Organization of Petroleum Exporting Countries (OPEC) said the weekly average price of its crude oil kept its upward trend last week increasing to $76.29 per barrel.

Read more….

Food security tests Africa’s unity agenda

An immediate paradox is the reality that we continue to face hunger and poverty in a context where large tracks of agricultural land remain under- and unused.

A second and related paradox is that, we are witness to a situation where many of our farmers are moving from the growing of staple foods to the production of high-value agricultural products for export, including bio-fuel, hence forcing many countries to import basic and staple agricultural products.

Losses wipe out equity of Mexico’s Pemex

MEXICO CITY (Reuters) – The equity in Mexico’s state oil monopoly Pemex was wiped out in the final quarter of 2009 as losses on refined product sales, lower crude output and high taxes offset higher crude prices.

Pemex said on Monday it lost 16.6 billion pesos ($1.3 billion) in the fourth quarter of 2009, pushing the full year loss up to 46.1 billion pesos.

Pemex Closes Two Crude Oil Export Terminals in Gulf

(Bloomberg) — Petroleos Mexicanos closed its largest and smallest oil export terminals in the Gulf of Mexico because of heavy rain and winds.

India Fuel Exports Rise on Increasing Shipments to U.S., Japan

(Bloomberg) — Bookings of tankers to export fuels from India’s west coast, the home of two Reliance Industries Ltd. refineries, rose in February as India sold more gasoline to the U.S. and Japan.

Senators Seek Change in Alaska’s O&G Structure

A two-week study of Alaska’s oil and gas tax structure has convinced some state senators that the Legislature needs to act fast to change the system or risk the plundering of state riches.

The cost of doing nothing is “colossal,” up to $2 billion in lost revenue a year under some scenarios, says Sen. Bert Stedman, a Republican from Sitka who co-chairs the Senate Finance Committee. He’s been holding hearings for two weeks on Alaska’s oil and gas tax system, and on Friday said he’s preparing legislation to settle the issue before the session ends in April.

Gazprom May Reduce 50% South Stream Stake, Allowing EDF Entry

(Bloomberg) — OAO Gazprom, an equal partner with Italy’s Eni SpA in the South Stream natural-gas pipeline project, may reduce its stake to allow Electricite de France SA to buy shares in the venture.

BP Deal to Expand US Shale-Gas Operations – Sources

BP PLC is expected to announce Tuesday an expansion of its U.S. shale-gas operations through a joint-venture deal in Texas with privately held Lewis Energy Group worth at least $160 million, people familiar with the situation said.

Oil production helps community escape recession

Oil production in North Dakota has helped a run-down area get through a tough economic climate.

Unemployment in the state was five percentage points below the US average in December, at 4.3 per cent, according to the Wall Street Journal.

Local ranchers have been turned into millionaires by selling oil companies access to oil underneath their properties.

In some areas of North Dakota the oil production has even created a labour shortage. In Dickinson, McDonald’s has been offering people $300 in bonuses when they sign to work for the food giant.

Kenya: Paper mill recovery hinges on cheaper energy

The previous management that abandoned the factory when creditors came knocking put its power costs at 33 per cent of the total operational costs.

This is the highest single operational cost and does not even factor in the heavy diesel the company uses to run some of its boilers.

Ethiopia: Fuel Shortage Mystery Plagues Drivers

The delayed delivery of ethanol might have caused the petrol shortage in Addis Abeba during most of last week, although power failures shared the blame at some places.

New no. 1? Ford sales top GM

Ford reported a 43% jump in sales compared to a year earlier, which was the worst month for the industry in 19 years. It topped the forecasts of sales tracker Edmunds.com, which had estimated a 35% increase. Ford’s results were also up 22% compared to January.

Consumerism ‘doomed’, investment forum told

Western governments may not realise it yet, but consumerism as we know it is doomed and resource war with China inevitable, the world’s biggest fund managers were told yesterday.

The unsettling message, which focuses on the potentially destabilising shortfall of the rare “technology metals” used in everything from mobile phones to guided missiles, was issued in Tokyo yesterday at the close of one of Asia’s largest annual investment forums.

Are America’s Fears of a Greentech Race with China Unfounded?

While some U.S. politicians and commentators still paint China as the global pollution villain, especially after the disappointing outcome at Copenhagen, others are beginning to take green China seriously — as a threat. Last fall, for instance, when Senator Charles Schumer got wind of a planned wind farm in west Texas, announced by a partnership of American and Chinese companies, that would use some wind equipment made in China and potentially create new jobs across the Pacific, he recommended blocking stimulus money from the project, rather than help boost green China. The stimulus money “is supposed to create jobs in America,” he wrote in a letter to Energy Secretary Steven Chu. (The new wind farm would also have created 300 jobs in Texas, but Schumer was worried that a greater number could be created in China.)

Climate debate missing the point

My considered view is that nuclear power will end up forming the backbone of any effective real-world clean energy plan, but I’d be just as happy if other prospective technologies, such as concentrating solar power or enhanced geothermal systems, are able to take a major role.

Yet, even if you disagree with my plan (or anyone else’s for that matter), you shouldn’t seek to ‘block’ any qualifying technology. And if you wish people to take your plan seriously, you must be prepared to tell them how much it will likely cost, what sort of support it will need to be put into action, and consider its implications for electricity grid stability, energy storage and sustainability.

Israel to review nuclear power plant construction

Israel’s Atomic Energy Commission and the Israel Electric Corporation signed a deal to develop the infrastructure needed to construct nuclear power plants, Israel Radio reported on Tuesday.

Energy surge

HOW would you like to generate your own electricity, and make money from it? If things go according to plan, the impending introduction of a new feed-in tariff law that is set to revolutionise Malaysia’s renewable energy production will make it easy for everyone to generate renewable electricity and sell it back to the national power grid.

Power plants in private hands contribute to rotating blackouts

MANILA, Philippines – While the privatization of power plants was expected to provide efficiencies that evaded them when they were state-run, the rotational blackouts that hit Luzon on Monday proved otherwise.

Being Ready, in Quake Zones or Snow Zones

A little preparation and training can go a long when when disaster strikes, at any scale.

How the Men Reacted as the Titanic and Lusitania Went Under

Records from two nearly 100-year-old shipwrecks, the Titanic and the Lusitania, have given researchers new insight into human selfishness — and altruism.

On one boat, it seems, the men thought only of themselves; on the other, they were more likely to help women and children. This occurred for one key reason, researchers said: time. The Lusitania sank in about 18 minutes, while the Titanic took nearly three hours. Women and children fared much better on the Titanic.

