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Russia risks further US sanctions over Ukraine, says Kerry

The US has warned Russia to tone down its aggressive rhetoric on Ukraine, or face further sanctions. US Secretary of State John Kerry told his Russian counterpart over the phone that Moscow must call for pro-Russian gunmen to lay down their weapons. Kiev and the West say Moscow commands the gunmen – claims denied by Russia. The Ukrainian authorities have re-launched an anti-terror operation to take back several towns in the east overrun by pro-Russian militants. Acting President Olexander Turchynov said he had ordered the operation to restart after two men – including local politician Vladimir Rybak – were found dead after being "brutally tortured". "The terrorists who effectively took the whole Donetsk region hostage have now gone too far," Mr Turchynov said. Kiev’s military operation to push gunmen out of public buildings began on 16 April but was suspended over the Easter period. In other developments: Some 150 […]

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Peak Oil and Peak Water vs. Peak Network

Over the next decade and a half, 2.5 billion people in China, India and other developing countries will join the global middle class. They are going to need skyscrapers to live in and superstores to shop in. They are going to want smartphones, cars, flank steaks, air conditioning, pet clothing, Disneyland vacations, and probably some throw pillows. How is a planet already straining under the pressure of today’s 2 billion middle class consumers going to accommodate 2.5 billion additional ones? For many observers, this unprecedented economic growth foretells a Malthusian meltdown. In this scenario, skyrocketing demand for scarce natural resources will lead to unchecked carbon emissions, water wars, massive deforestation, $100 Big Macs for the rich and cricket-meat Bug Macs for everyone else. McKinsey director Matt Rogers and Stanford professor Stefan Heck have a more optimistic take on the future. In their compelling new book, Resource Revolution , they […]

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GEOG Researchers Address Economic Dangers of ‘Peak Oil’

Researchers from the University of Maryland and a leading university in Spain demonstrate in a new study which sectors could put the entire U.S. economy at risk when global oil production peaks (“Peak Oil”). This multi-disciplinary team recommends immediate action by government, private and commercial sectors to reduce the vulnerability of these sectors. While critics of Peak Oil studies declare that the world has more than enough oil to maintain current national and global standards, these UMD-led researchers say Peak Oil is imminent, if not already here—and is a real threat to national and global economies. Their study is among the first to outline a way of assessing the vulnerabilities of specific economic sectors to this threat, and to identify focal points for action that could strengthen the U.S. economy and make it less vulnerable to disasters. Their work, “Economic Vulnerability to Peak Oil,” appears in Global Environmental Change […]

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Brent Trades Near Seven-Week High on Ukraine Tension; WTI Steady

Brent crude traded near the highest price in seven weeks amid speculation that escalating tension over Ukraine may disrupt Europe’s energy supplies. West Texas Intermediate was steady in New York . Futures were little changed in London after rising 0.4 percent yesterday. Russia and the U.S. traded blame for failing to rein in extremists in Ukraine as a diplomatic accord, reached last week to ease the crisis, neared collapse. Crude stockpiles in the U.S., the world’s biggest oil consumer, probably increased for the 13th time in 14 weeks, a Bloomberg News survey shows before Energy Information Administration data tomorrow. “There’s some support for the market arising from the situation in Ukraine,” Ric Spooner, a chief strategist at CMC Markets in Sydney, said by phone today. “While that isn’t translating into significant buying, it’s likely to be preventing much active selling.” Brent for June settlement was at $109.75 a barrel […]

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Natural-Gas Prices Fall as Traders Take Profits

Natural-gas futures eased Monday as traders took profits from last week’s rally. Natural gas for May delivery fell 4.4 cents, or 0.9%, to $4.697 per million British thermal units on the New York Mercantile Exchange. The drop came after gas prices climbed almost 5% Thursday–the final trading day of last week–on concerns that stockpiles of the fuel were refilling more slowly than expected. There was no news about supplies or the weather on Monday that would have obviously encouraged a downturn in prices, leading traders and analysts to believe the selloff came from some traders cashing out gains. "It’s just a quiet market now drifting lower. There was no impetus," said Scott Gettleman, an independent trader in New York. Several Wall Street analysts said it was a bad idea to bet on lower prices when the country’s stockpile is only slowly rebuilding from an 11-year […]

