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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, […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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UK storms: Met Office issues ‘Red Warning’ for wind

Winds of up to 100mph are expected to batter west Wales and north-west England, with the Met Office issuing its first "red warning" of the winter. The warning for 13:30 to 21:00 GMT means there is a "risk to life" and people should "avoid dangerous areas" with widespread damage expected. Sixteen severe flood warnings remain for Berkshire, Surrey and Somerset. Meanwhile, David Cameron has repeated his pledge that "money is no object in this relief effort". He also announced money would be available for businesses and homeowners repairing flood-damaged property to build in new defences and said small businesses affected by flooding would get 100% relief from business rates. Waves have battered the coastline in Chiswell in Dorset The Met Office said: "Winds of this strength can cause widespread structural damage, bringing down trees and also leading to […]

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UK storms: Met Office issues 'Red Warning' for wind

Winds of up to 100mph are expected to batter west Wales and north-west England, with the Met Office issuing its first "red warning" of the winter. The warning for 13:30 to 21:00 GMT means there is a "risk to life" and people should "avoid dangerous areas" with widespread damage expected. Sixteen severe flood warnings remain for Berkshire, Surrey and Somerset. Meanwhile, David Cameron has repeated his pledge that "money is no object in this relief effort". He also announced money would be available for businesses and homeowners repairing flood-damaged property to build in new defences and said small businesses affected by flooding would get 100% relief from business rates. Waves have battered the coastline in Chiswell in Dorset The Met Office said: "Winds of this strength can cause widespread structural damage, bringing down trees and also leading to […]

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British floods stern warning, environmental group says

Friends of Earth campaigner Guy Shrubsole said the British government needs to take climate issues more seriously given the season’s extreme weather. The Met Office, the British weather reporting agency, said wind gusts of at least 60 mph are expected in southern and southwestern counties accompanied by rain. "The public should be aware of the potential for further flooding in places," it said in its forecast for Wednesday. Shrubsole said in a statement extreme weather is becoming more common as the effects of climate change take hold. He said the government is not focusing on the issue as it should. "If we want to keep the nation’s head above water we must take global warming more seriously," he said in a statement Tuesday. Last month was the wettest January for the country since 1910. The Met Office said last week some of the climate […]

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U.K. Towns West of London Face Severe Thames River Flood

Waterlogged towns on the River Thames west of London face severe flooding as U.K. authorities struggle to deal with the wettest weather since 1766. The Environment Agency has in place 16 severe flood warnings, including 14 along England ’s most famous waterway. Towns in London’s commuter belt including Chertsey, Egham and Datchet are affected. Two warnings remain in Somerset, southwest England, where some roads have been cut off since December. After two months of record-breaking rainfall, there’s little respite for southern England, with the Met Office predicting rain every day through Feb. 14. A succession of storms and tidal surges have buffeted Britain since early December, flooding more than 8,000 homes and damaging coastal infrastructure, including the main railway connecting Plymouth and other southwestern cities with the rest of England. “Extreme weather will continue to threaten communities this week, with further severe flooding expected Monday […]

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Britain wind farm proposal scaled back in face of opposition

The developer of a controversial offshore wind farm in the English Channel announced this week it has reduced its size and moved it farther from shore. Eneco Wind U.K. Ltd. and EDF Energy Renewables, developers of the Navitus Bay wind farm, are seeking planning permission to begin construction by 2017 in hopes of generating energy by 2019. Following complaints it would despoil the natural beauty of the England’s Hampshire coast, the companies said Thursday they have instituted changes that would reduce its generating capacity from 1.1 gigawatts to 970 megawatts with 23 fewer turbines, while cutting the area of the farm from 67.5 to 60 square miles. Its revised boundaries would put the farm up to 2 miles further away from Christchurch, England, and 1 mile further from Bournemouth. However, critics noted the new boundaries wouldn’t alter its proximity to Swanage, England, or […]

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Refining Margins Fall, Income Drops Following Asset Sales

BP PLC’s fourth-quarter profit fell 25%, hit by lower refining margins and lost income from asset sales, as the company continued to try to recover from the Deepwater Horizon explosion and oil spill. BP has sold close to $40 billion in assets and taken more than $42 billion in write-downs related to legal settlements and cleanup costs since the Gulf of Mexico spill in April 2010. The company also pleaded guilty to a dozen felony counts in the U.S. related to the accident, in which 11 workers died. The result: a smaller company that is pumping less crude oil. BP reported its results after competitors including Royal Dutch Shell PLC and Exxon Mobil Corp. posted disappointing quarterly profits amid soaring oil-field costs and rising challenges in boosting oil output industrywide. But BP’s numbers underscore that it is still struggling with its own specific challenges—primary among them the fallout […]

