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» Total announced that it had signed an agreement with Kulob Petroleum, a subsidiary of Tethys Petroleum, to farm into the Bokhtar PSC Area in Tajikistan with a 33.335% interest. Under the agreement, signed jointly with state-owned CNODC (a subsidiary of CNPC) of China, Total and CNODC will each hold a 33.335% interest in the PSC, while Kulob will retain a 33.33% stake. The agreement is subject to the approval of the Tajikistan government. The Bokhtar PSC covers an area of 35,000 square kilometers at the eastern end of the prolific Amu Darya Basin. A number of giant gas discoveries have already been made in the basin's Jurassic carbonate reservoirs. On completion of the transaction, Total will acquire an interest in the Tajikistani sector of the Amu Darya Basin, it will be partnered with CNPC [ dec 28 2012, PennEnergy ]

» Sands are Running Out for Climate Protection. The Doha Climate Conference Once Again Saves the UN Climate Process While Real Climate Action Is Shelved for Later. This report by Wolfgang Sterk, Christof Arens, Nicolas Kreibich, Florian Mersmann, and Timon Wehnert analyses the international climate negotiations at the UN climate conference in Doha in December 2012. The report is structured along the three main tracks of the negotiations: the agreement on a second commitment period under the Kyoto Protocol, the closure of the Ad-hoc Working Group on Long-Term Cooperative Action under the Convention, and the start of negotiations on a new comprehensive climate agreement that are to be concluded by 2015 [ dec 24 2012, Wuppertal Institute ]

» This month's UNEP GEAS bulletin informs that despite the growing body of norms, rules and many good intentions of achieving global environmental goals, the overall global environmental situation continues to deteriorate. For example, under climate change, atmospheric concentrations of GHGs seems to be increasing to levels that are likely to push global temperatures to more than 2 C above the pre-industrial average, which is the agreed target for planetary well-being . The bulletin advocates new commitments and ways to deal with persistent environmental problems, including the formulation of clear, numerical environmental targets and better data collection to track changes [ dec 21 2012, UNEP ]

» Satoil today announces the acquisition of around 70,000 operated net acres in the liquid rich part of the central Marcellus area. The total consideration is USD 590 million. The US unconventional plays hold a substantial resource base and represent an increasingly important part of future energy supplies. Statoil is further strengthening its US onshore portfolio by acquiring additional acreage in the valuable liquid rich parts of the Marcellus shale in Ohio and West Virginia, says Statoil US onshore senior vice president Torstein Hole. Statoil entered the Marcellus in 2008 through a partnership with Chesapeake Energy Corporation. Since then the company has pursued a targeted and stepwise growth strategy to expand its US onshore holdings and develop operational and organizational capacity [ dec 20 2012, PennEnergy ]

» Mobil Corporation announced today that its affiliate, ExxonMobil Exploration and Production South Africa Limited, will soon begin exploration activities offshore South Africa. The ExxonMobil affiliate signed an agreement with Impact Africa Limited (Impact), a subsidiary of Impact Oil & Gas Limited, to acquire a 75 percent participating interest in the Tugela South Exploration Right and will become operator. Under the agreement, the affiliate also has the right to acquire 75 percent participating interests in future exploration rights in three offshore areas covered by technical cooperation permits currently held by Impact. These exploration rights and the affiliate’s participating interest in them are subject to South African government approval [ dec 19 2012, PennEnergy ]

» Japan is headed for a possible economic catastrophe if it does not pursue nuclear power. So said Nobuo Tanaka, the former director general of the International Energy Agency (IEA), in an address to the World Nuclear Power Briefing 2012 Europe conference here last week. Tanaka noted that geopolitical uncertainties in the Middle East could double the price of oil and natural gas. That would have disastrous consequences for Japan [ dec 17 2012, smartplanet ]

» The Past and Future Cost of Wind Energy. The future of wind power will depend a great deal on the ability of the industry to continue to achieve cost of energy reductions. This summary report, developed as part of Task 26 of the Wind Implementing Agreement (Wind IA), provides a review of historical costs, evaluates near-term market trends, reviews the methods used to estimate long-term cost trajectories, and summarises the range of costs projected for onshore wind energy across any array of forward-looking studies and scenarios. It also highlights high-level market variables that have influenced wind energy costs in the past and are expected to do so into the future. Visit the Wind IA home page to access other recent reports [ dec 14 2012, IEA report ]

» The Russkaya compressor station site (near Anapa, Krasnodar Territory) hosted today the celebrations dedicated to the construction start-up of the South Stream gas pipeline. [...] In order to ensure gas supplies into South Stream and to gasify central and southern regions of Russia, Gazprom is implementing a large-scale gas transmission system (GTS) project – Southern Corridor. So far, the Southern Corridor project related documents have been prepared. In 2012 approvals were received from state experts. At present, the gas pipeline routes are being optimized, engineering studies are being performed, gas linepipes and compressor stations are being designed. The Southern Corridor GTS project is being implemented in eight Russian Federation constituents: the Nizhny Novgorod Region, the Republic of Mordovia, the Penza, Saratov, Volgograd, Voronezh, Rostov Regions and the Krasnodar Territory [ dec 12 2012, Offshore mag ]

» Eni has notched two more giant gas discoveries in the Mamba complex in Area 4 offshore Mozambique. The Mamba South 2 and Coral 2 delineation wells have added 6 tcf (170 bcm) to the Area 4 reserves base, now estimated to hold 23 tcf (651 bcm)-plus in place, with potential of 75 tcf (2.1 tcm) throughout the Mamba complex. Mamba South 2 was drilled in 1,918 m (6,293 ft) of water to a TD of 4,300 m (14,107 ft), 9 km (6 mi) east of Mamba South 1 and 50 km (31 mi) from the Capo Delgado coast. It intersected 60 m (197 ft) of gas pay in good quality Oligocene reservoirs. The well also proved hydraulic communication with the same reservoir at Mamba South 1. On test it flowed lean gas at a sustained rate of 140 MMcf/d (4 MMcm/d) [ dec 11 2012, Offshore mag ]

» ICE reports 5% decline in november futures volume, UP 10% YTD. IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, today reported futures volume for November 2012. ICE's average daily volume (ADV) for futures and options was 3,198,341 contracts, down 5% from the prior November. Year-to-date through November 30, ADV was 3,415,552 contracts, up 10% compared to the first eleven months of 2011. Total volume in November 2012 was 67.2 million contracts. All prior period contract volumes have been adjusted to include the converted futures contracts, which previously traded as swaps in ICE's OTC markets. [ dec 10 2012, ICE ]

» Cobalt International Energy Inc. has made a Lower Tertiary Wilcox oil discovery in the southeastern part of the Garden Banks planning area in the deepwater Gulf of Mexico. The discovery's potential is several hundred million barrels of oil, said Total SA, which has a 40% nonoperated interest in the project in which Cobalt is operator with 60%. Extensive wireline evaluation indicates that the well on its North Platte prospect on Garden Banks Block 959 encountered several hundred feet of net oil pay in multiple Inboard Lower Tertiary sands, Cobalt said. That thickness is in line with the predrill estimate, the company said. [ dec 07 2012, North Platte is giant Lower Tertiary gulf oil discovery, O&GJ ]

» In the first decade of the 21st century, governments in many countries around the world expanded or redesigned their support for the development and deployment of advanced energy-supply and energy-demand technologies. By analyzing the institutions that have been created to stimulate energy technology innovation in the United States, the United Kingdom, and China - three countries with very different sizes, political systems and cultures, natural resources, and histories of involvement in the energy sector - this paper highlights how variations in national objectives and industrial and political environments have translated into variations in policy [ dec 06 2012, Belfercenter ]

» At the UN climate negotiations in Durban (2011), UNFCCC Parties essentially agreed to negotiate until 2015 a legally binding framework regarding emissions mitigation obligations for all countries from 2020 onwards. However, to keep global temperature below 2°C and thus avoid run-away climate change, it is not enough to concentrate on post-2020 action. In its famous The Emissions Gap Report, UNEP showed that the current national mitigation pledges in the UN context are necessary to reduce the gap between business-as-usual emissions and what is needed to stay below 2°C by 2020, but will not suffice. Therefore, a Workplan on enhancing mitigation ambition to identify options for Parties to close the ambition gap was launched in Durban. Short-term mitigation action needs to be enhanced at all levels between now and 2015 in order to ensure that the gap is closed: At the UN climate negotiations and in other international fora, at the national levels, and through forming alliances between countries and/or non-state actors [ dec 05 2012, Germanwatch ]