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For Extremists In Syria, Extortion Brings Piles Of Cash From Iraq

The renegade Islamist group known as ISIS now controls swaths of Syria and Iraq, and it’s partly because the fighters are so rich. ISIS, or the Islamic State of Iraq and Syria, is known for having the biggest guns and paying the highest salaries. While kidnapping, oil smuggling and donations from sympathizers have been well-known sources of money, the groups also run complex and brutal protection rackets, according to analysts. Charles Lister of the Brookings Institution in Doha, Qatar, says Iraqi intelligence sources estimate that extremist militants take in more than $1 million a month in extortion from the northern Iraqi city of Mosul. "Mosul seems to have acquired a very central role in terms of making money," Lister says. "Certainly since late 2012, early 2013, I’ve seen a number of reports to suggest that ISIS’s activities in extortion and acquiring levies on transport and real estate having increased […]

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Fao project delays to cause massive export shut-in

Because of chronic setbacks at the Fao storage depot, Iraq will fail to meet its export potential until at least 2018, preventing the sale of billions of dollars worth of oil. As Iraq and its oil company partners spend billions of dollars to boost production capacity and exports, one key bottleneck is threatening to decimate their return on investment and shut in hundreds of millions of barrels of oil over the coming years.The coastal Fao storage depot in Basra is supposed to serve as a critical way station for crude traveling between oil fields and export terminals, storing oil and pumping it offshore to ensure continuous field production and fully maximized tan…

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Iraq Oil Output Exceeds Hussein Era

Iraq oil production was higher this year than since before Saddam Hussein took power. The problem: getting it out of the country. Iraqi oil fields pumped 3.6 million barrels of crude a day on average in February, 50% more than four years ago. That beat—if only for a month—the country’s annual-output record, 3.5 million barrels a day, in 1979 during Iraq’s petroleum heyday. Companies including PLC, Royal Dutch Shell PLC and ExxonMobil Corp. have invested billions of dollars to revive oil fields battered by decades of war, sanctions and neglect. But Iraq’s government has been slow to modernize the infrastructure to move that oil from wells to tankers. With such ancient pipes and paltry storage, even minor disruptions—routine pump maintenance, say, or a windy day in the Persian Gulf—can force companies to shut down wells. Violent attacks on infrastructure and personnel are still frequent. And bureaucracy and corruption have […]

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Suicide bombings, attacks in Iraq kill 33 people

Suicide bombings and other attacks across Iraq killed at least 33 people and wounded nearly 80 more on Monday, officials said, the latest in an uptick in violence as the country counts down to crucial parliament elections later this month. Over the past year, violence has surged in Iraq to levels unseen since 2008. The increase in deadly shootings and bombings has become the Shiite-led government’s most serious challenge as the nation prepares to head to the polls on April 30 – the first vote in Iraq since the U.S. army withdrawal in 2011. Monday’s deadliest attack took place south of Baghdad in the town of Suwayrah, where a suicide bomber rammed his explosives-laden car into a police checkpoint, killing 12 people – five policemen and seven civilians. A police officer said 19 people were wounded in the attack. In the nearby town of Madain, about […]

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Libya expects delays at key oil terminal

Libyan Justice Minister Salah al-Mergahani said the Zueitina oil terminal in the east of the country remains closed because of technical problems.Eastern rebel leaders vying for more autonomy over a region known as Cyrenaica blocked the export terminals of Es Sider, Ras Lanuf and Zueitina in July. The Libyan government in early April reached a deal with eastern rebel leaders to re-open the ports. Merghani said, however, the long closure meant operations couldn’t return to normal. "There is some damage (at Zueitina port) due to the long closure," he said Sunday. Libya before civil war erupted in 2011 was exporting more than 1.4 million bpd. The Organization of Petroleum Exporting Countries said member state Libya produced less than 300,000 bpd in March, the last full month for which data are available. The justice minister said the central government and rebel negotiators were still at odds over who would sit […]

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Parnell declares win with gas line measure