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BG Reports $1.08 Billion Loss

BG Group PLC reported a fourth-quarter loss of $1.08 billion as it wrote down its U.S. shale-gas business and assets in Egypt. Despite the loss, the oil-and-gas company predicted it still would meet a target to be cash-flow positive next year. Production in Brazil is ramping up, capital expenditures are expected to decline and the first exports of liquefied natural gas from the Queensland Curtis project in Australia are expected for this year’s fourth quarter, the U.K.-based company said Tuesday. "Clearly we also have to address the near-term challenges we face in Egypt and deliver our plans consistently and effectively," Chief Executive Chris Finalyson said. The U.K.’s third-largest natural-gas producer warned last week that profit would be lower in the past quarter as instability in Egypt hit production and exports. BG also cautioned that low natural-gas prices in the U.S. made production from shale assets in the country […]

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Britain announces plan to become world leader in electric cars

Britain announced a program, backed by major vehicle manufacturers, with a goal of making the country a world leader in electric cars . The government said companies including BMW, Nissan and Toyota are standing behind what’s dubbed the Go Ultra Low campaign to encourage more British consumers to switch to electric or hybrid vehicles. "Electric cars are one of the most promising of our green industries and we want to secure the U.K.’s position as a global leader in both the production and adoption of these vehicles," Deputy Prime Minister Nick Clegg said in a statement Thursday. Clegg said $14.8 million in funding would be used to build more charging stations across the country, including 140 that can charge an electric car in less than 30 minutes. British Transport Minister Robert Goodwill said the program is about "opening people’s eyes" to low-emission vehicles. The […]

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Shell Profit Drops 48% as Oil and Gas Production Declines

Royal Dutch Shell Plc (RDSA) , Europe’s largest oil company, said profit plunged 48 percent on exploration expenses and lower production. Profit excluding one-time items and inventory changes was $2.9 billion in the fourth quarter, down from $5.6 billion a year earlier. That matches the drop Shell forecast on Jan. 17 because of losses in the Americas, lower refining margins and production disruptions in Nigeria and elsewhere. “Its Americas growth strategy –- the home for 50 percent of past investment –- woefully underdelivering under the weight of dead capital,” Lucas Herrmann, a London-based analyst at Deutsche Bank AG, said before the earnings report. “Corporate change could release huge value.” Chief Executive Officer Ben van Beurden, who took over from Peter Voser this year, has accelerated asset sales with two deals announced this month. He must cut record spending to reduce costs and win investor confidence after […]

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Shell Pledges Spending Cuts, Asset Sales to Restore Profit

Royal Dutch Shell Plc (RDSA) Chief Executive Officer Ben van Beurden promised to slash capital spending and accelerate asset sales to revive earnings at Europe’s largest oil producer. Shell, which made its first profit warning in a decade this month, dropped targets for cash flow , postponed plans to drill in Alaska and pledged to restructure its shale operations in North America, it said today in a statement. The Hague-based company also raised its dividend. “We have lost some momentum in operational delivery, and we can sharpen up in a number of areas,” van Beurden said in the statement. “2014 will be a year where we are changing emphasis, to improve our returns and cash flow performance.” Van Beurden, who took over from Peter Voser at the start of the year, is trying to win investor confidence after the company’s fourth-quarter profit […]

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Shell Profit Sinks as Weak Refining Adds to Output Losses

Royal Dutch Shell Plc (RDSA) said profit plunged because of deteriorating refining markets and mounting losses in the Americas, surprising investors with an early earnings report that wiped out $10 billion in shareholder value. Europe’s biggest oil company, in its first profit warning since 2004, said adjusted earnings excluding one-time items and inventory changes were about $2.9 billion in the fourth quarter. That compares with $4.5 billion in the previous three months and an average fourth-quarter analyst estimate of $4.9 billion. “It’s a shock,” Jason Kenney, an analyst at Banco Santander SA in Edinburgh, said today by telephone. Shell had “to pre-announce to get the market to reality, but even so it’s a very weak set of results.” Shell fell as much as 4.4 percent in London trading, the most since Oct. 31, and was down 2.9 percent at 2,130.5 pence as of 8:53 a.m. local time. Chief Executive […]

