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WTI Gains for Second Day as U.S. Stockpiles Shrink

West Texas Intermediate rose for a second day after an industry report showed crude inventories declined in the U.S., the world’s biggest oil consumer. Brent climbed in London amid reports of worsening security in eastern Libya . Futures advanced as much as 0.6 percent in New York . Crude stockpiles fell by 1.4 million barrels last week as supplies at Cushing, Oklahoma , the delivery point for WTI, slid 300,000 barrels, the American Petroleum Institute said yesterday. Government data today is forecast to show a 250,000 barrel drop nationwide, according to a Bloomberg News survey. Oil companies concerned over fighting in Libya’s eastern city of Benghazi are evacuating workers, state-run news agency Lana reported. “WTI has been supported by persistent crude stockpile draws at Cushing at the end of the spring,” Andrey Kryuchenkov , an analyst at VTB Capital in London, said by e-mail. WTI for July delivery climbed […]

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Natural-Gas Prices Close at High of Nearly Four Weeks on Warming Weather

atural gas prices closed at a high of nearly four weeks Tuesday as forecasts showed warmer weather coming in mid-June. Prices for the front-month July contract settled up 1.7 cents, or 0.4%, at $4.629 a million British thermal units on the New York Mercantile Exchange. That was the highest closing price since May 7, after which prices dropped down a tier from the $4.70/mmBtu price they had spent several days at. It was an aggressive move by speculators, said Aaron Calder, senior market analyst at energy-consulting firm Gelber & Associates in Houston, in a note. While some forecasts Tuesday predicted summer heat would hit in mid-June, Mr. Calder noted that others predicted milder temperatures settling in within the same period. High temperatures lead to air conditioners switching on, driving more demand for power and the gas that fuels it. It’s just not certain that will […]

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IEA: $48 trillion needed to satisfy global energy demand

It will require $48 trillion in investments through 2035 to meet the world’s growing energy needs, the International Energy Agency said Tuesday from Paris. IEA Executive Director Maria van der Hoeven said in a statement the reliability and sustainability of future energy supplies depends on a high level of investment. "But this won’t materialize unless there are credible policy frameworks in place as well as stable access to long-term sources of finance," she said. "Neither of these conditions should be taken for granted." She said there was a real risk that any investments in global energy could be misdirected because the environmental impacts of various resources may not be reflected in the overall costs. The IEA’s report says around 15 percent of annual investments target renewable energy resources, while the bulk of spending, more than $1 trillion, is directed at fossil fuels. More than half of […]

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IEA Expects World to Rely More on Middle East Oil

A top energy watchdog said the world will need more Middle Eastern oil in the next decade, as the current U.S. boom wanes. But the International Energy Agency warned that Persian Gulf producers may still fail to fill the gap, risking higher oil prices. In its first update to the agency’s energy investment outlook in more than a decade, the IEA—which represents some of the world’s largest consumer nations—said it sees "growth in oil demand [becoming] steadily more reliant on investment in the Middle East." Surging American production from tight oil—extracted from shale formations in places like Texas and North Dakota—has led the agency and other oil-market analysts to predict the U.S. could leapfrog the world’s largest oil producers, Saudi Arabia and Russia, by 2020. That has triggered debate in Washington about easing a long-standing ban on most crude exports from American shores. It has also engendered hope of […]

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New Energy Report from I.E.A. Forecasts Decline in North American Oil Supply

National Public Radio’s “ Morning Edition ” reported this morning: NPR’s Business News starts with the outlook for oil. This is a change of course – the International Energy Agency has released a report on global energy investment. And this group predicts the United States will have to rely more heavily on Middle East oil in the coming years, as North American sources start to dry up a little bit. U.S. energy production has boomed recently, much of it coming from oil and gas extracted from shale. But the IEA says U.S. production will start to lose steam around 2020, and that would put more bargaining power back in the hands of OPEC countries, such as Saudi Arabia. This is quite interesting, given that in 2012, the IEA forecast that the U.S. would overtake Saudia Arabia in oil production by 2020, and would be a net oil exporter by […]

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Will Developing World Join EPA Push for Carbon Cuts?

Cows graze last week in the shadow of the Chalk Point Generating Station, a coal-fired power plant in Benedict, Md. Getty Images America’s push to cut carbon-dioxide emissions is partly intended to spur other large emitters—especially China—to cut their own emissions more aggressively to tackle climate change. But will it work? Other countries already have national policies aimed at cutting carbon-dioxide emissions, and they are much further along than the U.S. The world’s largest system for trading emission allowances is operated by the European Union, which covers more than 11,000 power stations and industrial plants in 31 countries, as well as airlines. And some countries have implemented carbon taxes. Persuading other countries to follow suit won’t be easy. Many developing countries are on a long-term path of trying to industrialize their economies and continue to resist big domestic cuts in carbon emissions. "No matter what your view of climate […]

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July deadline for Iran nuclear deal appears in jeopardy: envoys

