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Cameron thanked for sacking environment secretary

British Prime Minister was right to bring a new face to the government’s environmental body, British Friends of the Earth said Tuesday. Cameron’s administration reshuffled several key ministerial positions Tuesday. The prime minister sacked Owen Paterson as secretary of state for the environment, food and rural affairs. Paterson was criticized for his controversial stance on climate issues. "David Cameron is right to give Owen Paterson the boot — he’s the worst Environment Secretary the U.K. has had for decades," Friends of the Earth Executive Director Andy Atkins said in a statement . Friends of the Earth said Paterson had "willfully ignored" evidence of climate change. Paterson was replaced by Liz Truss. "We hope she will mark a clean break with Owen Paterson by listening to science and striving for evidence-based decision making," Atkins said. William Hague ‘s decision to stand down as foreign minister was among […]

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North Sea Maintenance Means August Crude-Oil Loadings to Fall 24%

The amount of crude oil due to be pumped from the North Sea fields will by 24% in August, field maintenance takes out swathes of production. The big change comes in the amount of Forties crude to be loaded, according to provisional loading programs seen by The Wall Street Journal. The Buzzard oil field, where Forties is produced and which is the U.K.’s biggest contributor to oil production, will be out of action for two weeks for scheduled maintenance work. Only four cargoes of Forties will be loaded in August, compared with 19 in July. Other grades will increase loadings to compensate. There will be seven Brent cargoes in August, up from six in July, and seven of Oseberg, also up from six. Ekofisk will load 17 cargoes in August compared with 15 in July. Loading programs are released and circulated among oil traders […]

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British carbon capture project gets EU funding

The British government said Tuesday it received more than $400 million in funding from the European Commission to help build a carbon capture facility. The British government said it received financial support from the European Commission for its White Rose project, a so-called clean coal power plant that would capture as much as 90 percent of its emissions and store them underneath the North Sea. British Energy and Climate Change Secretary Ed Davey said White Rose will help with the development of a low-carbon economy in the country. "The U.K. is at the forefront of developing carbon capture and storage, with excellent potential for storage in the North and Irish Seas, and the expertise in operating offshore to make it a reality," he said in a statement . The British government said power plants equipped with carbon capture and storage technology could provide more than 20 percent of the […]

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UK became a net importer of petroleum products in 2013

U.S. Energy Information Administration, from UK Department of Energy and Climate Change Fossil fuels (petroleum and other liquids, natural gas, and coal) account for most of the United Kingdom’s (UK) energy consumption. Although renewable energy use is growing, particularly in the electric power sector, fossil fuels accounted for 86% of total primary energy consumption in 2012. Like the United States, the UK has experienced significant changes in its net reliance on imported fossil energy sources since 1970. Beginning in the 1980s, the UK first became a significant net coal importer following the removal of domestic production subsidies and trade barriers. With the opening of North Sea production, the UK became a significant net exporter of crude oil beginning in the early 1980s, but has been a net importer since […]

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More tidal energy set for Scottish coast

| License Photo A decision to invest more than $3 million on a tidal array planned for Scottish waters is a testament to its green energy strength, the energy minister said. Tidal technology company Nova Innovation and Belgian renewable energy company ELSA secured $3.1 million from European investors to build tidal arrays off the Scottish coast. "ELSA’s decision to invest in Scotland is a testament to the confidence felt by international investors to help develop the huge wave and tidal energy resources from the waters around the Scottish coast," Scottish Energy Minister Fergus Ewing said in a statement Sunday. The tidal array, which will consist of five 100-kilowatt turbines, will be installed in three stages. Three of the turbines should be commissioned by the end of 2015. Scotland says it lays claim to about 25 percent of the wind and tidal energy potential and 10 percent of wave energy […]

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Cuadrilla Drilling Application Accepted by Lancashire Council

UK-focused shale gas firm Cuadrilla Resources is a step closer to beginning fracking operations in the northwest of England after Lancashire County Council formerly validated and accepted an application to drill in the county, the firm announced Wednesday. The planning application, to drill up to four shale gas exploration wells at Preston New Road, and its accompanying environmental statement is now accessible to the public. Cuadrilla said the environmental statement details the findings of an "extensive" environmental impact assessment of the sites, which was carried out by experts at independent consultant Arup. Arup Project Director Des Correia commented in a statement: "The work we’ve undertaken for both the environmental impact and environmental risk assessments has been tremendously comprehensive. We’ve been using best practice standards throughout our work and we’ve covered a full exploration life-cycle as well as considering cumulative impacts in both our scope and analysis work. “Our approach […]