Alaska Gov. Sean Parnell said the passage of a bill making the state a partner with the private sector on a gas pipeline was an "historic moment" for the state.The state House of Representatives passed a Senate bill by 36-4 that makes the state a partner in the development of a large-diameter natural gas pipeline planned from the North Slope. "This is truly a historic moment for Alaskans," the governor said in a statement Sunday. "By passing Senate Bill 138, the legislature has put Alaska on a path to controlling her own destiny by becoming an owner in the Alaska liquefied natural gas project." Parnell said the bill creates a framework for the state to become a co-owner in the project with BP, Exxon Mobil, ConocoPhillips and pipeline company TransCanada Corp. The governor’s office said the project now moves to the preliminary engineering and design phase. Construction of the […]

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S. Sudan Rebels Killed Hundreds on Ethnic Basis, UN Says

Rebels allied to former Vice President Riek Machar who seized the city of Bentiu last week killed hundreds of civilians seeking shelter there, after determining their ethnicity or nationality, the United Nations Mission in South Sudan said. “These atrocities must be fully investigated and the perpetrators and their commanders shall be held accountable,” Raisedon Zenenga, the officer in charge of the mission, said in a statement on its website late yesterday. Rebel forces said on April 15 that they had gained control of Bentiu, the capital of oil-rich Unity state, after clashes with government forces. The conflict in the world’s newest state, between factions loyal to President Salva Kiir and his former deputy Machar, erupted in December and has left thousands of people dead and driven a million from their homes, according to the UN. The UN mission said opposition forces entered a mosque in Bentiu where hundreds of […]

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Petrobras hits production record in Santos, Campos basins

Petroleo Brasileiro SA (Petrobras) recently reached an oil production record of 428,000 b/d in company-operated fields in the Santos and Campos basins. The company said the new mark was a result of the increased output that came with the Mar. 17 launch of operations from the P-58 platform in the Parque das Baleias area of northern Campos. The platform has been producing 50,000 b/d through three presalt wells. Petrobras holds 100% of the rights in the area. Twenty-four production wells have been drilled overall, of which 15 are in the Campos and nine in the Santos. Production from Campos and Santos has reached 222,000 b/d and 206,000 b/d, respectively. Fifteen more production wells are expected to start up by yearend, of which 11 will be in the Santos and 4 in the Campos. Of the 15 wells, two are connected to the Cidade de Sao Paulo floating production, storage, […]

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China looks toward greener energy future

Chinese Premier Li Kegiang said it was time for policymakers to "wage a war" against pollution by embracing greener energy policies.Li told members of the National Energy Commission the government needed to develop a low-carbon economy to keep climate issues in check. "China will wage a war against smog weather and step up ecological protection measures by further saving energy and cutting emissions," he said in a statement Sunday. China, with its expanding economy, is the world leader in terms of energy consumption . Li said the Chinese economy needs everything from nuclear power, to wind and solar energy, to move forward responsibly. "These energy projects can ensure stable economic growth and increase China’s capability to safeguard energy security," he said. Chinese officials in February worried the amount of smog blanketing major metropolitan areas like Beijing meant the country’s agricultural future may be at […]

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Tesla's Delays Upset Some China Customers

A group of disgruntled Tesla Motors Inc. customers in China is protesting delayed deliveries of their cars one day before the electric-vehicle maker is set to make its first China delivery. The furor underscores the challenges facing auto makers in marketing new-energy vehicles in China, which so far hasn’t delivered on the promise of becoming a major new market for electric cars. Tesla’s launch had been heralded as a possible catalyst that could push China farther down the electric-car path. The Palo Alto, Calif., company said in January that it would sell its Model S for $121,000 in China and compete with luxury brands like AG and AG ‘s Audi. Tesla is set on Tuesday to hand over the company’s first Model S to a buyer in China at a high-profile event that is scheduled to feature Tesla Chief Executive . Now, some once-enthused customers like Sam Long are […]

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Tesla’s Delays Upset Some China Customers