» Eni announces it has restarted its onshore exploration activities in Libya by drilling the A1-108/4 well in the Sirte Basin, located around 300km south of the city of Benghazi. The well, operated by the fully owned subsidiary Eni North Africa, will reach a total depth of 14,500 feet and will test a new geological play in the EPSA IV 2008 Contract Area A. The exploration well is the first of an onshore drilling program, which is set to continue into 2013, and it marks another important step in resuming all of Eni's exploration and production activities in Libya. Eni was the first international company to resume production in September 2011 [ dec 04 2012, PennEnergy ]

» Hydrological fracturing techniques have made accessible vast unconventional gas reserves. However, observed impacts on the environment and human health raise legitimate public concerns. The potential climate benefits of coal-to-gas substitution are both less clear and more limited than initially claimed. The question of whether to allow or ban gas fracking needs to be carefully assessed by relevant authorities. A review of current related policies and regulations is critically needed [ dec 03 2012, UNEP ]

» EIA:Net imports of natural gas from Canada have been falling for years. Rising shale gas production in the United States, especially in the Northeast, is key among several factors affecting this trend. For the first eight months in 2012, net imports from Canada fell by about 7%, to 5.7 billion cubic feet per day (Bcfd), from the same period in 2011. This resulted from high levels of U.S. natural gas production coupled with record-high inventory in underground natural gas storage. United States net imports for 2012 year-to-date accounted for around 8% of U.S. total natural gas consumption, the lowest level since 1992 [ dec 02 2012, PennEnergy ]

» Gazprom has done it: with the final decision to build South Stream, they have the won battle against the EU for the Southern Corridor. Surely a severe geopolitical defeat for the EU and South and Eastern Europe in particular. On a global scale, however, Moscow's move to stitch up the European market through an uneconomic pipeline is a monumental mistake, argues energy security specialist Matthew Hulbert. In an uncompromising analysis, Hulbert concludes that Vladimir Putin and his friend Alexei Miller are blind to all parts of the gas market that really matter: LNG, unconventional gas, hub trading and Asia. In that respect, the European Commission's anti-trust probe into Gazprom is a waste of resources, says Hulbert: Gazprom's market power will collapse by its own [ nov 30 2012, EuropeanEnergyReview]

» The Clean Development Mechanism (CDM) is the first and only truly international greenhouse gas mitigation compliance scheme, and has been a success in promoting clean energy investments in the developing world. CDM projects represent a combined investment in clean energy and low carbon technology of $215-450bn. Projects are concentrated in the major emerging economies, where emission reductions are needed most. [...] The CDM is currently in crisis. Low carbon prices threaten the bankruptcy of project owners, and hardly any new projects are being developed, even in least developed countries. Moreover potential trust from energy firms and entrepreneurs in the developing world that international finance mechanisms will deliver real, long term funding in the future, is being eroded [ nov 29 2012, ClimateBridge]

» Who suffers most from extreme weather events. Weather-related loss events in 2011 and 1992 to 2011 The Global Climate Risk Index 2013 analyses to what extent countries have been affected by the impacts of weather-related loss events (storms, floods, heat waves etc.). The most recent available data from 2011 as well as for the period 1992-2011 were taken into account [ nov 28 2012, Germanwatch]

» The Future Climate Regime and Climate Unilateralism. The validity and future development of unilateral actions such as the European Union (EU) emission trading scheme's (ETS) extraterritorial application to the aviation industry. The conformity of unilateral actions with the sovereign rights of other nations, International Civil Aviation Organization (ICAO), the Chicago Treaty, the World Trade Organization (WTO) and the United Nations Framework Convention on Climate Change (UNFCCC), especially with regard to the equity principle. The EU ETS's application to the aviation industry as a kind of sectoral approach which can be applicable to other sectors. Finally it discusses possible compromises and future developments [ nov 27 2012, IGES, Asuka J.]

» The emergence of exploration for shale oil and shale gas in some EU countries should be backed up with 'robust regulatory regimes', the European Parliament said in two resolutions voted on Wednesday. Member states should also be cautious about permitting exploitation of unconventional fossil fuels pending further analysis of whether EU-level regulation is appropriate, say MEPs [ nov 23 2012, Europarliament ]

» Beyond the headline-grabbing projection that the United States will soon be the biggest producer of oil and gas, the latest energy outlook from the IEA is its gloomiest yet. The world will be well supplied with oil only if troubled Iraq becomes the second-largest exporter. Even so, oil prices will go on rising unless we enter another global recession. Carbon emissions will spew ever-faster into the atmosphere as we career towards being locked in to dangerous climate change; a credibility-stretching efficiency push could postpone this, but only by five years. Even by 2030, a billion people will lack electricity. Water is fast becoming a constraint on future energy supply. Perversely cheap natural gas will give US industry a competitive edge that will suck wealth away from OECD and emerging countries alike. And all this only if the IEA's arguably optimistic 'central scenario' comes to pass. It could all end up a lot worse [ nov 20 2012, EER ]

» With global oil demand continuing to increase, the US will replace Saudi Arabia as the world's largest oil producer about 2020, and North America will become a net oil exporter by 2030, according to the International Energy Agency. China, India, and the Middle East will account for 60% of a 30% increase in global energy demand between now and 2035, IEA projects in its World Energy Outlook 2012. By 2035, almost 90% of Middle Eastern oil flows to Asia in IEA's projection. The global energy map is changing, with potentially far-reaching consequences for energy markets and trade, IEA says. The outlook projects an increase in worldwide oil demand to 99.7 million b/d in 2035 from 87.4 million b/d in 2011, driven by a doubling in the number of passenger cars to 1.7 billion and a rapid increase in demand for road freight [ nov 16 2012, O&G journal ]

» A new report published today by the New Economics Foundation (nef) argues that the UK's recent economic recovery could be short-lived, as the end of cheap oil ushers in a new age of sustained high oil prices. Oil dependence acts as a glass ceiling to economic recovery finds: Growth in oil production has plateaued in the past decade, while consumption in non-OECD nations continues to grow; No new sources of low-cost oil supply are known. Recent optimism about unconventional sources of oil and gas fails to recognise that the additional supplies represent a higher cost. Oil is priced by the cost of incremental supply and this is a high cost; Slowing the rate of decrease in oil production can only be achieved by a potential doubling of the price of oil over the next decade; Significant falls in oil prices can only occur if there is a major recession or depression, similar to that seen in the second half of 2008 [ nov 13 2012, NEF ]

» Potential of geoengineering to reverse global warming rapidly and cheaply makes it alluring to groups across the political spectrum. But geoengineering also poses significant risks and raises the specter of technology gone awry. This discussion paper analyzes the basic governance issues raised by geoengineering, including the possible functions, forms, objects and agents of governance. It then explores these issues by focusing on four scenarios: inadequate research funding, premature rejection, unilateral individual action, and unilateral state action [ nov 09 2012, D. Bodansky ]

» Given surging domestic energy consumption that is increasingly threatening oil and gas export revenues, the United Arab Emirates, Qatar and Saudi Arabia are initiating multiple experiments to improve energy efficiency and introduce renewable energy. Cautious signals of a more constructive engagement of the Gulf Cooperation Council states in the international climate policy regime are emerging. The resulting opportunities for constructive and innovative dialogues should not be wasted. Climate diplomacy should try to strengthen the position of those groups that support new domestic energy policies. Technical support for Nationally Appropriate Mitigation Action (NAMA) pilot projects by the EU and other progressive countries in the climate regime could serve as a catalyst for creating sustained synergies between new energy and climate policies in the Gulf region. From Climate Antagonists to Low-Carbon Protagonists? The Changing Role of the Gulf OPEC States in the UNFCCC [ nov 08 2012, FNI climate policy ]

» Working Paper, Green growth economic theory political discourse. Concept of green growth has burst onto the international policy scene in the past four years. Identifying the core meaning of the concept and sister terms such as green economy, this paper locates green growth within the longer tradition of environmental discourses, notably that of sustainable development. The paper distinguishes between a 'standard' version of green growth, which asserts the long-run economic benefit of environmental protection, and a 'strong' interpretation which claims, more boldly, that environmental policy can be a driver for growth. Three different forms of this claim are identified and the evidence for them surveyed. The first is a Keynesian argument for short-term green stimulus in times of recession. Second, a revision of standard growth theory identifies the contribution made to growth by investment in natural capital and the correction of a variety of market failures through environmental policy. Third, the theories of comparative advantage and long waves of capitalism emphasise the importance of technological innovation in generating growth. The paper discusses the political economy of green growth - the economic and social forces ranged in favour of and against it - and examines how likely it is to succeed in increasing the priority given to environmental policy in tough economic times [ nov 06 2012, Grantham Research Institute on Climate Change and the Environment ]

