Saturday, November 30, 2013

Argentine threat over Falkland Islands oil operations

Argentina has threatened oil businesses operating off the Falkland Islands with fines, confiscations and jail sentences for their executives.

Friday, November 29, 2013

Scottish Independence Vote Hinders North-Sea Oil Business Plans

Scotland’s independence referendum next year is hindering the plans of North Sea oil companies by clouding the outlook for taxes, fiscal policy, regulation and bank finance, according to a survey of industry executives.

Thursday, November 28, 2013

Our Best New Foreign Policy Tool: Energy

By Alexanser Mirtchev
To date, the extensive policy debate over production of non-traditional fossil fuels, such as shale gas, and the resulting possibility for the use of those resources by the United States  has not adequately focused on an important consideration: the geo-economic and foreign policy implications and advantages to the United States, its allies, and global economic security overall, stemming from these new fossil fuel resources.
New gas resources and exports of liquefied natural gas (LNG) from the U.S. are an added economic resource, which can allow the U.S. to mitigate its own and the reliance of many of its allies in Europe on external sources of fossil fuels. Europe is extensively dependent on gas imports, especially from Russia, as well as  Algeria, Qatar and others. According to the International Energy Agency, Europe depended on oil and gas imports for over 60% of its demand in 2010, and this dependence is set to increase to over 80% by 2035. At the same time, the external energy suppliers to the EU have demonstrated their willingness to use the leverage of European energy dependence for foreign policy purposes. Several times in recent history, Russian disputes with countries through which those pipelines transit – most notably disputes with the Ukraine in 2006 and 2009 – have caused either actual supply shortages or fear of supply shortages to Europe, which was sufficient to roil the local markets. The simple knowledge that Europe depends on foreign gas has allowed exporters to use producer power as a foreign policy leverage.
The preferred manner of transporting gas to European markets has been pipelines, but currently only one meaningful alternative pipeline route is being developed – from Azerbaijan to Europe – to provide a check on Russian natural gas power. This raises the importance of LNG, the other alternative form of supplying distant markets. Because LNG is transported in vessels, supply is not limited by pipeline infrastructure but instead can be delivered to various markets so long as LNG regasification facilities exist. European countries such as Belgium, France, Italy, the Netherlands, Portugal, and Spain currently import LNG. Additional LNG regasification facilities and increased supplies of LNG on the world market will increase European energy security. This is where the U.S. is in position to become an adequate optional source of energy and energy security for its European allies.
With huge supplies of natural gas and the technical capability to produce large quantities of gas on a steady basis for years to come, the introduction of meaningful volumes of U.S. LNG into world markets will disrupt the current market, threaten the incumbents and ultimately lead to the creation of a liquid global spot market for LNG. It will not require duplicative infrastructure, only sufficient adjustments and adaptation to ensure that loss of other suppliers will not constrain consumers. Once European buyers are able to tap into liquid global markets rather than long-term contracts with one or two suppliers, they will be less intimidated by prospects of shutdown or other forms of manipulation of gas deliveries. The mere availability of adequate LNG regasification infrastructure and supply may be all that is necessary to prevent gas exporters from using natural gas supply as geopolitical leverage, nudge them to take diversification seriously and spur a wave of market reforms, contributing to the improvement of global economic security.
The geopolitical opportunities presented by the shale revolution and the prospect of LNG exports cannot be underestimated, and yet these considerations seem to rarely factor into the current debate in the US about LNG exports. The economic rationale for increased LNG exports from the US have been well documented. A recent IHS study puts the increase in US industrial production at $252 billion by 2020, thanks to lower energy prices in the US and other economic ‘spillovers’ from unconventional oil and gas. The objections fall into two categories: (i) those large US industrial consumers that benefit from low natural gas prices and thus for parochial reasons want to limit demand by closing off export markets in order to keep an imbalance between supply and demand that results in artificially low prices; and (ii) environmental interests opposed to hydraulic fracturing used to produce much US natural gas and who therefore want to close off export markets in order to try to limit natural gas production. While the economic case alone outweighs these objections, the case for US LNG exports becomes even stronger when one further takes into account how US LNG exports stand to advance US foreign policy, geo-economic and geopolitical interests.
Dr. Mirtchev is an economist who frequently writes on global economic security and energy issues.

France's Total to explore offshore South Africa in 2014

Nov 27 (Reuters) - France's Total will drill an exploration well off the coast of South Africa in 2014 in a new phase of exploration also targeting Kenya and the Ivory Coast, a senior company official said on Wednesday.

Wednesday, November 27, 2013

Energy firm RWE npower axes £4bn UK windfarm amid political uncertainty

Britain's green ambitions have been dealt a blow as a big six energy company has pulled the plug on one of the world's largest offshore windfarms, with the political storm enveloping the industry threatening the multibillion-pound investments needed to meet emissions targets and head off a looming capacity crunch.

Tuesday, November 26, 2013

Energy firms' profit from customers has risen 77% in a year, says Ofgem

The big six energy firms face further pressure over household bills after the industry regulator revealed that profits per customer climbed 77% last year to £53.

Monday, November 25, 2013

Pollution Pact From China to India Shows Rift: Carbon & Climate

China and India’s success in weakening the latest global warming agreement created friction with other developing nations that are seeking to step up the fight against climate change.