It is increasingly unlikely that six world powers and Iran will meet their July 20 deadline to negotiate a long-term deal for Iran to curb its nuclear program in return for an end to economic sanctions, diplomats and analysts say. In theory, an extension to the high-stakes talks should not be a problem if all sides want it. But President Barack Obama would need to secure Congress’ consent at a time of fraught relations between the administration and lawmakers. Iran, the United States, Britain, France, Germany, Russia and China included the July 20 deadline to reach a comprehensive agreement in an interim deal they reached in Geneva on Nov. 24. The November agreement allowed for a six-month extension if more time was needed for a final deal to end sanctions on Iran and remove the threat of war. An extension would allow up to half […]

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Exclusive: Iran's reactor fuel demand emerges as sticking point in nuclear talks

Iran has said it should be able to produce fuel for its Bushehr nuclear power plant, a demand that world powers are unlikely to agree to and which may put a July deadline for a deal to end its nuclear standoff with the West in jeopardy. Diplomats from the major powers negotiating with Tehran said Iranian negotiators expressed the demand at the latest talks in May – identifying one reason little progress was made towards a nuclear deal that could end Tehran’s economic isolation. Iran’s ability to produce enriched uranium goes to the heart of a decade-old dispute over its nuclear program as the fuel can be used both to power reactors and – if further processed – to make the core of a nuclear warhead. "They expect to get capacity to fuel Bushehr and that’s unrealistic," one diplomat from the ‘P5+1’ countries in talks with […]

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Exclusive: Iran’s reactor fuel demand emerges as sticking point in nuclear talks

Iran has said it should be able to produce fuel for its Bushehr nuclear power plant, a demand that world powers are unlikely to agree to and which may put a July deadline for a deal to end its nuclear standoff with the West in jeopardy. Diplomats from the major powers negotiating with Tehran said Iranian negotiators expressed the demand at the latest talks in May – identifying one reason little progress was made towards a nuclear deal that could end Tehran’s economic isolation. Iran’s ability to produce enriched uranium goes to the heart of a decade-old dispute over its nuclear program as the fuel can be used both to power reactors and – if further processed – to make the core of a nuclear warhead. "They expect to get capacity to fuel Bushehr and that’s unrealistic," one diplomat from the ‘P5+1’ countries in talks with […]

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Getting harder

A street in the al-Jdeida ("New Baghdad") area of Baghdad, the Iraqi capital Source: All images by Dylan Roberts A young boy cooks the head and limbs of a sheep with a blowtorch. Many children in this area sell bits of sheep in the market Young boys in al-Jdeida wake up find rain has flooded their football pitch. The area’s drainage system is poor Large piles of rubbish are a common sight in al-Jdeida An Iraqi man shops in the market A man who lost his limbs begs in the middle of the street as cars pass by A football pitch now occupies the area where a statue of Saddam Hussein once stood. This is one of few grassy areas where children can play Smoke rises after a car bomb. Such attacks often happen during rush hours in the mornings and late afternoons A woman with health problems sits […]

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Turkey says it helped Iraq with oil exports

Turkey is doing its neighbors in Iraq a favor by hosting the first shipment of oil from the semiautonomous Kurdish north, the Turkish energy minister said. The semiautonomous Kurdistan Regional Government in May announced its first delivery of more than 1 million barrels of oil from the Turkish sea port at Ceyhan. Iraq said the shipment violates the nation’s constitution and blames Ankara for making internal rows over oil worse. Turkish Energy Minister Taner Yildiz said he opposed to Baghdad’s objections as income from the oil sales would be distributed among the Iraqis themselves. "Would it be better for Iraq if Turkey wasn’t letting Iraqi oil to flow through it? It wouldn’t," he said Monday. "We are a neighbor, friend and fraternal country that is laying the basis for the transmission of Iraqi oil to world markets." The central Iraqi government in Baghdad said it’s the […]

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Militias in Libya Hard to Tame as Renegade General Steps In

Against the backdrop of a rising sun and an imposing lion, renegade Libyan general Khalifa Haftar strides over rugged terrain in combat fatigues and black boots. The propaganda imagery on Haftar’s Facebook page is part of his bid to rally the nation against Islamist militias in Libya’s east and their political allies in the capital, Tripoli. It borrows from that employed by Egypt ’s soldier-turned-president Abdel Fattah El-Sisi, who overthrew an elected Islamist leader before securing power at the ballot box. If Haftar harbors similar ambitions, his will be a far harder task. Three of his guards were killed in an assassination attempt in the eastern town of Abiyar, SkyNews Arabia TV channel reported today, giving no further details. Successive Libyan governments have failed to unify the forces that removed Muammar Qaddafi from power three years ago, with the chaos halting the recovery of crude output in the North […]

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Saudi Arabia announces 92 more MERS deaths, sacks deputy health minister

Saudi Arabia has sacked its deputy health minister and hiked the country’s death toll from Middle East Respiratory Syndrome (MERS) after uncovering more than 90 additional fatalities. The number of victims from the virus was raised to 282 from 190 following a review of health data. In all, an additional 113 confirmed cases of MERS had been found, bringing the total to 688. The uptick in the death toll and confirmed cases came as Saudi Arabia sacked Deputy Health Minister Ziad Memish, who has been criticized by some international scientists over his handling of the deadly MERS virus. Memish was a key figure in Saudi Arabia’s efforts to contain the spread of MERS, a virus that causes coughing, fever and can lead to fatal pneumonia. The virus was identified two years ago and cases have been found in other countries in the Middle East, Europe, Asia and the United […]