Shrinking Glaciers Threaten Tajikistan’s Economic Dreams

Like many other farmers in the remote village of Barchid, lying in the shadow of Tajikistan’s Pamir Mountains, Makbulsho Yakinshoev knows little about issues like greenhouse-gas emissions or global warming.

But the 65-year-old Tajik farmer knows what he sees, and for years he has seen his fruit and vegetable harvests decline as the glacier that looms above his village retreats.

Are you a farmer at heart? Start a ‘Crop Mob’

A growing number of young people are finishing college and resisting the pressure to plunk down in a cube behind a computer. Others skip college altogether—given the spiraling costs involved, it’s hard to blame them—and yearn for meaningful, hands-on work.

Community-scale organic farming has emerged as an attractive profession for such talented, energetic youth. But there are problems with this choice. Hours are long, the pay too often stinks, and land prices remain crushingly high. To top it off, our nation lacks universal health coverage.

Yet youthful zeal to farm abides, and hasn’t let up, as far as I can tell. This is a major asset to the sustainable food movement. As our nation’s million or so active farmers nears retirement age, an emerging generation of landless farmers is rising.

For Pennies, a Disposable Toilet That Could Help Grow Crops

A Swedish entrepreneur is trying to market and sell a biodegradable plastic bag that acts as a single-use toilet for urban slums in the developing world.

Once used, the bag can be knotted and buried, and a layer of urea crystals breaks down the waste into fertilizer, killing off disease-producing pathogens found in feces.

Saudi crude output still down from 2008 – Aramco

KHOBAR, Saudi Arabia (Reuters) – Saudi Arabia’s oil production is still down compared with 2008, having fallen in 2009, state oil company Saudi Aramco’s chief executive was reported as saying on Tuesday.

Oil drilling for production has declined, although exploration activities are increasing, Khalid al-Falih was also quoted as saying in the Asharq al-Awsat newspaper.

CFTC official sees transparency challenge in global energy markets

Energy commodities regulators worldwide will need to move carefully and cooperatively if they expect to make global oil markets more transparent, US Commodity Futures Trading Commission member Scott D. O’Malia said in Tokyo on Feb. 26.

“We have to acknowledge that we’ve witnessed a paradigm shift in the global oil market over the past decade,” he said in remarks to the International Energy Agency and Institute of Energy Economics Japan’s Forum on Global Oil Market Challenges. “The paradigm has shifted in two significant ways…. First, oil is now a financial asset and its price movements are correlated to economic growth. Second, the growth in oil demand is being led by developing nations.”

Avoiding Exxon: The Oil Investment Trap

Two weeks ago, ExxonMobil announced their 2009 reserves replacement. (Simply put, the reserves replacement is the amount of new reserves compared to oil produced.) In 2009, ExxonMobil added 2 billion barrels of oil equivalent to its reserves, replacing 133% of its production during that year.

ExxonMobil — one the world’s largest publicly traded oil companies — shouldn’t be so quick to gloat. These new reserves aren’t easy-to-get from conventional sources, and the reality is that Exxon’s saving grace lies in developing unconventional oil, such as oil sands.

In other words, developing those new barrels will be costly.

Venezuela struggles with energy emergency

CARACAS, Venezuela (UPI) — Venezuelan plans to cut electricity demand amid a looming energy crisis are not feasible for businesses in Caracas, the chamber of commerce said.

Climate Change: “The Great Squeeze”

Hassan Abu Bakr, professor and researcher at Cairo University’s faculty of agriculture, led the discussions that followed the film and answered questions posed by the febrile crowd.

The documentary attempted to illustrate how human actions and the excessive use of energy for the past 200 years had led to the consumerist behavior that today threatens our very survival. Since the discovery of fossil fuels that led to the Industrial Revolution, we have embraced a vision whereby the world revolves around oil consumption.

Have we reached an oil peak yet? Some experts say so, while others predict it will happen in the years ahead. However, since the 1960s, the discovery of oil sources has been declining regularly, and, as one of the experts interviewed in the film says, “once we pass this oil peak, no country will be able to get enough oil unless another one gets less.”

War over the Arctic? Global warming skeptics distract us from security risks.

Global warming skeptics must recognize that real – not predicted – climate change is already turning the Arctic into a potential military flash point.

Russia February Output Nears Post-Soviet Record on TNK-BP Gains

(Bloomberg) — Russia crude production neared a post-Soviet record in February as TNK-BP, the venture owned by BP Plc and a group of billionaires, raised output at new fields in both western and eastern Siberia.

Crude production reached almost 10.08 million barrels a day, a gain of 3.3 percent from a year earlier and 0.2 percent from the previous month, according to preliminary data from the Energy Ministry’s CDU-TEK unit. Output, which has exceeded 10 million barrels a day for six months in a row, was slightly below November’s record.

Oil gains to around $79 amid mixed US data

Oil prices hovered near $79 a barrel Tuesday as investors considered mixed signals about the strength of the U.S. economy and the dollar’s fluctuations against the euro.

Demand for OPEC Oil May Drop in 2010 on Weak Economy

(Bloomberg) — Demand for OPEC crude may drop by 100,000 barrels a day this year as stockpiles are higher than the five-year average and the global economy is weak, the United Arab Emirates oil minister said.

Demand for crude produced by the Organization of Petroleum Exporting Countries could drop this year after last year falling by 2.3 million barrels a day to 28.7 million barrels a day, Mohamed Al-Hamli said in a speech in Abu Dhabi today.

Analysts see the cost of gas rising: ‘There is no legitimate fundamental reason’

It may not make much sense, given that the economy remains weak, but the cost of filling up your car is about to go higher.

Seasonal influences are strong this time of year and account for much of the expected increase that many analysts say will push gasoline to a nationwide average of at least $3 per gallon this spring.

Saudi Arabia Raises April Oil Prices to U.S. on Most Grades

(Bloomberg) — Saudi Aramco, the world’s largest state-owned oil company, raised its official selling prices for all crude grades, except Arab heavy, for customers in the U.S. for April, a company official said today.

Enbridge Says Oil Pipelines May Run at Reduced Rates Until 2017

(Bloomberg) — Enbridge Energy Partners LP, the Houston-based pipeline partnership controlled by Canada’s largest pipeline company, said it may take seven years to fill new crude oil pipelines from Canada to the U.S. because of excess capacity.

“It may be 2017 before we see all the pipes that are being planned to be full,” said Stephen Letwin, managing director of Enbridge Energy Co., the general partner of Enbridge Energy Partners, during an interview at Bloomberg headquarters in New York. “The fact that these pipes are not filling until 2017 is not critical because we know we are going to get our value back.”