» Britain's government has awarded 167 new licenses under the 27th offshore licensing round. These cover 330 blocks, with bids for a 61 more blocks undergoing further environmental assessment. These are in regions deemed Special Areas of Conservation and Special Protection Areas. This year's round, unveiled in February, attracted by the May 1 deadline a record 224 applications for 418 blocks across the UK continental shelf. UK Energy Minister John Hayes said: This successful licensing round shows we are taking the right action to offer certainty and confidence to investors. Our fiscal regime is now encouraging small fields into production and our licensing regime supports new faces as well the big players to invest. Importantly, we are guaranteeing every last economic drop of oil and gas is produced for the benefit of the UK. [ nov 05 2012, Offshore ]

» Oil prices continue to rise in the U.S., reaching $87.06 per barrel in New York as a result of refineries left without power and supply terminals that are cut off due to Superstorm Sandy, The Washington Post reported. Many service stations are also closed because they are without power or cannot get gasoline delivered, the article stated. The gas stations that are open are experiencing long lines of motorists looking to fill up their vehicles. The limited imports of oil to the United States are also adding to the supply problems. Reuters reported large oil tankers were barred from entering New York Harbor as of November 1, which serves as a major point of entry for the East Coast, bringing in nearly 1 million barrels per day of fuel [ nov 02 2012, PennEnergy ]

» Hurricane Sandy is expected to cost a shocking $7-15 billion in insured losses alone. Even worse: the rest of the tab - and projections are as high as $50 billion - will be born mostly by taxpayers. Nobody expected a hurricane to make landfall in the U.S. this late in the year, and particularly not in the mid-Atlantic or Northeast. But if the last few years are any indication, these extreme weather patterns are becoming the new normal. Ceres recent report, Stormy Futures: The Growing Costs and Risks of Extreme Weather Events, highlights the financial impact of increased droughts, wildfires, and flooding, and forecasts continued losses unless insurers incorporate climate risk into their underwriting and pricing strategies. But it's not just the insurance companies that are on the hook - as insurers retreat from the highest-risk areas, it will be the government and the taxpayers paying the bill for damages wrought by extreme weather. [ nov 01 2012, Ceres ]

» The Independent Evaluation Group recently released a new assessment of the World Bank Group's Experience in Climate Adaptation. This evaluation draws lessons from World Bank Group experience with adaptation to both current levels of climate variability and ongoing climate change. It reviews the impact of longer-standing efforts to deal with climate variability, for instance via drought relief, sustainable land management, and flood control. The evaluation also looks at how, and how well, the World Bank Group has incorporated climate change risks into the design and appraisal of long-lived infrastructure. It assesses early lessons from a new crop of activities that explicitly grapple with climate adaptation at the national level [ oct 31 2012, World Bank ]

» As a massive storm overtakes the U.S. East Coast, numerous refineries there have begun temporary shutdowns. Hurricane Sandy stretches nearly 1,000 miles across, and has already begun drenching states along the Eastern Seaboard. Refineries have been preparing for the storm for several days. Phillips 66 has shut down its Bayway refinery in New Jersey, which produces 238,000 barrels a day. Three storage terminals belonging to the company have also been shut down. Refineries belonging to Philadelphia’s Energy Solutions and PBF Energy have been operating at reduced rates. A Hess refinery is also reducing output in preparation of a full shutdown[ oct 30 2012, PennEnergy ]

» Shell has approval from Britain's government to develop the Fram oil and gas field in the UK central North Sea. Fram is a joint venture between Shell UK (32%) and Esso Exploration & Production UK (68%). The field will be developed with an FPSO, and according to Shell the project is one of the largest in this region in recent years. The field is 50 km (31 mi) west of the UK/Norway median line in a water depth of roughly 100 m (328 ft). Development calls for eight production wells, one production water re-injection (PWRI) well, two subsea drill centers (East and West), and a subsea flowline bundle, all connected to the FPSO to be supplied by SBM Offshore. Shell aims to bring Fram onstream within the next three years, with average production of 35,000 boe/d [ oct 29 2012, Offshore ]

» The Moroccan Agency for the Development of Renewable Energy and Energy Efficiency (ADEREE) and the DESERTEC Foundation have signed a memorandum of understanding to consolidate the partnership between these two institutions. It focuses on the exchange of expertise and know-how in developing energy policy and regulation, and support for ADEREE's communication and public relations strategy. The mission of the non-profit DESERTEC Foundation is the worldwide implementation of the DESERTEC Concept, a solution to provide climate protection, energy security, water and development by generating sustainable power from the sites where renewable sources of energy are at their most abundant. Dr Thiemo Gropp, Director of the DESERTEC Foundation sees a great potential in the cooperation with ADEREE: Morocco is a not just a visionary in the region but also a successful pioneer in the global transition to renewables, where ADEREE plays a key role. We are very happy to support their work in this context [ oct 26 2012, Desertec ]

» The report, America's New Energy Future: The Unconventional Oil and Gas Revolution and the U.S. Economy, finds that unconventional oil and natural gas production could produce significant growth in capital expenditures and employment, including: More than $5.1 trillion in cumulative capital expenditures by 2035. Adding 1.2 million new jobs by 2020, and supporting a total of 3.5 million jobs by 2035. Almost $62 billion in additional federal, state and local tax receipts in 2012 and more than $111 billion in 2020, with a total of more than $2.5 trillion in cumulative added revenues between 2012 and 2035. The report was sponsored by API, the Institute for 21st Century Energy, the American Chemistry Council, and the Natural Gas Supply Association [ oct 24 2012, PennEnergy ]

» This paper, from BSR's Future of Fuels working group, examines the sustainability impacts of fuels, synthesizing what is known and not known using a value chain (or life-cycle) perspective. It then considers the future market outlook for fuels, and explores some of the factors necessary for major changes and improvements to take place. Any treatment of fuel and sustainability requires consideration of climate change and the dangers it poses to global well-being. Because of these concerns, we have seen an increase in demands for substantial shifts in policy, business practices, and consumer behavior to change our energy mix [ oct 23 2012, BRS ]

» IEA helps to inform the debate on climate change leading up to Doha. How much CO2 are countries emitting? Where is it coming from? In the lead-up to the UN climate negotiations in Doha, the latest information on the level and growth of CO2 emissions, their source and geographic distribution will be essential to lay the foundation for a global agreement. To provide input to and support for the UN process the IEA is making available for free download the Highlights version of CO₂ Emissions from Fuel Combustion [ oct 22 2012, IEA ]

» Oil majors Royal Dutch Shell and BP raised eyebrows across the U.S. with the announcement last week of new plans to export crude oil from the Bakken region northward to Canada, drawing a response from legislators, according to Reuters [ oct 19 2012, PennEnergy ]

» RBN energy analysts and traders are betting that the WTI discount to Brent will fall well below its current $22.76 /Bbl before february. Early next year new pipeline pathways out of the Midwest and West Texas to the Gulf Coast and growing railcar traffic out of the Bakken will put an end to the Cushing Supply glut. Important signals today suggest the WTI discount should narrow sooner, but prices for the two crudes remained stubbornly far apart last week. Today we explain why the spread hasn't narrowed already and the fundamental pressures that will overwhelm it come the spring [ oct 17 2012, Oil and gas financial journal ]

» Ongoing sanctions against Iran are taking an unexpectedly dramatic toll on oil exports from the struggling Middle Eastern nation, according to Reuters. New data released by the International Energy Agency estimated Iran's oil exports at around 860,000 barrels per day in September. That marks a more than 60 percent decline from the end of last year and knocks the country down several places among the ranks of the world's oil exporters [ oct 16 2012, PennEnergy ]

» A lawsuit has been brought against Royal Dutch Shell hoping to hold the company liable for a series of oil spills on the Niger Delta, according to The Wall Street Journal. The suit is being supported by the environmental group Friends of the Earth Netherlands, and alleges that Shell failed to maintain its oil pipeline network in Nigeria. Shell is the dominant oil company in the African nation, the largest producer on the continent. However, it operates there through its subsidiary Shell Nigeria [ oct 15 2012, PennEnergy ]