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Nigeria: Confab – Delegates in Heated Debate Over Fuel Subsidy

Delegates at the on-going National Conference yesterday debated the desirability and otherwise of the much-touted Fuel Subsidy as they spoke either in support or against the complete removal of the subsidy as recommended by the Standing Committee on Public Finance and Revenue. The debate on the committee’s report kicked off after delegates had resumed for the week following the death of the wife of the conference chairman, Justice Idris Kutigi, on Wednesday last week. A total number of 147 delegates indicated interest to comment on the report and as at close of session yesterday evening only about 50 had spoken prompting adjournment and continuation of the debate today. Each delegate spoke with passion on why the Federal Government should either keep subsidising petroleum products for the public or why it should be removed. According to the report, as presented by the committee chairman Senator Adamu Aliero, subsidy on petroleum […]

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Pemex Reducing Repsol Stake as Mexico Prepares Oil Open

Petroleos Mexicanos is looking to strengthen its balance sheet with the sale of a stake in Repsol SA for about $3 billion as Mexico ’s state-owned producer prepares to form partnerships with foreign oil companies. Pemex, as the Mexico City-based company is known, is selling a 7.9 percent stake in Repsol, according to a Citigroup Inc. filing to the Spanish stock exchange yesterday. Citigroup and Deutsche Bank AG (DBK) are conducting the sale. The Mexican company is raising cash from the sale as lawmakers prepare regulations to open the oil industry to foreign investment for the first time since 1938. Pemex was “very disappointed” in Repsol’s performance, Chief Executive Officer Emilio Lozoya said in an Oct. 31 interview. “If Pemex is going to be restructured as a new company, it needs a nest egg of capital in its balance sheet,” George Baker, an energy consultant […]

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China's smog clear-up faces challenges: vice minister

China still faces major challenges in improving its air quality nationwide, said Li Ganjie, vice minister of environmental protection, at a press conference on Wednesday. Only three cities, or 4.1 percent, of the 74 major Chinese cities subject to air quality monitoring met the national standard for good air in 2013, Li said. The 10 most polluted cities in 2013 included seven in north China’s Hebei Province, Jinan of east China’s Shandong Province, Xi’an of northwest China’s Shaanxi Province and Zhengzhou of central Henan Province. Most of these are located near Beijing. Li urged addressing the key areas of industrial structure, energy efficiency, vehicle emissions and dust from construction sites in improving air quality. Accumulation of air pollutants such as sulfur dioxide and nitric oxide also led to acid rain which mostly affected areas along the Yangtze River and southern side of its middle […]

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China’s smog clear-up faces challenges: vice minister

China still faces major challenges in improving its air quality nationwide, said Li Ganjie, vice minister of environmental protection, at a press conference on Wednesday. Only three cities, or 4.1 percent, of the 74 major Chinese cities subject to air quality monitoring met the national standard for good air in 2013, Li said. The 10 most polluted cities in 2013 included seven in north China’s Hebei Province, Jinan of east China’s Shandong Province, Xi’an of northwest China’s Shaanxi Province and Zhengzhou of central Henan Province. Most of these are located near Beijing. Li urged addressing the key areas of industrial structure, energy efficiency, vehicle emissions and dust from construction sites in improving air quality. Accumulation of air pollutants such as sulfur dioxide and nitric oxide also led to acid rain which mostly affected areas along the Yangtze River and southern side of its middle […]

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China signals intention to cap carbon, a day after US pledges cuts

China said Tuesday it will set an absolute cap on its  CO2 emissions starting in 2016 — a potentially landmark move that, coupled with an earlier U.S. announcement on power plant emission curbs , could boost sluggish United Nations efforts to produce a new global climate accord. The exact extent of the cuts was not announced, but officials said renewable energy would account for up to 25 percent of the country’s energy production and nuclear power would be ramped up by the end of the next decade. “The Chinese announcement marks potentially the most important turning point in the global scene on climate change for a decade,” said Michael Grubb, a professor of international energy and climate policy at University College London. The international community hopes to conclude a global climate treaty to reduce greenhouse gas emissions by 2015, when the United Nations will host a  climate conference  in […]

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Obama Emission Rules Discount Gas Leaks, Scientists Say

President Barack Obama ’s plan to fight global warming underestimates pollution from natural gas, according to scientists studying how leaks affect the climate. The U.S. Environmental Protection Agency this week proposed requiring power plants to cut greenhouse-gas emissions 30 percent from their 2005 levels by 2030, largely by burning natural gas instead of coal. Researchers from Cornell University , Stanford University and the U.S. National Oceanic and Atmospheric Administration agree with the EPA that natural gas emits about half as much carbon dioxide as coal when burned to produce electricity. The issue is that methane leaks while natural gas is being extracted, processed and transported, and methane causes more warming than equivalent amounts of carbon dioxide, they said. “Converting to natural gas plants, which is what this latest rule is likely to do, will actually aggravate climate change , not make things better,” said Robert Howarth, a professor of […]