‘Buy farmland and gold,’ advises Dr Doom

The world’s most powerful investors have been advised to buy farmland, stock up on gold and prepare for a “dirty war” by Marc Faber, the notoriously bearish market pundit, who predicted the 1987 stock market crash.

…One of Dr Faber’s darker scenarios involves growing military tension between China and the United States over access to limited oil resources.

Iran plans tenders for eight new blocks

Iran plans to hold tenders soon for eight new oil and gas exploration blocks, Mahmoud Mohadess, head of the exploration office at the National Iranian Oil Company (NIOC) said today.

BP Aims to Boost Profits by $3 Billion, Forecasts Rising Output

(Bloomberg) — BP Plc, vying with Royal Dutch Shell Plc as Europe’s largest oil company, plans to increase annual pre-tax profitability by $3 billion over the next two to three years by bolstering production and cutting costs.

BP will increase average annual oil and gas output by 1 to 2 percent through 2015, the company said in a annual strategy update today in London. Most of the increased profitability will come from making the refining and marketing business more efficient. The company will centralize exploration and production project management to save money, it said.

Energy exec: Israel could soon export natural gas

TEL AVIV, Israel – A U.S. energy company says Israel’s longtime dependence on natural gas imports could soon come to an end.

Noble Energy chief executive Charles D. Davidson said in Tel Aviv on Tuesday that two undersea gas fields his company is developing off Israel’s coast are set to become operational in 2012.

Nord Stream to Complete Gas Pipeline Financing Deal This Month

(Bloomberg) — Nord Stream will complete the financing to build a gas pipeline from Russia directly to western Europe this month, Alexei Miller, chief of OAO Gazprom, the majority shareholder in the project, said.

Iraqi minister says oil deal with Japan failed: report

TOKYO (AFP) – Iraqi Oil Minister Hussein al-Shahristani has said that talks over a huge oil development deal with a Japanese energy consortium had broken down, a leading Japanese newspaper reported Tuesday.

Baghdad would “promote the development (in the Nasiriyah oil field) centred around an Iraqi state-owned company”, he was quoted as saying by the Asahi Shimbun.

India seeks closer ties with Saudi to fuel recovery

RIYADH (Reuters) – India said it expects its economy to rebound to 9-percent annual growth rates within two years and wants to expand its energy ties with top OPEC exporter Saudi Arabia to help fuel the recovery.

India PM visit to Saudi shows rising security ties

RIYADH (AFP) – Prime Minister Manmohan Singh’s visit to oil and regional powerhouse Saudi Arabia has been underpinned by India’s thirst for energy, and its need to battle radical Islamists.

The first prime minister to visit Saudi Arabia in 28 years, Singh emphasised New Delhi’s direct stake in the various conflicts of the Middle East region and its desire to work with Riyadh on them.

E.ON Said to Consider Sale of U.S. Unit to Trim Debt

(Bloomberg) — E.ON AG is examining the sale of its U.S.-regulated utility business, valued at about 4 billion euros ($5.4 billion) by analysts, to reduce debt, according to a person briefed on the matter.

BP to quit 5 African states

JOHANNESBURG (Reuters) – Oil major BP Plc said on Tuesday it would pull out of five countries in southern Africa following a strategy review, but would still invest to grow its market share in Mozambique and South Africa.

The company said it plans to sell its marketing businesses in Namibia, Malawi, Tanzania, Zambia and Botswana, but said Mozambique and South Africa offered better synergies with its supply portfolio.

Three reporters seized in Nigeria: police

PORT HARCOURT, Nigeria – A South African sports journalist and two Nigerian colleagues have been kidnapped in Nigeria’s restive oil-producing Niger Delta, South African media and a Nigerian police source said on Tuesday.

The South African reports said the three, from the SuperSport satellite channel, were kidnapped near Warri, an oil industry hub, as they headed for the airport on Monday.

Lyondell Said to Reject $14.5 Billion Reliance Bid

(Bloomberg) — The board of bankrupt LyondellBasell Industries AF rejected a $14.5 billion bid from Reliance Industries Ltd., an oil refiner and explorer controlled by India’s richest man, two people briefed on the matter said.

Abu Dhabi’s IPIC Hires Banks for $2.5 Billion Loan

(Bloomberg) — International Petroleum Investment Co., the Abu Dhabi government-owned energy investor, hired banks to raise $2.5 billion of loans, according to data compiled by Bloomberg.

Suncor unveils new tailings pond technology

CALGARY — Suncor Energy Inc. is moving forward on a new tailings pond technology it believes will rapidly speed up its ability to reclaim the areas of northern Alberta it has strip-mined as it extracts bitumen buried beneath the Earth’s surface.

Seismic Effect on Fish Shows Increased Catch in Norway Study

(Bloomberg) — A study showed limited damage to fish from seismic surveys of oil reserves off Vesteraalen in northern Norway as the country debates whether to open more of its coveted Arctic to petroleum and gas exploration.

The Institute of Marine Research study in some cases even found increased catches of haddock and halibut after the fish were hit by sound waves used to map oil and gas reserves, the Norwegian Petroleum Directorate said today.

U.S. analyst has two Canadian picks for peak oil

The recession has really taken supply and demand in the energy business – which was quite tight, as we had a rising demand and a flattening supply in the world of 2009 – and turned it around temporarily. The high prices of 2005 and 2008 got a lot of people interested in energy conservation and efficiency, or they ran through the money that they had, which forced them to use less energy. In many poor countries, that’s what happened.

Iran’s nuclear swap option revived

Yukiya Amano, the new director general of the International Atomic Energy Agency (IAEA), has raised hopes that a “confidence-building” plan for a swap of nuclear material between Iran and a third party could still be salvaged.

Shell defends continued focus on fossil fuel – paper

FRANKFURT (Reuters) – Royal Dutch Shell Plc \Chief Executive Peter Voser defended the oil giant’s retreat from some green technologies to concentrate on oil and gas production in an interview with the German daily Frankfurter Allgemeine Zeitung.

Shell withdrew from its solar business because it was not prepared to make the required investments, Voser told the newspaper adding that alternative fuel for cars remained problematic.

EPA Approves World’s First 100% Natural Gas 2010 Taxi

ASHEVILLE, N.C.–(BUSINESS WIRE)–Altech-Eco Corporation of Asheville, North Carolina announced today that they have obtained a Certificate of Conformity (COC) from the EPA for their DEDICATED 2010 Ford Transit Connect compressed natural gas (CNG) conversion system. The “Dedicated” system means that the vehicle runs entirely on 100% natural gas, and needs absolutely zero gasoline ever.