» The EU Emission Trading Scheme (ETS) is in crisis and Climate Commissioner Connie Hedegaard and her Director-General Jos Delbeke are in an impossible position. They must reassure EU member states there are no plans to permanently remove carbon allowances from the market - this would equate to tightening the overall emissions cap, a highly sensitive issue. Yet they must also tell market players that yes, the big allowance surplus will be cut down to size so please do go ahead and make those low-carbon investments. The ETS-crisis is coming to a head in Brussels as the carbon price stubbornly stays below €10 a tonne and pressure intensifies for policymakers to intervene. Sonja van Renssen reports from Brussels [ oct 12 2012, EEEe ]

» Iraq's energy sector holds the key to the country's future prosperity and can make a major contribution to the stability and security of global energy markets, the International Energy Agency (IEA) says in a special report of the World Energy Outlook released today - the first time that the IEA has conducted a comprehensive review of the energy sector of a major Middle East producer. The IEA's Iraq Energy Outlook finds that Iraq makes by far the largest contribution to global oil supply growth over the coming decades, with current production of 3 million barrels per day (mb/d) more than doubling by 2020 and going on to reach more than 8 mb/d by 2035. Iraq becomes a key supplier to fast-growing Asian markets, mainly China, and the world's second largest oil exporter by the 2030s, overtaking Russia. This landmark study confirms the increasing importance of Iraq to [ oct 10 2012, Oilprice ]

» What happens in Syria next will be of immense geopolitical significance and will involve a host of countries and micro and macro balances of power, from Iran, Iraq, Turkey, Lebanon, Israel, Egypt and Jordan most pressingly, and Russia and the US indirectly [...] The level of US intervention in a conflict is almost always determined by oil and gas. The US is not getting involved in Syria, other than through back channels, precisely because Syria has little in the way of oil resources, and what it does has is the purview of France's Total. Thus, France has been the most vocal about intervention in Syria; it has assets to protect. This is also why any governments who wish to help the Syrian rebel cause are funneling money through France. Herein lays the main difference between Syria and Libya, which is rich with oil and thus was ripe for fast intervention. It is also why Italy was the first to light the fuse in Libya-to protect its ENI assets [ oct 09 2012, Oilprice ]

» How far is the EU's energy sector from achieving goals of decarbonisation by 2050? The EU's ambition to reduce emissions of climate-damaging greenhouse gases by between 80 and 95% by 2050 can only be achieved with almost zero emissions from the energy sector by 2050. How are EU energy policies pushing such dramatic change? What remains to be done for the energy sector to decarbonise? What policy responses are required? What are the challenges for policymakers in meeting the decarbonisation goals? How do current energy policies match up to these ambitions? What sort of consequences will the EU's move to decarbonisation have on energy relations with current partners? Will new partners emerge to help fulfil the EU's decarbonisation ambitions? How is the EU's neighbourhood reacting to the EU's move to decarbonise? [ oct 05 2012, Institute of european studies ]

» The answer to the oft-asked question of whether an event is caused by climate change is that it is the wrong question. All weather events are affected by climate change because the environment in which they occur is warmer and moister than it used to be. The air is on average warmer and moister than it was prior to about 1970 and in turn has likely led to a 5-10 % effect on precipitation and storms that is greatly amplified in extremes. The warm moist air is readily advected onto land and caught up in weather systems as part of the hydrological cycle, where it contributes to more intense precipitation events that are widely observed to be occurring [ sep 28 2012, theenergycollective ]

» The increasing role played by renewable energy sources, including PV, requires a new perspective on Europe's power system management. Under all scenarios envisioned for the coming decades, PV will play an important part of Europe's electricity mix - covering about 15% (or, under a paradigm shift scenario, up to 25%) by 2030. Connecting the Sun: Solar photovoltaics on the road to large-scale grid integration, a new report from the European Photovoltaic Industry Association (EPIA), shows how Europe's electricity system can integrate high levels of solar PV in the coming decades [ sep 26 2012, EPIA ]

» EIA: oil price drop could affect North Slope production. Oil production on Alaska's North Slope, which has been declining since 1988 when average annual production peaked at 2.0 million barrels per day, is transported to market through the TransAlaska Pipeline System (TAPS). Because TAPS needs to maintain throughput above a minimum threshold level to remain operational, its projected lifetime depends on continued investment in North Slope oil production that itself depends on future oil prices. In the Annual Energy Outlook 2012 low oil price case, North Slope production would cease and TAPS would be decommissioned, which could occur as early as 2026 [ sep 21 2012, PennEnergy ]

» Researchers at the University of Rochester have found evidence suggesting that the majority of the oil spilled after the explosion of BP's Deepwater Horizon offshore oil rig might have been consumed by local bacteria. Many types of bacteria are capable of metabolizing hydrocarbons like the crude oil and natural gas that was spilled into the Gulf of Mexico after the spill, but there has been uncertainty as to how much of this matter was ultimately broken down in this fashion [ sep 14 2012, PennEnergy ]

» The European Commission has today published two shale gas studies carried out by teams led by AEA. The first report studies the potential risks for the environment and human health arising from hydrocarbons operations involving hydraulic fracturing in Europe. This latest report discusses complex environmental risk and regulatory policy issues in detail. It makes recommendations for future policy development and research and will be a useful reference point for published information on the subject [Report]. The Commission has also published AEA's study entitled Climate Impact of Potential Shale Gas Production in the EU. This study shows that provided the climate impacts are well managed, they may be less than those resulting from the use of imported gas from outside the EU [ sep 11 2012, EC clima ]

» The shale gas revolution has resulted in unprecedented low natural gas prices. Increasingly, power operators have been turning off their coal fired power plants in order to switch to the abundant natural gas. The risks of brownouts and perhaps even blackouts on weekdays challenged by extreme weather loom as a growing risk that could trigger a backlash against emissions regulations, renewable sources of electricity and competitive power markets. Join this webinar as we explore if there even is enough natural gas that is findable and deliverable to plug most of the gap created by the projected closure of 25.5 gigawatts (GW) of U.S. generating capacity between now and year-end 2015? Among others, we'll also discuss: What are the origins of this? Why are we closing over 25 Megawatts of generating capacity in just three years? How much new natural gas can fill the gap? Is there even enough natural gas pipeline capacity available? [ sep 07 2012, register here, the energy collective ]

» With a submission of 135 new CDM projects in August the monthly submission has gone down to the level before the peak of new submitted projects that started in June 2011. The CDM Pipeline now contains 8971 CDM projects after subtracting the 1261 CDM projects where the DOEs terminated validation, the 214 where the DOEs gave a negative validation, the 225 projects rejected by the EB, and the 58 withdrawn projects. 164 are in the registration process. In August the EB made 160 registration actions. This is the highest number ever. In August 21.0 MCERs were issued and the total issuance is now 995 MCERs. If the average issuance in the last 6 month of 19.7 MCERs continues in the last 4 months of 2012 we project a total issuance at the end of 2012 to 1074 MCERs. The average issuance success is 93.4% [ sep 05 2012, cdmpipeline ]

» Statoil is looking to increase average oil recovery from its fields offshore Norway to 60%, according to senior figures speaking at ONS today. Last year the company managed to raise the bar by 1% to 50%, equivalent to an extra 327 MMbbl of oil. For many of the fields, the original target in the plan for development and operation had been 30% recovery, said Oystein Michelsen, executive VP for Development and Production Norway. Eking out a further 10% will take time, he conceded [sep 04 2012, offshore mag]

» Citigroup is projecting that oil costs will stabilize at $80 to $90 a barrel by the year 2020. And a recent report from Harvard's Belfer Center warns that oil prices may fall precipitously over the next several years, due to a coming global oversupply of oil & gas. How can these analysts be certain that their predictions will be accurate? Several factors go into setting the price of oil. Supply and demand are both crucial. In terms of supply, costs of finding and producing a barrel of oil help determine whether it is worth producing that particular oil reservoir [ sep 03 2012, oilprice.com ]

» Republican presidential nominee Mitt Romney introduced his energy plan at a speech in New Mexico on Thursday, according to The New York Times. The former Massachusetts governor suggested that he wanted to see the U.S. dramatically increase oil and gas exploration, with the ultimate goal of reaching energy independence. That objective would be achieved by opening up federal lands for greater drilling by allowing individual states to regulate exploration on lands within their borders. This marks a dramatic turnabout from existing policy, which has had strong federal oversight of the national government's lands for more than a century. [ PennEnergy, aug 31 2012 ]