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China agrees to Doha amendment of Kyoto Protocol

The Chinese government announced it deposited its acceptance of an amendment to the Kyoto climate measure with the U.N. secretary-general. Wang Min, China’s deputy U.N. envoy, deposited Beijing’s acceptance of the Doha amendment. A statement published Monday by the official Xinhua News Agency says Beijing hopes other major economies follow suit. "It also attaches great importance to addressing climate change, regarding this as an important part of its efforts to promote ecological progress and to build a beautiful country," the statement said. China is the largest emitter of greenhouse gases in the world, followed by the United States, India and Russia. The Doha Amendment to the Kyoto Protocol extends the commitment period to curb greenhouse gas emissions to 2020, after the first commitment period ended in 2012. Beijing said it would curb its emissions by 40 percent from a 2005 baseline by 2020. The Chinese announcement […]

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Kentucky plant emblematic of move from coal to gas

In the shadow of Paradise Fossil Plant’s aging smokestacks, where white steam and carbon dioxide rises into the sky, outdated coal-fired generators are being replaced with one that runs on natural gas. The change in Muhlenberg County, once the nation’s top producer of coal, is emblematic of what’s been happening across the U.S. as natural gas becomes cheaper and electric utilities try to meet stiffer carbon emissions rules the Obama administration announced this week. When the $1 billion natural gas facility is finished in 2017, the Tennessee Valley Authority, the nation’s largest public utility, will shut down two coal-burning units at Paradise that date to the 1960s. The Environmental Protection Agency says natural gas generators produce about half the carbon dioxide of coal-fired units, and a fraction of other harmful pollutants. "It’s a fraction of what it is on a coal plant," said Billy Sabin, […]

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What's the Real Cost of the EPA's Emissions Cap?

Georgia’s Plant Scherer is the country’s largest emitter of CO2. Associated Press Are the new federal limits on greenhouse-gas emissions going to cost a lot, as critics say, or a little, as the Environmental Protection Agency asserts? That depends on whether you think Americans are going to use more electricity in coming years or cut way back. The EPA assumes electricity consumption will drop sharply. That plays a significant role in the agency’s calculation of the cost of complying with new rules to slash the carbon emissions from the utility industry. The industry accounts for about a third of all U.S. emissions, most of it from burning coal. The agency forecasts that the effort to cut those emissions by 30% from their 2005 level will cost utilities and their customers $8.8 billion a year in 2030. That is less than the cost of other recent EPA rules, such as […]

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What’s the Real Cost of the EPA’s Emissions Cap?

Georgia’s Plant Scherer is the country’s largest emitter of CO2. Associated Press Are the new federal limits on greenhouse-gas emissions going to cost a lot, as critics say, or a little, as the Environmental Protection Agency asserts? That depends on whether you think Americans are going to use more electricity in coming years or cut way back. The EPA assumes electricity consumption will drop sharply. That plays a significant role in the agency’s calculation of the cost of complying with new rules to slash the carbon emissions from the utility industry. The industry accounts for about a third of all U.S. emissions, most of it from burning coal. The agency forecasts that the effort to cut those emissions by 30% from their 2005 level will cost utilities and their customers $8.8 billion a year in 2030. That is less than the cost of other recent EPA rules, such as […]

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EPA Proposal Draws Fire From United Republicans, Some Democrats

Republicans pounced on President Barack Obama ‘s plan to reduce carbon emissions by 30% by 2030 as a job-killing sop to his environmental donors, while Democrats ran the gamut from embracing the Environmental Protection Agency’s rule to quickly backing away from it. The split between the unified GOP and split Democratic Party exemplifies the differences in the two parties in 2014. Republicans are rock solid in opposition to green regulations that may slow the economy—and more broadly to most anything Mr. Obama proposes. But Democrats find themselves choosing from Mr. Obama’s policies like an a la carte menu—embracing the ones that work back home while criticizing the ones that don’t. On the Republican side Monday, House Speaker John Boehner (R., Ohio) said "the president’s plan is nuts," while Senate Minority Leader Mitch McConnell (R., Ky.) called the proposed rule "a dagger in the heart of the American middle class, […]

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Shale gas gives North American petchem companies a competitive edge: S&P analyst

North America-based petrochemical companies are likely to enjoy a competitive advantage over their rivals based elsewhere for the next several years as a result of the US shale gas revolution, which provides both inexpensive feedstocks and fuel for the petchems industry, a senior Standard & Poor’s analyst said Tuesday. "The ability to extract low-cost ethane and put it through a steam cracker and create ethylene and all the derivatives, that’s been very favorable for companies that have operated in North American versus companies in other parts of the world," Henry Fukuchi, director of ratings and analytics at S&P, said on the sidelines of the Benposium conference in Houston. S&P and Platts are both units of McGraw-Hill Financial. Global demand for petrochemicals has historically grown about 4% annually and Fukuchi said he expects that growth rate to remain constant for the next several years, driven by economic development in China […]

