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California first state to generate more than 5% of electricity from utility-scale solar

Source: U.S. Energy Information Administration, Electric Power Monthly Note: Data include generation from plants greater than 1 megawatt. California has become the first state with more than 5% of its annual utility-scale electricity generation from utility-scale solar power, according to EIA’s Electric Power Monthly . California’s utility-scale (1 megawatt (MW) or larger) solar plants generated a record 9.9 million megawatthours (MWh) of electricity in 2014, an increase of 6.1 million MWh from 2013. California’s utility-scale solar production in 2014 was more than three times the output of the next-highest state, Arizona, and more than all other states combined. Several large plants were phased into operation in California during 2014, including two 550 MW solar photovoltaic plants, Topaz and Desert Sunlight (Phases 1 and 2 ), as well as the 377 MW Ivanpah (Phases 1 , 2 , and 3 ) and the 250 MW Genesis solar thermal plants. In […]

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Chesapeake Energy Cuts Capital Budget, Production Outlook

Chesapeake Energy Corp. on Monday slashed its 2015 capital budget by more than 10% and sharply lowered its production outlook, becoming the latest energy company to do so in response to lower oil prices. Separately, billionaire investor Carl Icahn said he has boosted his stake in Chesapeake Energy to nearly 11% from nearly 10%. Mr. Icahn now owns 73.1 million Chesapeake shares, financial filings show, but he isn’t the company’s largest investor. The No. 1 spot still belongs to Southeastern Asset Management Inc., which has 76 million share, or an 11.4% stake. Oil producers have announced plans to curb billions of dollars in capital spending this year, aimed in part at stabilizing the recent declines in energy prices. The Oklahoma City-based oil and natural gas driller reduced its spending plans to between $3.5 billion and $4 billion, down from a previous range of $4 billion to $4.5 billion. The […]

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Whiting Petroleum Silences Takeover Talk

ENLARGE A Whiting Petroleum pump jack near Bainville, Mont. Whiting on Tuesday priced an offering of 35 million shares at $30 a piece. Photo: Associated Press The most anticipated energy deal of the year is off the table. Eyes have been on Whiting Petroleum Corp., the biggest crude producer in North Dakota, for the past month as the debt-laden company reportedly explored refuge from plunging oil prices in the arms of a buyer . But Instead, Whiting said Tuesday that it would issue more equity, diluting shareholders’ stock, and take on more debt. “We are currently exploring asset sales of noncore properties. We are not, however, pursuing any significant strategic transaction at this time,” the company said in a filing to the Securities and Exchange Commission. A takeover of Whiting would have set a benchmark value for U.S. oil producers as crude continues to trade roughly 50% lower than […]

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AAA: U.S. gas prices drifting lower nationally

Regional refinery issues creating pain at the pump for some markets, though AAA says national average price for gasoline is trending lower. Photo by Oskari Porkka/Shutterstock Though an end to winter and Great Lakes refinery issues mean pain at the pump for some, low crude oil prices are a governor on gas prices, AAA said. Motor club AAA reports a national average price for a gallon of regular unleaded gasoline for Tuesday at $2.42, relatively unchanged in recent days. For the West Coast, California had the highest state average at $3.26, about 27 cents above the price one month ago. Illinois had the highest price for the Great Lakes region with a state average of $2.64, more than 25 cents above the average price last month. AAA said in a weekly gasoline report regional refinery issues were largely behind the increase in gasoline prices in some markets. Warmer temperatures […]

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U.S. shale oil output to flatten, then dip in second quarter – PIRA

LONDON (Reuters) – U.S shale oil production will flatten and slightly decline in the second quarter of 2015 as companies cut their capital spending to cope with lower oil prices, energy consultancy PIRA said on Tuesday. Crude oil prices have roughly halved since June last year due to a supply glut and weak demand. There has been a drop off in the number of drilling rigs in the U.S. in recent weeks but stocks have continued to rise to record levels. [EIA/S] "The effect of falling prices rippled throughout the production chain, both on an operational and a financial level," PIRA said in a note. "For the companies covered, capex guidance for 2015 was 35 percent lower than 2014 capex on average." Last week, a monthly report from the Organization of the Petroleum Exporting Countries (OPEC) said that U.S. oil output would decline in late 2015. U.S. oil companies […]

