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Beirut delays offshore energy auction

Lebanon’s government postponed an offshore natural gas auction after rancor erupted Tuesday over the amount of revenue Beirut would get from energy companies. The Lebanese government estimates there are 95 trillion cubic feet of natural gas and 750 million barrels of oil in its territorial waters. A committee led by Prime Minister Tammam Salam has only met a few times to discuss offshore prospects since it was formed early this year. A source close to ministerial negotiations for the auction told The Daily Star newspaper in Beirut policymakers "believe that the state should have a bigger royalty and higher taxes from the profits generated by the oil companies once the actual drilling starts." Royalties of between 5 and 12 percent were seen as too low when compared with other countries. Lebanese Energy and Water Minister Arthur Nazarian is set in August to outline a new date […]

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Natural Gas Discoveries Fueling Gaza Crisis?

Yesterday [Tuesday July 8th], Israeli defence minister and former Israeli Defence Force (IDF) chief of staff Moshe Ya’alon announced that Operation Protective Edge marks the beginning of a protracted assault on Hamas. The operation "won’t end in just a few days," he said, adding that "we are preparing to expand the operation by all means standing at our disposal so as to continue striking Hamas." This morning, he said: "We continue with strikes that draw a very heavy price from Hamas. We are destroying weapons, terror infrastructures, command and control systems, Hamas institutions, regime buildings, the houses of terrorists, and killing terrorists of various ranks of command… The campaign against Hamas will expand in the coming days, and the price the organization will pay will be very heavy." But in 2007, a year before Operation Cast Lead, Ya’alon’s concerns focused on the 1.4 trillion cubic feet of natural gas […]

Posted On : Published By : Tom Whipple
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Nigeria: Aviation Fuel Scarcity Paralyse Scheduled Operations at Nation's Airports

Visit This Day (Lagos) Scarcity of aviation fuel known as Jet A1, has paralysed flight operations in Nigeria, leading to delays and cancellation of flights. The non-availability of the product which started few days ago, is forcing passengers to wait as long as seven hours before being airlifted, while flights to some destinations were cancelled due to the inability of the airlines to source the product. This had given rise to increase in fares, which might double by weekend if the scarcity continues as the largest Nigerian operator, Arik Air, has started merging its flights in order to ensure that passengers are taken to their destinations. A source from one of the domestic airlines said although the scarcity had started biting hard, the airline’s management has good relationship with its vendors so the scarcity would not disrupted its flights. But that depends on the size of the fleet because […]

Posted On : Published By : Tom Whipple
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Nigeria: Aviation Fuel Scarcity Paralyse Scheduled Operations at Nation’s Airports

Visit This Day (Lagos) Scarcity of aviation fuel known as Jet A1, has paralysed flight operations in Nigeria, leading to delays and cancellation of flights. The non-availability of the product which started few days ago, is forcing passengers to wait as long as seven hours before being airlifted, while flights to some destinations were cancelled due to the inability of the airlines to source the product. This had given rise to increase in fares, which might double by weekend if the scarcity continues as the largest Nigerian operator, Arik Air, has started merging its flights in order to ensure that passengers are taken to their destinations. A source from one of the domestic airlines said although the scarcity had started biting hard, the airline’s management has good relationship with its vendors so the scarcity would not disrupted its flights. But that depends on the size of the fleet because […]

Posted On : Published By : Tom Whipple
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China Moves Oil Rig From Contested Waters

In this file photo, the Haiyang Shiyou oil rig 981 is pictured in the South China Sea. Associated Press BEIJING—China is moving a drilling rig out of South China Sea waters claimed by both China and Vietnam, easing a two-month standoff that sparked deadly riots in Vietnam and tense encounters between Chinese and Vietnamese vessels. The move could provide an opening for Beijing and Hanoi to repair relations and comes as the U.S. steps up criticism of China’s efforts to enforce its claims to the strategically important sea. But China’s government said its companies still had the right to explore the contested waters, raising the possibility that tensions could flare again. China Oilfield Services Ltd. , a unit of state-owned China National Offshore Oil Corp., said its deep-water HYSY 981 drilling rig had completed exploration and drilling operations off Triton Island, or Zhongjian Island in Chinese. The island is […]

