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London wants EU emissions reforms

British government says emissions trading scheme in Europe malfunctioning. UPI/Stephen Shaver LONDON, Oct. 20 (UPI) — British Energy Secretary Ed Davey said Monday the European Union can lead the fight against climate change, but only if certain reforms are enacted. "Europe has the opportunity to show the world how we can cut emissions while creating investment, jobs and growth, but only if we reform the system and reform it fast," he said in a statement. "Otherwise we’re facing increasing costs for businesses, uncertainty for investment and ultimately higher costs for consumers, which isn’t acceptable." Davey said his government was proposing a way to make an emissions trading system work better in the European economy. As it stands, with a skewed trading balance, the system is increasing the overall costs of meeting future carbon reduction obligations , he said. His comments followed criticism from European Commission President Jose Manuel Barroso […]

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EU to talk gas with Moscow, Kiev

EU schedules another round of gas talks after Russian President Vladimir Putin sees signs of a breakthrough. UPI/Stephen Shaver "The next trilateral gas meeting between Commission Vice-President Gunther Oettinger , Russian Energy Minister Alexander Novak and Ukrainian Energy Minister Yuri Prodan will take place on Tuesday in Brussels," the commission said in a statement . Multilateral meetings in Milan last week were aimed at resolving a geopolitical crisis in Ukraine that spilled over into the regional energy sector. Ukraine’s political upheaval in November left an already battered economy short on cash and the billions of dollars Kiev owes to Russian energy company Gazprom leaves downstream European consumers at risk . Russian President Vladimir Putin said progress had been made during the latest round of talks. While gas supplies were ensured for the short-term, the president said the cash situation in Kiev was another story. "We are aware of the […]

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Russia doesn’t fear Azeri gas, scholar says

Russia has little to fear about Azeri energy deals in Europe, scholar tells Turkish media. (UPI/Shutterstock/Igor Golovniov) Trade deals between Russia, Turkey and Azerbaijan should ease Kremlin concerns about Baku’s energy agreements with Europe, an Azeri scholar said. Elhur Soltanov, a foreign policy export at Azerbaijan Diplomatic Academy, told Turkish newspaper Hurriyet trilateral relations between Baku, Ankara and Moscow are a diplomatic success . "This interdependence, with all the interrelated energy and trade deals, eases Russia’s concerns over Azerbaijan’s energy deals," he said Monday. A European economy fearful that conflict in Ukraine could jeopardize the gas supplies Russia sends through the former Soviet republic has looked to Azerbaijan as a source of energy security. Last week, the State Oil Co. of Azerbaijan Republic announced it signed contracts in Turkey for the construction of the Trans-Anatolian natural gas pipeline . TANAP will transport natural gas from the Shah Deniz complex […]

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WTI Gains for Third Day as Iran Seeks Halt to Price Drop

West Texas Intermediate, the U.S. benchmark crude that plunged into a bear market this month, extended its rally to a third day amid speculation it slumped too far. Brent moved between gains and losses in London . Futures climbed as much as 0.9 percent to $83.48 a barrel in New York , having fallen as low as $79.78 on Oct. 16. Brent, the global benchmark, rose or fell through its closing level at least nine times by 9:30 a.m. in London. Goldman Sachs Group Inc. said Oct. 17 that a rout in prices had gone too far and that there were no signs of a supply glut. Iran ’s President Hassan Rouhani instructed the oil ministry to use diplomacy to halt the slide, state-run Mehr news agency reported yesterday. Saudi Arabia and Kuwait started cutting output from a joint oil field on Oct. 16. The Organization of Petroleum Exporting […]

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Hedge Funds Cut Bullish Bets on Crude as Prices Tumble

Plunging oil prices spurred hedge funds to cut bullish wagers by the most in six weeks, losing confidence in the willingness of producers to constrict supply. Money managers cut net-long positions in West Texas Intermediate by 8.1 percent in the week ended Oct. 14. Short positions jumped to the highest level in 22 months, U.S. Commodity Futures Trading Commission data show. WTI tumbled 8.8 percent this month as U.S. production expanded to a 29-year high. That added to signs of a global supply glut just as the International Energy Agency cut its forecast for demand growth. Crude is now trading in a bear market , underpinned by speculation that OPEC members are favoring market share over prices. “The price action this week is a reflection of the positioning,” John Kilduff , a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone […]