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Scotland emissions down 26.4 percent from 1990

The Scottish government said Tuesday it’s reduced its greenhouse gas emissions by more than 25 percent since 1990 and is on pace to hit 42 percent by 2020. "Scotland has the world’s leading climate change targets," Scottish Minister for Environment and Climate Change Paul Wheelhouse said in a statement . "With a target of 42 percent by 2020 we are ahead of the United Kingdom at 34 percent and well ahead of the EU at 20 percent." The Scottish government aims to generate the equivalent of 100 percent of its annual electricity consumption through community- and locally-owned renewable energy resources by 2020. As of 2012, the last full year for which data are available, emissions are down 26.4 percent from 1990 levels. Scotland holds a one-question referendum on independence from the United Kingdom later this year. Its government said it could support itself in part on oil and gas […]

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Huge potential seen in British shale

A small energy company, Union Jack Oil, said there may be as much as 5.4 billion barrels of oil and 2.7 trillion cubic feet of gas in British shale deposits. Union Jack holds a 10 percent stake in a license area in the central United Kingdom dubbed PEDL201. The company said in a statement Monday an independent site assessment indicates the potential in shale oil and gas in the area is enormous. The company said that, even if recovery rates are on the low end of what’s possible, the volume of oil and gas taken from the region could have a "significant commercial value." Union Jack cautioned there’s no certainly that any portion of the oil and gas thought to exist in the license area will be cost-effective to produce. The company says it plans to drill two conventional exploration wells into the reserve area by […]

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Fracking plans submitted for British shale

British shale explorer Cuadrilla Resources, the target of heated protests, said it submitted plans for new fracking operations to Lancashire County officials. "The proposal covers the works required to drill, hydraulically fracture and test the flow of gas from up to four exploration wells on the site," the company said in a statement Thursday. When the company announced its intent to submit plans to Lancashire officials in early May, Caudrilla CEO Francis Egan said the application would be an "important milestone" for British shale. In March, the company said it believes there are 200 trillion cubic feet of shale natural gas in the Bowland basin in Lancashire. The company was the target of major demonstrations last summer when exploratory operations in the southern village of Balcombe were viewed as a prelude to fracking, though the process wasn’t carried out at the site. Caudrilla said Thursday there […]

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Scotland sees North Sea reserves as major asset

Oil and natural gas wealth in the North Sea is expected to become major financial asset for Scotland on independence, the finance secretary said Wednesday. "North Sea oil and gas is a fantastic natural asset which has a great future for many decades to come," Scottish Finance Secretary John Swinney said in a statement . Scotland holds a referendum for independence from the United Kingdom in September. The Scottish government said it could finance itself in part through oil and gas revenues while powering its economy with renewable resources. Swinney said there may be as much as 24 billion barrels of oil and natural gas reserves left in the North Sea and production is on pace to increase by 14 percent between 2013 and 2018. The finance minister said Scotland may be the largest oil producer and the second largest gas producer in the European Union. […]

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Home Counties shale oil survey finds ‘no bonanza’

More than four billion barrels of oil could be present in shale formations lying underneath Kent, Sussex, Surrey and Hampshire – although it is doubtful how much of it could ever be recovered through fracking, according to a long-awaited government study. Research by the British Geological Survey assessed the shale oil and gas potential of the Weald Basin, an area stretching underneath the Home Counties, including the South Downs National Park. It concluded that shale formations in the basin could contain between 2.2bn and 8.5bn barrels of oil with a mid-case estimate of 4.4bn – which would be equivalent to approaching a decade of UK consumption. But the geologists, commissioned by the government to assess the potential reserves, played down the prospects for an onshore oil and gas bonanza in the area because of the difficulty of extracting it. Robert Gatliff, director of energy and marine geoscience at the […]

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U.K.’s South England Holds Billions of Barrels of Shale Oil

Shale rock underneath some of the wealthiest counties in southern England may contain billions of barrels of oil, a government report said. The Weald basin, covering counties south of London including Surrey, Sussex and Kent, may have oil in place of as much as 8.6 billion barrels, according to a report published today by the British Geological Survey. It didn’t say how much could be extracted profitably. The U.K.’s current extractable oil reserves are 3.1 billion barrels, data by BP Plc (BP/) show. The report is likely to add to the controversy about drilling for shale oil and gas in the U.K. The government wants to develop the resources to cut energy costs and boost the economy. Opponents say the process of hydraulic fracturing, using high volumes of water, sand and chemicals to drill shale, can damage the environment. Last year, the BGS said the Bowland basin, which extends […]

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Billions of shale barrels under Home Counties