» Managing Director of the National Iranian Gas Company Javad Owji announced that Iran's gas export pipeline to Pakistan will reach the country's border in the first half of the next Iranian calendar year, which begins on 21 March 2013 [ Pipeline Int, aug 30 2012 ]

» GlobalData predicts that total oil and gas capex will increase by 13.4% this year to more than $1 trillion, compared with $916 billion in 2011. Oil companies are intensifying upstream operations across diverse locations. Investor confidence in new upstream projects is being driven by the increasing number of oil and gas discoveries (242 in 2011), consistently high oil prices, and new technologies opening access to deep offshore reserves that were previously technically and financially unviable. North America should account for the highest proportion of capex globally (24.5%), at $254.3 billion. Its capex growth rate is also highest, at a predicted 15.7%. Asia/Pacific is close behind, with GlobalData forecasting capex in this region of $253.1 billion, followed by $229.6 billion in the Middle East and Africa [ .. Offshore Mag, aug 28 2012 .. ]

» Total U.S. petroleum deliveries (a measure of demand) fell 2.7 percent in July to just above 18 million barrels per day. This is the lowest July level since 1995 and the lowest level for any month since September 2008. Total petroleum demand for the year to date was down 2.3 percent. Gasoline demand fell more, down 2.2 percent from June and down 3.8 percent from July a year ago to the lowest July level since 1997. Demand for other major products also declined except distillates, which increased 4.9 percent, driven by strong ultra-low sulfur diesel deliveries. [ .. PennEnergy, aug 23 2012 .. ]

» Barclays anticipates an increase in demand for oil supply deals in Europe, as refineries look for ways to reduce volatility risks. John Eleoterio, Barclays' head of commodities structured origination, tells GTR: 'Given the need for more working capital management solutions for refiners as well as their desire to reduce the commodity volatility associated with maintaining large blocks of commodity inventory, we've seen an increase in demand globally for a product like this.' [ .. GRT, aug 10 2012 .. ]

» Over the last two months, the price of corn has been climbing. On July 19th, it exceeded $8 per bushel for the first time, taking the world into a new food price terrain. With heat and drought still smothering the Corn Belt, we may well see more all-time highs in coming weeks as the extent of crop damage becomes clearer. This is not the way it was supposed to be. This spring farmers planted a record 96 million acres of corn. An early spring got the crop off to a great start, leading the U.S. Department of Agriculture (USDA) to project the largest corn harvest in history. [ .. Earth policy inst., aug 09 2012 .. ]

» Comprehensive Assessment of World Crude Oil Supply Through 2030. The top 200 producing oil fields, reserves appraisals, and outlooks for 31 countries by oil-quality. This study provides an in-depth look of crude oil supply over the next 20 years. Past outlooks have been limited to a macroscopic view of global supply but now that we are on a critical pathway of imbalance between supply and demand it becomes necessary to look in more detail at supply starting at the producing country level. This study pursues this approach and dissects future supply capacity down to the oil-quality level for the 31 top producing countries that account for 93% of total crude output, and their 200 top producing oil fields. We specifically concentrate on crude oil since it is the main source (85%) of the mix of petroleum supply which also includes NGLs (11%), biofuels (2%), and other liquids. More importantly, however, crude is the core of the oil market, from well-head to pipelines to tankers to refineries, and finally to the consumer. It is also the only source for on the spot adjustments to market disruptions if they should arise [ .. PennEnergy research, aug 08 2012 .. ]

» Chevron Corp. will go ahead with the development of Lianzi field offshore between the Republic of Congo and the Republic of Angola. Estimated development cost is $2 billion. The development will include a subsea production system and a 27 mi (43 km) electrically heated flowline - the first of its kind at this water depth - to transport the oil from the field to the BBLT platform. First oil is expected in 2015. Once completed, the project is expected to produce a maximum of 46,000 boe/d.Located 65 mi (105 km) offshore in approximately 3,000 ft (900 m) of water, Lianzi will be developed via a tieback to the existing Benguela Belize Lobito Tomboco (BBLT) platform in Angola block 14. Chevron Overseas Congo Ltd. is operator of the Lianzi field and has a 31.25%, along with Total (36.75%), ENI (10%), Sonangol (10%), SNPC (the Republic of Congo National Oil Co. (7.5%), and GALP (4.5%) [ .. OffShore, aug 06 2012 .. ]

» The shale oil boom is causing a steep price drop in Natural Gas Liquids (NGLs) in North America, hurting gas producers. Natural Gas Liquids are the raw, associated gases and liquids that come up along with oil and natural gas from the well. NGLs are very important - vital even - now for regular, dry gas (methane) producers, as they are separated and sold as more expensive products like ethane, propane, butane and condensate. But for shale oil producers - especially in the new prolific Texas oil shales - they're just a byproduct. The oil pays for the well and the NGLs are just gravy. For the last two years, many natural gas producers have been acquiring and drilling gas plays with high liquids content. NGLs are typically valued as a percentage of crude oil prices, and are worth 2-10x what dry gas is worth. In fact, junior Canadian and American gas producers have been desperately trying to portray themselves as 'liquid rich' gas producers. Analyst reports from brokerage firms promote their increasing NGL production. The problem for the gas producers is - the oil producers have been acquiring and drilling them, too. Between oil and gas NGL production, supply has overwhelmed the petrochemical industry, which uses most of these NGLs as feedstock. Prices have rebounded from lows seen in late June, but are still down a lot from last year: Ethane at 31 cents/US gallon is down 61% from last July; Propane at 85 cents/US gallon is down 44%; Butane at 121 cents/US gallon is down 31%; Condensate at 192 cents/US gallon is down 24% [ .. OilandGasInv, july 25 2012 .. ]

» For Russia, the question no longer is whether it should try to exploit its considerable Arctic oil resources, but how. As our regular analyst Matthew Hulbert points out in a new article, Russia's new president, Vladimir Putin, is facing a very different energy situation from the one during his first reign, in the 2000s, when the oil flowed bountifully and prices kept on going up. This time around, Russian oil production is stalling, and huge investment in new exploration and production is necessary to keep the oil machine running. Needless to say, oil (and gas) revenues are still the bedrock of the Russian political system. Without a continued flow of oil and gas income, Putin's system would collapse [ .. EEE, july 20 2012 .. ]

» In a new study, INFRAS together with the Institute for Atmospheric and Climate Science of ETH Zurich model and analyse different pathways of the development of global greenhouse gas emissions that are consistent with the 2℃ target of the Cancun Agreements (2010). The aim of the study is to illustrate on a conceptual level how three different quantitative burden sharing algorithms lead to different emission reduction pathways for the countries. Our preliminary results indicate that with the current ambitions of the party's 2020 pledges it will be much more difficult (and costly) to reach the 2℃ target than if substantial mitigation action is already taken up by all countries and sectors before 2020. We further find that even if Annex I (developed) countries would take swift action to rapidly reduce GHG emissions in the next decades, the 2℃ target cannot be reached if non-Annex I (developing) countries do not participate soon in mitigation action [ .. INFRAS, july 16 2012 .. ]

» Oil production from the members of the Organization of Petroleum Exporting Countries (OPEC) fell slightly last month due to lower Saudi output, and was possibly affected by stronger sanctions against Iran, according to the U.S. Energy Information Administration. OPEC countries produced an average of 30.54 million barrels of oil per day last month, a 1.2 percent decline compared with the previous month. Production in Saudi Arabia dropped to 9.7 million barrels per day in June compared with 9.8 million barrels per day in May. As the OPEC leader in production, the slide affected total output. [ .. PennEnergy, july 12 2012 .. ]

» The TEPCO Fukushima Nuclear Power Plant accident was the result of collusion between the government, the regulators and TEPCO, and the lack of governance by said parties, said the report by the Diet's Fukushima Nuclear Accident Independent Investigation Commission [ .. Investigation Committee on the Accident at the Fukushima Nuclear Power Stations , july 05 2012 .. ]

» Contrary to what most people believe, oil supply capacity is growing worldwide at such an unprecedented level that it might outpace consumption. This could lead to a glut of overproduction and a steep dip in oil prices. Based on original, bottom-up, field-by-field analysis of most oil exploration and development projects in the world, this paper suggests that an unrestricted, additional production (the level of production targeted by each single project, according to its schedule, unadjusted for risk) of more than 49 million barrels per day of oil (crude oil and natural gas liquids, or NGLs) is targeted for 2020, the equivalent of more than half the current world production capacity of 93 mbd [ .. Belfer, june 27 2012 .. ]

