Category:

It would seem premature to declare that Peak Oil is dead

From Dr John Howard Wilhelm. Sir, Your assertion that Peak Oil is dead and that US output of liquid petroleum has regained its previous peak reached in 1970 should not go unchallenged (“ Looking past the death of Peak Oil ”, Editorial, June 17). According to data from the US Energy Information Administration, US field production of crude oil in 1970 was 9.6m barrels a day. For 2013 it was 7.4m b/d. That is, in 2013 US crude oil production stood at 77 per cent of its annual 1970 peak. More IN Letters If one looks at the facts, the situation is far more fraught than implied by your analysis later in the piece. Earlier data from the Bakken oilfield indicated that annual production per well averaged 85,000 barrels a year initially with a decline rate of 40 per cent a year, which implies on a compounded basis 856 […]

Posted On : Published By : ASPO-USA
Category:

Oil Remains Elevated on Iraq Turmoil

Crude-oil futures were mixed in Asian trading hours Friday but remained elevated as the situation in Iraq continued to deteriorate. On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $106.58 a barrel at 0542 GMT, up $0.15 in the Globex electronic session. August Brent crude on London’s ICE Futures exchange fell $0.02 to $115.04 a barrel. Islamist rebels took control of Iraq’s largest oil refinery on Thursday, according to workers at the refinery, although an Iraqi army spokesman said the Iraqi military was in control of the refinery. Meanwhile, U.S. President Barack Obama Thursday ordered up to 300 members of U.S. special-operations forces to Iraq, but ruled out any immediate airstrikes against Sunni extremists. An overnight spike in Brent prices implies that the oil market has little confidence that Iraq can organize a quick and effective campaign to regain control of its […]

Posted On : Published By : Tom Whipple
Category:

WTI Advances for Second Day, Narrowing Discount to Brent

Brent and West Texas Intermediate crudes capped a second weekly gain as the U.S. said it will send military advisers to Iraq to help repel militants in OPEC’s second-biggest oil producer. The European grade rose 1.2 percent this week while WTI advanced 0.3 percent. Brent reached a nine-month high yesterday as President Barack Obama said he’s sending as many as 300 troops to help the Iraq battle an insurgency and the U.S. may take more “targeted” action. Ukraine announced a week-long unilateral cease-fire in eastern regions bordering Russia. WTI settled at a nine-month high today as a U.S. pipeline reopened. “We’re building a geopolitical risk premium into the prices,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York. “Prices are $10 to $15 a barrel higher than they would be if it weren’t for the situation in Iraq and trouble in Ukraine.” Brent for August […]

Posted On : Published By : Tom Whipple
Category:

Natural-Gas Prices Inch Down As Steady Weather Forecasts Stop Rally

Natural gas dropped for the fifth time in six sessions on cool weather forecasts and strong stockpile additions. Prices for the front-month July contract settled down 5.3 cents, or 1.2%, at $4.531 a million British thermal units on the New York Mercantile Exchange. Natural gas lost 4.4% for the week, its largest net and percentage decline since the week ending Feb. 28. Record production has started to rapidly refill stockpiles that had been drained to 11-year lows by high winter demand. Producers added 113 billion cubic feet of gas to storage last week, the U.S. Energy Information Administration said Thursday, 4 bcf more than Wall Street expectations. It was a record sixth-straight addition larger than 100 bcf and reduced the shortage to within 31% of the five-year average. "We’ve had so many consecutive large, outsized inventory (additions that) traders are simply less convinced that … […]

Posted On : Published By : Tom Whipple
Category:

Iran Nuclear Talks Produce Possible Framework for Deal

The Iranian and European Union flags stands in front of a poster of the Iran talks at the International Center in Vienna, where closed-door nuclear talks have been taking place this week. Associated Press VIENNA—With one month to go until a July 20 deadline, the odds of a high-stakes nuclear deal between Iran and six major powers appeared finely balanced, with senior diplomats saying this week’s talks had shown "progress" but warning that gaps may prove too wide to resolve. After five days of discussions in Vienna, top Iranian and U.S. officials demanded major concessions from the other side and there was no pretense of any sudden breakthrough. However, the negotiating teams departed Friday with a working document in hand—the first concrete advance in months. Diplomats said all sides appear committed to reach an accord and they left with plans to return July 2 for a mammoth negotiation session […]

Posted On : Published By : Tom Whipple
Category:

Toughest Issues Still Unresolved in Iran Nuclear Talks

Negotiations with Iran over its disputed nuclear program entered their brinkmanship phase on Friday, with the toughest issues still unresolved a month before the deadline for a final agreement. Iran’s foreign minister, Mohammad Javad Zarif, told reporters covering the talks in Vienna that the moment had come for the United States and its allies to take a “realistic approach” that recognizes Iran will produce significant amounts of nuclear fuel in coming years. The senior American negotiator, Wendy R. Sherman, the undersecretary of state for policy, said she doubted whether “Iran is really ready and willing to take all the steps necessary to assure the world” it has no desire or ability to produce a nuclear weapon. But the two sides showed some indications of progress: Both Mr. Zarif and Ms. Sherman headed home bearing what aides described as a first, tentative draft of a final agreement. The […]

Posted On : Published By : Tom Whipple
Category:

Iraq militants take Syria-border post in drive for caliphate

Sunni fighters seized a border post on the Iraq-Syria frontier, security sources said on Saturday, smashing a line drawn by colonial powers almost a century ago and potentially creating an Islamic Caliphate from the Mediterranean Sea to Iran. The militants, led by the Islamic State in Iraq and the Levant (ISIL), first moved into the nearby town of al-Qaim on Friday, pushing out security forces, the sources said. Once border guards heard that al-Qaim had fallen, they left their posts and militants moved in, the sources said. Sameer al-Shwiali, media adviser to the commander of Iraq’s anti-terrorist squad, told Reuters that the Iraqi army was still in control of al-Qaim. Al-Qaim and its neighbouring Syrian counterpart Albukamal are on a strategic supply route. A three-year civil war in Syria has left most of eastern Syria in the hands of Sunni militants, including the Albukamal-Qaim crossing. The […]

Posted On : Published By : Tom Whipple
Category:

Iraq's Shiite militiamen parade in show of force

Thousands of Shiite militiamen have paraded in Baghdad and several other cities in southern Iraq with heavy weaponry, signaling their readiness to take on Sunni militants who seized much of the country’s north. In Baghdad, about 20,000 men, many in combat gear, marched through the Sadr City district on Saturday with assault rifles, machine-guns, multiple rocket launchers and missiles. Similar parades were held in the southern cities of Amarah and Basra, with the militants in Basra displaying field artillery pieces hauled by heavy trucks. The parades were staged by followers of cleric Muqtada al-Sadr and came after the al-Qaida breakaway Islamic State of Iraq and the Levant, and allied Sunni militants, captured a crossing on the Syria-Iraq border the day before. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below. Sunni militants have seized an Iraqi crossing on […]

Posted On : Published By : Tom Whipple
Category:

Iraq’s Shiite militiamen parade in show of force

Thousands of Shiite militiamen have paraded in Baghdad and several other cities in southern Iraq with heavy weaponry, signaling their readiness to take on Sunni militants who seized much of the country’s north. In Baghdad, about 20,000 men, many in combat gear, marched through the Sadr City district on Saturday with assault rifles, machine-guns, multiple rocket launchers and missiles. Similar parades were held in the southern cities of Amarah and Basra, with the militants in Basra displaying field artillery pieces hauled by heavy trucks. The parades were staged by followers of cleric Muqtada al-Sadr and came after the al-Qaida breakaway Islamic State of Iraq and the Levant, and allied Sunni militants, captured a crossing on the Syria-Iraq border the day before. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below. Sunni militants have seized an Iraqi crossing on […]

Posted On : Published By : Tom Whipple
Category:

Kurdish government says oil contracts viable

The semiautonomous Kurdish government in northern Iraq said it’s delivering oil to its customers under contracts that are commercially viable. Two vessels loaded with oil from the Kurdish north of Iraq have left the Turkish port of Ceyhan in recent weeks. The export is a source of contention between the federal government in Baghdad, which says unilateral Kurdish action is illegal, and the Kurdistan Regional Government, which says it’s operating according to the rule of law. The KRG issued a statement Thursday saying it’s selling its oil through a pipeline system to Ceyhan on an international commercial market basis. "The KRG has been able to deliver oil to its customers under commercially viable contracts, and all payments are being made into the KRG’s account in Turkey," the Kurdish Ministry of Natural Resources stated. "Export volumes are expected to double within the next weeks." The U.S. government, […]

Posted On : Published By : Tom Whipple
Category:

Iraq Government Plays Up Obama Support for Fight Against Sunni Rebels

President Obama lays out a 4-step plan for U.S. action in Iraq, says American forces will not be returning to combat in Iraq but will help train and support the Iraqi forces. Photo: Getty BAGHDAD—Iraq’s pro-government satellite television station on Friday played up Barack Obama ‘s support for Baghdad’s fight against Sunni Muslim militants but overlooked what the U.S. president suggested was the sectarian and authoritarian governing style of Prime Minister Nouri al-Maliki. In a speech in Washington on Thursday, Mr. Obama said only an "inclusive agenda" will end the crisis facing Iraq —a reference to Mr. Maliki’s Shiite Muslim-dominated government that is embroiled in fighting with Sunni-led insurgents led by the Islamic State of Iraq and al-Sham. On Friday, however, Iraqiyya television cast the turmoil in Iraq as a religious conflict and focused its reports on the need to rise to the militant Sunni challenge to the Baghdad […]

Posted On : Published By : Tom Whipple
Category:

Kurds Reel as War Batters Weak Economy

In this ancient Kurdish city’s sprawling bazaar, Sarbaz Gawhar is in a quandary over the impact of his government’s recent territorial advances. While the rapid incursions of Sunni jihadists have helped Kurdish forces cement control of oil-rich Kirkuk province, the conflict in Iraq has added to pressures on the Kurdistan Regional Government’s oil-rich but poorly developed economy. Mr. Gawhar is facing a precipitous collapse in his textile business. Amid severed supply lines, chronic fuel shortages, rising prices and plunging consumer demand, sales are down 90%, with few signs of a recovery. "Yes we’ve taken control of our lands, but the war is hurting our economy," Mr. Gawhar said, surrounded by candy-colored fabric rolls he sells wholesale to stores in dozens of Iraqi cities. "People are starting to panic and hoard, and if things continue this way, it could be a disaster." Since Saddam Hussein’s demise […]

Posted On : Published By : Tom Whipple
Category:

Iraq crisis: Shia militia show of force raises tensions

Share this page Delicious Digg Facebook reddit StumbleUpon Twitter Email Print Shia cleric Moqtada al-Sadr has rallied followers to join a military parade across Iraq, as Jonathan Beale reports from Baghdad Continue reading the main story Thousands of Shia militia loyal to the powerful cleric Moqtada al-Sadr have paraded through the streets of Baghdad, raising sectarian tensions amid continued fighting in areas of Iraq. The cleric, whose Mehdi Army fought the US in Iraq for years, had called for a military parade across the country. Correspondents say the show of force will be seen as a very disturbing development by the Baghdad government. Sunni extremists have seized control of large swathes of territory across Iraq. On Saturday, the militants – led by jihadist group Isis – were reported to have seized a strategically important border crossing to Syria, near the town of Qaim, killing 30 troops after a day-long […]

Posted On : Published By : Tom Whipple
Category:

Price impacts of Iraq turmoil may weigh on US crude export policy shift

Ongoing turmoil in Iraq is not expected to expedite a shift in US crude oil export policy, but a linked increase in gasoline prices could make policymakers more hesitant to liberalize export restrictions. "Even if it may not be true, there may always be a concern for some people that a change in oil export policy will be accused of having led to a run up in pump prices," said Jason Bordoff, a former White House energy adviser for the Obama administration. "It’s hard to overstate the political sensitivity around gasoline prices. Potential impacts on gasoline prices are always something that politicians are aware of," said Bordoff. Article continues below… Oilgram News 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 […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: Shell Could Face Fresh Compensation Claims After Landmark Environmental Ruling

A landmark UK court ruling paves the way for Shell to finally be held accountable for devastating oil pollution in the Niger Delta, Amnesty International said today. "Today’s ruling is a shot across the bows for Shell" said Audrey Gaughran, Amnesty International’s Director of Global Issues. "The court’s message is clear – if you don’t take adequate measures to protect your pipelines from tampering, you could be liable for the damages caused." In a judgment delivered by Mr Justice Akenhead, the London Technological and Construction Court found that short of providing policing or military defence of its pipelines, Shell was responsible for taking reasonable steps to protect them. This would include measures such as installing leak detection systems, surveillance equipment and anti-tamper equipment. The ruling has opened the door for Nigerian claimants to demand compensation if oil leaks were a result of sabotage or theft – if […]

Posted On : Published By : Tom Whipple
Category:

Egypt court confirms death sentences for over 180

The Muslim Brotherhood’s spiritual leader and over 180 others were sentenced to death Saturday by an Egyptian court in the latest mass trial following last year’s overthrow of the country’s Islamist president. The ruling by the southern Minya Criminal Court is the largest confirmed mass death sentence to be handed down in Egypt in recent memory and comes from Judge Said Youssef, who earlier presided over the mass trial. It is the second death sentence for the Brotherhood’s Supreme Guide Mohammed Badie since the crackdown against his group began. The court acquitted more than 400 others in the case and family members of the accused wailed or cheered the verdicts. The case stems from an attack on a police station in the town of el-Adwa near the southern city of Minya on Aug. 14 which killed one police officer and one civilian. Similar revenge attacks […]

Posted On : Published By : Tom Whipple
Category:

PDVSA Profit Surges as Lower Spending Counters Oil Slide

Petroleos de Venezuela SA ’s annual net income rose more than three-fold as the state-owned oil producer spent less on social programs, reduced costs after currency devaluation and sold assets. Profit rose to $15.8 billion last year from $4.3 billion in 2012, according to a bond offering circular dated May 14, a copy of which was obtained by Bloomberg. So-called comprehensive net income was $12.9 billion, up from $5.1 billion. Spending on social projects declined to $13 billion from $17.3 billion in 2012. Ousted Planning Minister Jorge Giordani, who was also removed from PDVSA’s board this month, said in a June 18 letter that the company had started to show “signs of independence” under President Nicolas Maduro, derailing the long-term development goals of former President Hugo Chavez. Venezuela devalued the bolivar by 32 percent in February, 2013, taking the primary official rate to 6.3 bolivars per dollar. The country […]

Posted On : Published By : Tom Whipple
Category:

Rising Oil Prices Could Derail India's Economic Comeback

India’s heavy reliance on imported oil, especially from Iraq, makes it more vulnerable than most countries to the conflict there, with surging oil prices threatening to derail the new prime minister’s plans to resuscitate the economy. Crude-oil prices have shot up to a nine-month high of about $115 per barrel. India imports most of its oil and subsidizes fuel so higher oil prices are particularly painful for Asia’s third-largest economy. They could exacerbate the country’s fiscal and current account deficits as well as its already-high inflation rates. India’s benchmark stock price index has slipped from record highs while the rupee has lost ground against the dollar since June 10. New Prime Minister Narendra Modi has mobilized his ministers to try to contain the fallout from what is evolving into his first economic crisis since taking office less than a […]

Posted On : Published By : Tom Whipple
Category:

