Drumbeat: November 19, 2022


U.S. Oil Imports Shrink, Yet Worries Loom

Good news on the energy security front?


According to some October statistics released by the American Petroleum Institute, the United States imported 10.75 million barrels of oil a day last month, a decrease of 133,000 barrels a day from October 2009.


That decline may seem small, and indeed that is equivalent to only about one-eighth of what the country imports from Saudi Arabia every day. But from a security and economic point of view, some say that it’s a step in the right direction, particularly given that gasoline demand for the month was actually 0.6 percent higher than last October.


Peak Oil: why the Pentagon is pessimistic [EXCLUSIVE]

“Twilight in the desert” is a book summing up the arguments of a Texan oil banker who suggests that Saudi Arabia is overestimating its future oil production capacity. I’ve learned through the American Department of Defense that this book is the source of two recent Pentagon reports envisaging a severe lack of oil starting in 2012 and continuing until 2015 at least.


According to the thesis developed in “Twilight in the Desert”, the official numbers published by Saudi Aramco, the national Saudi oil company, highly overestimate the true level of reserves that the largest world oil power is capable of extracting from its soil. As a consequence, according to Matthew Simmons, the Saudi oil production will no longer increase, and could even be on the point of a drastic reduction.


The advisory staff of the American armed services seems to consider the fears of Mr. Simmons as well-founded and credible, and based on this, the staff has produced a prognosis of a “severe energy crisis” that is potentially inevitable.


U.S. Diesel Fuel Consumption Increased 8.4% in October, API Report Shows

U.S. diesel consumption increased in October from a year earlier, a signal that the U.S. economy is rebounding, according to the American Petroleum Institute.


Demand for ultra-low sulfur diesel, the type used on highways, rose 8.4 percent to average 3.19 million barrels a day last month, the industry-funded group said today in a report. Consumption during the first 10 months of 2010 climbed 2.9 percent to 2.97 million barrels a day.


An arctic Cold War with Russia?

Some fear that melting Arctic sea ice could trigger a new “great game” between the United States and Russia as they and other Arctic coastal states race to extract newly accessible energy and minerals resources. These fears are exaggerated. There are few, if any, signs of military buildups or tensions, as states are pursuing diplomatic solutions to border delimitation issues. But new confidence-building measures could help avert future risks.


Russia, the United States and Canada, among others, have vital interests in the Arctic region. Russia can benefit enormously if it safely develops northern energy and mineral reserves, much of which lie in shallow water on its continental shelf. Moscow’s emerging Arctic strategy gives great weight to protecting this resource.


Russia and Canada are asserting national claims over the Northeast and Northwest sea passages, respectively, and monitoring the growth of international shipping close to their territory. U.S. interests stem from Alaska’s location and keeping those seaways as international bodies of water.


Militants warn of more Nigeria kidnappings

Nigeria’s military pledged today to flush armed gangs out of the creeks of the Niger Delta but the militants warned they would carry out more kidnappings from oil installations in the region.


Norway to spend $30m on far north seismic

The Norwegian Energy Ministry said today it plans to spend Nkr180 million ($30.1 million) in seismic studies of northern seas off its coast.


Russian Oil Companies May Pay $15 Billion More Tax, Finance Minister Says

Russian oil companies may pay $15 billion more in taxes because of new rules adopted by Russia’s Customs Union with Kazakhstan and Belarus, Finance Minister Alexei Kudrin said.


Russia plans to abolish export duties for oil and oil products sold to the Customs Union countries, while instituting higher levies on oil-products exports from Belarus, Russia and Kazakhstan, he told reporters in Moscow today. Russian companies will be compensated for the higher overall level of export duties they’ll incur as a result, he said.


Karoon Gas Scraps Brazil IPO in Sixth Canceled Sale This Year

(Bloomberg) — Karoon Gas Australia Ltd., an oil and gas explorer, canceled a Brazilian initial public offering of its South American unit, citing an “unfavorable” market after five other companies delayed or shelved sales this year.


Shares sold by Brazilian energy companies haven’t fared as well as investors expected, Mt. Martha, Victoria-based Karoon said in a statement today. Karoon, which had planned to raise as much as $773 million in the sale, may reconsider an IPO at another time, Chief Financial Officer Scott Hosking said.


Bulgaria and Qatar make LNG pact

Bulgaria and Qatar have signed a confidentiality deal paving the way for talks on liquefied natural gas deliveries from the Arab country, state gas company Bulgargaz said today, as Sofia seeks to cut dependence on Russian gas.


New Zealand’s First Mine Disaster in 40 Years Leaves 27 Missing; 2 Escape

New Zealand rescue workers rushed to save 27 coal miners missing after an underground explosion, in the country’s first mining disaster in more than 40 years.