» This year, the Iraqi government is targeting output capacity of 3.4 mbpd, bringing its output back into line with the oil production of Iran, up from a claimed level of 3 mbpd last year. The ability to export oil, particularly from the south of the country, will be critical in realising that potential. In the south, the Basra Oil Terminal is already operating at close to its capacity of 1.8 mbpd, while a lack of storage capacity means that any disruptions to loading, for example as a result of bad weather, have an almost immediate impact on production. The start-up of the first of Iraq's new 900,000-bpd single point moorings has been delayed from the end of 2011, with a 1 Feb deadline also missed, but officials still expect the loading terminal to be operational by the end of 1Q12. Two further SPMs are due to be installed by the end of the year. Shell, operator of the Majnoon field, intends to raise production there from 60,000 bpd in 2011 to 175,000 bpd by the end of 2012 and operators at Iraq's other big southern projects are also aiming to raise capacity [ .. Cges, june 21 2012 .. ]

» By italian factory bio-on, a new generation of linear polyesters to replace and improve PET, PE, PP, HDPE, LDPE. For a world in which, to build, we needn't destroy. Polyhydroxyalkanoate (PHA), a linear polyester naturally occurring as a result of bacterial fermentation of sugar. This family can bring together more than 100 differing monomers to produce materials whose properties vary very greatly. Thermoplastic or elastomeric materials can be created with melting points ranging from 40 to more than 180°C. Production needs which range from -10°C to a +180°C can be met through characterization. This product is particularly suitable for injection and extrusion methods for the production of objects. [ .. bio-on, june 20 2012 .. ]

» How will falling petroleum prices affect US shale play production boom. North Dakota recently passed Alaska as the second leading oil producing state in the United States. It boasts one of the lowest unemployment totals in the nation, a fact that is driven by the state's small population and very large job of building the infrastructure required to extract oil from the Bakken shale formation. That shale production is a huge money maker when oil sells for $100 or more per barrel, but due to the high costs of drilling, the effort barely breaks even at oil prices of $55/$70 per barrel. If the producers have to sell into a market where oil costs less than $55 per barrel, they will lose money on every sale [ .. TheEnergyCollective, june 15 2012 .. ]

» TransCanada has been selected by Shell Canada Ltd and its partners to design, build, own and operate the proposed 700 km Coastal GasLink project, to be located in British Columbia in the United States. The estimated $US4 billion pipeline will transport in excess of 1.7 Bcf/d of natural gas from the Montney gas-producing region near Dawson Creek, British Columbia (BC), to the recently announced LNG Canada export facility near Kitimat, BC [ .. Pipelineint., june 07 2012 .. ]

» In an upcoming policy paper on renewable energy, the European Commission says a binding supportive framework for renewable energy is needed beyond 2020. But the Commission has not yet decided whether such a framework should be primarily based on markets (i.e. on emission trading) or on a combination of EU targets and national support schemes [ .. European Energy Review, may 30 2012 .. ]

» The Nabucco Consortium has submitted a proposal to the Shah Deniz II consortium for the construction of a Nabucco West pipeline, which would bring Caspian gas from the Bulgarian-Turkish border to Baumgarten and beyond. Nabucco West is a modified concept of the Nabucco project. The concept foresees the construction of a 1,300 km pipeline that will run from the Bulgarian-Turkish border to the Central European Gas Hub [ .. Pipelines int, may 24 2012 .. ]

» American officials recently announced Iraq intends to purchase some of the unmanned drones commonly used by the U.S. military in an effort to better protect the country's oil production and transportation infrastructure, Reuters reports. The deal, which was struck by Iraq's navy, was announced by the Office of Security Cooperation in Iraq, and comes as the U.S. is preparing to pull out many of its remaining resources in the country. The Iraqi government took responsibility for protecting oil pipelines and related infrastructure in 2005, but the U.S. has since provided support, including aerial surveillance. [ .. PennEnergy, may 23 2012 .. ]

» Saudi Arabia's King Abdullah City for Atomic and Renewable Energy (Ka-Care) revealed its proposed future energy mix to accommodate high energy demand growth in the kingdom, although the plans, submitted nearly a year ago, still lack approval from the most senior levels of government. Of a total projected peak summer demand in 2032 of 121 GW, the state renewable energy arm sees 41 GW coming from solar - 25 GW from concentrated solar power and 16 GW from solar photovoltaic. But it put optimum nuclear generation capacity at 17.6 GW - or 11 reactors - by 2030, down from early numbers as high as 60 GW. Of the total, Ka-Care said 60.5 GW would come from existing or planned oil and gasfired capacity [ .. Energyintel, may 18 2012 .. ]

» Australia is poised for a huge leap in its LNG production and export capacity in the coming years, based around the development and production of offshore gas reserves and reserves of gas trapped in coal seams. Projects already in the construction phase are expected to almost double Australia's LNG production capacity from its current level of around 20 mt/y by 2015 [ .. CGES, may 15 2012 .. ]

» Peak oil revisited: the real challenges are investment and sustainability, not availability. The general perception of global oil reserves is unnecessarily gloomy and far removed from reality, even among many policymakers and academics. This is dangerous because it obscures the real and serious economic and environmental challenges faced by the oil sector, argues Noe' van Hulst. The Director of the new Energy Academy Europe calls on the oil industry to devote more effort explaining the public what the real challenges are [ .. European Energy Review, may 08 2012 .. ]

» Released a new report today titled Climate Change & National Security: The Arctic as a Bellwether. The lead author of the report is Dr. Rob Huebert, Associate Director of the Centre for Military and Strategic Studies at the University of Calgary. Official military doctrine in the United States now holds that "climate change, energy security, and economic stability are inextricably linked". Nowhere is this linkage more clearly illustrated than in the Arctic, and that's why we think the region is a bellwether for how climate change may reshape global geopolitics in the post-Cold War era [...] New and expanded shipping routes through the Arctic can cut the distance to transport goods between Asia, North America, and Europe by up to 4000 miles. We're seeing increased interest and investment in oil and gas exploration. The United States Geological Survey (USGS) estimates that 30 percent of the world's undiscovered gas and 13 percent of undiscovered oil lies in the Arctic. Russia likely possesses the largest share of any country. There's also growing interest in tourism and fishing [ .. Theenergycollective, may 04 2012 .. ]

» The end to cheap oil: a threat to food security and an incentive to reduce fossil fuels in agriculture. Fossil fuels are essential for modern, mechanized agricultural production systems. Petroleum products are used directly to power tractors, machinery and irrigation, and to transport, transform and package agricultural products. They are also used indirectly to manufacture fertilizers and pesticides and prepare seeds. Thus, food production is energy intensive. For example, approximately 2000 litres per year in oil equivalents are required to supply food for each American, which accounts for about 19 per cent of the total energy used in the United States [ .. UNEP, may 02 2012 .. ]

» An overview of Chinese environmental policy; it intends to act as a starting point for those wishing to better understand why and how China is slowly changing to adopt progressive policy instruments to tackle growing environmental concerns. Sandbag is particularly interested in the proposal to develop pilot emissions trading schemes as a precursor to establishing a national emissions trading scheme (ETS). [ .. Sandbag report, apr 27 2012 .. ]

» ExxonMobile and Rosneft have signed an agreement on long-term strategic cooperation to jointly explore and develop in the Russian Black and Kara seas, and E&P projects in the United States and Canada. Exploration work in the Russian sectors is estimated to cost more than $3.2 billion. Offshore North America, Neftegaz Holding America Ltd. has the rights to acquire 30% interest in 20 Western Gulf of Mexico blocks. Other parts of the agreement are for onshore in West Texas. Rosneft President Eduard Khudainatov and Rex Tillerson, president and CEO of Exxon Mobil Corp., said they were encouraged to proceed with these projects by the Russian government's efforts to reform taxation of the high-potential oil industry sectors and improve investment conditions for foreign and Russian oil companies. [ .. Offshore, apr 24 2012 .. ]

» Is Speculation Responsible For High Oil Prices? Speculation can drive prices in either direction. If there is a widely held belief that oil prices will be higher, the price of oil will be bid up. It's the same reason that the share price of Apple rises: Investors speculate that the company will do well in the future and they drive up the price in anticipation of future value. In the case of oil, the most recent speculation is that trouble in Iran could remove a significant quantity of oil from the market, driving prices much higher. But one has to look no further than natural gas pricing to see that this goes both ways. With natural gas below $2 per MMBTU, producers will struggle to make a profit. They are already cutting back on drilling. The sentiment is that there is a very big supply of natural gas, and so the speculators in that case have driven prices down very low - in this case saving consumers a lot of money. In the case of oil, the fear is that supplies won't be sufficient to meet current demand [ .. Energycollective, apr 20 2012 .. ]