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Schlumberger Says Higher Oil Demand In 2015 To prompt Oil, Gas Spend

Share:    Facebook Twitter Google+ Reddit Oct 17 (Reuters) – Schlumberger Ltd, the world’s largest oilfield services company, said oil and gas spending would increase in 2015 as global oil demand is poised to rise, downplaying fears of an investment slowdown due to weak crude prices. Schlumberger shares were up 7 percent at $97.10 in early morning trading. The company reported a better-than-expected quarterly profit after markets closed on Thursday, helped by strong drilling activity in North America. Oil prices have slid nearly 20 percent since June due to oversupply, signs of weak demand growth and indications that key oil producers, particularly Saudi Arabia, have limited appetite to intervene in prices. The steep fall has sparked fears that oilfield earnings would be hurt with oil and gas customers reigning in spending. "The key to the overall oil market is still that the global oil demand is currently set to […]

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Natural-Gas Prices Fall Even With Chill Nearing

Natural-gas prices are usually tightly linked to the weather. Bloomberg News ENLARGE By Timothy Puko Oct. 19, 2014 7:56 p.m. ET 12 COMMENTS When cold weather looms across the U.S., natural-gas prices usually rise. This year they are falling, after a record production boom nearly replenished stockpiles left at their lowest since 2003 by last winter’s epic freeze. Prices for the fuel used to heat half of American homes fell to their lowest point of 2014 on Friday in intraday trading and are down 9.3% since Sept. 29 on speculation that further supply additions could lead to a glut. On Friday, the November contract settled down 3 cents, or 0.8%, to $3.766 a million British thermal units on the New York Mercantile Exchange. It was the lowest close since July 28. With the November chill only a few weeks away, money managers have cut bets on rising natural-gas futures […]

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Kurdistan rushes to expand refineries

The Bazian refinery, 20 kilometers outside Sulaimaniya, seen from on top of the LPG storage domes, June 19, 2014. (PATRICK OSGOOD/IRAQ OIL REPORT) Iraq’s autonomous Kurdistan Regional Government (KRG) is racing to expand the capacity of its oil refineries – a critical step toward addressing weaknesses in the KRG’s oil sector and economy.Kurdistan’s two major refineries, near Erbil and Sulaimaniya, process just over 15.3 million liters – 96,000 barrels – of oil a day, according to figures for January released by the region’s Ministry of Natural Resources. This is not sufficient to meet local needs for gasoline and diesel.D… 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 .

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Saudi Arabia keeps the oil market guessing

As oil prices have tumbled , one question has reverberated around the market: what is Saudi Arabia up to? Little restraint has been shown by some energy market watchers in their commentary on the recent sell-off and the role played by Opec’s biggest producer. More On this story Editorial Good news from the lower price at the pump Comment Oil gush keeps prices low On this topic Sergei Guriev Russia and low oil prices Oil rallies sharply after near 4-year low How do oil producers balance their books? US crude price falls under $80 IN Commodities LME to run palladium and platinum ‘fixes’ US crude prices approach $80 China copper imports set to plunge Europe’s big comeback will shake up sugar The 25 per cent fall in the price of Brent crude since mid-June, to almost four-year lows, they say, is the result of a deliberate strategy by the […]

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South Sudan’s Nov Dar Blend crude oil exports to fall 8.6% on month: sources

Home | News & Analysis | Latest News Headlines | South Sudan’s Nov Dar Blend crude oil exports to fall 8.6% on month: sources Singapore (Platts)–20Oct2014/538 am EDT/938 GMT An estimated 4.2 million barrels or 140,000 b/d of South Sudan’s Dar Blend crude oil is expected to be exported in November, down 8.7% from 4.6 million barrels due to be exported in October, trade sources said Monday. A total of five cargoes — two of 600,000 barrels and three of 1 million barrels — are scheduled for lifting in November, the sources said. Dar Blend is a heavy, acidic crude produced at the Block 3 and Block 7 oil fields in South Sudan’s Upper Nile State. Malaysia’s Petronas, which holds a 40% interest in Dar Petroleum Operating Company, on Monday issued a tender offering 1 million barrels of Dar Blend crude for loading over November 25-26. The tender will […]

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Obama Sees an Iran Deal That Could Avoid Congress

