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China September factory activity edges up but employment shrinks

BEIJING (Reuters) – China’s manufacturing sector unexpectedly picked up some momentum in September even as factory employment slumped to a 5-1/2-year low, a potential source of worry for Communist leaders who prize social stability above all else. Signs of a weakening labor market reinforced expectations that China would further relax financing conditions in coming weeks, but stop short of cutting interest rates or loosening the reserve requirement for all banks to support the economy. The HSBC/Markit Flash China Purchasing Managers’ Index (PMI) rose to 50.5 in September from Augusts’ final reading of 50.2, slightly above the 50 mark separating expansion from contraction which had been expected by economists in a Reuters poll. "We believe liquidity conditions will be easy," said Ting Lu, an economist at Bank of America-Merrill Lynch. "But we don’t expect a universal cut in interest rates or the reserve requirement ratio." Instead, policymakers are likely to […]

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China pledges to boost climate cooperation with UN

UNITED NATIONS, Sept. 22 (Xinhua) — Chinese Vice Premier Zhang Gaoli said here Monday that Beijing will offer 6 million U.S. dollars to support UN Secretary General Ban Ki-moon in promoting South-South cooperation on climate change. Zhang, who is here to attend Tuesday’s UN Climate Summit as Chinese President Xi Jinping’s special envoy, made the pledge in a meeting with Ban. Zhang stressed that China appreciates UN leader’s proposal to hold the UN Climate Summit, adding that the summit would have an important and positive influence on the international cooperation in dealing with climate change. The Chinese government and Chinese leaders attach great importance to the issue of climate change as well as the role of the UN in tackling the issue, Zhang added. Noting that the UN will celebrate the 70th anniversary of its establishment next year, the Chinese presidential envoy suggested that by taking the advantage of […]

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Pump Prices in U.S. Fall to Lowest Since February

Gasoline prices at U.S. pumps may decline further from a seven-month low as falling crude costs and less stringent fuel regulations boost supply, according to Lundberg Survey Inc. The average price of regular gasoline slid 8.9 cents in the two weeks ended Sept. 19 to $3.3741 a gallon, the lowest since Feb. 7, according to the survey, which is based on information obtained at about 2,500 filling stations. Prices are 14.66 cents lower than a year ago and may drop by a few more cents, the Camarillo, California-based researcher said. U.S. crude prices have dropped by more than $10 a barrel since reaching this year’s peak in June. Refineries ran at 93 percent of capacity in the week ended Sept. 12, the most for this time of year since 2006, taking advantage of rising oil production from shale formations. Ethanol futures have dropped by half since early April, encouraging […]

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EU confirms schedule for trilateral gas talks

| License Photo BRUSSELS, Sept. 22 (UPI) — The European Commission confirmed a trilateral meeting with Russian and Ukrainian energy ministers was scheduled for Friday in Berlin. The commission said European Energy Commissioner Gunther Oettinger would sit down with Russian Energy Minister Alexander Novak and Ukrainian Energy Minister Yuri Prodan. No agenda was given in Monday’s announcement . Russian media reported European leaders were ready to discuss reliable gas transits and would consider the status of the planned South Stream gas pipeline if the issue was raised. Members of the European Parliament passed a resolution Thursday calling on "EU countries to cancel planned energy sector agreements with Russia, including the South Stream gas pipeline." South Stream is a Russian option to avoid geopolitically sensitive territory in Ukraine, plagued by conflict since a November pivot toward the European Union . Russia meets about a quarter of Europe’s gas needs, though […]

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US gas costs to rise this winter for residential, commercial customers: AGA

Washington (Platts)–22Sep2014/353 pm EDT/1953 GMT US residential and commercial natural gas customers can anticipate more normal temperatures this winter, but the price they pay for gas will be "slightly higher" than last winter because of the growing competition from industrial and electric generation users, the American Gas Association said Monday. This year, local distribution companies have been competing with those segments for gas to refill their storage facilities, which were depleted by last winter’s record low temperatures, said Chris McGill, AGA vice president of policy analysis. Last winter was characterized by a string of polar vortexes that resulted in prolonged periods of deep cold in key consuming regions. The US set a single-day record for gas use on January 7, 2014, or 139 Bcf — almost double the overall daily average, AGA noted. Looking forward, McGill said the commodity price of gas has been about 9% higher than the […]

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California governor signs 6 bills to advance state’s electric vehicle market; HOT and HOV benefits