A group of disgruntled Tesla Motors Inc. customers in China is protesting delayed deliveries of their cars one day before the electric-vehicle maker is set to make its first China delivery. The furor underscores the challenges facing auto makers in marketing new-energy vehicles in China, which so far hasn’t delivered on the promise of becoming a major new market for electric cars. Tesla’s launch had been heralded as a possible catalyst that could push China farther down the electric-car path. The Palo Alto, Calif., company said in January that it would sell its Model S for $121,000 in China and compete with luxury brands like AG and AG ‘s Audi. Tesla is set on Tuesday to hand over the company’s first Model S to a buyer in China at a high-profile event that is scheduled to feature Tesla Chief Executive . Now, some once-enthused customers like Sam Long are […]

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Price of Gas in U.S. Rises as Refiners Export More to Other Countries

Drivers in the U.S. are facing rising gasoline prices ahead of summer-vacation season, just as refiners here are shipping more gas to other countries. A new pipeline, built to release a glut of crude oil that was stuck in the middle of the country, is now feeding oil to refineries on the Gulf Coast that churn out gasoline and diesel. While these fuels still make their way to the Southeast and the East Coast, growing amounts are being sold to Mexico, the Netherlands, Brazil and other countries. The push into these markets has been spurred by the U.S. oil boom. Rising oil output had been flooding the nation’s oil market in recent years, keeping U.S. crude prices low relative to world prices. Facing tepid fuel demand in the U.S., refiners have been ramping up exports, creating more global competition for U.S.-produced fuel. While the construction of pipelines and other […]

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Study: Fuel from corn waste worse than gasoline

Biofuels made from the leftovers of harvested corn plants are worse than gasoline for global warming in the short term, a study shows, challenging the Obama administration’s conclusions that they are a much cleaner oil alternative and will help combat climate change. A $500,000 study paid for by the federal government and released Sunday in the peer-reviewed journal Nature Climate Change concludes that biofuels made with corn residue release 7 percent more greenhouse gases in the early years compared with conventional gasoline. While biofuels are better in the long run, the study says, they won’t meet a standard set in a 2007 energy law to qualify as renewable fuel. The conclusions deal a blow to what are known as cellulosic biofuels, which have received more than a billion dollars in federal support but have struggled to meet volume targets mandated by law. About half the initial market in cellulosics […]

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National Energy Boom Blurs Political Battle Lines

The U.S. energy boom is blurring the traditional political battle lines across the country. Democrats are split between environmentalists and business and labor groups, with the proposed Canada-to-Texas oil pipeline a major wedge. Some deeply conservative areas are allying with conservationists against fracking, the drilling technique that’s largely responsible for the boom. The divide is most visible among Democrats in the nation’s capital, where 11 Democratic senators wrote President Barack Obama this month urging him to approve the Keystone XL pipeline, which is opposed by many environmental groups and billionaire activist Tom Steyer. The State Department said Friday that it was extending indefinitely the amount of time that federal agencies have to review the project, likely delaying a pipeline decision until after the November elections. Several senators from energy-producing such as Louisiana and Alaska have distanced themselves from the Obama administration, while environmental groups complain the […]

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Moscow, Kyiv exchange blame as Ukraine deal falls flat

De-escalation agreed to in Geneva has not materialized in eastern parts of the country, which faces a separatist crisis A deadly shootout in eastern Ukraine on Sunday is proof the country’s interim leaders are “crudely violating” a deal struck in Geneva last week , Russia’s foreign minister said Monday — the latest volley in a war of rhetoric over Ukraine’s separatist crisis, which has continued despite the tentative deal. The Geneva agreement, which called for all armed groups to abandon their occupation of government buildings and public spaces — including pro-Russian separatists in the east and pro-Western demonstrators in Kyiv’s central square — has largely been ignored. Sunday’s attack, which killed at least two and which Russian separatists have blamed on armed far-right nationalists, also broke a truce that was supposed to be honored over the Easter weekend. “The Geneva accord is not only not being fulfilled, but steps […]

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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
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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 […]

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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 […]

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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 […]

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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 […]

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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, […]

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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 […]

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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 […]

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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 […]

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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 […]

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Brent Falls Amid Speculation Price Gains Excessive; WTI Steady