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Shale gas gives North American petchem companies a competitive edge: S&P analyst

North America-based petrochemical companies are likely to enjoy a competitive advantage over their rivals based elsewhere for the next several years as a result of the US shale gas revolution, which provides both inexpensive feedstocks and fuel for the petchems industry, a senior Standard & Poor’s analyst said Tuesday. "The ability to extract low-cost ethane and put it through a steam cracker and create ethylene and all the derivatives, that’s been very favorable for companies that have operated in North American versus companies in other parts of the world," Henry Fukuchi, director of ratings and analytics at S&P, said on the sidelines of the Benposium conference in Houston. S&P and Platts are both units of McGraw-Hill Financial. Global demand for petrochemicals has historically grown about 4% annually and Fukuchi said he expects that growth rate to remain constant for the next several years, driven by economic development in China […]

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Texas RRC: Oil, Gas Production Not to Blame for Well Water Contamination

Rigzone Staff 6/3/2014 URL: http://www.rigzone.com/news/oil_gas/a/133391/Texas_RRC_Oil_Gas_Production_Not_to_Blame_for_Well_Water_Contamination Water contamination from explosive gas in the water supply of a North Texas neighborhood cannot be linked to nearby drilling, the Texas Railroad Commission (RRC) said in a recent report. The investigation began after seven property owners in the neighborhood contacted the RRC about rising levels of methane in their water wells. An eighth property owner also found an increase of chloride in two water wells. In its finding that there was an insufficient link between the contamination of well water in the Silverado on the Brazos (Silverado) neighborhood in southern Parker County and drilling in the nearby Barnett Shale, the RRC, which regulates the state’s oil and gas industry, noted that the contamination has worsened in five of the eight private water wells it tested in September 2013, compared to the contamination measured in the same wells in 2010 and 2011. However, the RRC […]

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Europe Struggles to Avoid Deflation’s Grip

ATHENS — In her upscale three-story beauty salon in a middle-class suburb of Athens, Doria Tsirigotis used to charge 30 euros for a haircut. But when a wrenching recession set in, her competitors started cutting their prices, first to 20 euros, then to 10 and even as low as 5 — or less than $7. Ms. Tsirigotis tried to resist discounting her prices. But as her clients lost jobs or had their wages cut, she eventually lowered her rates. Soon, revenues dwindled and her debts mounted, and she had to let go of all but two of her 13 employees. Last month, she downsized to a tiny salon across the street, renamed Cheap ‘N’ Chic — more fitting to the times. “When prices fall so much, you can’t not follow the trend,” Ms. Tsirigotis said, gazing at the now-darkened beauty boutique she ran for 20 years. “But in such […]

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Huge potential seen in British shale

A small energy company, Union Jack Oil, said there may be as much as 5.4 billion barrels of oil and 2.7 trillion cubic feet of gas in British shale deposits. Union Jack holds a 10 percent stake in a license area in the central United Kingdom dubbed PEDL201. The company said in a statement Monday an independent site assessment indicates the potential in shale oil and gas in the area is enormous. The company said that, even if recovery rates are on the low end of what’s possible, the volume of oil and gas taken from the region could have a "significant commercial value." Union Jack cautioned there’s no certainly that any portion of the oil and gas thought to exist in the license area will be cost-effective to produce. The company says it plans to drill two conventional exploration wells into the reserve area by […]

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BP And Royal Dutch Shell After Peak Oil

The oil industry used to be a no-brainer investment. There seemed to be an infinite supply of oil, and with more and more people owning cars, demand — and thus oil prices — were rocketing. This meant that oil companies would be booming. But has anyone asked the question: what happens when the oil runs out? Oil companies such as BP (LSE: BP.L – news ) (LSE: BP) (NYSE: BP) and Shell (LSE: RDSB.L – news ) (LSE: RDSB) (NYSE: RDS-B.US) are already finding that their production is falling. They are now scouring the furthest reaches of the planet for oil, from the Artic to the Gulf of Mexico and the South Atlantic. Oil is increasingly difficult to extract But any oil they do come across is increasingly difficult, and expensive, to extract. And the Macondo tragedy shows what can happen when the oil industry tries perhaps a little too […]

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8 Things You Should Know About The Biggest Thing A President’s Ever Done On Climate Change

On Monday morning, the Environmental Protection Agency released its proposed rule to limit the amount of carbon pollution that existing power plants can dump into the atmosphere. This is the most significant move President Obama has made to address the direct causes of climate change. The Clean Air Act , passed by Congress in 1970 and amended in 1990, is finally getting to tackle carbon pollution from the nation’s 491 smoke-spewing coal power plants. Contrary to what fossil fuel advocates claim , though, it does not mean that EPA will be directly shutting down coal plants. Each state would have a broad menu of carbon-cutting options, including energy efficiency improvements, adding clean energy sources, implementing a carbon tax, or instituting or joining a cap-and-trade system. By 2020, states will have to have drop their carbon emissions from existing power plants 25 percent from 2005 levels. By 2030, according to […]