Rising Oil Prices Could Derail India’s Economic Comeback

India’s heavy reliance on imported oil, especially from Iraq, makes it more vulnerable than most countries to the conflict there, with surging oil prices threatening to derail the new prime minister’s plans to resuscitate the economy. Crude-oil prices have shot up to a nine-month high of about $115 per barrel. India imports most of its oil and subsidizes fuel so higher oil prices are particularly painful for Asia’s third-largest economy. They could exacerbate the country’s fiscal and current account deficits as well as its already-high inflation rates. India’s benchmark stock price index has slipped from record highs while the rupee has lost ground against the dollar since June 10. New Prime Minister Narendra Modi has mobilized his ministers to try to contain the fallout from what is evolving into his first economic crisis since taking office less than a […]

Posted On : Published By : Tom Whipple
Category:

PDVSA sells four fuel oil cargoes to PetroChina for June: source

Venezuela’s PDVSA sold three cargoes of intermediate fuel oil with 380 CST and one 3% sulfur fuel oil cargo to PetroChina for June, a source familiar with PDVSA’s operations said Friday. The first intermediate fuel oil cargo is loading June 13-15 on the tanker Newton, destined for China. The second cargo is loading June 19-21 on the tanker Maxim, also with China as its destination, and the third is loading June 28-30 on an unknown tanker for delivery to Singapore. The 3%S fuel oil cargo is scheduled to load June 26-28 on an unknown tanker and is also being delivered to Singapore, the source said. Article continues below… Oilgram Price Report Oilgram Price Report is a daily report that covers market changes, market fundamentals and factors driving prices. Oilgram Price Report also brings a vast array of Platts international prices for crude and products, netback tables, and market critical […]

Posted On : Published By : Tom Whipple
Category:

Oil Rigs in U.S. Gain to Record Amid Surging Crude Prices

Rigs targeting oil in the U.S. gained to a record this week as crude prices surged and energy producers ramped up drilling in the Eagle Ford shale formation of South Texas. Oil rigs increased by three to 1,545, the highest level since Baker Hughes Inc. (BHI) separated its oil and gas counts in 1987. Rigs targeting crude rose the most in the Eagle Ford shale, where the count added four to 210. Gas rigs climbed by one to 311, and the total count , including miscellaneous rigs, rose to 1,858, the Houston-based field services company said on its website. Companies are expected to spend a record $165 billion on exploration and production in the U.S. this year, spurred by energy price gains and horizontal drilling that has helped draw record volumes of oil and gas out of U.S. shale formations. The boom has raised domestic crude production to the […]

Posted On : Published By : Tom Whipple
Category:

Texas RRC Report April Production Data

The Texas Rail Road Comission has released their latest report with oil, gas and condensate production for April. The RRC data is always incomplete however and takes many months for the all the data to trickle in. The below chart shows that problem. Texas RRC-EIA The data is barrels per data with the EIA data through March and RRC data through April. The EIA has Texas C+C data is highly linear for the 10 months June 2013 through March 2014, increasing at 48 kb/d for 4 months, 41 kb/d for one month then 49 kb/d for the last 5 months. The EIA has Texas C+C increasing at an average of 48.6 bp/d each month for the last two years. I think that is a little high. I think the production has been increasing at close to 43 kb/d each month but with a recent slow down in that increase. Texas […]

Posted On : Published By : Tom Whipple
Category:

As U.S. Production Increases and Imports Drop, Oil-Exporting Nations Find Another Outlet

With increased domestic production, the U.S. is importing less oil; fortunately for oil-producing nations, Asia looks ready to pick up the slack. Associated Press SINGAPORE—Asia will be able to absorb increasing amounts of crude oil not needed by the U.S. in the years ahead, providing an important outlet for oil suppliers in several regions. With new technology having unlocked vast quantities of North American crude and natural gas previously trapped in shale rock beds, oil suppliers accustomed to selling to the U.S. are already having to search for new customers. They are finding buyers in Asia—particularly China and India. Insufficient Asian reserves and relatively strong economic growth in parts of the region should ease worries among African, Latin American and even Middle Eastern oil producers that they might struggle, or have to offer deep discounts. Producers of displaced oil for now can draw comfort from not having to compete […]

Posted On : Published By : Tom Whipple
Category:

Wave energy project set for Oregon's coast

The Bureau of Ocean Energy Management says it took a major step forward with an effort to test utility-scale wave energy devices off the coast of Oregon. "Wave energy off the West Coast has incredible potential," BOEM Acting Director Walter Cruickshank said in a statement Thursday. Researchers at Oregon State University aim to design, build and operate a project that could generate much as 20 megawatts of electricity from waves. The energy could be sent to the mainland through a subsea cable from a site four nautical miles off the coast of Newport. Cruickshank said his agency would work with the Federal Energy Regulatory Commission on project development. BOEM said it was now ready to move forward after determining there is no competitive interest in the area of the proposed research center. In early June, BOEM awarded a lease to Florida Atlantic University for marine hydrokinetic technology testing. Wave […]

Posted On : Published By : Tom Whipple
Category:

Wave energy project set for Oregon’s coast

The Bureau of Ocean Energy Management says it took a major step forward with an effort to test utility-scale wave energy devices off the coast of Oregon. "Wave energy off the West Coast has incredible potential," BOEM Acting Director Walter Cruickshank said in a statement Thursday. Researchers at Oregon State University aim to design, build and operate a project that could generate much as 20 megawatts of electricity from waves. The energy could be sent to the mainland through a subsea cable from a site four nautical miles off the coast of Newport. Cruickshank said his agency would work with the Federal Energy Regulatory Commission on project development. BOEM said it was now ready to move forward after determining there is no competitive interest in the area of the proposed research center. In early June, BOEM awarded a lease to Florida Atlantic University for marine hydrokinetic technology testing. Wave […]