WASHINGTON — No one knows if the Obama administration will manage in the next five weeks to strike what many in the White House consider the most important foreign policy deal of his presidency: an accord with Iran that would forestall its ability to make a nuclear weapon. But the White House has made one significant decision: If agreement is reached, President Obama will do everything in his power to avoid letting Congress vote on it. Even while negotiators argue over the number of centrifuges Iran would be allowed to spin and where inspectors could roam, the Iranians have signaled that they would accept, at least temporarily, a “suspension” of the stringent sanctions that have drastically cut their oil revenues and terminated their banking relationships with the West, according to American and Iranian officials. The Treasury Department, in a detailed study it declined to make public, has concluded Mr. […]

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Scandal Over Brazilian Oil Company Adds Turmoil to the Presidential Race

RIO DE JANEIRO — Paulo Roberto Costa was living an oilman’s dream. He had a house in a luxurious gated community here. He bought a yacht and drove an armored Range Rover. He had more than $25 million stashed in bank accounts in Switzerland and the Cayman Islands. But that dream evaporated recently when the police arrested Mr. Costa and charged him with orchestrating a bribery scheme on an epic scale at Petrobras, Brazil ’s national oil company, and funneling the proceeds to the governing Workers Party and its allies while enriching himself. The case has presented a major challenge to President Dilma Rousseff , who is in a bitter re-election fight against Aécio Neves, a centrist who has been gaining momentum as the vote next Sunday approaches. With the two candidates battling each other for the lead in opinion polls, Mr. Neves is seizing on the oil scandal […]

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Modi Uses Oil Price Slump to Ease Curbs Deterring Chevron

A 22 percent slump in oil prices this year and the end of state polls are emboldening India’s Prime Minister Narendra Modi to press ahead with politically risky decisions to lure investors and revive the economy. His government freed diesel prices of state control for the first time in over a decade and raised tariffs on natural gas over the weekend in the biggest steps to curb subsidies and spur output. The changes build on Modi’s pledge to revitalize Asia’s third-largest economy as his party made gains in two provincial elections that may help bolster his power. Modi, who has made energy security his priority, is lifting restrictions that contributed to a decline in natural gas output every month since the mid-2010, while deterring Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) from bidding for oil and gas blocks. The restraints on diesel have also idled fuel pumps operated […]

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PetroChina on Course to Beat 2015 Sichuan Shale Output Target

Print Back to story PetroChina Co. (857) , the country’s biggest oil and gas producer, is on course to surpass a 2.6 billion cubic meter target for shale gas production in 2015 from fields in the southwest province of Sichuan. “Based on the production of our test wells, we are very confident to achieve or even beat our estimates for 2015,” Xie Jun, deputy general manager of unit Southwest Oil & Gasfield Co., said last week at the provincial capital Chengdu. The estimate is “very conservative” and newer technology may push the number much higher, he said. PetroChina’s success in drilling for shale gas is good news for China , which is seeking to replicate the boom in the U.S. China’s hopes have rested on China Petroleum & Chemical Corp. (386) , known as Sinopec, which operates the nation’s largest shale-producing project in Fuling. The country halved its target […]

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‘Peak Oil’ peaked and then some, so what’s next?

So how’s peak oil working out? Crude prices have fallen about 20 percent since June. A gallon of gasoline is on average 20 cents cheaper than it was a month ago. The world is facing a glut of petroleum and, for the first time in 40 years, America is exporting oil. Obviously this is not the scenario of limits sketched out by some geologists, environmentalists and industry observers a few years ago. At the risk of oversimplifying, peak oil, which originated with petroleum geologist M. King Hubbert in the 1950s, generally stated that the planet would soon use up half of its available oil. The easy and inexpensive to reach and refine half. The theory was borne out when the continental U.S. hit peak around 1970. I wrote about peak oil as one of many disruptions headed our way. Nor was peak oil a tin-foil-hat coven on the margins. […]

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Bakken Oil Production by County

North Dakota production by county is posted here: ND Historical Barrels of Oil Produced by County  Confidential wells are not included in that data however but that estimated data can be found here: Monthly Production Report Index  Click on the latest month. Bakken by County  This is a zero based chart and gives a better overall picture of production from each county. The charts below are not zero based but gives an amplified picture of production from each county. Production in barrels per day for each county was as follows: McKenzie      386,715  Mountrail      278,940 Dunn              185,707  Williams        149,437 Rest  of ND   131,531 McKenzie county production was up by 16,435 barrels per day. McKenzie remains the most productive county in North Dakota. Mountrail county was up by 11,077 bpd. A surprisingly good month for that county. Williams […]