The government is expected to announce on Friday that the Weald Basin in southern England contains billions of barrels of shale oil, delivering a potentially huge boost to an embryonic industry in the UK. The announcement will set the scene for a stand-off between Britain’s small band of domestic shale explorers and the well-heeled residents of one of the Tories’ traditional heartlands . The government will unveil the results of a study by the British Geological Survey, the latest in its reports on unconventional oil and gas potential. It will focus on the Weald, an area spanning Sussex, Hampshire, Kent and Surrey. Last year, the BGS published a study of the Bowland Shale in northern England, which, it said, contained about 1,300tn cubic feet of gas. Even if only a tenth of that is extracted, it would be the equivalent of 40 years’ gas supply for the UK. The […]

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British fracking plans irk advocacy group

A British energy sector move toward shale natural gas is a move in the wrong direction and the public is taking notice, a British advocacy group said. British Friends of the Earth said it was frustrated by a decision by shale gas explorer Cuadrilla Resources to consider a hydraulic fracturing campaign in Lancashire. Cuadrilla said Monday it was listening closely to the public’s reaction to the potential drilling operations in Lancashire. Chief Executive Francis Egan said the engagement with the local community has been "extensive." Friends of the Earth campaigner Helen Rimmer said in response, however, the public was concerned about the risks of the fledgling shale effort in the country. "The public is rightly concerned that fracking causes more problems than it solves," she said . Cuadrilla Resources in March said it believes there are 200 trillion cubic feet of shale natural gas in […]

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British shale company Cuadrilla plans new campaign

British shale gas explorer Cuadrilla Resources announced its intention to submit a plan for exploration work to the county council in Lancashire. "This application could be a really important milestone for Lancashire and the U.K. as we seek to unlock Lancashire’s shale gas potential," Cuadrilla Chief Executive Officer Francis Egan said in a statement Sunday. The company said it would submit its planning application for a hydraulic fracturing campaign for four exploration wells to the Lancashire County Council before the end of May. In March, the company said it believes there are 200 trillion cubic feet of shale natural gas in the Bowland basin in Lancashire . Cuadrilla was the target of major demonstrations last summer when exploratory operations in the southern village of Balcombe were viewed as a prelude to fracking. In January, the company sent a letter to village residents, saying it was […]

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UK “needs more home-grown energy”

In just over five years Britain will have run out of oil, coal and gas, researchers have warned. A report by the Global Sustainability Institute said shortages would increase dependency on Norway, Qatar and Russia. There should be a "Europe-wide drive" towards wind, tidal, solar and other sources of renewable power, the institute’s Prof Victor Anderson said. The government says complete energy independence is unnecessary, says BBC environment analyst Roger Harrabin. The report says Russia has more than 50 years of oil, more than 100 years of gas and more than 500 years of coal left, on current consumption. ‘Decisive action’ By contrast, Britain has just 5.2 years of oil, 4.5 years of coal and three years of its own gas remaining. France fares even worse, according to the report, with less than year to go before it runs out of all three fossil fuels. Coal, oil and gas […]

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UK "needs more home-grown energy"

In just over five years Britain will have run out of oil, coal and gas, researchers have warned. A report by the Global Sustainability Institute said shortages would increase dependency on Norway, Qatar and Russia. There should be a "Europe-wide drive" towards wind, tidal, solar and other sources of renewable power, the institute’s Prof Victor Anderson said. The government says complete energy independence is unnecessary, says BBC environment analyst Roger Harrabin. The report says Russia has more than 50 years of oil, more than 100 years of gas and more than 500 years of coal left, on current consumption. ‘Decisive action’ By contrast, Britain has just 5.2 years of oil, 4.5 years of coal and three years of its own gas remaining. France fares even worse, according to the report, with less than year to go before it runs out of all three fossil fuels. Coal, oil and gas […]

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BP sees oil production recovery in North Sea

Oil production from the British waters of the North Sea could see its first increase in more than 10 years, a regional director for BP said. Monthly production from key field indices in the North Sea show a decline from 2.02 million barrels of oil per day in 2007 to 1.16 million bpd last year. Since January, however, production has recovered to 1.2 million bpd, BP regional vice president for Europe Peter Mather told a Platts oil summit in London. "This year could be the first in over a decade that U.K. offshore production does not fall, potentially leading to a slight increase in the next few years," he said Tuesday. Oil from the North Sea met around 65 percent of the British oil demand in 2012 and paid nearly $11 million in taxes to the government in 2012-13. The industry employs about 450,000 people. […]

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Shale gas may be ready for British grid