Electric Car Strategy: Follow the Fleet

Like other automakers, Ford Motor Company is betting heavily on electric vehicles as the economy recovers. That decision has been powering the prospects of Azure Dynamics, a company in Oak Park, Mich., that makes electric drive trains and other components for hybrid commercial fleet vehicles like courier vans.

Heat From Power Generation Could Trim U.K.’s 2050 Energy Needs

(Bloomberg) — Capturing heat from power plants could help reduce Britain’s future generation capacity, projected to exceed 150 gigawatts by 2050, by 13 percent, according to a Combined Heat and Power Association report.

Diversifying the ways heat is supplied and using combined heat and power, or CHP, plants would reduce peak demand, making it easier to manage electricity usage, the report said. Heat represented 41 percent of Britain’s total final energy consumption in 2007.

Chain reaction: The nuclear debate is among the most pressing of our times

Following the precautionary principle, avoiding the construction of more nuclear power stations worldwide is a sensible idea.

But this doesn’t hide the fact the planet is facing an energy crisis. While plenty of alternative and renewable sources of power exist, whether they can be adopted in sufficient time, or provide the true volumes required seems uncertain.

Qatar, Germany set up solar power joint venture

DUBAI, United Arab Emirates — A state-run foundation in the natural gas-rich state of Qatar says it is setting up a joint venture plant with Germany’s SolarWorld to produce the main ingredient in solar panels.

Qatar Foundation says the deal marks “the first phase” in the Persian Gulf state’s push into the solar energy field.

Transition Milwaukee

For some, the future is bleak. Imagine, if you will, a nightmarish apocalypse of oil shocks and climate change that leave everyday Americans groping around alone, cold in the dark, cranking induction flashlights to illuminate cars that won’t run, big-box retailers devoid of merchandise, and decaying cities peopled by zombie-like citizens who can tap out text messages with precision but go hungry without microwavable meals.

For others, the forecast of a world without cheap and abundant oil is motivation to start building a brighter future today. A growing vanguard of people around the planet are rejecting a vision of self-imposed apocalypse and embracing this second future, with an emphasis on humanity and sustainability customized at many local levels.

A Warning on Europe’s Forests

Europe’s forests have been expanding for the last 60 years. But the rate at which forests are growing in Europe is slowing, and forested areas face even more acute challenges in the future because of climate change, Janez Potocnik, the E.U. commissioner for the environment, warned today.

“Europe’s forests are a precious resource,” he said at a news conference at E.U. headquarters in Brussels. “Their wide range of social, economic and environmental functions means that the stakes are high.”

British scientist in climate row admits ‘awful’ emails

LONDON (AFP) – A British climate researcher at the centre of a row over global warming science has admitted he wrote some “pretty awful” emails to sceptics when he was refusing their requests for data.

But Phil Jones, of the University of East Anglia’s Climatic Research Unit, defended Monday his decision not to release the data about temperatures from around the world, saying it was not “standard practice” to do so.

South Dakota legislature declares that astrology can explain global warming

Wow! The South Dakota legislature has declared, by majority vote, that the ancient pseudoscience of astrology “can effect world weather”! Astrology, of course, is a superstitious belief that the movements of stars and planets can affect our daily lives here on Earth, a belief that has no basis in science. Some people – including, apparently, the South Dakota legislature – still take it seriously, although most view astrological forecasts as light entertainment.

Expert: Climate change effort will take centuries

Climate change won’t be solved by the passage of one bill. It’s something we’re going to have to manage over hundreds of years.

The best outcome of whatever policy we implement is that nothing happens. That’s the most difficult thing about it. This is a long-term problem. It will keep coming up until we deal with it. That’s difficult in the current political climate. Moderates are scarce and the bases of the parties are miles apart. Eventually the public will demand action. But that doesn’t mean nothing should be done now.

Non OPEC crude oil supply is set to surge in 2010 and 2011by 51.8 mn barrels per day and 52.3 mn barrels per day respectively and susbequently face consecutive decline from 2012 according to an analysis by Bank of America Merrill Lynch (BofAML).

Read more….

Iceland looks to green, innovative income sources

The new, more sustainable, direction is long overdue according to experts like Kristin Vala Ragnarsdottir, dean of the School of Engineering and Natural Sciences at the University of Iceland, who has been advising government ministers on sustainability.

“The financial and development outlook of the last government was all based on harnessing energy and building heavy industry like aluminium plants, but if we built both of the aluminium factories currently planned we will have used every drop of energy in the country,” she said.

“In addition, a lot of people are still predicting a world economic collapse, and we have already reached peak oil, or are approaching it, so we have to change.”

U.S. natural gas rig count hits 11-1/2-month high

NEW YORK, Feb 19 (Reuters) – The number of rigs drilling for natural gas in the United States rose 2 this week to an 11-1/2-month high of 893, according to a report on Friday by oil services firm Baker Hughes in Houston.

It was the eighth straight weekly gain and puts the gas rig count at its highest level since March 6, 2009, when there were 916 gas rigs operating.

British firms could be hit in revenge for Falklands oil drilling

Argentina is preparing to target British companies with links to the new oil drilling ventures off the coast of the Falkland Islands.

Two Oil-Field Companies Acknowledge Fracking With Diesel

Two of the world’s largest oil-field services companies have acknowledged to Congress that they used diesel in hydraulic fracturing after telling federal regulators they would stop injecting the fuel near underground water supplies.

Halliburton and BJ Services acknowledged to the House Oversight and Government Reform Committee in January 2008 that they had used diesel in the controversial process that has expanded access to vast natural gas plays.

Venezuela Is Evaluating Colombia Electricity Offer

(Bloomberg) — Venezuela is evaluating a formal proposal from Colombia to send electricity amid nationwide rolling blackouts and a severe drought, Foreign Minister Nicolas Maduro said.

Colombia sent a proposal yesterday and the offer is being reviewed by Venezuelan Electricity Minister Ali Rodriguez and a team of technicians, Maduro said today on state television. Venezuela, which froze relations with Colombia last year, doesn’t want the issue to become politicized, he said.

Petrobras Share Sale May Be Worth $75 Billion, Folha Reports

(Bloomberg) — Petroleo Brasileiro SA, Brazil’s state-controlled oil company, may issue $75 billion of shares in what would be the world’s biggest stock sale ever, Folha de S. Paulo reported.

Petrobras, as the Rio de Janeiro-based company is known, may swap shares for about $25 billion worth of oil rights from the federal government and raise up to $50 billion in cash from investors, Folha said today, citing unidentified investment banks involved in the operation.

Tougher IAEA line reflects new management

The latest report on Iran by the UN’s nuclear watchdog, International Atomic Energy Agency (IAEA), reflects a tougher approach by the agency under its new director-general.