Posted On : Published By : Tom Whipple
Category:

U.S. oil imports dip

Crude oil imports into the U.S. market are at their lowest levels since the 1990s, the American Petroleum Institute said. API said total imports for May, the last full month for which data are available, averaged just under 9.6 million barrels per day, which is 4.5 percent less than the same time last year. That’s the lowest level for May since 1995. "Last month saw a continuation of recent trends, with strong demand and even stronger production resulting in falling import levels," API Chief Economist John Felmy said in a statement. The U.S. Energy Information Administration said in its weekly petroleum report the United States imported on average 7.2 million bpd for the week ending June 13, which is up 88,000 bpd from previous week. Long-term trends, however, show a general import decline. On the production side, API said the United States produced 8.3 million bpd […]

Posted On : Published By : Tom Whipple
Category:

No political games with energy, Moscow says

Russian Energy Minister Alexander Novak said using energy for geopolitical gain leads to market instability and a poor investment climate. Novak told delegates gathered in Moscow for the World Petroleum Congress the Kremlin isn’t trying to dominate global energy markets for political gain. "We are focused on fundamental market mechanisms," he said in his Thursday address . "Using energy as a tool to achieve geopolitical goals leads to increased instability and worsening of the investment climate in the energy sector, with end users paying for this." Russian energy company Gazprom this week said it would sell future natural gas supplies to Ukraine only with advance payment . Europe gets about a quarter of its gas from Russia, though most of those supplies run through Ukraine’s pipeline system. Europe has looked for alternate gas supplies to break the Russian grip on the region’s energy sector. European Energy […]

Posted On : Published By : Tom Whipple
Category:

Putin orders forces in the Urals on combat alert

MOSCOW (AP) — Russian President Vladimir Putin on Saturday ordered military forces in central Russia on combat alert as well as a drill of airborne troops, a day after Ukraine ordered a cease-fire with pro-Russian rebels. NATO said earlier this week that Russia has resumed a military build-up on the border with Ukraine where pro-Russian separatists have been fighting government forces for weeks in a conflict that has left about 300 people dead and displaced over 34,000. Ukrainian President Petro Poroshenko ordered his forces to cease fire Friday and halt military operations for a week, the first step in a peace plan he hopes will end the fighting that has killed hundreds. The Kremlin dismissed the plan, saying it sounded like an ultimatum and lacked any firm offer to open talks with insurgents. The combat alert in the central military district, which encompasses the Volga region and the Ural […]

Posted On : Published By : Tom Whipple
Category:

Heinberg on peak oil and options for energy transition

Post Carbon Senior Fellow Richard Heinberg was interviewed on peak oil and energy transition options at RT. 3 Comments on "Heinberg on peak oil and options for energy transition" Davey on Fri, 20th Jun 2014 8:17 am  Energy transition will have to include drastic changes in attitudes and lifestyles. This will “Only” happen with a ground shaking crisis where BAU still functions but at a precarious level. After all we are on a knife edge of collapse from here on out. Collapse means little energy to zero energy in many locations. Last crisis sooner the better spoken objectively. On the subjective side “BAU” if you can hear me I need 2 years please. Obama had a bit of straightforwardness yesterday : “It is in our national security interests not to see an all-out civil war inside of Iraq, not just for humanitarian reasons, but because that ultimately can be […]

Posted On : Published By : ASPO-USA
Category:

Bottom Up, Top Down

Those of us who have some grasp of the urgent dilemmas posed by climate change and peak oil face a terrible conundrum. The whole system of industrial civilization is moving toward collapse. How can we reverse course to avert an unprecedented series of crises that might entail massive human mortality and the more or less permanent crippling of planetary ecosystems? I can think of two broad strategies: Top down. Convince the folks in charge that it’s in their interest to change direction—that is, to reorganize financial, food, transport, and manufacturing systems on a no-growth, low-carbon model. Advantage: this audience at least theoretically has the power to organize a comprehensive and rapid energy descent. Recall the rapidity with which the US re-organized its economy at the start of World War II. Disadvantages: the elites’ incentives are all in the current direction of growth-at-any-cost, many of the key players remain in […]

Posted On : Published By : ASPO-USA
Category:

Oil Remains Elevated on Iraq Turmoil

Crude-oil futures were mixed in Asian trading hours Friday but remained elevated as the situation in Iraq continued to deteriorate. On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $106.58 a barrel at 0542 GMT, up $0.15 in the Globex electronic session. August Brent crude on London’s ICE Futures exchange fell $0.02 to $115.04 a barrel. Islamist rebels took control of Iraq’s largest oil refinery on Thursday, according to workers at the refinery, although an Iraqi army spokesman said the Iraqi military was in control of the refinery. Meanwhile, U.S. President Barack Obama Thursday ordered up to 300 members of U.S. special-operations forces to Iraq, but ruled out any immediate airstrikes against Sunni extremists. An overnight spike in Brent prices implies that the oil market has little confidence that Iraq can organize a quick and effective campaign to regain control of its […]

Posted On : Published By : Tom Whipple
Category:

Brent Heads for Second Weekly Gain on Iraq Violence; WTI Steady

Brent crude headed for a second weekly gain as the U.S. said it will send military advisers to Iraq amid escalating violence in the OPEC producer. West Texas Intermediate was steady in New York. Futures were little changed in London after rising the past three days. President Barack Obama said he’s dispatching as many as 300 troops to help the Iraqi army battle an insurgency, and the U.S. is prepared to take additional “targeted” action if necessary. WTI is trading near a technical level where last week’s price advance stalled, data compiled by Bloomberg show. “Tensions have grown within the last couple of days,” Hannes Loacker , an analyst at Raiffeisen Bank International AG in Vienna, said today by e-mail. “If there’s a realistic threat that the production in the south will be affected, then oil prices will rise much higher. But, as of today, it seems not to […]

Posted On : Published By : Tom Whipple
Category:

NYMEX July gas settles 7.5 cents lower on bearish storage report

The NYMEX July natural gas futures contract settled 7.5 cents lower at $4.584/MMBtu Thursday after a day of choppy trading as the market reacted to a record sixth straight triple-digit injection to US storage inventories. The US Energy Information Administration on Thursday reported a 113 Bcf injection to storage for the week that ended Friday, somewhat higher than the 107-111 Bcf expected by most analysts. The build was well above the 92 Bcf injection reported in the same week last year and the five-year average of 87 Bcf, and marked a record sixth straight week of 100 Bcf or higher injections. Article continues below… Gas Daily Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate pipeline and pooling points in major U.S. markets. Gas Daily keeps you informed about complex state and federal regulations that affect competition in the gas industry. You will […]

Posted On : Published By : Tom Whipple
Category:

Natural Gas Prices Fall After Report on Stockpiles' Increase

Natural-gas prices fell Thursday after the release of a report showing a larger-than-expected increase to U.S. stockpiles last week. That’s the sixth straight week stockpiles have increased by more than 100 billion cubic feet, an unprecedented run, according to data from the U.S. Energy Information Administration dating back to 1994. Contributing to the decline were forecasts calling for milder temperatures next week in the West and parts of the Northeast. Natural gas for July delivery fell 1.6% or 7.5 cents, to $4.584 a million British thermal units on the New York Mercantile Exchange. The EIA said 113 billion cubic feet of gas were added to storage in the week ended June 13. That is four bcf more than consensus expectations for a 109-bcf build, based on a Wall Street Journal survey of traders and analysts. Still, the total gas in storage remains at relatively low levels […]

Posted On : Published By : Tom Whipple
Category:

Natural Gas Prices Fall After Report on Stockpiles’ Increase

Natural-gas prices fell Thursday after the release of a report showing a larger-than-expected increase to U.S. stockpiles last week. That’s the sixth straight week stockpiles have increased by more than 100 billion cubic feet, an unprecedented run, according to data from the U.S. Energy Information Administration dating back to 1994. Contributing to the decline were forecasts calling for milder temperatures next week in the West and parts of the Northeast. Natural gas for July delivery fell 1.6% or 7.5 cents, to $4.584 a million British thermal units on the New York Mercantile Exchange. The EIA said 113 billion cubic feet of gas were added to storage in the week ended June 13. That is four bcf more than consensus expectations for a 109-bcf build, based on a Wall Street Journal survey of traders and analysts. Still, the total gas in storage remains at relatively low levels […]

Posted On : Published By : Tom Whipple
Category:

Natural-Gas Export Facility Clears Federal Hurdle

WASHINGTON—A federal agency on Thursday approved a natural-gas export terminal in Louisiana, marking the second time the U.S. government has signed off on such a project. The Federal Energy Regulatory Commission authorized Cameron LNG LLC, a unit of San Diego-based Sempra Energy , to operate and construct a liquefied-natural-gas export facility in Hackberry, La., just east of the Texas border. The approval focused on the project’s environmental assessment. It was the last major regulatory hurdle Cameron had to overcome and mostly clears the way for the nearly $10 billion project to begin construction. Sempra expects to begin construction later this year and will export up to 1.7 billion cubic feet of natural gas a day by 2019. In the wake of the U.S. oil and natural gas boom, companies have been scrambling in the past few years to get federal approval to export natural gas, a reversal from market […]

Posted On : Published By : Tom Whipple
Category:

Iran Nuclear Talks Tough, Intense as Major Gaps Remain

Talks between Iran and six major powers inched forward this week, with diplomats describing hints of progress Thursday but still citing "important differences" on most key issues. Diplomats from the six powers on Thursday described four days of negotiations in the Austrian capital as intense, tough and serious. While there was no sign of any major breakthrough in the talks, some officials pointed to positive signs. Everyone is "working with serious purpose" to reach a deal by July 20, one Western diplomat said, adding that there was "more clarity in seeing how this could be done." The discussions this week have been "a lot more real," the person said. A second official from the six-power group—the U.S., the U.K., France, Germany, China and Russia—said there is "no doubt" both sides want to reach a deal. But the official said this week was "another really tough round." "Unsurprisingly…there are still […]

Posted On : Published By : Tom Whipple
Category:

In Chaos, Iraq’s Kurds See a Chance to Gain Ground

The chair Col. Imad Muhammad sat in belonged to a commander in the Iraqi Army. So did the tiny cup from which he was drinking his tea, the ashtray where he snuffed out his cigarettes and the Ping-Pong table and treadmill outside his office. “They left everything behind,” said Colonel Muhammad, of the Iraqi soldiers who fled last week after Islamist extremists besieged northern Iraq. Colonel Muhammad is an officer in the pesh merga, the Kurdish security forces that have occupied an air base, once home to the American military and then the Iraqi government, here in Kirkuk. In doing so, they claimed for the Kurds a divided city that many of them regard as their spiritual homeland. It is rich in oil, too, which could accelerate the Kurds’ longstanding drive for economic independence and eventual statehood. But as he spoke in an interview this week, […]

Posted On : Published By : Tom Whipple
Category:

Will the Iraqi Siege Cause Oil and Gasoline Prices to Spike?