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The oil mistake

An anti-government fighter sits with an anti-aircraft weapon at an oil refinery in Libya in 2011. Oil may be the most sought-after resource in the world, but it’s no secret that it can also be a curse. Political scientists have long observed that the oil industry concentrates power in the hands of the few. Governments that rely on oil sales, rather than taxes, are less democratic and quicker to quash dissent. According to Michael Ross , author of the “The Oil Curse,” petroleum-producing countries are 50 percent more likely to be ruled by dictators — and twice as likely to descend into civil war. That’s because oil gives people something extra to squabble over, as we have seen recently in South Sudan, Libya, and Syria. In a new twist on an old problem, rebels in all three countries have laid claim to […]

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Oil Futures Rise on China Data

Crude-oil futures rose in Asian trading hours Monday helped by stronger manufacturing data from China, even as some analysts remained skeptical about the resilience of the country’s oil demand. On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $103.26 a barrel at 0507 GMT, up $0.55 in the Globex electronic session. July Brent crude on London’s ICE Futures exchange rose $0.41 to $109.82 a barrel. Both oil benchmarks ended last month on a stronger note with Nymex WTI crude gaining around 3% in May, while Brent crude gained around 1.24%. This month, the oil market will be watching the scheduled meeting of the Organization of the Petroleum Exporting Countries and any potential changes to oil-production quotas by the cartel’s members. The gathering begins June 11 in Vienna. Over the weekend, data showed China’s official manufacturing Purchasing Managers’ Index rose to 50.8 in […]

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Brent Falls a Second Day on Libya; WTI Discount Narrows

Brent crude fell to a three-week low, narrowing its premium to West Texas Intermediate, as OPEC output climbed and Libya prepared to reopen an export terminal. Brent and WTI slipped as a Bloomberg survey showed OPEC crude production increased in May for the first time in three months. Libya’s Hariga port is set to resume operating within two days after authorities approved salary payments to Petroleum Facilities Guard members who are preventing loadings, according to the country’s National Oil Corp. Gasoline and diesel futures also fell amid speculation a government report will show fuel supplies gained last week. “Rising OPEC production will help keep a lid on prices,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “As things right themselves in places like Libya, the market will come under further pressure.” Brent for July settlement fell 58 cents, or […]

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IEA Expects World to Rely More on Middle East Oil

A top energy watchdog said the world will need more Middle Eastern oil in the next decade, as the current U.S. boom wanes. But the International Energy Agency warned that Persian Gulf producers may still fail to fill the gap, risking higher oil prices. In its first update to the agency’s energy investment outlook in more than a decade, the IEA–which represents some of the world’s largest consumer nations–said it sees "growth in oil demand [becoming] steadily more reliant on investment in the Middle East." Surging American production from tight oil–extracted from shale formations in places like Texas and North Dakota–has led the agency and other oil-market analysts to predict the U.S. could leapfrog the world’s largest oil producers, Saudi Arabia and Russia, by 2020. That has triggered debate in Washington about easing a long-standing ban on most crude exports from American shores. It has also […]

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Kurds say Iraqi oil sales legal

The government of the semiautonomous Kurdish region of northern Iraq said its oil policies are in line with the Iraqi constitution despite Baghdad’s complaints. The Kurdistan Regional Government announced a tanker loaded with more than 1 million barrels of crude oil departed a Turkish sea port May 22 bound for the European market. It was the first such sale of oil taken from the northern Kurdish region. KRG Prime Minister Nechirvan Barzan met Saturday with U.N. special envoy to Iraq Nikolay Mladenov to stress his commitments to all obligations related to Iraq. This includes Iraq’s commitments regarding oil, he said. "The prime minister emphasized that the KRG oil policy is fully in line with the federal constitution of Iraq," the KRG said in a statement . There was no statement from Mladenov or the U.N. Assistance Mission for Iraq on the May oil sale. The central government in Baghdad […]

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First Kurdish crude cargo from Ceyhan headed towards Mohammedia: data

United Leadership, which is carrying the first cargo of Kurdish crude loaded out of the Turkish port of Ceyhan, was outside of the Moroccan port of Mohammedia on Monday, according to Platts cFlow vessel tracking software. The vessel, which is carrying more than 1 million barrels of crude, is currently stationary outside of the port, which is the delivery point for the 200,000 b/d Mohammedia refinery, owned by Samir. A representative for Samir could not be immediately reached for comment. "The United Leadership arrived in Mohammedia today at 11:00 am [1000 GMT] and is to be received by Moroccan refiner Samir," a port agent said. As of last week, the cargo appeared to be headed towards the US Gulf Coast, but it turned sharply southeast over the weekend towards Morocco. United Leadership was loaded at Ceyhan a week and a half ago with stored Kurdish barrels at the Botas […]

