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Iran says ‘completing’ nuclear steps agreed with IAEA

VIENNA/DUBAI (Reuters) – Iran is "in the process" of completing measures on transparency in its nuclear research that were agreed with the U.N. atomic agency, a senior Iranian official was quoted as saying, suggesting Tehran had at least partly met a Monday deadline for cooperation. Atomic energy chief Ali Akbar Salehi did not give details in remarks reported by the official IRNA news agency. Those remarks came a few days after diplomatic sources in Vienna told Reuters the U.N. watchdog’s investigation into suspected atomic bomb research by Iran appeared to be making only limited headway. Western officials say Iran must address the questions of the International Atomic Energy Agency (IAEA). They say that would be an important boost for parallel diplomatic efforts to end the dispute over a nuclear program the country says is peaceful. Under an accord reached by the U.N. agency and Iran in November in an […]

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China oil, gas production up, Sinopec says

China Petroleum and Chemical Corp. said Monday oil and natural gas production increased 8 percent year-on-year, with most of the gains coming from overseas. The company, known also as Sinopec, said combined oil and natural gas production during the first half of the year was up 8 percent from the same time last year. Crude oil production in China of 154.1 million barrels of oil was up 0.3 percent year-on-year, though the 23.7 million barrels produced overseas was more than twice what Sinopec produced during first half 2013. Natural gas production of 354.8 billion cubic feet was 9.5 percent higher year-on-year, though Sinopec offered no breakdown of the origin. The company said net profits through June 30 were $5.2 billion, up 7.2 percent from the same time last year. In terms of the Chinese economy itself, Sinopec said it expected steady growth with gross domestic product up by 7.4 […]

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Clegg: Energy, climate to top Indian agenda

British Deputy Prime Minister said energy and climate change would be near the top of his agenda during a three-day visit to India. "There is already $26.5 billion of trade every year between India and the U.K.," he said before leaving Monday. "India invests more in the UK than it does in the rest of the European Union combined, and no country in the G20 invests more in India than Britain does." The deputy prime minister led a delegation to India this week to discuss British opportunities in the growing Indian economy . His office said climate change and energy were expected to be near the top of the agenda for this week’s meetings. A report from financial firm Dun & Bradstreet said last week the Indian gross domestic product should grow by 5.5 percent next year, up from the 5.2 percent expected this year. Dun & Bradstreet India […]

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Energy reform could increase Mexico’s long-term oil production by 75%

Source: U.S. Energy Information Administration, International Energy Outlook 2014 preliminary projections On August 11, Mexico’s president signed into law legislation that will open its oil and natural gas markets to foreign direct investment, effectively ending the 75-year-old monopoly of state-owned Petróleos Mexicanos (Pemex). These laws, which follow previously adopted changes in Mexico’s constitution to eliminate provisions that prohibited direct foreign investment in that nation’s oil and natural gas sector, are likely to have major implications for the future of Mexico’s oil production profile. As a result of the developments in Mexico over the past year, EIA has revised its expectations for long-term growth in Mexico’s oil production. Although there are many complexities to the new reform and many details that still must be settled before the reforms can take effect, reform is expected to improve the long-term outlook for growth in Mexico’s petroleum and other liquids production. Analysis in […]

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All Coal-Mining Rights Issued in India Since 1993 Are Ruled Illegal

Miners haul baskets full of coal as they load a truck in the northeastern state of Meghalaya, in this file photo. Agence France-Presse/Getty Images NEW DELHI—India’s Supreme Court ruled on Monday that all coal-mining licenses distributed since 1993 are illegal, dealing a significant blow to operators and providing another setback to the image of the country’s administration. The three-judge bench led by Chief Justice R.M. Lodha said the allotments by past governments weren’t carried out in a transparent manner and no objective criteria were followed. Guidelines were also breached, it added. However, the court didn’t immediately cancel the 200 or so licenses given out since 1993 whose fate now hangs in the balance. "Further hearing is required to determine whether there is a need for canceling all the coal block allocations," the bench said in the order. It will next hear the case on Sept. 1. The order follows […]

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China’s BYD Posts Better Electric Car Sales in First Half of Year