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China’s second-quarter GDP rises 7.5%

China’s economy expanded by 7.5 per cent in the second quarter , accelerating slightly from the first quarter and improving the government’s chances of realising its target of 7.5 per cent growth for the full year. The figure, which exceeded consensus estimates of 7.4 per cent, shows that the government’s “mini-stimulus” measures have gained some purchase. More On this story Chinese growth 5 themes to watch for On this topic IN Chinese Economy China’s leadership had said it was willing to tolerate slower rates of growth to achieve structural reform, but seems to have blinked when the economy grew by the slowest rate in 18 months in the first quarter, at 7.4 per cent. Data suggest Beijing is on track to meet its annual forecast for gross domestic product to increase by 7.5%. Here are reactions from five economists Economists have warned that supporting short-term growth could come at […]

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China’s G.D.P. Expands, but Businesses Aren’t Feeling the Effect

Millions of Chinese businesspeople like Ou Chengbi are seeing scant signs of recovery in their country’s economy, even as data released Wednesday morning suggest growth is stabilizing. Ms. Ou, a butcher at an open-air market on the outskirts of Guangzhou in southeastern China, dripped perspiration near the unrefrigerated slabs of beef in her stall as she described how as recently as last winter, she could still chop up an entire cow each day and sell it all. “Now I can only sell half a cow a day,” she said. The National Bureau of Statistics in Beijing said Wednesday that growth in gross domestic product edged up in the second quarter to 7.5 percent compared with a year ago. But independent surveys of businesses across China show that in sector after sector, sales and confidence are still deteriorating. “All of them are pointing in the opposite direction […]

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EIA conference speakers warn of US light crude oil’s ‘day of reckoning’

The US could find its light crude oil production growth stymied if it doesn’t allow more of it to be exported, speakers warned during the US Energy Information Administration’s 2014 energy conference’s first day. John R. Auers, executive vice-president of Turner, Mason & Co. Consulting Engineers in Dallas, described what he termed “a day of reckoning” during a July 14 morning session. This day would come, he said, when US crude production exceeds refining capacity to a point that prices become so heavily discounted to comparable overseas grades that producers decide not to increase production further. IHS Vice-Chairman Daniel Yergin agreed. “The rationales for a crude oil export ban are gone, but the ban is still in place,” he said during his luncheon remarks. “We see a risk of a $15-25/bbl domestic light crude discount being locked in during the next couple of years, potentially limiting additional investment.” […]

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North Texas city rejects partial fracking ban

DENTON, Texas (AP) — The council governing a North Texas city that sits atop a large natural gas reserve rejected a bid early Wednesday morning to ban further permitting of hydraulic fracturing in the community after eight hours of public testimony. Denton City Council members voted down the petition 5-2, sending the proposal to a public ballot in November. Fracking involves blasting a mix of water, sand and chemicals deep into underground rock formations to release trapped oil and gas. While the method has long stirred concerns about its effects on the environment and human health, proponents argue that fracking can be done safely and is cleaner than other forms of energy extraction. And industry groups and state regulators had warned such a ban could be followed by litigation and a severe hit to Denton’s economy. Barry Smitherman, chairman of the Railroad Commission, the Texas oil and gas regulator, […]

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Hungry U.S. Power Plant Turns to Russia for Coal Shipment

When New Hampshire ’s largest utility needed to rebuild coal supplies after the past frigid winter, it turned to Russia rather than Appalachia in the U.S. Northeast or Wyoming ’s Powder River Basin. The Doric Victory, a bulk carrier the length of two football fields, transported the fuel almost 4,000 miles (6,436 kilometers) from Riga , Latvia , last month to Public Service of New Hampshire’s Schiller power plant in Portsmouth, a 150-megawatt facility that’s produced electricity since 1952. Utilities in the U.S. are scrambling for coal, on pace to increase imports 26 percent this year, as railroad bottlenecks slow deliveries and electricity demand climbs with an improving economy. Russia, the world’s third-largest exporter of the fuel, will boost shipments 3.9 percent to 106 million metric tons this year, IHS Energy forecasts, part of President Vladimir Putin ’s plan to expand Russia’s role in the global coal market. “Everyone’s […]

Posted On : Published By : Tom Whipple