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Oil Workers Earning $179,000 Expose Norway to Crude Crash

Print Back to story Norway , where oil helped create one of the world’s most stable and prosperous societies, finds itself among the most exposed to falling crude prices. Though the blessings of energy wealth have hardly turned to a curse, the industry’s highest labor costs, which saw the average offshore worker earn $179,000 last year, threaten to curb investment as oil tumbles. In August, Helge Lund, chief executive officer of state oil company Statoil ASA (STL) , remarked that while $100-a-barrel oil once provided an excuse for champagne, it now barely covered the expense of new projects. Two months later, with crude hovering near $85 a barrel and Lund, the leading figure in Norway’s oil industry for 10 years, moving to a smaller British competitor, lower prices risk undermining economic growth and cutting tax receipts. Norway has already been coping with 13 years of production declines from its […]

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Oil Drop Outpacing Ruble Strains Russia Budget: Chart of the Day

Russia ’s budget deficit plans are increasingly strained as the drop in oil prices outpaces the concurrent ruble slide stoked by U.S. and European sanctions. The CHART OF THE DAY shows the price of Brent oil, expressed in rubles, dropping below the level envisaged in the government’s 2015 budget. Even as crude tumbled, Russia’s budget has been shielded by the ruble, whose depreciation increases the local-currency value of exported oil and gas. Penalties imposed by the U.S. and EU, who accuse President Vladimir Putin of fomenting the Ukrainian crisis by aiding separatists, limit the country’s access to market funding and make deficit-financing more difficult. A weaker ruble may be needed for Russia to keep next year’s deficit at the planned 0.6 percent of gross domestic product, according to ING Groep NV. “The Russian government either accepts more ruble weakening or a higher budget deficit,” Dmitry Polevoy, the chief economist […]

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HSBC Economist Says Weve Got Just 50 Years of Oil Left

4591 Votes TreeHugger has a post on a rare mention of peak oil in the mainstream media – HSBC Economist Says Weve Got Just 50 Years of Oil Left. Now if youve even gotten a small bit of knowledge about the state of the worlds oil reserves and the concept of peak oil, the statement that weve got confidently just 50 years of oil left in the ground is hardly shocking–check out the video of HSBC senior economist Karen Ward delivering the lines below (around the 02:00 minute mark), h/t Climate Progress. But what is shocking to me is the calmness with which the line is delivered and how outside of specialist reporting such statements are seldom to be heard. Fifty years is within my lifetime as in within the lifetime of many TreeHugger readers, yet when President Obama recently talked about transitioning off foreign oil and developing future […]

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Oil decline: Price makes the story

Printer-friendly Energy Information Awareness graph of oil prices (2004). Source US Government via Wikimedia Commons.  So oft in theologic wars, The disputants, I ween, Rail on in utter ignorance Of what each other mean, And prate about an Elephant Not one of them has seen! — The Blind Men and The Elephant by John Godfrey Saxe When the world’s business editors sent their reporters canvassing to find out what is behind the recent plunge in the world oil price, they were doing what they do almost every day for every type of market: stocks, bonds, currencies, commodities and real estate. In financial journalism more often it’s the price that makes the story rather than the story that makes the price. If a story is about something very surprising which almost no one can know in advance–a real scoop–say, an unexpected outcome in a major court case affecting a company’s […]

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Brent Crude Extends Rebound on Speculation Drop Excessive

Brent crude extended its rebound on speculation that a 25 percent drop from this year’s high was excessive. West Texas Intermediate was little changed after falling below $80 yesterday. Brent pared its fourth weekly loss. The recent slump in prices was “too much too soon” and the supply glut “is not yet here today,” Goldman Sachs Group Inc. said in a report yesterday. Oil is paring its collapse as banks including BNP Paribas SA and Bank of America Corp. predict the rout may soon be over. “You’ve probably seen the worst,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis , which oversees $2.4 billion of assets. For WTI, “my hunch is that we will hold the $80 level. But I won’t be shocked if we do retest it.” Brent for December settlement increased 34 cents to end at $86.16 on the London-based ICE Futures […]

