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Britain's North Sea plan draws mixed reviews

London’s decision to breathe new life into the North Sea was welcomed by the energy sector, though climate fears surfaced given heavy flooding in the country. The British government said it supported recommendations from retired businessman Ian Wood to secure more oil and natural gas reserves from the North Sea. The government expects to secure $330 billion in the next two decades through the recovery of the 3 billion to 4 billion barrels of oil equivalent Wood says is still left in the North Sea. British energy company Dana Petroleum, which last year started a nine-well, $1.6 billion development project in the North Sea, welcomed the decision. Chief Executive Officer Graham Scotton said in a statement Monday the call to change the face of North Sea operations through more efficient use of new and existing infrastructure "is absolutely vital to the industry’s future success, […]

Posted On : Published By : Tom Whipple
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Scottish Oil and Gas an Issue in Vote on Independence

London is arguing that it could better manage the oil and gas reserves there than an independent Scotland could. Credit Pool photo by Andy Buchanan LONDON — They have disagreed over whether an independent Scotland could retain the British pound as its currency. They have sparred over whether Scotland would remain in the European Union if it votes in September to leave the United Kingdom. And on Monday, two of the most prominent advocates of the arguments for and against Scottish independence — Alex Salmond, Scotland’s first minister, and David Cameron, the British prime minister — turned to another crucial economic issue at stake in the battle: the future of the still-substantial oil and gas reserves in the North Sea. In a staged but striking symbol of their differences, Mr. Cameron brought the British government’s cabinet to Aberdeen, a once gritty […]

Posted On : Published By : Tom Whipple
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Cuadrilla gearing up for new fracking campaign in England

British energy company Cuadrilla Resources said it was reaching out to the public to discuss new hydraulic operations planned near Lancashire, England. The company said its officials started speaking with local residents to discuss proposed exploration work in The Flyde, in western Lancashire. Cuadrilla said it plans to apply for a permit to conduct a hydraulic fracturing, or fracking, campaign and test for the flow of gas at two wells from two separate sites. Cuadrilla Chief Executive Officer Francis Egan said public engagement was part of a responsible business model. "There will be many more chances for people to contribute to the process and I hope that people will take those chances and get involved," he said in a statement. The company was the target of major demonstrations last summer when its work in the southern village of Balcombe was viewed as a prelude […]

Posted On : Published By : Tom Whipple
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UK floods set to continue as more rain hits

The devastating UK floods are set to continue as more heavy rain hits already saturated ground. The Met Office has issued a yellow "be aware" warning for rain in south-west England and there are 16 severe flood warnings in southern England. However, the situation in the worst-hit areas of the Thames is expected to improve this week. David Cameron described the floods as a "tragedy" and warned people to prepare for more bad weather this week. Persistent rain Up to 20mm (0.8in) of rain is forecast in south-west England on Monday. The BBC Weather Centre said this would not normally cause too many problems but the Met Office warning was in place because of the saturated ground. There are also concerns about south Wales. There is also a yellow severe weather warning for ice in northern Scotland […]

Posted On : Published By : Tom Whipple
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Scotland says independence will make it a reliable energy partner

Scottish Energy Minister Fergus Ewing said Thursday independence will give Edinburgh a chance to boost renewable energy trade with its neighbors. Ewing told an investment conference in Belfast a "strong and diverse" Scottish economy will be an asset for neighboring countries if voters say yes to a late 2014 referendum for independence. The Irish-Scottish Links on Energy Study, a joint effort examining offshore interconnected electricity, and other projects like it "can help Northern Ireland, Ireland and Scotland deliver our huge off-shore renewable energy potential including wind, wave and tidal," he said. Ewing said Ireland last year received $1.3 billion worth of Scottish exports and "so much more" would come through independence. Scotland has one of the most ambitious renewable energy programs in the world. It was cleared this week to develop a research center for offshore wind technology after U.S. real estate mogul […]

Posted On : Published By : Tom Whipple
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BP Drops Plans to Invest in China Refinery Project, IEA Says