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Royal Dutch Shell Issues Profit Warning

LONDON— Royal Dutch Shell Rn PLC warned Friday that fourth-quarter profit would be significantly weaker than recent levels partly because of higher exploration costs and lower oil and gas volumes. The company also cited weaker industry conditions in downstream oil products for the weaker performance. The oil major expects to post fourth-quarter earnings of $2.2 billion 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 […]

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Shell blames high refining costs for warning

Royal Dutch Shell blamed continuing woes in refining, fuel theft in Nigeria and higher exploration costs for its first profit warning in 10 years. The company said fourth-quarter earnings would be “significantly lower” than last year in the first update under new chief executive Ben van Beurden, who took over as chief executive from Peter Voser at the beginning of the year. Shell said it would take a $700m charge related to its exploration and production activities and added that its upstream American business, which has been hurt by falling natural gas prices, would continue to make a loss. It also said that its downstream earnings in the fourth quarter of last year had been hit by “significantly weaker” industry refining conditions, in particular in Asia-Pacific and Europe. Shares in the company, which fell 3.3 per cent to £21.19 in early trading, have underperformed the European […]

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The Primary Energy Tale of Two Continents

UK Secretary of State for Energy and Climate Change, Ed Davey, is worried about rising energy costs in Europe whilst energy costs in N America are going in the opposite direction. But he doesn’t seem to understand the root cause of the situation or how to tackle the problem. Primary energy production peaked in Europe in 1996 at 1138 million tonnes oil (mmtoe) equivalent and has since fallen to 970 mmtoe in 2012. That is a drop of 15% (Figure 1) In N America, primary energy production hit a new peak in 2012 of 2512 million tonnes oil equivalent. That is up 8.5% since 1996 (Figure 1) Rising energy production in N America and falling Energy production in Europe lies at the heart of energy prices trading in opposite directions on either side of The Atlantic. Europe has a population of ~ 739 million who produce 1.31 tonnes oil […]

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U.K. to Pay Up To $3M a Well to Councils Allowing Shale Gas

Prime Minister David Cameron will give millions of pounds to local authorities that allow shale gas developments to go ahead, part of a drive to create more jobs and encourage investment in the U.K. Councils will be allowed to keep 100 percent of the business rates they collect from shale gas sites, double the current 50 percent figure, in a move that may be worth 1.7 million pounds ($2.8 million) per site in central government funding per year, according to figures released by Cameron’s office. Business rates are taxes to help pay for local services, charged on most non-domestic properties. “That’s going to be quite a significant boost for that local council’s coffers,” Business Minister Michael Fallon told the BBC . “We want local councils and local people to benefit from this exploration. We expect 20-40 wells to be drilled in exploration over the next couple of years.” Research […]

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France’s Total enters UK shale gas market through license buys

France’s Total has bought a 40% interest in two shale gas exploration licenses in the UK, the company said Monday, confirming reports over the weekend. The deal marks Total’s entrance into the UK shale gas exploration market, and the licenses 139 and 140 are situated in Gainsborough Trough, East Midlands. The licenses lie on the Bowland Shale region and span a total of 240 square kilometers. Total and fellow French company GDF Suez have both looked to strengthen their shale gas expertise abroad after France banned shale gas exploration using hydraulic fracturing in 2011. GDF Suez announced in October that it had bought stakes in 13 UK shale gas licenses from Dart energy, also in the Bowland Shale region. The transaction announced by Total Monday is a farm-in deal and partners in the licenses will include GP Energy Limited, a subsidiary of Dart Energy […]

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France's Total enters UK shale gas market through license buys

France’s Total has bought a 40% interest in two shale gas exploration licenses in the UK, the company said Monday, confirming reports over the weekend. The deal marks Total’s entrance into the UK shale gas exploration market, and the licenses 139 and 140 are situated in Gainsborough Trough, East Midlands. The licenses lie on the Bowland Shale region and span a total of 240 square kilometers. Total and fellow French company GDF Suez have both looked to strengthen their shale gas expertise abroad after France banned shale gas exploration using hydraulic fracturing in 2011. GDF Suez announced in October that it had bought stakes in 13 UK shale gas licenses from Dart energy, also in the Bowland Shale region. The transaction announced by Total Monday is a farm-in deal and partners in the licenses will include GP Energy Limited, a subsidiary of Dart Energy […]