Capping off National Drive Electric Week, California Governor Jerry Brown signed into law half a dozen bills to strengthen California’s best-in-the-nation electric vehicle market, including free or reduced-rate access to new high-occupancy toll (HOT) lanes, and more HOV stickers for plug-in hybrids. The action builds on the state’s efforts to support the growth of the electric vehicle market, including legislation Governor Brown signed last year and the executive order he issued in 2012 to establish a target of 1.5 million zero-emission vehicles on the road in California by 2025 and a number of other long-term goals. California accounts for 40% of US plug-in electric vehicle sales and earlier this month, surpassed 100,000 plug-in electric vehicles sold. ( Earlier post .) The Governor signed the following bills: AB 1721 by Assemblymember Eric F. Linder (R-Corona): Grants free or reduced-rates in high-occupancy toll (HOT) lanes to clean air vehicles. HOT lanes, […]

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ExxonMobil ‘winding down’ Arctic well, complying with US, EU sanctions on Russia

HOUSTON, Sept. 19 09/19/2014 ExxonMobil Corp. released a statement that the company is complying with all US sanctions on Russia after news reports that the operator had halted operations on its first arctic exploration well—University-1—in Russia’s Kara Sea. In an energy industry brief, Raymond James & Associates Inc. analysts Darren Horowitz and Edward Rowe noted, “This being the first major exploration prospect drilled in the Russian Arctic, the well (part of a joint venture with [OAO] Rosneft) has garnered an exceptionally high profile in the media—even though its results would be completely inconsequential for production and reserves over any investable timeframe….” By halting the well, the analysts noted, “it appears that Exxon was unable to find a creative ‘workaround’ to last week’s tightened US and [European Union] sanctions on technology transfer to Russia.” In its statement, the supermajor said, “The US Treasury Department, recognizing the complexity of the University-1 […]

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Siemens To Buy Dresser-Rand To Tap US Shale Gas Boom

Siemens To Buy Dresser-Rand To Tap US Shale Gas Boom FRANKFURT, Sept 22 (Reuters) – Germany’s Siemens has agreed to buy U.S. oilfield equipment maker Dresser-Rand for $7.6 billion in cash, aiming to catch up with arch-rival General Electric in a booming U.S. shale gas market. The acquisition, which ranks among the biggest in the history of the German industrial group, will strengthen Siemens’ position in the United States, its weakest region, and focus the group more tightly on its industrial customers. Siemens embarked on a corporate overhaul in May dubbed "Vision 2020", seeking to make up ground on more profitable competitors such as Switzerland’s ABB as well as U.S-based General Electric (GE), while reducing its exposure to more cyclical consumer businesses where it has had limited success. As part of that drive, the group said on Monday it had also agreed to sell its stake in household appliances […]

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Californians Debate Oil v. Water Aquifers in State’s Monterey Shale

If its Monterey Shale potential is fully realized, California could get back to its modern-day high levels of oil production at the 1 million b/d mark, but ongoing issues of water and energy sustainability may get in the way, the state’s oil/natural gas supervisor said during a panel discussion Thursday night at Loyola Marymount University (LMU) in Los Angeles. “Oil in California is produced from aquifers, and we actually produce way more oil than water,” said Steve Bohlen, head of the state Division of Oil, Gas and Geothermal Resources (DOGGR). He said the state’s oil production is 600,000 b/d. “Ultimately the question becomes whether that water [produced with oil] could be put to some beneficial use.” Bohlen spoke on a panel discussion on “California’s Sustainable Future: Water and Energy Challenges,” hosted by a local chapter of the American Academy of Environmental Engineers and Scientists (AAEES). It included representatives from […]

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Arctic oil bound for Europe, Gazprom Neft says

MOSCOW, Sept. 22 (UPI) — Gazprom Neft Gazprom Neft confirmed a tanker filled with 200,000 barrels of oil was shipped to markets in northwest Europe last week. It was the second tanker of oil delivered from the Novoportovskoye field at the Yamal Peninsula. Gazprom Neft, the oil arm of Russian energy company Gazprom, said the oil is designated as Novy Port, which it said was "superior" in quality to the global benchmark, Brent. "A third tanker is currently being prepared for shipment," the company said in a statement. Changes in global weather patterns are leaving parts of the arctic region ice-free for longer periods of time. Gazprom Neft said it confirmed in 2011 that using a nuclear-powered icebreaker would facilitate transportation of oil from the port on the northern peninsula, where pipeline infrastructure is lacking. Any technology used to build a pipeline would "have minimal impact on the environment," […]

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