Brent crude fell for a second day amid speculation that the biggest weekly rally since February on tension between Ukraine and Russia may be excessive. West Texas Intermediate was steady. Futures dropped as much as 0.5 percent in London . The U.S. and its European allies urged Russia to help calm the Ukraine crisis after four-nation talks produced an accord aimed at easing the worst standoff since the Cold War . WTI’s discount to Brent shrank as the Obama administration said it will postpone a ruling on the Keystone XL pipeline. “Oil futures went up quite a bit over the last week and now we’re seeing some selling,” Victor Shum , a vice president at IHS Energy Insight in Singapore, said by phone today. The Ukraine crisis “has added to geopolitical tension but no oil supply has been disrupted.” Brent for June settlement declined as much as 54 cents […]

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Iran Says It Would Redesign Heavy-Water Reactor as Concession to West

TEHRAN, Iran—Iran will redesign its Arak heavy water reactor to greatly limit the amount of plutonium it can make, the country’s vice president said on Saturday, marking a major concession from the Islamic Republic in negotiations with world powers over its contested nuclear program. The comments by Vice President Ali Akbar Salehi comes as the talks face an informal July 20 deadline to hammer out a final deal to limit Iran’s ability to build nuclear arms in exchange for ending the crippling economic sanctions it faces. Iranian state television quoted Mr. Salehi, who heads the Atomic Energy Organization of Iran, as saying Iran has proposed to redesign Arak to produce one-fifth of the plutonium initially planned for it. He said that will eliminate concerns the West has that Iran could use the plutonium produced at Arak to build a nuclear weapon. Mr. Salehi also said Iran has completed diluting […]

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14 Algerian soldiers killed in ambush

Attack on troops tasked with protecting polling stations appeared to carry message for returning president Insurgents ambushed an Algerian military convoy in the mountainous Kabylie region, killing 14 soldiers, the state news agency reported Sunday. The attack came two days after Algeria’s presidential election . The attack near the village of Iboudraren began at 10 p.m. Saturday with 11 soldiers being killed immediately and another three succumbing to their wounds, the agency said. A local official said a large group of insurgents hid on both sides of the road and opened fire with automatic weapons as the military bus drove by. He spoke on condition of anonymity because of the sensitivity of the subject. The region has been the site of past clashes, including one three years ago that killed 13 soldiers at an army post. That attack was claimed by the Algeria-based Al-Qaida in the Islamic Maghreb. There […]

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China Premier Li Reiterates Plans to Boost Clean Energy

China, the world’s biggest investor in renewable energy, reiterated plans to boost construction of solar and wind power plants along with projects to transmit electricity from the clean sources. The nation will also start construction of some key nuclear power projects in eastern coastal areas and “reasonable” hydropower plants, according to comments from Premier Li Keqiang posted on the central government’s website. The statement reinforces China’s commitment to look for alternative sources of energy as the nation’s policy makers grapple with improving the nation’s air and water supplies. The world’s largest carbon emitter is planning the energy projects to stabilize growth and adjust its energy structure after Li declared war on smog in a speech last month, vowing to shut coal-fired furnaces among other measures. Beijing’s air quality failed to meet government standards 52 percent of the time last year, the Ministry of Environmental Protection said in March. Mainland […]

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Communist Party Strips China Resources Chairman of Leadership Position

BEIJING—The chairman of state-owned China Resources Holdings Co. has been stripped of his position as the firm’s Communist Party chief as part of a corruption investigation, state media said Saturday. The decision to dismiss Song Lin from his leadership position was made by the party’s Central Organization Department, the official Xinhua news agency said in a brief report. Xinhua didn’t give further details. The party’s internal corruption watchdog, the Central Commission for Discipline Inspection, said earlier in the week in a short statement that Mr. Song was being investigated for "suspected serious violations of discipline and law," phrasing Chinese authorities typically use to refer to suspected corruption. Representatives at the Hong Kong and Shenzhen offices of China Resources couldn’t immediately be reached for comment. Mr. Song also couldn’t be reached for comment. In a statement posted to its website Friday, the company said that it was cooperating with the […]

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Japan posts largest-ever trade deficit