» It's widely believed nowadays that global oil production is running up against its limits. The days of easy oil are over, we are told and we should brace ourselves for an age of relative oil scarcity. The reality, however, is very different. As more and more people within the oil industry have come to realize in recent years, the world has plenty of oil that can be produced at competitive prices for a long, long time to come. This means the world does not face inevitable energy poverty and there is no reason to be afraid of unavoidable energy wars [ .. EEE, apr 18 2012 .. ]

» If European policymakers do not intervene soon in the EU's emission trading scheme, Europe's flagship climate policy risks sinking into oblivion. This is bad news when debate is just beginning over a new EU climate and energy package for 2030. If the EU ETS cannot deliver, what should lie at the heart of this new package? A carbon tax? A myriad of national policies? To save the ETS, many stakeholders - including energy companies - are advocating a 'set-aside', or one-off removal of carbon allowances from the market, to raise the CO2 price. Others want a complete overhaul of the system [ .. EEE, apr 16 2012 .. ]

» Even $200 oil won't cause a recession: The U.S. Bureau of Labor Statistics breaks down personal consumption expenditures (PCEs) on energy versus other items on a month-by-month basis. The PCE on energy goods (which include natural gas and electricity) rose from 5.05% of total PCE in 2004 to 5.88% in 2007 and 6.31% in 2008. When oil prices peaked in July 2008 PCE hit a maximum monthly level of 7.01%. Thus taking the increase from 2007 to the highest month in 2008, energy PCE rose by 1.13 % of total PCE, or about $115 billion on an annualized basis. That sounds like a lot of money, but it's well under 1% of GDP. For example, it's less than the estimated $152 billion cost of former President Bush's ineffective 2008 tax rebate stimulus [...] However, high oil prices were certainly not sufficient to push an otherwise healthy economy into recession [...] This time, oil prices are rising from a higher base. The average West Texas Intermediate oil price of $94.87 in 2011 was 31% above 2007's average. It follows that an oil price jump to $147 would not be very economically significant. In this case, we would need a larger spike to have any noticeable effect. Oil prices did spike 101% from 2007's average to the peak on July 3, 2008. A similar rise from 2011's average would take the price of oil to $191 per barrel. If that jump raised energy PCE by the same proportion as in 2008 (starting from 2011's higher energy PCE of 6.07% of total PCE), it would push it up to 7.24% of PCE. This equates to a rise of about $129 billion. If oil touched $200 a barrel, the rise in personal energy expenditures might be around $140 billion. Again, at 0.9% of today's GDP that increase is just not big enough to cause recession in an economy growing even moderately. It's just a little larger than the $118 billion 'stimulus' from continuing the payroll tax cut for 2012 [ .. Money Morning, apr 12 2012 .. ]

» Lulled by dreams of energy independence, the US thought it could slap sanctions on Iran without having to pay a price at the pump. That has proven to be a miscalculation. Now, rather than abandoning its Iran policy, the US is relying on Saudi Arabia and the Paris-based International Energy Agency (IEA) to bring down oil prices and prevent the world economy from going under. According to energy security specialist Matthew Hulbert, this is a highly risky policy which could seriously hurt the credibility of both Riyadh and Paris. He warns that until the US ditches its energy independence myth and gets back to current reality, the Saudi-Parabia ship is going to struggle to make it to port over the next decade. The world is entering dangerous waters. [ .. EEE, apr 11 2012 .. ]

» A new picture is emerging in the U.S. power sector. In 2007, electricity generation from coal peaked, dropping by close to 4 percent annually between 2007 and 2011. Over the same time period, nuclear generation fell slightly, while natural gas-fired electricity grew by some 3 percent annually and hydropower by 7 percent. Meanwhile, wind-generated electricity grew by a whopping 36 percent each year. Multiple factors underlie this nascent shift in U.S. electricity production, including the global recession, increasing energy efficiency, and more economically recoverable domestic natural gas. But ultimately it is the increasing attractiveness of wind as an energy source that will drive it into prominence [ .. EPI, apr 05 2012 .. ]

» Nowhere in the OECD region has a government shown more enthusiasm for new nuclear power stations than in the United Kingdom. The government's efforts to smooth the path for new projects have so far been impressively successful, with key milestones being reached with only a few months here and there of delay. For now, the proposed new projects - amounting to over 16 GW - have built up a head of steam, despite last week's news that big German investors Eon and RWE have decided to pull out. But even the front-runner projects face the uncertainty of not knowing how much they will be paid for their output. Much will depend on how the government chooses to implement its ongoing electricity market reforms [ .. EEE report, apr 03 2012 .. ]

» TOTAL has scheduled a conference call on Monday, April 2, 2012 at 15.00 Paris time, to provide an update on gas leak incident at Elgin platform in the UK North Sea [ .. PennEnergy, apr 02 2012 .. ] The call will be followed by a Q&A session with financial analysts. It will be also available online at www.total.com.

» As the dust from Durban settles, the mountain left for world governments to climb to agree a new global climate treaty by 2015 is coming sharply into focus. The generous rhetoric of the UN climate conference last December is rapidly giving way to the defensive language of entrenched positions. China and India appear to see little role for themselves in helping to do what needs to be done to avoid dangerous climate change, the US is pussyfooting, post-Fukushima Japan is helpless and countries like Australia, Russia and Canada show no signs of wanting to step up their pledges. All this leaves international climate policy in a perilous state. Hope rests mostly on initiatives that lie outside the scope of the climate negotiations [ .. EEE report, mar 28 2012 .. ]

» Industry and investors have reacted positively to the UK Chancellor's annual Budget. As expected, it contained various new measures to stimulate activity on the UK continental shelf. Malcolm Webb, chief executive of Oil & Gas UK, welcomed the initiatives, which we believed would result in tens of billions of pounds of additional investment to develop the UK's economically important oil and gas reserves, all at no net cost to the Exchequer. The changes follow a year of constructive engagement with the Treasury, he added, and have taken into account the industry's proposals. The introduction of legislation to enable the government to give the industry certainty on tax relief on decommissioning costs is a very significant step forward. The measure should delay decommissioning of oil and gas infrastructure, give rise over time to up to £40 billion ($63 billion) of extra investment, and result in the recovery of an additional 1.7 Bbbl of oil and gas [ .. Offshore mag, mar 27 2012 .. ]

» Ask an expert on clean tech what the largest barriers to a low carbon energy future are, and chances are they will list higher technology costs, policy barriers, or the need for new infrastructure to accommodate novel energy sources. But according to a set of expert panelists speaking at the MIT Energy Conference in Boston this Saturday, we're forgetting a big one: water. The US power sector withdrew as much water from America's rivers, lakes, and oceans for cooling needs as the country uses to irrigate all agricultural lands, according to MIT Professor Ahmed Ghoniem. Worldwide, baseload power plants use the same amount of water for cooling as 545 megacities the size of New York City, according to Peter Evans, Director of Global Planning and Strategy for GE. By 2025 as global power demand grows, water needs will rise to 660 New York City's worth [ .. theenergycollective, mar 26 2012 .. ]

» The New Source Performance Standards for oil and natural gas production proposed by the Environmental Protection Agency (EPA) would significantly slowdown drilling, resulting in less oil and natural gas production, lower royalties to the federal government, and lower tax payments to state governments, according to a new study funded by the American Petroleum Institute.EPA needs to fix these rules in a way that they’ll reduce emissions but not impede oil and natural gas development, which creates jobs and government revenue and improves our energy security, said Howard Feldman, API director of scientific and regulatory affairs [ .. PennEnergy, mar 19 2012 .. ]

» Energy independence, or impending oil shocks? Gasoline is back over $4 a gallon here in California and U.S. crude is holding firm over $100 a barrel, even though domestic demand is off more than 8 percent from the 2005 peak on an annual basis, and a whopping 16 percent on a monthly peak-to-trough basis. And that can only mean one thing: We're entering the silly season in oil punditry. A deluge of recent articles have asserted that the U.S. is on its way to energy independence thanks to the miracle of shale oil, or tight oil. (Shale oil is actual crude oil produced from tight shale formations like the Bakken. Tight oil is a broader term including shale oil and natural gas liquids produced from shale gas plays. Horizontal drilling and fracking are used in both kinds of shale production.) None of them, however, have demonstrated how we would get there [ .. SmartPlanet, mar 16 2012 .. ]