BP Plc dropped plans to invest in a refinery in China and “dismantled” a team assigned to the project late last month, said the International Energy Agency . BP had considered investing in the 200,000 barrel-a-day Qinzhou plant operated by PetroChina Co. (857) , according to the IEA, an energy adviser to developed nations. The refinery in the southern province of Guangxi started operations in 2010 and is currently being upgraded to handle a wider range of feedstock, it said in its monthly Oil Market Report today. David Nicholas, a BP spokesman in London , declined to comment on the report today. Chinese and international oil companies are reconsidering their refinery-investment plans as the Asian nation’s oil consumption expanded at the slowest pace in six years in 2013, according to the IEA. About 4.3 million barrels a day of primary distillation capacity was scheduled for completion by 2018, “by […]

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Eni's Net Profit Drops 14%

Eni SpA’s fourth-quarter net profit dropped 14% on the year, as the Italian oil and natural gas company suffered disruptions to its large business in Africa, weaker refining results and the appreciation of the euro against the U.S. dollar. Despite the profit decline, Eni said Thursday it will increase its 2013 dividend by 1.9% on the year as it seeks to attract investors with higher payouts who are nervous about the underlying business trends and weak results from its gas activities. In January, Eni kick-started its share buyback program worth up to €6 billion ($8.16 billion) in another shareholder-friendly measure. Eni joins its peers in reporting dismal earnings for the last quarter, as production disruptions in Africa, an explosion of costs and increased competition in refinery activities, amid weak demand, hit results. France’s Total SA said Wednesday that net profit for the period fell 31%, Royal Dutch Shell […]

Posted On : Published By : Tom Whipple
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Eni’s Net Profit Drops 14%

Eni SpA’s fourth-quarter net profit dropped 14% on the year, as the Italian oil and natural gas company suffered disruptions to its large business in Africa, weaker refining results and the appreciation of the euro against the U.S. dollar. Despite the profit decline, Eni said Thursday it will increase its 2013 dividend by 1.9% on the year as it seeks to attract investors with higher payouts who are nervous about the underlying business trends and weak results from its gas activities. In January, Eni kick-started its share buyback program worth up to €6 billion ($8.16 billion) in another shareholder-friendly measure. Eni joins its peers in reporting dismal earnings for the last quarter, as production disruptions in Africa, an explosion of costs and increased competition in refinery activities, amid weak demand, hit results. France’s Total SA said Wednesday that net profit for the period fell 31%, Royal Dutch Shell […]

Posted On : Published By : Tom Whipple
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UK storms: Homes left without power and travel disrupted

Blackpool in Lancashire is among areas that have been battered by wind and rain Tens of thousands of homes are without power and commuters are facing renewed travel disruption after hurricane-force winds battered the UK on Wednesday. Forecasters are predicting some respite on Thursday from stormy weather but another Atlantic low could bring gales of more than 80mph from Friday onwards. Sixteen severe flood warnings remain for Berkshire, Surrey and Somerset – all already hit by severe flooding. Train services in parts of the UK are cancelled and some roads are closed. Prime Minister David Cameron will chair the first meeting of a new Cabinet committee on flood recovery later. It comes after road and rail travel was hit by high winds, which closed major routes and caused delays and cancellations throughout Wednesday. A man, thought to […]

Posted On : Published By : Tom Whipple
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Getting real about regulation – why it won’t make fracking safe

The British government has acknowledged the potential harms of fracking for unconventional gas – yet claimed that regulation in Britain is more stringent than in other countries and that it is therefore possible to prevent negative impacts. In this article I will show that over a century of health and safety regulation in the UK gives no ground for confidence. On the contrary there has repeatedly been shameful disregard for public health and environment. Industrial and commercial interests have repeatedly overridden the right of the public to be protected and there is already evidence that we are seeing the same tragedy replayed – potentially on a more destructive scale than ever before. The truth is that in some cases British regulation is inferior to other countries – that is why the British government are fighting the European Commission to prevent European regulation of shale gas extraction. In the light […]

Posted On : Published By : Tom Whipple