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OPEC’s Not So Slick on Oil Prices Now

Brent Crude Oil OPEC shale 1 5 By Sarah Kent CONNECT LONDON—OPEC’s next meeting at the end of November is set to be one of the oil-producing cartel’s most fraught in years, as it grapples with falling oil prices. But is there anything OPEC can realistically do to send oil prices back up? Despite a small recovery Friday, oil prices’ slide has been precipitous. The global benchmark Brent crude has fallen by over a quarter since early June, to around $86 per barrel. During past oil slumps the Organization of Petroleum Exporting Countries has often cut supply to try to support prices. In 2008, as the financial crisis caused a collapse in demand and oil spiraled downwards, the group slashed 4.2 million barrels a day from its output quota over a series of tense fractious meetings, ultimately stabilizing the market. The 12 countries that make up OPEC still collectively […]

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Non-Gulf OPEC Nations Push for Output Cut as Split Deepens

Some officials from non-Gulf OPEC producers are pushing for the cartel to enact an oil-production cut amid falling prices, signaling a new fracture within the group that could put Saudi Arabia under pressure to tighten its spigots. Saudi Arabia and other Persian Gulf members of the Organization of the Petroleum Exporting Countries had said earlier this week they opposed a cut in the group’s production ceiling. U.S. oil prices have sharply fallen amid oil market oversupply in recent months and briefly dropped below $80 a barrel Thursday, though they were back above $83 a barrel Friday. OPEC should cut production, Samir Kamal, Libya’s OPEC governor, said Friday. “It should at least be at 30 million barrels a day,” the current production ceiling of the organization. The group currently produces about 30.5 million barrels a day, according to its latest report. Another African OPEC delegate said Thursday that OPEC should […]

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U.S. continues to target IS oil installations

U.S. includes Islamic State-controlled oil installations as strategic target objectives. (UPI/Matthew Bruch/USAF) WASHINGTON, Oct. 17 (UPI) — Striking fixed Islamic State targets in Syria, including oil facilities, is part of the strategic effort to cripple the group, a Pentagon official said. The group calling itself the Islamic State is said to be financing itself in part through a regional black market for crude oil. Pentagon spokesman John Kirby said U.S. military effort to defeat the group is about hitting where they operate. "There’s been a lot of strikes in [the strategic border town of] Kobani, dynamic tactical strikes," he told reporters during a Thursday press briefing. "But there’s also been almost an equal number of total strikes against fixed facilities, command and control, finance centers, oil refineries [and] fixed sites." The spokesman countered that the U.S. effort was in support of national ground forces and not so much "about […]

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Egypt: Ethiopian Water Minister Hails Egypt Decision to Resume Dam Talks

Ethiopian Water and Energy Minister Alemayehu Tegenu hailed Egypt’s decision to resume the three-way dialogue with Sudan and Ethiopia on the Renaissance Dam last August. He also applauded the positive atmosphere which prevailed in the two meetings, which were held in Khartoum in August and Addis Ababa in September. In statements on the sidelines of the second round of the tripartite national committee of the Ethiopian Renaissance Dam, currently in session in Cairo, Tegenu said that the outcome of the two studies recommended by the international experts committee should be based on authenticated and variable information and data in order to come up with unbiased recommendations and results. The project has been a source of concern for the Egyptian government since May 2013, when images of the dam’s construction stirred public anxiety about the possible effect on Egypt’s water supply from the Nile River. However, Ethiopia maintains that Egypt’s […]

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Nigeria agrees ceasefire with Boko Haram

A person holds up a sign as local clergy, activists and and community leaders protest for the safe return of the 276 abducted schoolgirls outside the Permanent Mission of Nigeria to the UN Nigeria has reached a ceasefire agreement with Boko Haram and secured a deal for the release of 219 schoolgirls held by the extremist group for more than six months, military and presidency officials claimed on Friday. No details of the agreement, announced in the capital Abuja, have emerged and Boko Haram has yet to confirm the deal. However, Nigerian newspapers and websites have been reporting that fresh negotiations between presidency and military officials and representatives of the terrorist group have been taking place in recent days. The talks allegedly also involved neighbouring Chad and Cameroon. More On this topic Buhari enters Nigerian presidency race Nigeria claims success against Boko Haram Boko Haram targets Nigerian forces More […]