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Total joins UK’s pursuit of shale boom

Cuadrilla Shale Fracking Plant Total of France is to become the first major oil company to explore for shale gas in the UK, in a big boost for government efforts to create a US-style fracking boom on British soil . The deal, to be announced on Monday, will be seen as a big vote of confidence in the UK’s fledgling shale industry. The coalition has made the exploitation of Britain’s unconventional gas reserves a top priority, offering tax breaks to shale developers and promising big benefits to communities that host shale drillers. Total will announce on Monday a deal to join a shale gas exploration licence in the Midlands currently operated by Ecorp of the US, according to people familiar with the matter. The other partners in the project are Dart Energy and UK-listed Igas and Egdon Resources . George Osborne, chancellor, has argued that shale has “huge potential” […]

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UK storms: ‘Colossal waves’ set to batter coastal areas

New warnings comes after areas like Porthcawl, south Wales, were battered with waves on Sunday "Colossal waves" whipped up by winds of up to 70mph are likely to cause more flooding as some coastal areas take another battering, forecasters warn. Western and southern areas are likely to bear the brunt, where flooding could be worse than that seen in recent days. More than 100 flood warnings, meaning "flooding is expected", are in place in England, Scotland and Wales. A severe flood warning , meaning "danger to life", is in place for the Lower Stour in Dorset. BBC forecaster John Hammond said there was no good news for exposed places around southern and western coasts where there would be "colossal waves". "Add on top of that high spring tides again – and very, very strong winds of up to […]

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UK storms: 'Colossal waves' set to batter coastal areas

New warnings comes after areas like Porthcawl, south Wales, were battered with waves on Sunday "Colossal waves" whipped up by winds of up to 70mph are likely to cause more flooding as some coastal areas take another battering, forecasters warn. Western and southern areas are likely to bear the brunt, where flooding could be worse than that seen in recent days. More than 100 flood warnings, meaning "flooding is expected", are in place in England, Scotland and Wales. A severe flood warning , meaning "danger to life", is in place for the Lower Stour in Dorset. BBC forecaster John Hammond said there was no good news for exposed places around southern and western coasts where there would be "colossal waves". "Add on top of that high spring tides again – and very, very strong winds of up to […]

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UK braced for flooding as high tides peak

Severe flooding is expected in parts of the UK as high tides combine with heavy rain and strong winds later. The Environment Agency has issued 21 severe flood warnings – which mean "danger to life" – affecting south-west England, Gloucestershire and Wales. The Met Office has warned of flooding in Scotland and Northern Ireland. On Thursday, Environment Minister Owen Paterson said "exceptional weather" would hit the UK on Friday and over the weekend. Many of the severe flood warnings relate to the coasts of Devon and Cornwall, with the highest risk of flooding expected for two to four hours either side of Friday morning’s high tides. High water is expected at 05:42 GMT at Penzance, 06:54 at Plymouth, 07:05 at Barnstaple and 07:57 at Weymouth in Dorset. Waves more than […]

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Britain faces storm chaos and outages

Gales and Heavy Rain Threaten Festive Getaway Britain has been hit by a fresh band of stormy weather, with more than 17,500 homes thought to be without power and rail services across the south of England disrupted. Winds of 102mph hit parts of Britain on Thursday night, adding to the difficulties caused by storms on Christmas Eve which brought chaos to the train networks and left hundreds of flights grounded at Gatwick airport. Gusts of 102mph were recorded in the Welsh village of Aberdaron, while wind speeds of more than 70mph hit parts of Yorkshire and Scotland, the Met Office said. Tony Glover, of the Energy Networks Association, said conditions for those without power were “horrendous”, but that network companies were working “incredibly hard, around the clock” to get them reconnected. He added: “The flooding is a major issue for us and getting a cherry picker out into a […]

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Winds of over 100mph batter Britain

Gales and Heavy Rain Threaten Festive Getaway Britain has been hit by a fresh band of stormy weather overnight, with further flooding expected and more than 17,500 homes thought to be still without power. Winds of over 100mph hit certain parts of Britain on Thursday night, adding to the difficulties caused by storms on Christmas Eve, which caused chaos to the train networks and left hundreds of flights grounded at Gatwick airport. Tony Glover, of the Energy Networks Association, said conditions for those without power were “horrendous”, but that network companies were working “incredibly hard, around the clock” to get them reconnected. He added: “The flooding is a major issue for us and getting a cherry picker out into a flooded area is one hell of a challenge with the fact that the weather itself continues. There is debris and roads are blocked.” By Friday morning, the Met Office […]