But while the language is stronger, it is less clear that the evidence is. There are still more questions than answers.

China’s Iran Dilemma

The world’s nuclear standoff with Iran is ratcheting ever upward. On Feb. 8, Iranian President Mahmoud Ahmadinejad (no diplomat he) matter-of-factly announced that Iran would soon begin enriching uranium for use in a “medical reactor.” That means China will have to answer the central question that confronts it, which was embedded within Yang’s diplo-speak: What actually is China’s long-term interest in Iran?

Clive Maund: Unlock Profits with Technical Analysis

CM: Excesses in the fiat money system automatically lead to inflation as larger amounts of money chase the same or a finite quantity of goods and services. In an inflationary environment, money naturally gravitates to assets or commodities that are real and have intrinsic value, such as oil, gas and also uranium, and will hold that value by rising in price as the value of currencies is eroded by inflation.

TGR: Is this logic true for other sectors such as food or consumer staples? If so, what makes energy a better investment opportunity?

CM: Yes it is, but what makes energy a better investment is that it is finite and depleting and is perceived to be so, especially in a world of rising population and expanding demand. You have all heard about Peak Oil that, if true, must result in a continuing long-term uptrend in the price of oil.

TGR: What do you see for gold and silver prices for the next six months? If precious metals are being acquired more as currency and less for jewelry, do you see the typical seasonality for gold being eliminated this year or in future years?

CM: This is a difficult question to answer because if deflation breaks loose again, which could happen if there are sovereign defaults, the Chinese economy implodes or rates enter a determined uptrend, we could see another severe bear market emerge in a wide range of asset classes, including precious metals.

Taking Another Look at Simon vs. Ehrlich on Commodity Prices

At last week’s TED 2010 conference in Long Beach, California, I gave a short talk about what I called “the most important bet in history”: the Simon/Ehrlich bet on commodity prices. This year marks the 30th anniversary of that bet’s start date.

Peak Oil: Did You Know?

Technocracy is the antithesis of free market individualism. It’s a fallacy that has been very popular throughout history, particularly in the early days of the Nation-State. Technocrats are the modern day, scientific-looking ancestors of the Chinese mandarins, the intellectual guardians of the State’s thirst for plunder. And they have always been abject failures.

So What?

So know your enemy, that’s all. Technocracy is scientific soclialism in real life and it fails as spectacularly in real life as Bohm-Bawerk predicted it would when he wrote History and Critique of Interest Theories (1884.)

Vision For The Future: Consumerism Or Frugality?

The energy sector is facing major challenges over the next decade with the need to “green” the energy mix and maintain security of supply while simultaneously minimizing cost to customers. The key facts mentioned in the ITPOES report were: the industry is not discovering more giant fossil fuel fields at a sufficient rate; there are concerns about the levels of reserves quoted by the OPEC countries (which are critical to the confidence levels associated with future production capacity); there are indications that underinvestment in the oil industry over the past decade has led to infrastructure and under-skilling problems that will make it particularly difficult to increase production capacity rapidly in the short-term; the net flow rate data shows that increases in extraction will be slowing down in 2011-13 and dropping thereafter. Given the long lead-times involved in developing the necessary infrastructure, this trend is unlikely to be reversed within the next five years.

An Energy Playbook for Team USA

As players mature, they learn to play their positions and go where the ball will be, not where it is. They pass it around, executing well-rehearsed plays and setting up their shooters for scoring opportunities. Rarely do you see more than two or three people actually chasing the ball.

In short, they learn that teamwork is more important that personal performance if you want to score goals.

And so it is with energy policy.

To be precise, we don’t have one. There is no playbook. We are simply hurtling at high speed toward the net energy cliff.

The Sustainable Expo for 2020

Hawaii, the most isolated major populated area on this planet, is that canary in the coal mine of Peak Oil. The economy is so locked into the visitor industry, that the coming jump in oil prices will mean skyrocketing jet fuel prices and the end of tourism as we know it.

You would think that with this so obvious inevitability the State would by now have forged a plan to avoid this calamity? Nope. As pointed out in “We Need to Work Together, Now,” politics, union-labor relations and personality clashes have overwhelmed good sense. Maybe worse, there appears to be no sense of urgency.

Living the dream: A former urbanite has put down green roots

There was a time when the only concerns that certified financial planner Bradley Roulston had to face when setting out for his daily run was Toronto’s noise, pollution and traffic.

These days, the president of Toronto-based Healthcare Financial Group Inc. has other things on his mind when he goes running: keeping an eye out for bears and cougars. That’s because Roulston now lives in a close-knit community in British Columbia’s Interior. Roulston still directs his financial planning business from its Toronto and Vancouver offices — and he still loves many aspects of city life. But, Roulston says, his move to Nelson (slightly less than 700 kilometres from Vancouver) has helped him achieve some much-needed balance between the artificial world of finance and the natural world he cherishes.

That balance includes participation in a number of local environmental initiatives, such as Transition Towns, a global movement that encourages communities to find their own solutions to address the issues of peak oil and climate change. Self-sufficiency and sustainability are the major themes of that movement.

Consumer advocate says Ohio power company should not recover costs of bulb plan it abandoned

AKRON, Ohio (AP) — Ohio’s consumer advocate is complaining about a utility’s proposal to have its customers pay for a controversial light bulb program it scrapped.

FirstEnergy Corp. has asked the Public Utilities Commission of Ohio to let it pass along to consumers about $772,000 in costs from its eliminated plan to mail a pair of energy-saving light bulbs to each customer. The company changed its mind following an uproar over its intention to add a surcharge onto electric bills that was more than the cost of the bulbs.

Obama’s ’sexy stuff’ creates an efficient, affordable home

President Obama recently called insulation “sexy stuff” because it saves money. The above video, also available here, shows how insulation — not solar panels or geothermal heat pumps — can be the key to building or retrofitting affordable, ultra-efficient homes.

sOccket: Soccer Ball by Day, Light by Night

Lin told me that the idea for sOccket grew out of a group project for an undergrad engineering class at Harvard. She and the rest of her team all had experience in the developing world, and they realized two things. First, kids are playing soccer all the time in many parts of the world, be it with a ball, a tin can, whatever. And second, the vast majority of those kids have homes with no reliable electricity. Light sources, if they exist at all, are often provided by unhealthy sources such as wood fires or kerosene lamps. As Lin told me, “There were stories we would hear of children going out to the street and studying underneath street lamps, or literally coming to school with blackened noses because they’d been studying near kerosene lamps.”

James Cameron: Fox didn’t want Avatar’s ‘treehugging crap’

When they read it, they sort of said, ‘Can we take some of this tree-hugging, FernGully crap out of this movie?’ And I said, ‘No, because that’s why I’m making the film.’