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Oil Tankers to China Jump to Nine-Month High Amid Crude Rout

The number of supertankers sailing toward China ’s ports surged to a nine-month high amid speculation an oil-price slump is encouraging the world’s second-biggest crude importer to accelerate purchases. There are 80 very large crude carriers, the industry’s biggest ships, sailing toward the Asian country’s ports, according to IHS Fairplay vessel-tracking signals compiled by Bloomberg at about 10 a.m. today. That’s the highest since Jan. 3. Average shipments are 2 million barrels. Brent crude , the global benchmark, plunged to a four-year low yesterday amid speculation Saudi Arabia , Kuwait and other nations in the Organization of Petroleum Exporting Countries won’t curb production. The slump is likely encouraging buying to fill China’s strategic stocks, according to Energy Aspects Ltd., a London-based consultant. “There’s a lot of bargain hunting going on,” Richard Mallinson, an analyst at Energy Aspects, said by phone. “Whilst prices are low we think there’ll be buying […]

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China publishes draft ordinances on pollution punishment

BEIJING, Oct. 17 (Xinhua) — China’s environmental protection authority on Friday invited public comments on four draft ordinances on enforcement of environmental protection regulations. The four drafts, published by the Ministry of Environmental Protection, concern fines for polluters, closure or seizure of pollution sources, production suspension punishments and environmental information disclosure. The new ordinances will help to increase the cost of environmental offences with detailed stipulations on enforcement procedures, punishable offenses and methods of fine calculation in accordance with the revised environmental law, said a statement issued by the ministry. Under the Environmental Protection Law revised in April by the Standing Committee of China’s National People’s Congress, a new fine system will be introduced to punish offenders. If an enterprise illegally discharges pollutants and fails to correct its wrongdoing after being asked to do so by authorities, it may face a fine which accumulates daily. In the past, enterprises […]

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Trouble for the Bakken? Oil prices reach four-year low

Overview With oil prices falling over the past couple of months, then falling even more steeply in October, suddenly the media is abuzz about the impacts of low oil prices—and finally taking a closer look at what prices might be required to keep the shale oil boom going. It’s no secret that fracking is expensive. Wells in North Dakota’s oil-rich Bakken formation run about $8 to 10 million a pop . But oil prices have been falling drastically in the past few months, and especially fast in October, when prices were said to be “ plunging ,” “ plummeting ,” or in “ something close to freefall .” If prices in the past few days are an indication of the average for the month, then prices will be the lowest in four years. Check out these price histories: Monthly average crude oil spot prices for  WTI and Brent from […]

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Oil Rigs Slump by Most in Two Months After Prices Slide

Rigs targeting oil in the U.S. fell by the most in two months as producers curbed drilling following the biggest price rout since 2012. Oil rigs tumbled by 19 to 1,590, the lowest in six weeks and the biggest decline since Aug. 22, Baker Hughes Inc. (BHI) said today. The counts dropped in almost every major U.S. oil play, with the Mississippian in Kansas falling the most, shrinking by seven to 71. Texas ’s Eagle Ford formation, where drillers are yielding more crude per rig than any other region, lost five to 197. U.S. benchmark West Texas Intermediate crude fell more than $14 a barrel in the three months ended Sept. 30, the biggest quarterly drop since June 2012. The slide threatens to slow a drilling boom in U.S. shale formations that has propelled domestic output to the highest level in 29 years, cut retail gasoline prices by more […]

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U.S. oil imports down more than 7 percent

U.S. Energy Department data show imports of foreign oil declining. (UPI/Shutterstock/ekina) WASHINGTON, Oct. 17 (UPI) — U.S. crude oil imports for the first full week in October were down by more than 7 percent from one year ago, the U.S. Department of Energy found. The department’s Energy Information Administration released weekly data on the domestic energy sector. For imports, EIA found the United States imported around 7.4 million barrels of oil for the week ending Oct. 10, down 7.4 percent from the same week in 2013. For production, EIA data show the United States produced 8.8 million bpd for the first full week of October, up nearly 18 percent from the same time last year. By next year, EIA expects total U.S. crude oil production to reach 9.5 million bpd, which would be the highest annual average crude oil production since 1970 if realized. The Organization of Petroleum Exporting […]