Emergency teams were testing for poison gas after the blast knocked out power to the ventilation system and attempts to contact the missing workers failed. Two miners who managed to walk to the surface were treated for “moderate” injuries, police said.


Spain Slashes Prices 45% for New Ground-Based Solar Plants, 5% for Homes

Spain reduced subsidies for new solar-power projects while backing away from plans to impose cuts on existing generators after owners threatened lawsuits.


The government cut the above-market price to be earned by new ground-based photovoltaic plants by 45 percent in a Royal Decree, the Industry Ministry said today in a statement. Solar- panel installations on home roofs will make 5 percent less.


Enel Says European Union Should Limit Scope, Delay Start of CO2-Offset Ban

The European Union regulator should limit the scope and delay the start of a planned ban on carbon offsets in its emissions-trading system to avoid market distortions, according to Enel SpA, Italy’s biggest utility.


How Much Energy Does It Take to Get Our Energy? - When you look closely, not all energy sources are created equal in terms of the amount of net energy they produce

The future of our finite supply of fossil fuels is uncertain at best, and development of new energy options continues to gain speed. It’s likely we’ll use a combination of renewable energies and fossil fuels for the forseeable future. If you listen to some representatives of the alternative energy industry, you’d think every renewable fuel source out there is the No. 1 candidate to meet the world’s future energy needs — the most qualified to replace oil, coal and natural gas. So, which type of renewable energy will provide us with the highest net gain in energy?


Energy return on energy invested is more commonly stated as energy return on investment (EROI). The term was coined by Charles Hall, professor of environmental science and forestry at the State University of New York (SUNY), and is presented as a ratio of energy produced to the energy consumed during production. An energy source that yields positive net energy has an EROI ratio of more than 1:1. Anything less than that constitutes an energy sink, or net loss.


Oil creeps above $82 as traders eye Ireland, China

SINGAPORE – Oil prices crept above $82 a barrel Friday in Asia as investors weighed signs of resolution for Ireland’s debt crisis against possible Chinese measures to contain inflation that could slow economic growth and hurt demand for crude.


Gasoline Refining Margins Double on Outages, French Strike

Refiners’ profit from turning oil into gasoline more than doubled this month as plants along the U.S. East Coast shut for repairs and imports from Europe declined in the aftermath of a French strike.


China Gas Output From Unconventional Sources May Double by 2015, CNPC Says

China, the world’s biggest energy consumer, may double its production of unconventional gas in five years to meet rising demand for cleaner-burning fuels.


Output of coal-bed methane and tight gas held between rocks may exceed 30 billion cubic meters in 2015, compared with an estimated 15 billion cubic meters this year, China National Petroleum Corp. said in a statement on its website today.


Sinopec, PetroChina Boost Diesel Imports as 2,000 Filling Stations Run Dry

Chinese state refiners are ramping up diesel imports starting this month to help meet increased demand that has depleted 2,000 retail fuel stations in the country’s eastern and southern provinces.


China Petroleum & Chemical Corp., the nation’s biggest refiner, is seeking to import as much as 200,000 metric tons after buying 80,000 tons earlier in November, its parent said in its on-line newsletter today. The price of Asia gasoil, or diesel, has risen 12 percent more than Dubai crude so far this month on speculation Chinese demand for the fuel will increase.


Chesapeake hedges with call options

US gas giant Chesapeake Energy has been incrementally stepping up its sale of call options in the past year, doing over-the-counter deals in a bid to raise money.


Some analysts see it as a way to navigate low gas prices in exchange for giving up some profit should prices rise.


UAE keen to help develop energy sector of Turkmenistan: Hamili

ASGHABAT — UAE Energy Minister Mohammed bin Dhaen Al Hamli has held meetings with senior Turkmen officials to discuss venues of cooperation between the two countries on energy.


Weatherford executive killed in Mexico

Gunmen have killed a manager at a Swiss-based oil services company in Mexico, the latest sign of mounting lawlessness in remote parts of the country that is hurting a major industry.


Achieving energy security for America

In the end, if energy independence is presented as self-sufficiency, then the prospects of achieving the goal of energy independence is very small. Such a goal will bring disappointment that will undermine the longer-term commitments that are required for a sound energy future.


However, if the goal of energy independence is understood differently, then it is much more useful. We should define energy independence to be energy security i.e., more energy resiliency, robustness and reduced vulnerability.


Toyota to offer plug-in hybrid in 2012

TOKYO — Toyota is planning to sell a plug-in hybrid car in the U.S., Japan and Europe in 2012, targeting sales of 50,000 vehicles a year at $36,000 each without subsidies, as the automaker strengthens its green lineup to keep pace with growing competition.