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Warning of fresh floods and storms for UK

Travellers and families at home for Christmas should expect further disruption over the next two days from widespread flooding in parts of the UK, the Environment Agency warned on Thursday, with heavy storms expected overnight. Tens of thousands of homes were left without power on Christmas Day and nearly 1,000 homes were flooded after bad weather caused chaos across southeast and southwest England. The Environment Agency said it expected another band of storms to hit most of the UK on Thursday night and Friday morning, which could bring 2.5cm of rain and winds of up to 70mph. Tim Field, head of public affairs at the Energy Networks Association, said staff were out in greater numbers than usual attempting to repair fallen power lines. He told BBC Radio’s Today programme: “Way more people have been working on this than would normally be working in any average week . . . It’s the last thing […]

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Scotland Struggles to Keep an Energy Lifeline

Highway travelers heading west at night from Edinburgh soon see a constellation of lights and glowing plumes of steam emerge from the darkness. It is the vast petrochemical complex at Grangemouth, which has become a shimmering symbol of Scotland at an economic and political crossroads. In mid-October, some of those lights went dark when James A. Ratcliffe, the chairman of Ineos, a Swiss multinational giant that owns much of the Grangemouth operation, ordered it shut down. Mr. Ratcliffe, during labor negotiations, was trying to shock the work force into “accepting changes to bring the site into the modern world,” he said in a recent interview. After the union quickly backed down and accepted some of the pay and pension changes sought by Mr. Ineos, the plant reopened. But the episode made clear the vulnerability of Grangemouth as the capital of the Scottish petrochemical industry. Although that […]

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British official: Shale could reduce Europe's dependence on imports

British Secretary of State for Energy and Climate Change Ed Davey said shale natural gas may help reduce the European energy sector’s dependence on Russia. It’s unlikely European countries would duplicate the U.S. shale progress because the geology and regulatory regimes are more complex "but exploiting shale gas Europe-wide has the potential to contribute significantly to energy security whilst reducing dependence on imports from outside the European Union, most notably from Russia," Davey said Thursday at University College London. Shale natural gas won’t be a "silver bullet" for members of the European community but will add diversity to the base of energy resources, he said. European consumers get about 20 percent of their natural gas needs from Russia. The British government this week published policy guidelines meant to provide energy companies with the information they need to exploit the country’s fledgling shale natural gas […]

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British official: Shale could reduce Europe’s dependence on imports

British Secretary of State for Energy and Climate Change Ed Davey said shale natural gas may help reduce the European energy sector’s dependence on Russia. It’s unlikely European countries would duplicate the U.S. shale progress because the geology and regulatory regimes are more complex "but exploiting shale gas Europe-wide has the potential to contribute significantly to energy security whilst reducing dependence on imports from outside the European Union, most notably from Russia," Davey said Thursday at University College London. Shale natural gas won’t be a "silver bullet" for members of the European community but will add diversity to the base of energy resources, he said. European consumers get about 20 percent of their natural gas needs from Russia. The British government this week published policy guidelines meant to provide energy companies with the information they need to exploit the country’s fledgling shale natural gas […]

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British energy minister publishes shale 'roadmap'

British Energy Minister Michael Fallon said Tuesday shale natural gas is part of his country’s energy future but it must be extracted responsibly. Fallon published a regulatory roadmap outlining ways in which oil and natural gas, including shale deposits, could be exploited in the country. "The government is keen to explore the potential for shale gas in the U.K., which could bring major benefit in terms of growth, jobs and energy security," he said in a statement. "However we must develop shale responsibly, both for local communities and for the environment." The British Geological Survey estimates there may be enough shale gas inland to last the country more than 40 years though only a small fraction of land is open for exploration. The 49-page report outlines ways in which oil and natural gas is regulated in the region. It says each application needs to […]

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British energy minister publishes shale ‘roadmap’

British Energy Minister Michael Fallon said Tuesday shale natural gas is part of his country’s energy future but it must be extracted responsibly. Fallon published a regulatory roadmap outlining ways in which oil and natural gas, including shale deposits, could be exploited in the country. "The government is keen to explore the potential for shale gas in the U.K., which could bring major benefit in terms of growth, jobs and energy security," he said in a statement. "However we must develop shale responsibly, both for local communities and for the environment." The British Geological Survey estimates there may be enough shale gas inland to last the country more than 40 years though only a small fraction of land is open for exploration. The 49-page report outlines ways in which oil and natural gas is regulated in the region. It says each application needs to […]