Japan suffered its largest-ever trade deficit last fiscal year, underlining a wrenching structural shift for an economy long renowned as an export powerhouse. The gap between the value of Japan’s exports and that of its imports grew by more than two-thirds in the 12 months through March, to Y13.7tn ($134bn), according to government data released on Monday. It was the third consecutive fiscal year of deficits, the longest streak since comparable records began in the 1970s. Toyota , Hitachi and other large Japanese companies have enjoyed soaring profits as a result of the weaker yen, which has fallen by a fifth against other major currencies since November 2012. But the improvement has come less from increased exports than from flattered exchange rates on overseas sales. Japanese export volumes have barely risen and the yen value of goods shipped to foreign markets has increased much more slowly than the value […]

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EPA drastically underestimates methane released at drilling sites

Drilling operations at several natural gas wells in southwestern Pennsylvania released methane into the atmosphere at rates that were 100 to 1,000 times greater than federal regulators had estimated, new research shows. Using a plane that was specially equipped to measure greenhouse gas emissions in the air, scientists found that drilling activities at seven well pads in the booming Marcellus shale formation emitted 34 grams of methane per second, on average. The Environmental Protection Agency has estimated that such drilling releases between 0.04 grams and 0.30 grams of methane per second. The study , published Monday in the Proceedings of the National Academy of Sciences, adds to a growing body of research that suggests the EPA is gravely underestimating methane emissions from oil and gas operations. The agency is expected to issue its own analysis of methane emissions from the oil and gas sector as early as Tuesday, which […]

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Keystone Pipeline Fate Now in Hands of Nebraskan Jurists

The focus of the Keystone XL debate has shifted from a fierce lobbying war in Washington to Lincoln, Nebraska , where the state Supreme Court has been asked to weigh a legal challenge to the pipeline. The U.S. State Department, which is responsible for reviewing whether the project is in the nation’s interest, said April 18 that it would delay making a recommendation until questions about the way the route was approved through the prairie state are resolved. That could spare President Barack Obama from having to decide on a project that splits supporters of his in the environmental and labor movements before an important congressional election in November. “Once again, the administration is making a political calculation instead of doing what is right for the country,” Terry O’Sullivan, general president of the Laborers’ International Union of North America , said in an e-mail. “It’s clear the administration needs […]

Posted On : Published By : Tom Whipple
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U.S. Gasoline Prices Rise to 13-Month High in Lundberg Survey

The average price for regular gasoline at U.S. pumps jumped 8.5 cents in the past two weeks to a 13-month high of $3.6918 a gallon, according to Lundberg Survey Inc. The survey covers the period ended April 18 and is based on information obtained at about 2,500 filling stations by the Camarillo, California-based company. Prices are the highest since March 22, 2013. The average is 15.55 cents higher than a year ago, Lundberg said. Gasoline has risen 39.74 cents a gallon since bottoming out in February and is up 43 cents this year. “The most important factor right now in this rise is crude oil, which rose by a very similar amount to the street-price move,” Trilby Lundberg , the president of Lundberg Survey, said in a telephone interview yesterday. “From here, we will probably see very little increase, if any, with the big caveat of course being crude. […]

Posted On : Published By : Tom Whipple
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Daimler/BYD Joint Venture Unveil Plans for All-Electric Car for China

BEIJING— AG , the German automotive group, Sunday unveiled plans to build an all-electric vehicle with its Chinese partner , a further sign foreign operators are under pressure to meet demands by the Chinese government for a massive increase in electric cars to fight air pollution. The Chinese government has a target of putting 500,000 electric or plug-in hybrid cars on the road by 2015, but the industry would have to sell about 450,000 plug-in cars during the next two years to achieve that target. The shortfall is putting more pressure on auto makers to step up investments in electrified vehicles—such as the Daimler-BYD cars. Thomas Weber, Daimler’s board member in charge of research and development, told reporters that this new model is "undoubtedly one key pillar of our electric vehicle strategy for China." The new electric car, called the Denza, is entitled to subsidies from both the central […]

Posted On : Published By : Tom Whipple
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Shale drillers with fewer, but better sites rewarded on Wall Street