Sunday, November 24, 2013

Iran Nuclear Talks Mired in Details of Enrichment, Arak

Foreign ministers met in Geneva on the fourth day of negotiations over Iran’s nuclear program, which remain mired in the same implacable issues that have prevented the signing of an accord in two previous rounds.

Saturday, November 23, 2013

China Plans To Launch Its Own Crude Oil Futures Market

China, the world's largest energy consumer, on Friday took a step towards launching a market of its own for crude oil futures -- which foreign investors may be allowed to trade.

Friday, November 22, 2013

Solar industry facing job losses as household panels takeup tapers off

One in ten Australian homes now has solar panels but takeup has levelled off and the solar industry is facing significant job losses due, in part, to unhelpful government policies, according to a new report.

Wednesday, November 20, 2013

WTI Oil Rises From 5-Month Low as Refinery Use Climbing

West Texas Intermediate crude rebounded from a five-month low before a report projected to show that U.S. refineries bolstered operations as they ended seasonal maintenance.

Monday, November 18, 2013

British nuclear energy industry could attract South Korean investment

South Korea could become the next nation to take a stake in the British nuclear industry as the financing deal with France and China for a new reactor at Hinkley Point in Somerset creates a wave of wider interest.

Sunday, November 17, 2013

Renewable Fuels Quota to Be Cut in U.S. EPA Change

The Obama administration proposed a cut in the amount of renewable fuels that refiners must blend with gasoline next year, bowing to oil industry complaints that the targets contained in 2007 legislation were too high.

Saturday, November 16, 2013

EnQuest cleared to develop £4bn Kraken oil field off Shetland

A £4bn investment in a major oil field off Shetland has been given the go-ahead. The Kraken field, which is estimated to contain nearly 140m barrels of oil, is majority-owned by Aberdeen-based EnQuest.

Friday, November 15, 2013

US oil output beats imports for first time in 18 years

US domestic crude oil production has exceeded oil imports for the first time since 1995, according to the Energy Information Administration (EIA).

Thursday, November 14, 2013

OPEC not expected to change output next month: Kuwait

Kuwait City (AFP) - Kuwait Oil Minister Mustafa al-Shamali said Wednesday that he does not expect the OPEC oil cartel to change production at its next ministerial meeting in December.

Wednesday, November 13, 2013

RPT-Iran fuel oil exports to plunge as winter boosts local use -source

Nov 11 (Reuters) - Iran's fuel oil exports will plunge to as little as a third of previous levels over the next few months as winter demand forces the country to divert the product to its own power plants, according to a National Iranian Oil Company (NIOC) source.

Tuesday, November 12, 2013

Zimbabwe's Kariba dam 'be to expanded' after China deal

China has lent Zimbabwe $319m (£199m) to ease electricity shortages by expanding its Kariba hydropower station, Zimbabwe's Finance Minister Patrick Chinamasa has said.

Monday, November 11, 2013

Forests could face threat from biomass power 'gold rush'

Britain's new generation of biomass power stations will have to source millions of tonnes of wood from thousands of miles away if they are to operate near to their full capacity, raising questions about the claims made for the sustainability of the new technology.

Sunday, November 10, 2013

World powers set for new round of Iran nuke talks

GENEVA: Iran and world powers remain split on terms of a nuclear deal because of differences on ways to reduce Tehran's ability to make atomic weapons using plutonium and enriched uranium, French foreign minister said Saturday.

Saturday, November 9, 2013

Tepco Strives for Milestone at Fukushima With Fuel Removal

Tokyo Electric Power Co. plans this month to begin removing spent fuel from the wrecked Fukushima Dai-Ichi nuclear facility, the most significant test to date of its ability to contain the threat stemming from the worst nuclear disaster since Chernobyl.

Friday, November 8, 2013

Fossil fuel subsidies 'killing UK's low-carbon future'

Britain is "shooting itself in the foot" by subsidising its coal, oil and gas industries by $4.2bn (£2.6bn) a year even as government reviews the "green levies" on energy bills which support energy efficiency and renewable power, according to a report published on Thursday.

Thursday, November 7, 2013

Wednesday, November 6, 2013

EU Nations Urged to Overhaul Energy Markets State Support

The European Union presented a set of recommendations for governments to improve their state-aid mechanisms in energy markets, including support programs for renewable energy.

Tuesday, November 5, 2013

Scientists Urge Environmentalists to Support Nuclear Energy

Four prominent climate scientists are urging environmentalists to support the development of "safer" nuclear energy systems as an alternative to fossil fuels that contribute to global warming.

Monday, November 4, 2013

Sunday, November 3, 2013

U.S. Energy Rigs Gain Four to 1,742, Baker Hughes Says

Rigs targeting oil and natural gas in the U.S. increased by four this week to 1,742, according to Baker Hughes Inc. (BHI) Oil rigs rose by 19 to 1,376, data posted on the company’s website show.

Saturday, November 2, 2013

OPEC Exports to Drop as U.S. Output Gains, Oil Movements Says

The Organization of Petroleum Exporting Countries will cut crude exports through mid-November as rising U.S. output allows the nation to curb purchases from the Middle East and Africa, according to Oil Movements.

Friday, November 1, 2013