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Turkey leans away from Russia with Azeri gas deal

| License Photo Turkey says its move to acquire a stake in the natural gas field off the coast of Azerbaijan is part of a regional diversification strategy. State-owned Turkish Petroleum Corp. agreed to buy the 10 percent share in Shah Deniz owned by French energy company Total for $1.45 billion. The deal is part of an effort by Turkey to lessen its dependence on Russia, the English-language newspaper Today’s Zaman reported Sunday . Russian energy company Gazprom counts Turkey as its second-largest energy importer. Turkey serves as a major regional energy hub, hosting portions of the second-longest oil pipeline in the world, Baku-Tbilisi-Ceyhan. Shah Deniz is controlled by a consortium that includes BP and the State Oil Co. of the Azerbaijan Republic. Michael Borrell, a senior vice president for Total’s exploration and production business in Europe, said in a statement the sale to TPAO was in line with […]

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Algeria talks shale with U.S. energy secretary

The Algerian government views shale oil and natural gas as a way to add diversity to its energy sector, Algerian Energy Minister Youcef Yousfi said. Yousfi met with visiting U.S. Energy Secretary Ernest Moniz in Algiers to discuss energy developments in the country, more than a year after terrorists stormed the In Amenas gas facility in the country’s eastern desert. "Algeria is currently evaluating the potential for shale oil and gas, attempting to determine the quality of the rock while studying all potential environmental impact," he said Sunday. "It is absolutely vital for us to use all possible resources to achieve energy security." Moniz, for his part, said U.S. companies experiencing success in the shale sector were interested in tapping into the Algerian energy market. Algeria has the tenth-largest natural gas deposits in the world and is the third-largest gas supplier to Europe. Its exports have […]

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China's PMI rises to highest level in 2014

Growth in China’s manufacturing sector continued to accelerate in May, rising to the highest level for this year and adding to signs of a stabilizing economy, official data showed on Sunday. The purchasing managers’ index (PMI) increased to 50.8 in May, up from 50.4 in April, according to data released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP). The reading, which inched further above the 50-point level separating a monthly expansion in factories’ activity from a contraction, indicated a pickup in China’s manufacturing sector and the economy as a whole. This is the third consecutive monthly uptick of the widely watched data. The index, seen as one of the key indicators of how the economy performs, began to climb in March after three months of declines. Zhang Liqun, a researcher at the Development Research Center of […]

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China’s PMI rises to highest level in 2014

Growth in China’s manufacturing sector continued to accelerate in May, rising to the highest level for this year and adding to signs of a stabilizing economy, official data showed on Sunday. The purchasing managers’ index (PMI) increased to 50.8 in May, up from 50.4 in April, according to data released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP). The reading, which inched further above the 50-point level separating a monthly expansion in factories’ activity from a contraction, indicated a pickup in China’s manufacturing sector and the economy as a whole. This is the third consecutive monthly uptick of the widely watched data. The index, seen as one of the key indicators of how the economy performs, began to climb in March after three months of declines. Zhang Liqun, a researcher at the Development Research Center of […]

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In North Dakota it is Mostly Just One County

North Dakota publishes crude oil production numbers for each county.  The problem is these numbers do not include confidential wells. Their totals for all North Dakota do include these wells however. I have figured out a way to estimate, pretty closely I believe, each county’s share of those unreported wells. That is take each county’s percentage of total production, then assume they would have the same percentage of confidential wells. It is not exact but close enough. The data is published only as a PDF file and cannot be copied and pasted. Therefore I must input the data for each of 18 counties, each month, manually. That is very time consuming and I only had the patience to do 15 months. But that is plenty for what I am trying to show. All the rest of North Dakota combined produces less than the lowest of the big four. McKenzie […]

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EPA Sets Draft Rule to Cut Carbon Emissions by 30% by 2030

EPA announces Monday a proposal seeking a 30% reduction in carbon dioxide emissions by 2030, immunotherapy drug data show promise in treating cancer, work becoming more relaxing than home and preventing elderly falls. Photo: Getty WASHINGTON—The Environmental Protection Agency on Monday released a draft rule to regulate carbon emissions from hundreds of fossil-fired power plants across the U.S., the cornerstone of President Barack Obama ‘s climate-change agenda. The proposed rule mandates that power plants cut U.S. carbon-dioxide emissions 30% by 2030 from levels seen in 2005, an aggressive target that marks the first attempt at limiting such pollution. "That’s like canceling out annual carbon pollution from two thirds of all cars and trucks in America," EPA Administrator Gina McCarthy said in speech at agency headquarters Monday announcing the rule. "And if you add up what we’ll avoid between now and 2030—it’s more than double the carbon pollution from every […]

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Unveiling New Carbon Plan, E.P.A. Focuses on Flexibility

The Obama administration on Monday announced one of the strongest actions ever taken by the United States government to fight climate change, a proposed Environmental Protection Agency regulation to cut carbon pollution from the nation’s power plants 30 percent from 2005 levels by 2030. The regulation takes aim at the largest source of carbon pollution in the United States, the nation’s more than 600 coal-fired power plants. If it withstands an expected onslaught of legal and legislative attacks, experts say that it could close hundreds of the plants and also lead, over the course of decades, to systemic changes in the American electricity industry, including transformations in how power is generated and used. Gina McCarthy, the E.P.A. administrator, unveiled the proposal in a speech Monday morning. “Today, climate change — fueled by carbon pollution — supercharges risks not just to our health, but to our communities, our […]