A new breed of energy company is a hit with investors using a mantra long scorned in the oil-and-gas business: Small is beautiful. When the U.S. energy boom began almost a decade ago, the companies leading the way believed bigger was better. They amassed huge land holdings so they could drill thousands of wells—and then struggled as the freed through hydraulic fracturing pushed down prices. Like their bigger rivals, the upstarts frack to tap previously untouchable oil and gas deposits in dense shale formations. But these companies have focused on the right property instead of the most property—and raked in big stock paydays as a result. For the most part, neither the less-is-more upstarts, nor the bigger-is-better graybeards are bringing in more than they spend to drill and frack. The difference is that Wall Street no longer is throwing cash at established shale players holding loads of acreage. "It’s […]

Posted On : Published By : Tom Whipple
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Lifting U.S. oil export ban would mean greater dependence on foreign oil

The United States today is a large net importer of crude oil and refined products . And, yet the story that the country can somehow export crude oil as a foreign policy measure to help reduce Ukraine’s dependence on Russia won’t die. Oil executives and their surrogates keep bringing it up, and unsuspecting reporters amplify a message that has absolutely no basis. The reason for this oil industry public relations blitz on the Ukraine is rooted in the industry’s desire to end a decades-old ban on U.S. crude oil exports–one which the industry hopes to persuade Congress and President Obama to overturn. There is, in fact, a case regarding market efficiency for overturning the ban, but this is NOT the one the industry is using in its public relations campaign. Here’s why: The major effect of lifting the ban would be to allow domestic producers to sell lighter grades […]

Posted On : Published By : Tom Whipple
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Hydraulic Fracturing: Staying Afloat in Times of Tightening Water Supply

One of the criticisms levied against hydraulic fracturing, particularly during recent periods of drought, is the amount of water used in the process. However, energy companies are seeking to reduce water use during hydraulic fracturing, even as research shows more water is used in other activities. The numbers put things into perspective. The amount of water used to frack a well varies, but most reporting entities put the figure in a range of about 3 to 6 million gallons of water. In Pennsylvania, the average amount of water per well is about 4.4 million gallons, according to State Impact Pennsylvania, a reporting project of National Public Radio (NPR). Using a range of 3-5 million gallons of water per well in the Marcellus Shale, the State College Borough Water Authority calculated that about 12-20 million gallons of water were used in the formation each day. In Texas, the estimated average […]

Posted On : Published By : Tom Whipple
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Gas Prices Continue To Surge, Reach $4 In Some Cities

Gas prices continue to move sharply higher as the Memorial Day driving seasons approaches. Nationwide, the average price of a gallon of regular unleaded gas has reached $3.667. A month ago, the price was $3.538 according to AAA’s Daily Fuel Gauge Report. The average price of a gallon of premium has crossed $4 nationwide to $4.010. The prices increases are geographically uneven. In some large cities, regular has already risen well above $4. As higher prices spread, so do questions about the damage gas prices could do to the economy. California is the largest state in the U.S. with about 12% of the population. The price for an average gallon of regular there has topped $4.199. In some California cities,  the situation is worse. The price of an average gallon of regular is $4.288 in Los Angeles, and $4.274 in San Francisco. Many of the other states which have […]

Posted On : Published By : Tom Whipple
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Deadly gun attack in eastern Ukraine shakes fragile Geneva accord

SLAVIANSK/YENAKIEVO, Ukraine (Reuters) – At least three people were killed in a gunfight in the early hours of Sunday near a Ukrainian city controlled by pro-Russian separatists, shaking an already fragile international accord that was designed to avert a wider conflict. The incident triggered a war of words between Moscow and Ukraine’s Western-backed government, with each questioning the other’s compliance with the agreement, brokered last week in Geneva, to end a crisis that has made Russia’s ties with the West more fraught than at any time since the Cold War. The separatists said armed men from Ukraine’s Right Sector nationalist group had attacked them. The Right Sector denied any role, saying Russian special forces were behind the clash. Failure of the Geneva agreement could bring more bloodshed in eastern Ukraine, but may also prompt the United States to impose tougher sanctions on the Kremlin – with far-reaching consequences for […]