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Tank tops? Cushing isn’t the whole oil market: Kemp

LONDON (Reuters) – Traders do not appear worried that rising oil stocks in the United States will cause storage space to run out in the next few months, despite the rapid accumulation of inventories at Cushing in Oklahoma. The term structure of futures contracts has remained broadly stable since the end of January ( link.reuters.com/xyg44w ). Stocks "may soon test storage capacity limits", the International Energy Agency worried in its latest monthly Oil Market Report. "That would inevitably lead to renewed price weakness," it added. The view is shared by many bearish hedge fund managers and oil analysts, who have watched the steady climb in U.S. oil inventories for 15 consecutive weeks. Crude stockpiles at the Cushing storage hub hit a record 54 million barrels on March 13, according to the latest Weekly Petroleum Status Report from the U.S. Energy Information Administration (EIA). Tank farms at Cushing are now […]

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Gas key to EU ties with Azerbaijan

Natural gas developments key part of bilateral ties with Azerbaijan, country report from the European Union said. (UPI/Shutterstock/James Jones Jr.) Development of a natural gas pipeline network from Azerbaijan is one of the most important aspects of bilateral ties, a European Union report said Wednesday. The European Union published a series of reports Wednesday on the neighborhood policy for Eastern European and Central Asian countries, some of which are former Soviet republics. The report for Azerbaijan said the country’s economy was stable and diverse in part because of growth outside of the energy sector, which nevertheless underpinned bilateral ties . Azerbaijan is rich in natural gas reserves, which the EU sees as a source of diversification for an energy sector dominated in large part by Russia. "The commitment for the implementation of the Southern Gas Corridor continued to be of utmost importance for the EU-Azerbaijan dialogue," the country report […]

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Total moves ahead with North Sea development

Total cleared for development of two reserve fields west of the Shetland islands. Image courtesy: Total French energy company Total said Wednesday its plans for North Sea oil and gas development were backed by a British government expecting sector revitalization. The company said it could confirm the British Department of Energy and Climate Change approved field development plans for the Edradour oil and Glenlivet gas projects west of the Shetland Islands. "The approval of the field development plans by the U.K. government allows Total and its partner DONG [Denmark’s largest energy company] to continue to develop the project according to the concepts outlined in 2014," Total said in a statement. "The project is expected to add reserves of more than 65 million barrels of oil equivalent." A budget plan outlined last week in London is aimed at boosting exploration for new oil and gas reserves in British territorial waters. […]

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European gas demand fell 11% on year in 2014 to 409 Bcm: Eurogas

European gas demand fell 11.2% on the year in 2014 to 409 Bcm, or 4,418 TWh, because of "exceptionally warm" weather, industry association Eurogas said Wednesday. The weather was the warmest in Dutch and German recorded history, and the warmest in 50 years for the Czech Republic, the organization said. This reduced the need for heating. The size of the year-on-year change was further boosted by the fact that 2013’s winter had been colder than average. Eurogas said that "notably low coal prices" and "low carbon dioxide prices" had also reduced gas consumption in the power generation sector, combined with competition from increased renewable energy sources. Article continues below… It also pointed to "a sluggish economic situation," although in some countries, such as Germany and Ireland, industrial demand for gas increased. In the Eurogas figures, covering the EU 28 countries, the biggest single consumer was Germany with 2014 demand […]

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Oil rebounds towards $57 as weaker dollar overshadows China slowdown

LONDON (Reuters) – Brent crude reversed early losses to trade back towards $57 a barrel on Tuesday, as a weaker dollar overshadowed signs of slowing growth in China and Saudi Arabian oil production close to an all-time high. The dollar slipped 0.25 percent against the euro, extending losses from the previous session and providing a boost to dollar-priced commodities, which tend to move inversely to the U.S. currency. Brent futures LCOc1 for May delivery were trading up 64 cents at $56.56 by 0620 EDT, while U.S. crude CLc1 rose 60 cents to $48.05 a barrel. Its discount to Brent CL-LCO1=R widened to $8.51 a barrel. Gains were capped by data showing factory activity in China, the world’s second-largest economy and top oil importer, slipped in March. The flash HSBC/Markit Purchasing Managers’ Index came in at 49.2, below the 50-point level that separates growth from contraction. Economists polled by Reuters […]

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