British shale gas explorer Cuadrilla could start testing delivery rates through the nation’s transmission system, Chief Executive Francis Egan said. Egan said gas from shale deposits in the country could start flowing through the nation’s transmission system by the end of next year, albeit at low volumes. "After the initial flow test period, which is up to 90 days, if the flow rates look good then we would want to tie the well into the gas transmission system and flow it for a longer period to assess the flow rate over 18 to 24 months," he said Sunday. The company was the target of major demonstrations last summer when its work in the southern village of Balcombe was viewed as a prelude to hydraulic fracturing, known also as fracking. In January, Cuadrilla sent a letter to village residents saying it was applying for an extension […]

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Petrofac Plunges After Cutting Earnings Forecast on Delays

Petrofac Ltd. (PFC) fell by the most in more than five years in London trading after saying earnings will be lower than expected because of project delays. The U.K.’s largest oil and gas engineer will cut capital spending at its Integrated Energy Services division, which takes direct stakes in fields, after reviewing the future of the business. The stock fell as much as 18 percent to 1,142 pence, the largest drop since October 2008. It traded at 1,165 pence at 9:55 a.m. London time, making it the biggest decliner in the benchmark FTSE 100 index. Today is the second time in six months Petrofac shares have plunged because of a profit warning. The stock fell by a record in November after the company forecast flat to modest profit growth in 2014. Profit for the year is now expected from $580 million to $600 million, London-based Petrofac said today in […]

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Europe Must Embrace Fracking, U.K. Energy Minister Says

The Ukraine crisis has become a “wake-up call” for European governments on the need to develop local energy resources, including natural gas from shale, U.K. Energy Minister said. The use of hydraulic fracturing, or fracking, to tap shale reserves that could meet demand for decades would provide greater security of supply at a time when Russia has threatened to curb gas shipments needed to power European economies, he said in an interview in Houston yesterday. “We have to ensure that we do maximize our indigenous resources,” Fallon said. “We can’t be reliant on dodgy parts of the world.” Escalating violence in Ukraine fanned by Russian separatists has intensified calls to develop local prospects, especially in countries such as Bulgaria that are more reliant on Russian gas, he said. Russia provides about a third of the EU’s oil and gas needs, mainly via state-controlled OAO Gazprom (GAZP) and OAO Rosneft […]

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Balcombe oil plans spark outrage

The British Friends of the Earth said they were frustrated with council members in West Sussex County who voted in favor of oil operations near Balcombe. "We are extremely disappointed that councilors have not listened to local people," Friends of the Earth campaigner Brenda Pollack said in a statement Tuesday. "This is an attempt by Cuadrilla to set the wheels in motion for dirty fossil fuel extraction." Last week, Cuadrilla Resources said it would apply for permission to drill up to four exploration wells at sites near Balcombe. The village was the scene of demonstrations against the controversial drilling practice, hydraulic fracturing. While last year’s campaign didn’t involve hydraulic fracturing, the company said it now wanted approval to employ the technique. Pollack said that, instead of fossil fuels, the British economy should embrace more renewable forms of energy. The council heard public reaction to […]

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Royal Dutch Shell Profit Falls on Refining Charge

Royal Dutch Shell PLC on Wednesday reported a fall in first-quarter profit after taking a $2.86 billion impairment charge largely on its refineries in Asia and Europe. The company also raised its dividend and said it is considering the sale of certain marketing assets in Norway. The results were the first for the oil giant under the leadership of Ben van Beurden, who took over as chief executive in January. "The impairments we have announced today in downstream reflect Shell’s updated views on the outlook for refining margins," Mr. van Beurden said. Shell first-quarter profit on a current cost of supplies basis—a figure that factors out the impact of inventories, making it equivalent to the net profit reported by U.S. oil companies—fell 44% to $4.47 billion. First-quarter revenue fell to $109.66 billion in the quarter, from $112.81 billion a year earlier, while net profit fell to $4.51 billion, compared […]

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BP First-Quarter Profit Falls

BP PLC reported a fall in first-quarter profit as the energy giant continues to reshape itself in the aftermath of the Deepwater Horizon explosion and oil spill. BP’s production for the three months ended March 31 fell 8.5% to 2.13 million barrels of oil a day and the company warned that second-quarter production will be lower, mainly because of planned maintenance in the higher-margin North Sea and Gulf of Mexico regions. BP said underlying first-quarter replacement-cost profit, which strips out inventory gains or losses, fell to $3.23 billion, from $4.22 billion last year. Replacement-cost profit is similar to net profit, according to U.S. generally accepted accounting principles. Revenue slipped to $91.71 billion, from $94.11 billion a year earlier. Net profit was $3.53 billion, from $16.86 billion a year earlier, which was boosted by a $12.5 billion gain the sale of its stake in TNK-BP . BP increased its first-quarter […]