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Kinder wants to expand shale pipeline system

Kinder Morgan considers expanding pipeline network to take on more shale natural gas. (UPI/Shutterstock/tcly) HOUSTON, Oct. 17 (UPI) — Expanding a gas system in the U.S. Midwest will facilitate the utilization of shale gas from the Utica and Marcellus plays, pipeline company Kinder Morgan said. Kinder Morgan operates and owns a 20 percent interest in systems for Natural Gas Pipeline Co. It said it was soliciting industry interest in the possible expansion of a pipeline system in Illinois to carry another 430 million cubic feet of natural gas per day. "This project will enable Chicago-area markets to diversify their gas supply portfolios and access additional prolific gas production from the Utica and Marcellus shale areas," Kinder Morgan Natural Gas Pipelines Central Region President David Devine said in a statement Thursday. Total production from Utica shale should increase from 155 million cubic feet per day in January 2012 to an […]

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U.S. plans new lease sale in Gulf of Mexico

The U.S. federal government announces plans for auction for energy companies eager to exploit the Gulf of Mexico. (UPI/Shutterstock/num_skyman) WASHINGTON, Oct. 17 (UPI) — Acreage set for auction in the Gulf of Mexico may hold as much as 894 million barrels of oil and 3.9 trillion cubic feet of gas, the U.S. government said. Bureau of Ocean Energy Management Acting Director Walter Cruickshank announced more than 40 million acres off the southern U.S. coast will go on the auction block in March as part of a five-year lease program ending in 2017. "As one of the most productive basins in the world, the Gulf of Mexico is a cornerstone of our domestic energy portfolio, offering vital oil and gas resources that further economic growth and continue to reduce our dependence on foreign oil," Cruickshank said in a Thursday statement. BOEM estimates the lease area could yield between 460 million […]

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U.S. Oil Boom Shows No Signs of Slowing Down

HOUSTON — Falling oil and gasoline prices have sent oil company stocks tumbling, but oil experts say the boom in American energy production shows no signs of slowing down, keeping the market flush with crude and gasoline prices low. Even after a drop of 25 percent in oil prices since early summer, several government and private reports say that it would take a drop of $10 to $20 a barrel more — to as low as $60 a barrel — to slow production even modestly. On the downside, taxes and royalties on oil will decline, potentially cutting into the finances of oil-producing states like Texas, Alaska, Oklahoma and North Dakota. And it will continue to put pressure on the Organization of the Petroleum Exporting Countries to cut output to support prices, as well as cause economic pain to big producers like Russia, Venezuela and Iran. Current production levels can […]

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Producers Will Find Ready and Welcome Market for Nat Gas in Bakken

A new polyethylene production facility in the Bakken shale could soon help oil and gas producers in the region reduce natural gas flaring in North Dakota, the Bakken Update said this week. Significant amounts of natural gas are wasted during flaring; estimates by the non-profit sustainability organization CERES are that as much as 30 percent of all natural gas discovered in the state is flared. That comes out to more than $100 million a month of natural gas that is just burned off, according to a July 29, 2013 Reuters article. Because the new polyethylene plant will use liquid natural gas in the production process, it creates a local need for the product, thus reducing the amount of natural gas that is currently being flared due to a lack of infrastructure to move the gas to the market. The North Dakota Industrial Commission, the state’s regulating entity for oil […]

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No sign of breakthrough as Russia, Ukraine meet in Milan

MILAN (Reuters) – Russian President Vladimir Putin and Ukrainian leader Petro Poroshenko met an array of EU leaders on Friday, but there was little sign of progress in patching up a ceasefire in eastern Ukraine and resolving a dispute over natural gas supplies. Putin held more than 2-1/2 hours of talks with German Chancellor Angela Merkel overnight. The Kremlin said afterwards the pair were still at odds over how to resolve a crisis that has revived the specter of old Cold War rivalries. "The two leaders continued to express serious differences in views on the source of Ukraine’s domestic conflict, as well as root causes for what is happening there today," the Kremlin said in a statement. The West has imposed sanctions on Russia for its annexation of Crimea earlier this year and its support of pro-Russian separatists fighting in the east of Ukraine. European leaders in Milan for […]

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Peak Oil Is Coming — and Why You Should Love It