Should we be worried about a major spike in oil prices—and summer gas prices—because of the sectarian conflict in Iraq ? It’s an important question in the markets right now, because every $10 increase in the price of oil shaves 0.5 percent of global growth. I’m cautiously optimistic for the moment that the answer will be: no. Oil, as I’ve written before , is amongst the most fear driven commodities. Supply and demand are supposed to rule markets, but every time there’s a major conflict in the oil rich Middle East—from the Iranian revolution to the Gulf War—prices go up about 30 percent higher than they should be, regardless of the facts on the ground. Even when supply isn’t interrupted, even when there’s plenty of oil to fuel world markets, the price of crude is typically driven by fear rather than reality. So what are the […]

Posted On : Published By : Tom Whipple
Category:

Fierce battles for key Iraqi sites

Islamist-led militants and pro-government forces are engaged in fierce battles for the Baiji oil refinery and Tal Afar airport in northern Iraq. Baiji, Iraq’s biggest refinery, is surrounded by the rebels, who say they have seized most of Tal Afar airport. The fighting comes a day after the US said it would send some 300 military advisers to help the fight against the insurgents. President Barack Obama stressed that US troops would not fight in Iraq. US Secretary of State Kerry is expected to travel to Iraq soon to press for a more representative cabinet, hoping this could ease tensions between the country’s rival Muslim sects. Iraqi Prime Minister Nouri Maliki has been accused of pursuing anti-Sunni policies, pushing […]

Posted On : Published By : Tom Whipple
Category:

Challengers Emerge to Replace Divisive Maliki

BAGHDAD — Iraqi officials said Thursday that political leaders had started intensive jockeying to replace Prime Minister Nuri Kamal al-Maliki and create a government that would span the country’s deepening sectarian and ethnic divisions, spurred by what they called encouraging meetings with American officials signaling support for a leadership change. President Obama implicitly added his voice on Thursday to the call for change, saying any Iraqi leader must be a unifier. He declined to endorse Mr. Maliki. The jockeying began as a series of meetings with American officials were held here in which, according to at least two participants, they saw the first indications that the Americans would like to see a replacement for Mr. Maliki, whose marginalization of non-Shiites since United States forces left Iraq in 2011 has made him a polarizing figure. At least three people, who like Mr. Maliki are all members of the Shiite majority, […]

Posted On : Published By : Tom Whipple
Category:

China to Move Citizens in Iraq

BEIJING–China said it would move an undisclosed number of its more than 10,000 citizens in Iraq away from danger zones amid an intensifying insurgency there and urged Baghdad to protect its people and interests. At a daily press briefing on Thursday, China Foreign Ministry spokeswoman Hua Chunying said those in dangerous areas could be moved to either safer places in Iraq or neighboring countries. Ms. Hua said most Chinese nationals in the country are in relatively safe areas already. "China is willing to continue to provide assistance to Iraq at the request of the Iraqi side in antiterrorism and reconstruction works," she said. "We also hope that Iraqi side could take concrete measures to ensure security of Chinese institutions and personnel." China’s presence in Iraq has grown in recent years as the Middle Eastern country has become a growing source of its imported oil. Imports from Iraq rose roughly […]

Posted On : Published By : Tom Whipple
Category:

Army: Militants regrouping in Iraq refinery attack

The army officer in charge of protecting a key Iraqi refinery besieged by Sunni militants says he fears insurgents are regrouping to resume their assault on the key facility. The fight over the Beiji refinery, some 250 kilometers (155 miles) north of Baghdad, began Tuesday. Col. Ali al-Qureishi said the latest attempt by fighters came late Thursday. Al-Qureishi told The Associated Press on Friday that he believed the militants were regrouping to launch a new attack. There was no immediate way to independently verify al-Qureishi’s claims. Its loss would be a devastating symbol of the Baghdad government’s powerlessness in the face of the offensive by Sunni militants of the Islamic State of Iraq and the Levant. The militants captured much of northern Iraq in a lightning offensive last week. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below. […]

Posted On : Published By : Tom Whipple
Category:

U.S.: No major disruption to Iraqi oil exports

Though the situation in Iraq requires constant monitoring, there’s been no major disruption to its crude oil exports, a U.S. State Department spokeswoman said. Militants with the Islamic State of Iraq and Syria laid siege to a key oil refinery in Baiji, about 130 miles north of the Iraqi capital. U.S. State Department spokeswoman Jen Psaki said during a regular press briefing production was shut down at the refinery for several days before the attack. The closure of the refinery, which feeds the domestic market, means Iraq may have to import some energy supplies for neighboring countries, though exports aren’t limited. "There’s no impact on Iraq’s crude oil exports, and we haven’t seen any major disruptions in oil supplies in Iraq," she said . "But we’re certainly constantly monitoring the global oil supply and demand situation." The growing Sunni insurgency has sparked fears about the stability […]