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Fracking Is the Future

Fracking is the future according to Lord John Browne, the former chief executive for BP. He is known as the fracking czar due to his enthusiasm to bring the process to Great Britain. Hydraulic fracturing, known as fracking, uses a combination of water, sand, and chemicals to separate shale from natural gas and oil. Lord Browne wants to take fracking to a new level in Great Britain. According to the British Geological Survey, the Bowland-Hodder formation in England’s midsection contains shale deposits with more than 1,300 trillion cubic meters. Within that shale are deposits of oil and natural gas. With fracking, Great Britain will have enough oil and natural gas for 40 years. He believes fracking is a secure domestic energy source that will create a plethora of new jobs and generate billions in tax revenue. Lord Browne considers fracking a better alternative to constructing nuclear plants and importing […]

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Dude, where’s my North Sea oil money?

For a few years, the UK enjoyed a once-in-a-lifetime windfall – only, unlike the Norwegians, we’ve got almost nothing to show for it Last Wednesday, every single Norwegian became a millionaire – without having to lift a lillefinger. They owe the windfall to their coastline, and a huge dollop of good sense. Since 1990, Norway has been squirreling away its cash from North Sea oil and gas into a rainy-day fund. It’s now big enough to see Noah through all 40 of those drizzly days and nights. Last week, the balance hit a million krone for everyone in Norway. Norwegians can’t take a hammer to the piggy bank, amassed strictly to provide for future generations. And converted into pounds, the 5.11 trillion krone becomes a mere £100,000 for every man, woman and child. Still, the oljefondet (the government pension fund of Norway) owns over 1% of the world’s stocks, […]

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Light Goes Out on U.K. Coal Industry

The U.K. coal industry is at the point of fizzling out following the planned closure of two of its three remaining deep mines in northern England. Among the beneficiaries: Russian exporters of the commodity. U.K. production of coal—still a major source of power in the country—has been in long-term decline since Margaret Thatcher ‘s government defeated a miners strike in the 1980s. When Mrs. Thatcher came to power in 1979, Britain produced 122 million tons of coal from 219 underground and 58 open-cast mines. Last year production was one-tenth that amount, the lowest to date. A further drop when the closures are completed in 18 months will underline how reliant the U.K. has become on foreign suppliers. Since 2002, annual imports of coal used in U.K. power generation have doubled. The country now imports nearly four times as much coal as it produces domestically. Problems for the U.K. coal […]

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Freedom to frack plan set to spark UK backlash

Energy companies are to be given the freedom to “ frack ” for shale gas under private land in a move that is set to provoke a backlash from environmentalists, residents and some MPs. In an attempt to kick-start the fledgling shale industry, the coalition will include an infrastructure bill in the Queen’s Speech to change trespass laws, allowing companies to drill without permission in return for only minimal compensation to landowners. The bill will also give new freedoms to the Highways Agency in an attempt to get more major roads built, as well as planning reforms designed to fast-track new developments. The legislation, expected in the Queen’s Speech on June 3, comes as David Cameron and George Osborne prepare to defend the coalition’s mixed record on transforming Britain’s ageing infrastructure. The prime minister and chancellor will announce on Tuesday that 200 projects worth £36bn will start construction in […]

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British shale sector not in prime time

A British government report on the shale oil and natural gas sector suggests the infrastructure and labor pool isn’t yet in place for full utilization.The British Geological Survey last year estimated the Bowland shale formation in the north of the country contains 1.3 quadrillion cubic feet of natural gas. The government says shale could ensure energy security for a country where net natural gas imports are on pace to increase from 45 percent of demand in 2011 to 76 percent by 2030. A report from BGS, which the Sunday Telegraph says is expected later this week, may suggest shale could provide a source of major economic stimulus, though the nation’s energy sector lacks the workforce and the equipment to adequately develop the reserves. British energy companies Cuadrilla Resources and IGas are frontiers in shale development in the country. Sam Laidlaw, chief executive officer at […]

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London: Scotland may face huge energy bills alone

Scottish consumers may end up paying "considerably more" to support an energy sector if they break from the United Kingdom, the British government said. The British government published a report Wednesday saying a single energy market would be better for the region’s economy. Scotland is to hold a referendum for independence from the United Kingdom in September. Its government says it could support itself in part with revenue from North Sea oil and natural gas reserves while powering its economy through renewable energy reserves. British Secretary of State for Energy and Climate Change Ed Davey said a united market has helped support the Scottish energy sector and has kept consumer energy bills down. "Scottish consumers would end up paying more, possibly considerably more, for energy infrastructure in an independent Scottish state than they do as part of the United Kingdom," he said in a […]

