner abuse scandal during the American occupation of Iraq, because of fears that it could be overrun by Sunni insurgents who have gained strength over the last year. In a statement, the Justice Ministry said it had moved 2,400 prisoners to other high-security prisons in central and northern Iraq, adding that Abu Ghraib’s location — west of central Baghdad and on the edge of insurgent-controlled areas of Anbar Province — had become a “hot zone.” It was not clear whether the closing was permanent, or if the prison might reopen if the Sunni insurgency is tamed. But it nevertheless underscored the rapid deterioration of security in Iraq since the beginning of the year, when insurgents captured Falluja, a short drive from the prison, from which hundreds of inmates escaped […]

Posted On : Published By : Tom Whipple