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Britain opens up much of countryside to fracking

An area more than two-thirds the size of England is to be opened up to shale gas drilling and other forms of exploration under plans set out on Tuesday that ministers said could produce thousands of jobs and other economic benefits. However, if fracking companies rush to exploit shale deposits, some areas may also experience “significant negative effects”, according to an environmental assessment of the move by the Amec consultancy, including a “substantial burden” on wastewater treatment plants. Depending on how many sites are eventually drilled, towns and villages could see lorries hauling water and other materials along their roads up to 51 times a day, the consultants said, adding that up to 150 shale gas licences could end up being awarded around the country. In addition, fracking companies could consume nearly a fifth of the water currently supplied to energy, water and waste industries each year. These impacts […]

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BP Still Paying For Deepwater Horizon Blowout

More Deepwater Horizon Gulf of Mexico Oil Spill A little over three years ago – April 20, 2010, to be exact – a drilling rig named the Deepwater Horizon was drilling in the Gulf of Mexico when an explosion occurred and created one of the largest oil spills in history. The accident killed 11 people, and the drilling rig sank two days later on April 22. The well oozed crude oil and natural gas until for several months. On July 15, the well was temporarily plugged and completely plugged on September 19. The blowout of the Deepwater Horizon was a great tragedy in many ways. But what has happened to BP, the company that was the operator of the well, is a tragedy, too. For example, the Gulf Settlement Program, which was created to make monetary awards to people who had been harmed by the accident, has awarded millions […]

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North Sea Oil Output Seen 4% Lower in January Than December

The amount of crude oil to be pumped from fields in the North Sea in January will be lower than in December, according to loading programs for the four key grades. The biggest fall will be in the Brent grade, where only five cargoes of crude will be loaded, compared with seven scheduled to load in December. Loading programs are released and circulated among oil traders and brokers, but don’t give a perfect indication of oil volumes because they can be subject to change. The total month-on-month fall will be 3.9%, according to the programs. These changes are often seasonal, and can alter dramatically if one of the four key fields — Brent, Forties, Oseberg and Ekofisk — have scheduled maintenance work or need to be shut in for emergency reasons. Overall, however, production in the North Sea is in decline. To date, 41 billion barrels […]

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Thousands Moved as Flooding Hits English Coastal Areas

Thousands of people were moved from English coastal areas last night and the River Thames flood barrier protecting London was closed after warnings of the worst tidal surge in 60 years. The Environment Agency said people were at risk of being swept into the sea and were removed from high-risk areas in places such as Great Yarmouth on the east coast. As of 8:22 a.m., 37 severe flood warnings had been issued for England and Wales , the agency said on its website . Seventeen of the alerts, which mean there could be danger to life, were in the Anglian region, the most easterly in England. The U.K. government has called a meeting on the storm response. “In some areas, sea levels could be higher than those during the devastating floods of 1953,” the Environment Agency said on its website. “However, flood defenses built since then mean that many […]

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Cobra to meet as storms threaten worst UK flooding in 60 years

Winds drove seawater on to the prom in Scarborough and threatened to cause floods on the east coast Winds drove seawater on to the prom in Scarborough and threatened to cause floods on the east coast The UK prime minister has called a meeting of the government’s emergency Cobra committee to deal with flooding along the length of the east coast that authorities fear could be the worst in 60 years. Homes were evacuated in some areas, including Great Yarmouth, in Norfolk, as the Environment Agency issued 28 severe flood warnings, its highest category of alert, and said more were expected. The port of Dover, in Kent, was on high alert and warned of possible disruption to Channel ferry services. The agency said sea levels could be higher than those during the devastating floods of 1953 . “Flood defences built since then, including the Thames and Hull barriers, mean […]

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BP’s learned nothing: The oil company is pursuing its riskiest strategy yet