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North Sea coal seams eyed for natural gas

British energy company Five Quarter said it wants the government’s approval to try to coax natural gas from coal deposits under the North Sea bed. Five Quarter wants government support for its $2 billion plan to use oxygen and steam injection to produce gas from coal beds in the North Sea. So-called syngas would be processed onshore and fed to the chemical industry. Five Quarter Chief Executive Officer Harry Bradbury told the Daily Telegraph his company was looking for financial backing for a pre-drilling phase that could began later this year. Unlike hydraulic fracturing, another unconventional source of natural gas, Bradbury said coal seam gas would provide a reliable and less risky source of natural gas for the British economy. "Gas has become a global geopolitical issue as the supply and demand map has changed," he said Saturday. "Accelerating the development of North Sea […]

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North Sea Crude Loadings to Drop During May Maintenance

The amount of crude oil due to be pumped from fields in the North Sea is set to fall nearly 15% in May compared to the previous month, as maintenance season takes large swathes of production out of the market. The Oseberg field will load only two cargoes this month, according to provisional loading programs seen by The Wall Street Journal, compared with six last month. "I think it’s just normal field maintenance [and] I would say it was planned. Whether or not the market knew about it until very recently is another matter," said Steve Sawyer, an oil consultant at FACTS Global Energy. The total number of barrels to be loaded in May will be 24 million, down 14.9% from 28.2 million the month before. A North Sea oil trader said that the "large maintenance" was likely priced in, and that the Oseberg field is […]

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Britain Confronts Gas Mother Lode With Fracking by Lord Browne

The hills of Lancashire, England, sit atop a mother lode of shale gas that may be extracted with hydraulic fracturing, or fracking. Photograph: Alan Clarke/Bloomberg Markets Close The hills of Lancashire, England, sit atop a mother lode of shale gas that may be extracted with hydraulic… Read More The hills of Lancashire, England, sit atop a mother lode of shale gas that may be extracted with hydraulic fracturing, or fracking. Photograph: Alan Clarke/Bloomberg Markets Close John Browne, a former CEO of BP, is a prime mover behind efforts exploit Britain’s natural gas through fracking. … Read More John Browne, a former CEO of BP, is a prime mover behind efforts exploit Britain’s natural gas through fracking. Photograph: Alan Clarke/Bloomberg Markets Close Andrew Pemberton, who keeps 130 cows, says he’s worried that his dairy business is located downstream from a proposed… Read More Andrew Pemberton, who keeps […]

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Air pollution hits maximum level in southeast Britain

Air pollution in parts of Greater London and southeast England deteriorated on Thursday, hitting the maximum level on the government scale despite forecasts that it would start to abate. Defra, the environment department, forecasts that air pollution will be at or near 10 on its scale of one to 10 in East Anglia, through the Midlands, into easternmost Wales, on Merseyside and as far south as through London into northern Kent. A reading of 10 is classified as “very high”. Frank Kelly, professor of environmental health at King’s College London, said: “Today is going to be the worst day of the last couple of weeks.” He recommended that children be kept indoors in areas where pollution is high or very high. “The general understanding of the effects of air pollution on children is that it leads to a decrease in their lung growth,” he said. “This is precautionary […]

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Cuadrilla: UK Could Produce Shale Gas in 4 Years in Emergency

LONDON, April 2 (Reuters) – Shale gas production in Britain could begin within four years if the current crisis in Ukraine escalates to such an extent that a national state of emergency is declared, the chief executive of Cuadrilla Resources said. Britain is in the early stages of exploring for shale gas to counter its growing dependence on imports, and geologists have estimated it could have shale resources equivalent to several hundred years of demand. Cuadrilla is the only company in Britain so far to have used hydraulic fracturing, or fracking, in test wells in Lancashire. It is two to three years away from establishing whether its British shale gas operations are commercially viable, Chief Executive Francis Egan said at an event at think-tank Chatham House on Tuesday evening. If the Ukraine crisis worsens dramatically and Britain declares a state of national emergency and removes all constraints, "it would […]

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UK’s biggest coal miner on verge of collapse