Cameron says Avatar doesn’t provide facts about the planet’s future, but its “eye candy” aims to jostle viewers out of their environmental “denial” and motivate them to work for change.

Reactions to Climate Group Departures

BP and ConocoPhillips made “tactical” decisions to opt out in order to pursue more advantageous terms in the final version of the legislation, said Tony Kreindler, director of communications for the Environmental Defense Fund, one of the member groups. “It shows that now we’re getting down to the brass tacks on these bills.”

Other environmental advocates agree. “In some ways, it’s a sign that people are still taking very seriously the likelihood that the legislation will move,” said Daniel Lashof, the director of the climate center of Natural Resources Defense Council, another member of the Climate Action Partnership.

Cars Emerge as Key Atmospheric Warming Force: Study

In their analysis, motor vehicles emerged as the greatest contributor to atmospheric warming now and in the near term. Cars, buses, and trucks release pollutants and greenhouse gases that promote warming, while emitting few aerosols that counteract it.

The researchers found that the burning of household biofuels — primarily wood and animal dung for home heating and cooking — contribute the second most warming. And raising livestock, particularly methane-producing cattle, contribute the third most.

U.S. January oil demand down 3.8 pct vs yr ago-API

WASHINGTON (Reuters) – U.S. demand for crude oil and petroleum
products fell sharply in January as the economy sputtered along the road to
recovery, industry group American Petroleum Institute said Friday.

January’s total petroleum product deliveries, excluding exports,
averaged 18.407 million barrels per day, down 3.8 percent from a year ago,
according to its report.

Deliveries of distillate fuels, which include heating oil and diesel,
fell 12.2 percent to 3.578 million bpd.

API Chief Economist John Felmy said an 11.5 percent drop in demand for
low sulfur distillate fuel, which is used by trucks, is a bad sign for the
economy.

U.S. heating oil demand hit by conservation

TORONTO (Reuters) – A fresh wave of conservation efforts spurred by a government incentive may help to spark another drop in U.S. heating oil consumption and counter a decline in the number of homes switching from the fuel to natural gas.

Core inflation drops for first time since 1982

WASHINGTON – Consumer prices rose less than expected in January while prices excluding food and energy actually fell, something that hasn’t happened in more than a quarter-century.

The Labor Department said Friday that consumer prices edged up 0.2 percent in January while prices excluding food and energy slipped 0.1 percent. That was the first monthly decline since December 1982.

Richard Heinberg: Goldilocks and the three fuels

When discussing the increasing perils of the current oil supply-demand-price balancing act, some commentators opine that the world supply of oil has peaked; others say it is demand that has peaked. It is a distinction without a difference.

There are similarities with U.S. natural gas. Current shale gas projects are tapping into an abundant supply of fuel, and there is plenty more where that came from. But the costs of getting it out combined with the per-well decline rates are high, so gas prices need to be very high to turn a profit.

Nearly everyone believes that U.S. coal supplies are virtually endless, but the Goldilocks syndrome is coming into play there, too. Coal prices just about doubled in the two years leading up to the economic crash of 2008, and high-quality coals from the eastern region of the country are depleting fast.

We will never run out of coal, oil, or natural gas—in the absolute sense. The Industrial Revolution started in British coalfields, and there is still an enormous amount of coal in Britain; but the coal that’s left there is prohibitively expensive to mine, so that nation’s coal industry is virtually gone.

Paolo Scaroni – Remember: Their Oil, Not Ours

One of the big themes of the 21st century will be how to combine population growth and sustainable economic development with the challenge of limited natural resources—food, water, metals, and, of course, energy.

This is not a new concern. Thomas Malthus raised it as long ago as 1798. But, over the years, seemingly inevitable crises have been avoided time and time again, thanks to technological advances which have increased production, reduced waste and changed the way we do things.

House Panel Probes Natural Gas Hydrofracking Process

The House Energy and Commerce Committee said Thursday it had begun an investigation into the potential impacts of a natural gas production process called “hydrofracking” on the environment and human health.

Environmentalists and some lawmakers are pressing to give the Environmental Protection Agency federal oversight of the process, concerned that the drilling technique is contaminating water supplies.

Fort Hills latest oil-sands casualty

Alberta’s $24 billion Fort Hills oil-sands project has been put on hold until next year so Petro-Canada and its partners can get a better handle on costs.

The project’s schedule needs “breathing room,” said Ron Brenneman, chief executive of the country’s third-largest oil company. Shares in Petro-Canada fell more than 7 per cent yesterday after the delay was announced.

Russia to adopt new price strategy

Russia’s Gazprom, which supplies Europe with a quarter of its gas needs, has agreed to add spot gas prices to its long-term contracts with customers, according tosources.

Lukoil misses full reserve replacement

Russia’s second biggest oil company Lukoil replaced 95% of its 2009 production with new reserves, trailing behind its top rival Rosneft.

Apache Cites Record Production Fueled by International Growth

Apache reported that international growth fueled record 2009 production of 583,000 barrels of oil equivalent per day, up 9 percent from 2008.

“Although we reduced capital expenditures by about 40 percent from 2008 levels to achieve our goal of living within our cash flow, Apache increased production by 9 percent and ended 2009 with $2 billion in cash,” said G. Steven Farris, Apache’s chairman and chief executive officer. “In 2010, we anticipate continued growth of 5 to 10 percent as we ramp up drilling activity across our portfolio and commence production from earlier discoveries.”

ConocoPhillips Replaces 141% of Reserves

ConocoPhillips confirmed 2009 preliminary net proved reserve additions of approximately 1.216 billion barrels of oil equivalent (BOE), including equity affiliates. The company’s reserve replacement ratio was 141 percent, based on 865 million BOE of production, including fuel gas. ConocoPhillips’ total proved reserves at year-end 2009 were 10.326 billion BOE.

“Our strong reserve replacement ratio was achieved by progressing major projects during 2009,” said John Carrig, president and chief operating officer. “Our reserve replacement ratio also benefited from the addition of Syncrude oil sands mining operations and net reserve additions from our LUKOIL Investment segment.”

Battling with shortage

Over the last three weeks many Egyptian families have struggled to procure the gas cylinders on which they rely for cooking. The 2,700 gas cylinder distribution outlets have daily seen queues forming as citizens gather in hope of securing the LE5 subsidised cylinders.

To combat shortages, the Ministry of Petroleum is producing 1,256,000 butane gas cylinders daily, tripling monthly production. Working hours in 50 butane gas factories have been increased to three eight-hour shifts a day so they can continue production around the clock.