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Natural-Gas Prices Rising as EPA Pitches Power Plant Emissions Plan

By Timothy Puko NEW YORK–Natural gas prices inched up Monday after details emerged of a federal plan to curb power plant emissions. Natural gas for July delivery is up 3.6 cents, or 0.8%, at $4.578 a million British thermal units on the New York Mercantile Exchange. The Environmental Protection Agency plans to propose mandating power plants cut U.S. carbon-dioxide emissions 30% by 2030 from levels of 25 years earlier, The Wall Street Journal reported Sunday evening. Its biggest impact is expected to be in cutting the demand for coal, natural gas’s primary competitor as a fuel for power plants. The plan sets a distant goal that isn’t as severe as some environmentalists had advocated, so it isn’t clear it creates pressure on the more near-term futures markets, said Teri Viswanath, a natural-gas strategist at BNP Paribas. But with weather forecasts that cooled over the weekend–and should have damped natural […]

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EPA’s proposal on carbon emissions creates complications for coal-state Democrats

The Obama administration’s proposal to cut carbon dioxide emissions from existing power plants prompted an immediate backlash from Democrats in conservative-leaning states Monday, underscoring the extent to which the president’s energy policy will become a major front in the battle for control over Congress this fall. The Environmental Protection Agency’s proposed rule, which is now subject to public comment and will be finalized a year from now, would cut carbon dioxide emissions from existing coal plants by up to 30 percent by 2030 compared with 2005 levels. It tackles the largest source of the nation’s carbon dioxide emissions, the electricity sector, which is helping drive climate change. While environmentalists and liberal supporters of President Obama hailed the move as a long-overdue effort to tackle one of the biggest threats facing the planet, it added new complications for a party already facing a difficult midterm election landscape. Nineteen states get […]

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New US EPA rule may hit oil refiners with higher power costs: sources

The Obama administration’s latest proposal to reduce carbon dioxide emissions is largely aimed at the more than 600 US coal-fired power plants. But oil refiners should expect higher electricity costs the rule could bring, sources said Monday. The Environmental Protection Agency says the proposal, released Monday morning, would reduce emissions 30% from 2005 levels by 2030. Diana Cronan, a spokeswoman for the American Fuel & Petrochemical Manufacturers, said the proposal is expected to have an indirect effect on refiners, since the new regulations on power plants could increase electricity prices. After crude oil, electricity is the second highest cost refiners face, she said. Article continues below… Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology Daily futures summary Weekly API statistics, and much more […]

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Domestic production satisfies 84% of total U.S. energy demand in 2013

Total U.S. energy production reached 81.7 quadrillion British thermal units (quads) in 2013, enough to satisfy 84% of total U.S. energy demand, which totaled 97.5 quads. Natural gas was the largest domestically produced energy resource for the third year in a row and, together with the other fossil fuels (coal, crude oil, and hydrocarbon gas liquids), accounted for more than three quarters of U.S. energy production. In total, the United States consumed 97.5 quads of energy, 82% of which was fossil fuels. Renewable and nuclear energy made up 10% and 8%, respectively, of U.S. energy consumption. The portion of U.S. energy consumption supplied by domestic production has been increasing since 2005, when it was at its historical low point (69%). Since 2005, production of domestic resources, particularly natural gas and crude oil, has been increasing as a result of the application of technologies that can develop harder-to-produce resources. At […]

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Exxon gets first crack at U.S.-Mexican maritime border area

Exxon Mobil won the first three oil and gas leases for an area straddling the U.S.-Mexican border in the Gulf of Mexico, the U.S. Interior Department said. Exxon gets access to nearly 1.5 million acres in the Gulf of Mexico. The U.S. Interior Department estimates the area, Alaminos Canyon, contains as much as 172 million barrels of oil and 304 billion cubic feet of natural gas. The transboundary area was opened by congressional agreement in December. Through it, U.S. companies agree voluntarily to develop the area jointly with Mexican energy company Petroleos Mexicanos. "These leases represent a significant step forward in U.S.-Mexico cooperation in energy production and pave the way for future energy and environmental collaboration," U.S. Interior Secretary Sally Jewell said in a Saturday statement . The Interior Department’s Bureau of Ocean Energy Management sold the three leases areas in March for a total of […]

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EIA: U.S. growing more energy independent

Enough energy was produced in the United States last year to meet more than 80 percent of the nation’s demands, the Energy Department said Monday. The U.S. Energy Information Administration, the statistical arm of the Energy Department, said 81.7 quadrillion British thermal units of energy was produced from domestic resources last year. EIA said natural gas was the largest source of energy for the third year in the row. Fossil fuels in general accounted for 82 percent of the energy produced last year, with renewable resources and nuclear energy making up 10 percent and 8 percent, respectively. EIA said production of oil and natural gas has increased steadily since 2005, the same year for which the portion of U.S. energy consumption supplied by domestic production reached its historical low point. EIA said the last time there’s been a major increase in the ratio of domestic supply to consumption was […]

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