UK Coal is appealing for government support to stave off a collapse that would cost 2,000 jobs. The largest coal miner in Britain was rescued last year by the Pension Protection Fund , which preserves the pensions of employees whose companies go bust. But it is on the brink of insolvency again. Hargreaves Services , the only other domestic large scale miner , is also in talks to invest in the business, according to people familiar with the situation. Its proposal to buy UK Coal for £20m was rejected by administrators last year in favour of the PPF rescue. Hargreaves could not be reached for comment. In case that bid fails, UK Coal is asking for £10m of government funding to close two of the past three deep pits in Britain and sell off its surface mines. The business, which is burning cash reserves because of the low […]

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London awards grants for low-carbon heating schemes

The British government said Wednesday two dozen communities received more than $3 million in grants to develop heating networks using low-carbon technology. British Energy and Climate Change Minister Greg Barker said using energy from waste, or what he described as recovered heat from the industrial sector, would help advance a low-carbon economy. "Heat networks are a defining part of our smarter, cleaner energy future," he added in a statement Wednesday. Grants for 24 local communities are valued at a combined $3.4 million. More than 50 local communities since January 2014 have received similar developmental grants ranging in value from $24,000 to $410,000 each. As part of a broader European agreement, the British government is committed to using renewable energy to meet 20 percent of its demand by 2020. © 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly […]

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Well integrity a fracking concern, British study finds

March 25 (UPI) — A study published Tuesday in the British journal Marine and Petroleum Geology finds underground wells used for shale exploration may cause water contamination. A study from Research Fracking in Europe, or ReFINE, finds the structural casing of underground wells may present a risk to underground water supplies. In the Marcellus shale play in the United States, the study found around 6 percent of the 8,000 wells had some sort of well integrity issue. In the United Kingdom, it found about one half of one percent of active wells showed evidence of failure. With European countries looking to replicate U.S. success with shale exploration, the study found the data on well failure rates of onshore wells in Europe were "scarce." Richard Davies, the project’s leader from Durham University, said well integrity will be an issue if the shale narrative evolves in Europe. "The data from the […]

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British foreign secretary calls for renewed focus on energy security

British Foreign Secretary said it was time for European leaders to get serious about energy diversity in response to the crisis over Ukraine. "We would need to boost investment in gas interconnections and terminals in Europe, and develop indigenous European energy supplies for countries wishing to develop their own resources, such as shale gas," he wrote in the Sunday Telegraph. European energy consumers get about a quarter of their gas needs met by Russia, though the bulk of that runs through the Soviet-era gas transit network in Ukraine. The turmoil that erupted in November has sparked concerns about the security of European energy supplies. Hague said renewed focus should be on the so-called Southern Corridor, a series of transit networks that would rely in part on gas supplies from Azerbaijan. Envisioned before the most recent crisis, the Southern Corridor is meant to break the Russian grip on the regional […]

Posted On : Published By : Tom Whipple
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London sees energy security through shale

British Energy Secretary Michael Fallon said the British economy needs to rely more on domestic energy reserves like shale gas for national security’s sake. "We have to develop more home grown energy like shale," Fallon said in an interview with the Sunday Telegraph. The British Geological Survey in June estimated the Bowland shale formation in the north of the country contains 1.3 quadrillion cubic feet of natural gas. The government says shale could ensure energy security for a country where net natural gas imports are on pace to increase from 45 percent of demand in 2011 to 76 percent by 2030. Protesters last year staged several demonstrations to protest shale operations. The practice is seen as a threat to the environment. The newspaper reported the British economy has relied on imported natural gas since output from the North Sea began its decline in 2005. Fallon said Russia’s grip on […]

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BlackRock wades into Scottish referendum debate

©AFP BlackRock has written an in-depth report on the expected impact on investors of Scottish independence BlackRock has waded into the debate on Scottish independence , warning that a vote to break away from the UK would create “substantial issues” for investors. The US asset management giant has written an in-depth report, seen by FTfm, on the expected impact on investors of the 306-year union between Scotland and the rest of the UK coming to an end. BlackRock, which opened its first office outside the US in Edinburgh, believes an independent Scotland would create “major uncertainties, costs and risks” for companies and pension schemes based in Scotland and the remainder of the UK. Investors in UK gilts and equities, in particular financial, utility and energy companies, will be most affected, according to the New York-based fund house. Investments in Scottish infrastructure projects are also likely to be put on […]

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Scottish renewables may falter alone, British minister says

British Energy Secretary Ed Davey said Scotland could face a difficult task in supporting its renewable energy ambitions if it breaks from the United Kingdom. Scotland holds a September referendum for independence from the United Kingdom. The government in Edinburgh said it could support itself economically through oil and gas reserves in the North Sea. Davey told an energy conference in Edinburgh that while the Scottish people could endure alone, unity was better in terms of energy policies. Scotland, he said, is developing its renewable energy sector at a record pace. Scotland accounts for 10 percent of all households in the U.K., but gets 25 percent of all support for renewable energy generation. "If Scotland were to choose to go it alone, maintaining this level of support would take up a greater proportion of national finances," he said in remarks published Wednesday. "This has the potential to fundamentally change […]