» Regional Economic Models, Inc. (REMI), the foremost provider of dynamic economic models for policy analysis, and Energy & Water Economics, today announce a study evaluating the economic impact of the Keystone XL pipeline. Scott Nystrom, associate economist at REMI, and Dr. William W. Wade, resource economist and president of Energy & Water Economics, used the REMI model to resolve the differences in findings of the Keystone XL studies conducted by TransCanada's economic consultant, The Perryman Group, and Cornell University's Global Labor Institute (GLI) [ .. PennEnergy, mar 15 2012 .. ]

» Eni has a new natural gas discovery at Manba North 1 offshore Mozambique in Area 4. A mineral potential of 212.5 bcm (7.5 tcf) in place is estimated. The Mamba North 1 discovery reached TD of 5,330 m (17,487 ft) and is in water depths of 1,690 m (5,545ft) 23 km (14 mi) north of Mamba South 1 discovery and 45 km (28 mi) off the Capo Delgado coast. The discovery well encountered a total of 186 m (610 ft) of gas pay in multiple high-quality Oligocene and Paleocene sands [ .. Offshore mag, mar 14 2012 .. ]

» The U.S. oil and gas sector was responsible for the creation of more than 140,000 jobs in 2011, according to a report from the World Economic Forum. The jobs represent 9% of the total jobs created in the U.S. in 2011. The WEF report, released today, shows a strong connection between the energy industry and the global economy. The report says the oil and gas industry is responsible for 37,000 jobs in 2011, and indirectly responsible for an additional 111,000 jobs [ .. PennEnergy, mar 09 2012 .. ]

» Good news from Iraq and a disappointing growth forecast from China were reflected by a price drop in oil markets Monday morning. But neither was strong enough to control the market, as sanctions against Iran continued to rule oil prices, rebounding the numbers before the end of trading. Iraq is announcing a major production growth target has been hit. The country says it has raised production to a 30-year high of more than 3 million barrels per day. That's an increase of 300,000 over February estimates [ .. PennEnergy, mar 07 2012 .. ]

» Petroleo Brasileiro S.A. has started producing the deepwater Cascade field in the Gulf of Mexico. The Cascade 4 well is flowing into the FPSO BW Pioneer in 2,500 m (8,202 ft) water depth 250 km (155 mi) offshore Louisiana. The BW Pioneer is the first FPSO to produce oil and gas in the U.S. portion of the Gulf of Mexico, and has the capacity to process 80,000 b/d of oil and 500,000 cm/d (1.766 MMcf/d) of gas per day. This well is connected to the vessel by subsea equipment and lines, in addition to free-standing risers (vertical production lines). The oil will be transported ashore by shuttle tanker, and the gas through pipelines [ .. Offshore, mar 06 2012 .. ]

» The United Nations General Assembly have declared 2012 as the International Year of Sustainable Energy for All, recognising that access to modern affordable energy services in developing countries is essential for the achievement of the Millennium Development Goals and sustainable development. In support of this, Taylor & Francis and Routledge will be highlighting 24 key articles each month relating to the year's themes, which are freely available. Additionally offering 30 days free online access to all content from a featured journal every month throughout 2012 [ .. Taylor & Francis and Routledge, mar 05 2012 .. ]

» It is highly doubtful that the current Western sanctions policy towards Iran will bring about the desired result: to dissuade Iran from continuing on its nuclear course. The only peaceful way to solve the Iran crisis is by bringing Saudi Arabia and China into the equation. They are the only countries that can make an oil boycott work. But for this to happen, the Saudi's should start withholding oil from the market instead of making up for any Iranian shortfalls, as they are doing now [ .. European Energy Review, mar 02 2012 .. ]

» The 800 km, 42-48 inch diameter Trans Adriatic Pipeline has been selected by the Shah Deniz Consortium as the priority gas pipeline route to Italy. Trans Adriatic Pipeline (TAP) AG will now enter into exclusive negotiations with the Shah Deniz Consortium on progressing the project. TAP is a natural gas pipeline project that will transport gas from the Caspian region via Greece and Albania, and across the Adriatic Sea to southern Italy and further into western Europe. The project is designed to expand transportation capacity from 10-20 Bcm/a [ .. PipeLines Int., mar 01 2012 .. ]

» Statoil and partner ExxonMobil have made a large gas discovery offshore Tanzania in the first exploration well in Block 2. Statoil announced on February 17 that the partnership had encountered indications of natural gas in the Zafarani exploration well in the Block 2 licence offshore Tanzania. The logging results now show that the discovery is a high impact discovery, so far proving up to 5 Tcf of gas in-place. The well has encountered 120 metres of excellent quality reservoir with high porosity and high permeability. The gas-water contact has not been established and drilling operations are on-goin [ .. PennEnergy, feb 29 2012 .. ]

» TransCanada Corporation announced today it has sent a letter to the U.S. Department of State (DOS) informing the Department the company plans to file a Presidential Permit application (cross border permit) in the near future for the Keystone XL Project from the U.S./Canada border in Montana to Steele City, Nebraska. TransCanada would supplement that application with an alternative route in Nebraska as soon as that route is selected. The company also informed the DOS that what had been the Cushing to U.S. Gulf Coast portion of the Keystone XL Project has its own independent value to the marketplace and will be constructed as a stand-alone Gulf Coast Project, not part of the Presidential Permit process. The approximate cost is US$2.3 billion and subject to regulatory approvals, we anticipate the Gulf Coast Project to be in service in mid to late 2013 [ .. PennEnergy, feb 29 2012 .. ]

» The introduction of the U.S. SO2 allowance-trading program to address the threat of acid rain as part of the Clean Air Act Amendments of 1990 is a landmark event in the history of environmental regulation. The program was a great success by almost all measures. This paper, which draws upon a research workshop and a policy roundtable held at Harvard in May 2011, investigates critically the design, enactment, implementation, performance, and implications of this path-breaking application of economic thinking to environmental regulation. Ironically, cap and trade seems especially well suited to addressing the problem of climate change, in that emitted greenhouse gases are evenly distributed throughout the world's atmosphere [ .. Belfer Center, feb 24 2012 .. ]

» The total value of US oil and gas mergers and acquisitions increased significantly in 2011 due to continued investment in US shale plays and related infrastructure, sustained interest from foreign buyers, and private equity entrants deploying capital in the energy industry, according to an analysis of energy M&A data by PwC US. A major trend in the energy sector driving the increase in deal value throughout the year was a shift towards more investments in oil and liquid plays as natural gas prices remained depressed amid hitting a 10-year low in 2011. In 2011, there were 191 deals with values greater than $50 million, accounting for $186.5 billion, a significant jump in total deal value from the $138.5 billion during 2010, which had five more announced deals. Average deal size also increased in 2011 to $977 million, a 38% increase from $706 million in 2010, driven by 32 'mega' deals (deals with values of $1 billion or more) [ .. Oil&Gas J., feb 22 2012 .. ]

» The most-watched oil price in America, the one for West Texas Intermediate crude (WTI), is no longer representative of the broader US oil market, at least for now. The best domestic grade to follow at the moment is probably Louisiana Light Sweet (LLS), which is of similar quality to WTI but not subject to the persistent transportation bottleneck at Cushing, OK. It tracks closely to UK Brent crude, which has largely taken over the role of global oil price indicator [ .. TheEnergyCollective, feb 17 2012 .. ]

» An article titled The uniqueness of the energy security, justice, and governance problem, published in Energy Policy, argues that energy stands out on four dimensions: vertical complexity, horizontal complexity, higher entailed costs, and stronger path dependency. [ .. Elsevier, feb 16 2012 .. ]

» After the decision by U.S. regulators to deny approval for the new Keystone XL oil pipeline, Canada will need to investigate other means of oil transportation and new markets for its products. Bloomberg reports that the International Energy Agency suggested in its monthly oil market report that the decision could force a shift in where Canada sells its oil, with potentially substantial long-term implications of the decision. One prime potential for the country is to increase its overseas exports on oil tankers from the West Coast. [ .. PennEnergy, feb 15 2012 .. ]

:\> The JKC joint venture has signed the formal $15-billion contract for engineering, procurement, and construction at the Ichthys LNG Project offshore Australia. The joint venture consists of KBR, JGC Corp., and Chiyoda Corp. The Ichthys owners are INPEX and Total. Gas from Ichthys in the Browse basin, approximately 200 km (124 mi) offshore of Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via an 889 km (552 mi) subsea pipeline [ .. Offshore mag, feb 14 2012 .. ]

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