HONG KONG— BYD Co. , China’s leading producer of electric cars, said its sales of the cutting-edge vehicles rose sixfold during the first half of the year, following moves by Beijing to encourage green cars to tackle pollution. Still, the jump—which brought BYD’s sales of full-electric and plug-in hybrid cars to roughly 7,600 in the six months ended June 30—wasn’t big enough to signal there will be serious mass-market demand for the pricey cars, analysts said. And the increased sales of electric cars couldn’t offset a 27% decline in sales of traditional gasoline-powered cars, which still account for nearly half of BYD’s total revenue. Poor sales of gasoline-powered cars and continued losses from a division that makes solar panels pushed BYD’s first-half net profit down more than 15% to CNY361 million versus the previous year, the company said Sunday. BYD’s weak results underscore the challenges China’s car makers face […]

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Saudi Aramco Chief Executive Warns on Oil Supply

STAVANGER, NORWAY—The chief executive officer of Saudi Aramco, the world’s biggest oil producer, said Monday that worries such as rising oil-sector costs and global turmoil could lead to a lack of oil supplies down the line, if oil companies fail to make sufficient investments. "The factors I just highlighted are likely to put downward pressure on supplies over the longer term, if the industry fails to make prudent and timely investments," Khalid A. Al-Falih said at the Offshore Northern Seas energy conference. The factors that could threaten global oil supply include rising costs and cost overruns on oil mega projects, Mr. Al-Falih said. He also pointed to manpower shortages, climate change issues, low oil demand growth amid global economic weakness in the short term, and turmoil in oil-producing regions such as Africa, the Middle East and the former Soviet Union. "For now, however, the market is shrugging them off, […]

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Permian Basin crude prices depressed by lack of pipelines: analyst

Wildfire growth in Permian Basin crude output is outpacing the building of infrastructure to move the oil out of West Texas and eastern New Mexico to Gulf Coast refineries or the oil hub at Cushing, Oklahoma, causing a glut of crude in the region that will depress crude prices until the beginning of 2015, according to an analyst. Platts unit Bentek Energy projects August Permian crude production at 1.7 million b/d, with current pipeline capacity out of the region at 1.27 million b/d. Rail will play a negligible role in moving crude in the Permian, expected to carry only 627,000 b/d in 2015, Bentek data shows. "WTI Midland/Cushing differentials should revert to historical levels in early 2015 with completion of Plains’ Sunrise pipeline," John Mayes, director of special studies at Turner, Mason, told attendees in Houston at last week’s RBN Energy/Turner Mason conference called "Surviving the Flood." Demand for […]

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Slow Going for Natural-Gas Powered Trucks

A factor limiting natural-gas-powered sales is the arrival of new, more efficient diesel engines. Pictured, a trucking firm’s fuel pump in Florida. Edward Linsmier for The Wall Street Journal In the midst of the strongest market for commercial trucks in eight years, North American sales of natural-gas-powered haulers are just crawling along. Higher purchase prices compared with diesel trucks, improved diesel fuel economy and continued scarcity of fueling stations are damping natural-gas-powered truck demand. About 10,480 of the heavy-duty trucks are expected to be sold this year, up 20% from the 8,730 sold last year, according to Power Systems Research. However, some forecasters had expected sales to about double to 16,000 vehicles this year amid the trucking industry’s enthusiasm for natural gas a year ago. What happened? A big roadblock remains the premium for a heavy-duty gas truck—$50,000 more than the about $150,000 for a new diesel-powered truck. In […]

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IEA Chief Says Europe Must Rely on Russian Gas

STAVANGER, Norway—Europe has limited options for finding natural-gas supplies from outside of Russia despite tensions over Ukraine, the International Energy Agency’s chief executive, Maria van der Hoeven, said on Monday. "In the short term, Europe has very, very little means to diversify its gas imports," Ms. van der Hoeven said on the sidelines of the Offshore Northern Seas energy conference. "As far as we can see, Russian gas will be needed in Europe." About a third of Europe’s gas supply comes from Russia and a fifth is supplied by Norway, while other key sources include imported liquefied natural gas and producers like the Netherlands and the U.K., Ms. van der Hoeven said. "If you want to change that and diversify, it takes time. You can’t do it overnight," she said. The agency—which advises industrialized nations on oil and gas policies—forecast last year that the European Union’s annual gas imports […]

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