BP’s learned nothing: The oil company is pursuing its riskiest strategy yet BP is yet to finish compensating the victims of the 2010 oil spill that killed 11 people and sent millions of gallons of oil spewing into the Gulf of Mexico, but the oil company isn’t about to let one major oil spill bring it down. Strapped for cash and in pursuit of bigger, deeper wells, it may be the only company capable of tapping risky reserves worth as much as $2 trillion. The AP reports : Three years [after the spill], there are a record 39 rigs drilling in the deep waters of the Gulf of Mexico, according to IHS Petrodata, as drillers probe enormous troves of oil in untapped formations — some of which are under especially high temperature and pressure. …Environmentalists are alarmed. “You hope (BP) has learned their lesson, but the nature of the […]

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Water shortages may make fracking impractical, industry says

Fracking may be impractical in parts of the UK due to the scarcity of local water supplies, and in other areas will have an impact on local water resources, the water industry has admitted, in a deal struck with the oil and gas industry. The controversial process of shale gas and oil extraction uses hydraulic fracturing technology or fracking, where water and chemicals under very high pressure are blasted at dense shale rocks, opening up fissures through which the tiny bubbles of methane can be released. But the quantities of water required are very large, leading to cases in the US – where fracking is widespread – where towns and villages have run dry . In a memorandum of understanding published on Wednesday, the water trade body Water UK and the UK Onshore Operators Group (UKOOG), which […]

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Wind Farms Are Expensive, Subsidies Are Uncertain, Plans Are Being Curtailed

LONDON—A major European utility said Tuesday it would scrap a wind farm that was due to become the largest offshore wind project ever built, a sign of the struggles of the industry to attract investment needed to overcome huge costs and technical challenges. The Atlantic Array, in the Bristol Channel off the west coast of England, could have generated up to 1,200 megawatts of electricity, almost twice as much as the largest farm already operating in U.K. waters. But RWE said on Tuesday that continuing with the project faced problems that were “prohibitive in current market conditions.” RWE’s decision highlights the central difficulty in achieving Europe’s ambitious wind targets. Huge plans are in place, but few investors are willing to stake the billions needed to build them, in an environment where government subsidy is essential but uncertain and costs can skyrocket. The U.K. has pioneered offshore wind power, maximizing […]

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PM Cameron’s green gaffe sparks uproar

British advocacy group Friends of Earth said Thursday it wouldn’t be surprised if the prime minister did issue a call to back off renewable energy policies. “It would come as little surprise if David Cameron did tell aides to ditch the ‘green crap’ — his government has been attacking environmental policies for years,” Friends of Earth Policy Director Craig Bennett said in a statement. British newspaper The Sun quoted an unnamed Cameron ally as saying the prime minister made those comments in connection to levies used to support renewable energy projects but could also lead to higher consumer prices. Deputy Prime Minister Nick Clegg dismissed the allegations Thursday, the Guardian newspaper reported. Cameron’s administration had pledged to push efforts to provide more renewable energy options to British consumers. Bennett called on the Cameron administration to fight the urge to drift back toward the “toxic” […]

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PM Cameron's green gaffe sparks uproar

British advocacy group Friends of Earth said Thursday it wouldn’t be surprised if the prime minister did issue a call to back off renewable energy policies. “It would come as little surprise if David Cameron did tell aides to ditch the ‘green crap’ — his government has been attacking environmental policies for years,” Friends of Earth Policy Director Craig Bennett said in a statement. British newspaper The Sun quoted an unnamed Cameron ally as saying the prime minister made those comments in connection to levies used to support renewable energy projects but could also lead to higher consumer prices. Deputy Prime Minister Nick Clegg dismissed the allegations Thursday, the Guardian newspaper reported. Cameron’s administration had pledged to push efforts to provide more renewable energy options to British consumers. Bennett called on the Cameron administration to fight the urge to drift back toward the “toxic” […]

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Rosneft discloses new $6 billion oil supply deals with BP

MOSCOW (Reuters) – Russia’s top crude oil producer Rosneft said on Tuesday its board had approved deals to sell oil product cargoes to BP worth over $6 billion, on top of a previous deal to sell oil worth $5.3 billion. The Russian state-owned company said in a filing that it would sell up to 3.2 million metric tons of fuel oil to BP Singapore worth as much as $2.6 billion from the Far East ports of Nakhodka or Vanino between November 2013 and December 2014 with a possibility to lift it in 2015. Rosneft has not disclosed the timeframe for other deals, but a source familiar with the agreements, said the deliveries should be fulfilled over the next 12 or 13 months. Rosneft declined to comment further. Rosneft will also sell up to 1.44 million metric tons of diesel to BP worth as much as $1.77 billion from the […]

Posted On : Published By : Tom Whipple