Posted On : Published By : Tom Whipple
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Douglas Westwood Says the Oil Industry Needs a Common Voice

Douglas-Westwood (DW), a UK-headquartered provider of energy business strategy, research and commercial due-diligience services, explained why "The Oil Industry Needs a Common Voice" in its latest edition of DW Monday. There is a major gap between the realities of oil & gas and the public understanding of its fundamental importance to society. To many, filling the SUV (sport utility vehicle) is just a tax on driving and natural gas an overpriced monthly charge on home ownership. Few realize the sheer scale of the industry, its huge financial commitment and the dedication of the people involved in its day-to-day operations. Oilman, like banker, has become a dirty word.  All too often the reasons for the industry to make the headlines are the very negative ones, such as the human and environmental tragedy of Macondo and long before that the recently commemorated Piper Alpha disaster .  But there are another group […]

Posted On : Published By : Tom Whipple
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Has crude oil production already peaked?

“Wait a minute,” you must be saying. “Haven’t we been hearing from the oil industry and from government and international agencies that worldwide oil production has been increasing in the last several years?” The answer, of course, is yes. But, the deeper question is whether this assertion is actually correct. Here is a key fact that casts doubt on the official reporting: When the industry and the government talk about the price of oil sold on world markets and traded on futures exchanges, they mean one thing. But, when they talk about the total production of oil, they actually mean something quite different–namely, a much broader category that includes all kinds of things that are simply not oil  and that could never be sold on the world market as oil. I’ve written about this issue of the true definition of oil before.  But Texas oilman Jeffrey Brown has been […]

Posted On : Published By : ASPO-USA
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Obama signs law to bar Iran diplomat from serving in U.N. post

President Barack Obama signed a law on Friday that effectively bars an Iranian diplomat from serving as an envoy at the United Nations because of suspicions he was involved in the 1979-81 Tehran hostage crisis. Obama signed a law passed by the U.S. Congress that blocks any individual from entering the United States who has been found to have been engaged in espionage or terrorist activity against the United States or if that person may pose a threat to U.S. national security. The United States had already said it would not grant a visa to Iran’s proposed U.N. ambassador, citing the envoy’s links to the 1979-1981 hostage crisis. Obama had come under strong pressure not to allow Hamid Abutalebi into the country to take up his position in New York. The U.S. government objects to Abutalebi because of his suspected participation in a Muslim student group […]

Posted On : Published By : Tom Whipple
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Bombs kill 4 in shopping street of Iraqi capital

Iraqi police say two bombs planted on a street full of shoppers in Baghdad have killed four people and wounded eight. They say the explosions took place in the capital’s predominantly Sunni neighborhood of Dora on Saturday morning. Later, police said a roadside bomb killed two soldiers on patrol and wounded five people in Tarmiyah, 30 miles (50 kilometers) north of Baghdad. Health officials confirmed the casualty figures. All officials spoke on condition of anonymity because they were not authorized to brief reporters. No one immediately claimed responsibility for Saturday’s attacks, but Sunni insurgent groups have stepped up attacks across the country since last year in hopes of undermining the Shiite-led government. The uptick in violence comes as Iraqis prepare to hold a crucial parliamentary election on April 30.

Posted On : Published By : Tom Whipple
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Islamist militants kill 30 in attacks around Iraq

Suspected Sunni Muslim militants killed at least 30 people around Iraq on Thursday including 12 soldiers in an assault on a remote army base in the north, deepening insecurity with a national election just two weeks away. Sectarian bloodshed has increased since the Shi’ite Muslim-led Baghdad government began an offensive against insurgents, some of them affiliated with […] Raheem Salman of Reuters reports : Suspected Sunni Muslim militants killed at least 30 people around Iraq on Thursday including 12 soldiers in an assault on a remote army base in the north, deepening insecurity with a national election just two weeks away. Sectarian bloodshed has increased since the Shi’ite Muslim-led Baghdad government began an offensive against insurgents, some of them affiliated with al Qaeda, dug in around Falluja and Ramadi in the western province of Anbar. […]

Posted On : Published By : Tom Whipple