Posted On : Published By : Tom Whipple
Category:

Kurdistan faces ongoing refugee challenge

Kurdistan faces ongoing refugee challenge Many of those fleeing Mosul were forced to pack and leave quickly, some on foot, as fighters for the Islamic State of Iraq and al-Sham (ISIS) moved into the city. "They are wearing Iraqi Army uniforms and driving in Iraqi Army vehicles," said Abdul Sadiq, who fled the city with his family. "They are also in charge of the checkpoints, but they are letting people leave freely." Over 500,000 people have been displaced from Salahaddin, Ninewa, and Kirkuk provinces as ISIS has chased away gover… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

Posted On : Published By : Tom Whipple
Category:

Nigeria: India Replaces U.S. As Largest Importer of Nigeria's Crude

India ahas replaced the United States of America as the largest importer of Nigeria’s crude with China and Malaysia following closely, the Nigerian National Petroleum Corporation (NNPC) said yesterday. Nigeria has been facing dwindling crude oil sales to the United States as shale oil and gas production there has increased, reducing demand for imports. India now purchases some 30 percent of Nigeria’s daily crude production which currently hovers around 2.5million barrels, while crude oil sales to the US by now stands at about 250,000 barrels per day, according to a statement by NNPC’s spokesman Ohi Alegbe. Speaking in Moscow, Russia at the on-going 21st World Petroleum Congress, Coordinator Corporate Planning and Strategy, Nigerian National Petroleum Corporation, Dr. Tim Okon also told newsmen that the Asian countries have since replaced the US as the biggest consumers of Nigerian crude. Dr. Okon, who also doubles as the Director of Transformation of […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: India Replaces U.S. As Largest Importer of Nigeria’s Crude

India ahas replaced the United States of America as the largest importer of Nigeria’s crude with China and Malaysia following closely, the Nigerian National Petroleum Corporation (NNPC) said yesterday. Nigeria has been facing dwindling crude oil sales to the United States as shale oil and gas production there has increased, reducing demand for imports. India now purchases some 30 percent of Nigeria’s daily crude production which currently hovers around 2.5million barrels, while crude oil sales to the US by now stands at about 250,000 barrels per day, according to a statement by NNPC’s spokesman Ohi Alegbe. Speaking in Moscow, Russia at the on-going 21st World Petroleum Congress, Coordinator Corporate Planning and Strategy, Nigerian National Petroleum Corporation, Dr. Tim Okon also told newsmen that the Asian countries have since replaced the US as the biggest consumers of Nigerian crude. Dr. Okon, who also doubles as the Director of Transformation of […]

Posted On : Published By : Tom Whipple
Category:

What the Iraq Crisis Means for Talks on Iran’s Nuclear Future

As the United States and Iran maneuver around one another to shore up the government in Iraq , the two countries are simultaneously negotiating Iran’s nuclear future. So the question arises: What would the Middle East look like if Tehran and Washington could actually reach a deal on the nuclear issue? Already, Secretary of State John Kerry is suggesting cooperation with Iran to halt the radical Sunni upsurge in Iraq. Despite the tortured history between the United States and Iran, there is some precedent for cooperation, including Iran’s willingness to provide intelligence on Al Qaeda after Sept. 11, 2001. Britain’s foreign secretary, William Hague, has moved to reopen the British Embassy in Tehran, shut since 2011. “Iran is an important country in a volatile region” that has been “divisive and sectarian,” he said. He added, perhaps with more hope than experience: “Iran does have the capability to play a […]

Posted On : Published By : Tom Whipple
Category:

India Bets on Easing Iran Oil Curbs as Fighting Engulfs Iraq

India spent the past five years cutting its Iranian oil imports to comply with international sanctions. Now, Asia’s second-largest energy user needs the curbs to ease as fighting threatens its supply from Iraq. Tougher U.S. sanctions on Iran meant India was obliged to halve purchases from the Persian Gulf nation since 2009. Indian refiners, which get 85 percent of their crude from overseas, say they expect the restrictions to soften. “We may be exempted from cutting imports from Iran this year,” P.P. Upadhya, managing director of Mangalore Refinery and Petrochemicals Ltd., the second-biggest Indian buyer of Iranian crude, said by phone on June 18. “We expect the U.S. will be softer on Iran as the conflict deepens in Iraq .” Benchmark crude prices are trading at a nine-month high as Islamic militants battle government forces in Iraq, which is now India’s second-biggest oil supplier. That’s boosting costs for importers […]

Posted On : Published By : Tom Whipple
Category:

LNG project in Australia scrubbed

Australian energy company Santos said Thursday it was mulling its options after finding the Bonaparte LNG project doesn’t meet its commercial interests. Santos said it would consider other development options for the Petrel, Tern and Frigate natural gas fields, including the possibility of building a pipeline from the fields in the Timor Sea. Santos has a 40 percent interest in the developments alongside French company GDF Suez . "While the partners firmly believe the fields have material value, having been fully appraised, their future development using floating [liquefied natural gas] technology … does not currently meet the companies’ commercial requirements," the company said in a joint statement with its French partner. Dubbed the Bonaparte LNG project, the partners said they’re no longer moving ahead with front-end engineering and design. Australia is a leading exporter of LNG and energy companies operating there have secured long-term supply contracts with Asian countries […]

Posted On : Published By : Tom Whipple