For decades there have been predictions of peak oil and the disastrous consequences it will have on society. As the theory goes, eventually the world’s oil reservoirs will run out of oil, driving us to more expensive reservoirs and higher oil prices until there’s not enough cheap oil to serve the world’s energy needs. Essentially, there will be a peak in cheap oil supply. Those who fear peak oil also often think there will be a cascade of economic disasters as a result of this peak in cheap oil supply. Today, there is emerging evidence that a peak is on the horizon — but it’s not a peak in supply, it’s a peak in demand. Energy efficiency is improving, alternatives are becoming viable, and oil just isn’t as attractive as it once was to consumers. The result could be a peak oil scenario that works in exactly the opposite […]

Posted On : Published By : ASPO-USA
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EU examines risks of Russian gas shortage

Europe examining risks of a gas shortage stemming from geopolitical crises in Ukraine. (File/UPI/Ivan Vakolenko) BRUSSELS, Oct. 17 (UPI) — If members of the European Union show some solidarity, they’ll be able to cope with a potential Russian gas shortage, the European energy commissioner said. The European Commission unveiled a report Friday highlighting the short-term recommendations needed to stave off a possible winter gas shortage. "For the very first time, we have a complete picture of the risks and possible solutions," Energy Commissioner Gunther Oettinger said in a statement. "If we work together, show solidarity and implement the recommendations of this report, no household in the EU has to be left out in the cold this winter." Multilateral meetings in Milan are aimed at resolving a geopolitical crisis in Ukraine that spills over into the regional energy sector. Ukraine’s political upheaval in November left an already battered economy short […]

Posted On : Published By : Tom Whipple
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Russian and Ukrainian presidents fail to reach breakthrough

Vladimir Putin (left) with Matteo Renzi (centre) and Petro Poroshenko (right) at the summit in Milan on Friday ©AFP Vladimir Putin and Petro Poroshenko, the Russian and Ukrainian presidents, failed to reach a breakthrough to end the crisis in Ukraine , after a day of intense negotiations brokered by EU leaders in Milan. Mr Putin and Mr Poroshenko discussed a number of thorny issues, from allowing drones to monitor the border between the two countries to the structure of local elections in the pro-Russian separatist region of eastern Ukraine . They pledged to enforce a truce agreed last month that has since been frequently breached. More On this story Putin’s meeting with old pal dims focus on Ukraine Russia takes EU to court over sanctions Hungary questions EU sanctions on Russia UK blocks €5bn Russian North Sea deal On this topic Moscow battles to ease dollar shortage EU rebuffs […]

Posted On : Published By : Tom Whipple
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Russia’s Putin: ‘No Tragedy’ in Current Low World Oil Price

By Gregory L. White MOSCOW–The recent plunge in the price of oil isn’t a "tragedy" for Russia, which also has enough foreign-exchange reserves to control the resulting decline in the ruble, President Vladimir Putin said Friday. Speaking to reporters in Milan, where he is at a summit meeting, Mr. Putin said that low oil prices might force "corrections" to the budget in Russia but that the government would meet all its obligations for social spending. He also expressed optimism that the oil price would recover as the global economy does. Mr. Putin said that "no serious market participant" is interested in a price below $80 a barrel, given high production costs and budgetary needs in producing countries. Mr. Putin said the ruble’s exchange rate, which has set record lows against the dollar almost daily in recent weeks, ultimately would stabilize. The central bank, while committed to a flexible rate, […]

Posted On : Published By : Tom Whipple
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Is the oil crash a secret US war on Russia?

Comments (104) A woman pumps petrol into her car. Continue reading the main story Related Stories Could the US start sending its oil overseas? Lower oil prices, reflected in falling petrol prices at the pump, have been a boon for Western consumers. Are they also a potent US weapon against Russia and Iran? That’s the conclusion drawn by New York Times columnist Thomas L Friedman, who says the US and Saudi Arabia, whether by accident or design, could be pumping Russia and Iran to brink of economic collapse. Despite turmoil in many of the world’s oil-producing countries – Libya, Iraq, Nigeria and Syria – prices are hitting lows not seen in years, Friedman writes. Continue reading the main story “Start Quote This is business, but it also has the feel of war by other means: oil” Thomas Friedman New York Times Analysts identify a number of possible reasons for […]

Posted On : Published By : Tom Whipple