Fuel Shortage Hits Greece as Strikes Grow

Greek drivers lined up for gas at the few stations still open Friday as a customs strike against government austerity measures left many pumps running dry.

The fuel shortage was the first serious consequence of growing labor protests against the Socialist government’s emergency spending cuts program, aimed at easing the debt crisis in Greece and shoring up market confidence.

The Philippines: Opposition urges Arroyo to use emergency powers in Mindanao

OPPOSITON lawmakers on Thursday urged President Gloria Arroyo to call a special session so that Congress can declare a state of emergency in Mindanao to deal with an energy crisis that they said could doom the May elections.

Saudi Arabia hosts U.S. energy czar Chu but woos China

Saudi Arabia’s oil affair with top consumer the United States is being redefined as contracting demand in the West means the kingdom competes more fiercely for dominance in the growing Asia market, especially China.

U.S. Energy Secretary Steven Chu will visit Riyadh on Monday but it is Beijing’s allure that has intensified for oil suppliers in 2008 and 2009, as demand grew more in China but contracted in the United States and Europe at the same time.

Iran Supreme Leader Denies Nuclear Bomb Plan, Says ‘Forbidden’

(Bloomberg) — Supreme Leader Ayatollah Ali Khamenei said Iran deems nuclear weapons to be prohibited under Islam and isn’t seeking to build them, after the International Atomic Energy Agency announced the country may have been working on a warhead.

“Our religious beliefs consider such weapons forbidden as symbols of destruction,” Khamenei said today after he presided at a ceremony where Iran’s first domestically made guided- missile destroyer was put into service from a base in the Persian Gulf. “We don’t believe in atomic bombs and we do not seek one.”

Ohio regulators didn’t mean to end power discount

CLEVELAND – Utility regulators in Ohio say they never intended to allow an end to discounts for all-electric homes when they approved a new rate plan for FirstEnergy.

More than 100,000 homeowners who heat with electricity were stung by the move, with some complaining that their monthly power bills doubled.

Horizon Wind Energy signs 20-year deal with TVA

Horizon Wind Energy LLC has landed a 20-year power purchase agreement with the Tennessee Valley Authority.

Under the terms of the agreement, Horizon will sell 115 megawatts of renewable wind energy from the first phase of its Pioneer Prairie Wind Farm in Iowa to TVA. Energy from the Pioneer Prairie Wind Farm will be delivered to homes and businesses in TVA’s service area in parts of seven southeastern states.

India: Rice millers urged to tap co-generation potential

The state has 7364 rice mills, with 552 of them using modern machineries to produce rice from paddy. But only six of them have biomass based gasifiers or co-generation facility to generate power.

Potential for US wind energy is 10.5 GW

The top state for wind energy potential is Texas, which has 435,638 km2 of wind land area where the capacity factor for wind at 80 m hub height is 30%. After excluded lands (protected lands, parks, wilderness, urban area, airports, wetland, water features) are subtracted, the remaining 380,306 km2 represents 55% of the state which could install 1,901,530 MW of wind turbines and generate 6,527,850 GWh a year of renewable power.

Mississippi was the only state to show no potential for wind energy, with Florida having potential for 0.4 MW of wind turbines that could generate 1 GWh per year. Other states with low wind power potential are Delaware (9.5 MW), Connecticut (26.5 MW), Rhode Island (46.6 MW) and Kentucky (60.6 MW).

Philippines to Boost Rice Imports to Record, NFA Says

It’s “possible” the Philippines, which accelerated purchases after storms last year destroyed about 1.3 million tons of rice, may buy 3 million tons this year as El Nino parches crops, Jimenez said. The government limit of 2.4 million tons on 2010’s state rice purchases, set late last year, hasn’t been raised yet, he said.

Michael Pollan: Forget Nutrition Charts, Eat What Grandma Said Is Good for You

We’re not aware of it, but food, like everything, is political. It is the biggest industry in the country; it’s the most essential thing. We’ve had the luxury of not having to think about it for the last thirty years, thanks to Earl Butz and having all this cheap food around. But you know, if we as a society have to live without gasoline, which is unimaginable, we will figure out how to do it. We did it for millions of years. We’ve never lived without food. Food is really essential, and when you have anything that’s essential, there is enormous political and economic forces that contend about how it will be organized.

In the last thirty years, we have had this kind of agriculture industrial complex, which by some measures has worked quite well. It’s kept the price of food low; it’s kept the food industry healthy; it’s given us a lot of power overseas–we’re big food exporters–but what we’re getting in touch with, I think, is that the by-products of that system, or the unintended consequences and costs, are catching up–every thing from obesity to diabetes.

Green Eyes On: Is Bees’ Thirst Leading to Their Demise?

A key discovery has strengthened the link between pesticide use and colony collapse disorder, a long considered cause of CCD. In the article, the Organic Center’s chief scientist, Dr. Charles Benbrook explained that scientists in Europe have discovered a new pathway through which bees are ingesting nicotinyl insecticides (the Sierra Club is currently working on banning this class of insecticides) in virtually all intensively farmed regions.

The new pathway? Drinking water.

Calif. locals vs. lake of chicken waste

FRENCH CAMP, Calif. – At the end of a remote road lined by houses, children play in yards just a short distance from a stagnant, 16.5-acre lagoon filled with the waste sludge of a factory egg farm.

Flies hover over the pond as chicken urine and feces get pumped daily through white pipes connected from Olivera Egg Ranch’s huge laying facilities, which can house more than 700,000 caged chickens.

Residents of this town 80 miles east of San Francisco say they’ve complained for years to local air and environmental regulators about the waste lagoon, saying the stench and eye-burning fumes give them headaches and nausea. They say nothing changed.

Now, after the Humane Society of the United States petitioned state air regulators for an investigation last month, Olivera Egg Ranch is facing six violations for expanding and operating its facilities without proper permits.

New clunker deal: Get rid of that old fridge

Are your appliances more than five years old? May be time to go shopping.

Barclays and Bank of America see looming oil crunch

For oil markets, it as if the Great Recession never happened. Surging demand in China, India and the Middle East is making up for decline in the debt-crippled West, ensuring another global crunch within three or four years.

Bank of America and Barclays Capital, two leading oil traders, have told clients to brace for crude above $100 (£64) a barrel by next year, before it pushes relentlessly higher over the decade. This is a stark contrast from recessions in the 1980s and 1990s, when it took years to work off excess drilling capacity built in the boom.

The Paradox of peak oil

The irony goes two ways: as much as the fossil fuel economy does not end, the very knowledge of its peak and the increasing price actually create the conditions for the transition to new low-carbon solutions and unconventional sources.