NRG invests $10 mln in Texas car-charging network

HOUSTON (Reuters) - NRG Energy plans to invest $10 million to build a comprehensive charging system in Houston for electric vehicles next year, NRG Chief Executive David Crane said on Thursday.


Crane said the debut of new electric vehicle models in the next year made the time right to launch NRG’s branded “eVgo” network to help “close the decision gap” for buyers debating the purchase of an electric vehicle (EV) versus a conventional gasoline-fueled car.


Nalcor, Emera Agree on C$6.2 Billion Power Project

The agreement with Emera “is free of the geographic stranglehold that Quebec has had for far too long on us,” Newfoundland and Labrador Premier Danny Williams said today at a televised press conference in the provincial capital of St. John’s. “Today we are saying that Quebec will no longer determine the fate of Newfoundland and Labrador and one of the most attractive clean-energy projects in North America.”


U.S. Proposes Electric-Transmission Rule to Help Boost Wind, Solar Power

The Federal Energy Regulatory Commission is proposing to lower costs for delivering renewable energy by permitting more frequent transmission scheduling.

The agency is considering a rule that would allow power- transmission providers to set schedules in 15-minute intervals instead of hourly, FERC Chairman Jon Wellinghoff said today at a commission meeting in Washington.


Republican asks to expand power of energy panel

(Reuters) - A key Republican on Thursday asked lawmakers to consolidate energy oversight in the House of Representatives into one powerful energy committee.


Doc Hastings, the expected incoming head of the House Natural Resources Committee, called for expanding his panel’s jurisdiction to cover all energy policy. This expanded panel would be renamed the Energy and Natural Resources Committee.


Cleveland Restoration Society luncheon speaker has new ideas for preservation

American cities — whether fast-growing metropolises in the sun belt or shrinking cities in the industrial Midwest — need to think about moving to what Jackson called “a conservation ethic.”


He believes the pressure for change will rise over the next century as oil and gas prices rise and as the global economy reaches “peak oil,” the point at which the supply of oil hits natural limits.


Welcome to Farm School

Romantic notions aside, some research suggests that with the evolution of the global food system beyond peak oil a good number of us day-dreamers will need to snap out of it and actually get our hands dirty.


A Socially Conscious Way to Invest in Farmland: An Interview with Dr. Jason Bradford about Farmland LP

Kalpa: Please start by giving us a small background on Farmland LP. What is it, what are its goals, and who might be interested in investing in it?


Jason: We are an investment fund that buys conventional farmland and converts it to certified organic, sustainably managed farmland. Historically, farmland has been an excellent, inflation-hedged investment. Our firm, Farmland LP, adds value to farmland by converting it to organic farmland and managing it ongoing. Our goal is to play a role in the transformation of the food system while benefiting the environment, people, and our investors.


America’s Dirtiest Cities

The biggest problem spot in the country is California’s San Joaquin Valley, where farming, industry, car culture and topography collide to trap smog. Wildfires contribute to the problem. Severe particle pollution in valley burgs like Bakersfield (the center of California’s oil industry and the metropolitan area with the worst air in the nation), Fresno (third place), Visalia (fourth) and Modesto (eighth) can damage the lungs in the same way cigarettes do. Sacramento (ninth) incentivizes residents to trade in gasoline lawn mowers for electric ones, diesel-powered trucks for hybrid ones and old wood stoves for new ones. The only non-California cities in the top 10: Pittsburgh, Pa; Birmingham, Ala.; and metropolitan Phoenix, Ariz.


Soot gets everywhere. Even into the world’s highest mountains

THE Himalayas and the adjacent Tibetan plateau are sometimes referred to as the Earth’s third pole, because of the amount of ice they host. They are also known as Asia’s water tower. Their glaciers feed the continent’s largest rivers—and those, in turn, sustain some 1.5 billion people. Many studies suggest, though, that the Himalayan glaciers have been shrinking over the past few decades. This has usually been attributed to rising air temperatures, but climate researchers have now come to realise that tiny airborne particles of soot and dust are also to blame. Being dark, they absorb sunlight. And that warms their surroundings.


Obama pointman dismisses climate change skeptics

ARLINGTON, Virginia (AFP) – President Barack Obama’s pointman for climate change on Thursday dismissed the impact of Republican election gains on US positions on the issue, voicing hope of progress at the upcoming climate summit in Mexico.


China rules out linking climate aid to transparency

BEIJING (Reuters) - China said on Friday it will not agree to any deal tying climate change aid from rich nations to its acceptance of tighter international checks of its greenhouse gas emissions, which it said will grow for some time.


Huang Huikang, the Chinese Foreign Ministry’s special representative for climate change talks, laid bare rifts between Beijing and rich countries, especially the United States, that could trouble high-level negotiations in Cancun, Mexico.

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks

Speak Your Mind

*