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Exploring the “why” behind extreme energy

For eight months I’ve been travelling around England and Wales talking about ‘unconventional gas’ – shale gas , coal-bed methane [2] and underground coal gasification [3] , which the media often erroneously conflate as ‘fracking’ [4] . This intensive period of work began last June, and continued into 2014 to meet the continued requests for talks. In particular I’ve tried to tour those areas next in line for extreme energy [5] developments – South Wales [6] , The Marches [7] and the South Midlands [8] . Travelling has its fringe benefits. I get to read a lot; whiling away the hours on trains or in cafés, moving between consecutive events or home. 2013 […]

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Shell Sets Plan to Boost Returns

LONDON—Royal Dutch Shell PLC said Thursday it would separate some of its Americas downstream businesses and sell nonstrategic positions, as well as cut spending in its Americas upstream business by 20% this year, in a bid to improve returns. In a statement before an investor presentation the Anglo-Dutch energy giant said it would drive sharper performance management of its portfolio than in the past, through a more detailed segmentation of the business into performance units. "With sharper accountability in the company, this approach will target growth investment more effectively, focus on areas of the business where performance improvement is most required, and drive asset sales from nonstrategic positions," Shell Chief Executive Ben van Beurden said. The move follows PLC’s as it and other major oil companies have struggled to profit from the explosion of shale oil and natural gas there. BP is keeping ownership of such assets but is […]

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London warns utilities against exploiting Ukrainian crisis

British utility companies shouldn’t use the crisis over Ukraine as an excuse to raise consumer energy prices, British Energy Secretary Ed Davey said. European consumers are wary of a repeat of a 2009 gas contract dispute between Ukraine and Russian energy company Gazprom that resulted in a brief supply disruption. With Russia frustrated with recent political developments in Ukraine, Davey warned utility companies against raising prices in response to the crisis. "Companies tend to buy their gas forwardly, 18 months in advance," he was quoted by the British newspaper the Daily Telegraph as saying Sunday. "So they shouldn’t be using [the Ukrainian crisis] as an excuse to put up people’s prices." European consumers get about a quarter of their gas needs met by Russia. Most of that runs through the Soviet-era transit network in Ukraine. Davey said there was an increase in oil and […]

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Centrica warns of uncertain British gas future

The British economy needs to outline plans to enhance energy security as it starts to rely more on imports to meet gas demands, the head of Centrica said. Sam Laidlaw, chief executive officer at Centrica, told the audience at the CERAWeek energy conference in Houston natural gas production from the British waters of the North Sea has declined substantially during the last three years. "By 2020 we will be reliant on imports to meet 70 percent of the country’s gas needs," he said in his Wednesday address. "So when it comes to security of supply, there is a pressing need for solutions." Centrica in November signed a 4 1/2 year contract to purchase as much as 3 million tons of liquefied natural gas a year from Qatar. British Energy Minister Michael Fallon said "reliable suppliers like Qatar are vital for our future energy security." […]

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Scottish independence: Shell chief wants Scotland to remain in UK

Shell has waded into the debate over Scottish independence , saying it needed political stability in the UK to back up its investment decisions. Ben van Beurden, chief executive, said at the company’s annual reception in London on Wednesday night that it was important Scotland remain in the UK and that the UK remain in the EU. According to the BBC, Mr van Beurden said: “We’re used to operating in uncertain political and economic environments. But, given a choice, we want to know as accurately as possible what investment conditions will look like 10 or 20 years from now. That’s the chief reason we’re in favour of the UK maintaining its long-established place at the heart of the European Union: it provides greater investment stability and certainty. “It’s for similar […]

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The rising of the waters

I grew up in the south of England. It is where my family comes from and has lived for centuries. It is my heritage, and wherever I go, it will be in me. This is what your culture does to you: there is no escape from the sediment it leaves within. It is best to get to the point where you don’t need to escape. The south of England of my childhood, and young adulthood, was overcrowded, mostly suburban, crawling with motorways and spreading chain stores; its old human culture was shrinking away. But still, it had frosty downs, green hills, white fields, hedges of blackthorn and woodbine, chalk carvings, ancient barrows, bluebell woods and small, old pubs. Our ancestral home, or our childhood place, stirs conflicting feelings in us. I once wrote a book which, in retrospect, seemed to be trying to reconcile those feelings with each other. […]

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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