This is also largely facilitated by the fact that, during the transition, peak oil creates future insecurity and is also marked by high levels of price volatility. Volatility in price will impose uncertainty in future investments in stranded, conventional or uneconomic reserve sources.

This will be disruptive and these disruptions will create an inclination to move to less volatile sources and diversification of sources to improve resource security and lower supply risk.

Fossil-fuel resources running out: scientist

DAVID Hughes, a geoscientist who studied Canada’s energy resources for 32 years with the Geological Survey of Canada, does not mince words when it comes to his views on the earth’s fossil-fuel resources.

Speaking at the Future of Trucking Symposium in Winnipeg on Thursday, Hughes said production of non-renewable fossil fuels will likely peak early this century. He said some noted experts believe that happened in 2008.

That will mean the end of cheap energy to fuel the global supply chain.

“The existing paradigm is over, whether we like it or not,” he said. “It is just a question of time.”

Crude Oil Falls as Dollar Gains After Fed Raises Discount Rate

(Bloomberg) — Crude oil fell for the first day in four after the Federal Reserve raised its discount rate, pushing the dollar higher and damping investor demand for commodities.

Oil pared yesterday’s 2.2 percent rally as the U.S. currency traded at a nine-month high against the euro. The Fed raised the rate it charges banks for direct loans for the first time in more than three years. Energy Department data showed U.S. crude inventories rose 3.09 million barrels last week, topping a forecast for a 1.73 million-barrel increase in a Bloomberg News survey.

Crude Oil May Fall on Rising U.S. Stockpiles, Survey Shows

(Bloomberg) — Crude oil may fall next week on rising U.S. inventories and speculation that demand will decline next month, a Bloomberg News survey showed.

Twenty-three of 45 analysts surveyed, or 51 percent, said oil will decline through Feb. 26. Fourteen respondents, or 31 percent, forecast a gain and eight said prices will be little changed. Last week, 50 percent of analysts predicted there would be an increase in futures.

BP, Shell, Noble Hire Tankers to Store Jet Fuel, List Reports

(Bloomberg) — BP Plc, Royal Dutch Shell Plc and Noble Energy Inc. hired four tankers this week to store jet fuel off northwest Europe, Lloyd’s List reported, citing an Asia- based broker with freight-derivatives exchange Imarex ASA it did not name.

Oil Price vs. Non-OPEC Supply

Non-OPEC crude oil supply peaked six years ago in 2004, at a sustained annual average of 42.068 mbpd (million barrels per day). Supply then fell every year thereafter through 2008, before making a small recovery in 2009. What’s telling, of course, is that supply peaked in a year when the price of oil averaged only $41.51 per barrel.

Yes, I’ve made this point before but it’s worth making again: Non-OPEC oil supply, which accounts for 60% of total world supply, failed completely to make a response to price.

Blame Canada!

My opinion is that we may be nearing the peak of easy production—where the large oil discoveries of the past 50 years that didn’t require much work to find and develop are declining, and new discoveries are in harder-to-reach places.

And government stimulus or no government stimulus, if the price of anything goes high enough, alternatives will be developed.

The Only Way to Play Energy Now

That’s right, I said it … despite a shaky economy and despite the Obama administration’s likely crackdown on speculators that the Commodity Futures Trading Commission now blames for 2008’s historic run-up.

Because, let’s face it, over the long haul, demand for oil and gas will drastically outstrip supply. And the majority of that supply is controlled by a handful of obscenely wealthy foreign businessmen who, as old T. Boone Pickens points out, don’t like us very much.

Gas cost increase boosts Canada’s inflation rate

Canada’s inflation rate took its biggest jump in more than a year in January as higher prices at the pump pulled up consumer prices.

Inflation edges higher

NEW YORK (CNNMoney.com) — Consumer prices rose from a year ago amid climbing gasoline prices, the government said Friday.

The Consumer Price Index, the government’s key inflation reading, rose 2.6% during the past 12 months.

Total Workers on Strike Vow to Halt Refinery Output

(Bloomberg) — Total SA refinery workers on strike at plants across France threatened to halt crude processing operations and create fuel shortages.

The Confederation Generale du Travail union said today the disruption may spread to other refineries, including Exxon Mobil Corp. plants in Port-Jerome Gravenchon, Normandy, and Fos- sur-Mer in southern France.

Morgan Stanley ups US rig outlook

Investment bank Morgan Stanley said it was incrementally positive on US offshore drillers, citing a surge in jackup rig demand, and named Ensco International, Noble and Transocean as its top picks in the sector.

Arrow Wins Approval for A$550 Million Queensland Gas Pipeline

(Bloomberg) — Arrow Energy Ltd., Royal Dutch Shell Plc’s coal-seam gas partner in Australia, won government approval to build a pipeline to the proposed Fisherman’s Landing liquefied natural gas plant in the state of Queensland.

Construction of the link, expected to cost about A$550 million ($493 million), will start next year, with the first gas supplied for processing in late 2012, Arrow said today in a statement to the Australian stock exchange. The pipeline will stretch northwest from Dalby in the Surat Basin to Chinchilla, before heading north to Gladstone on the central Queensland coast, Arrow said.

GE to supply power generation equipment for gas-fired plants in Iraq

GE has signed contracts totaling approximately $200m to supply power generation equipment and services for two gas-fired power projects in the Kurdistan region of Northern Iraq.

Cnooc, Sinopec Said to Mull Devon’s Caspian Oil Stake

Bloomberg) — Cnooc Ltd. and China Petroleum & Chemical Corp. are considering bidding for a Devon Energy Corp. stake in an Azerbaijan oil field that may fetch as much as $3 billion, said two people with knowledge of the matter.

Japan’s Itochu Corp. and Inpex Corp. are also among companies that may bid for the 5.6 percent holding in the Azeri- Chirag-Gunashli oil project, four people said, asking not to be identified because they aren’t authorized to discuss the sale publicly.

Iran Says 2,000 Km of Persian Gulf Oil Pipelines Need Repair

(Bloomberg) — Iran has 2,000 kilometers of Persian Gulf oil pipelines that need to be repaired or risk leaking, which may result in “serious sea pollution,” Mohammad-Javad Mohammadi-Zadeh, vice president of the country’s environmental protection agency, said in the state-run Islamic Republic News Agency.

Technical problem curtailing production at Buzzard

Nexen said yesterday the Buzzard oil field in the UK North Sea had reduced output to 30,000-50,000 barrels of oil equivalent per day (boepd) because of a technical problem.

The Canadian oil and gas company, which operates the UK North Sea’s biggest field, said, in a statement with its annual results: “We are currently investigating the cause and have temporarily reduced production volumes. Preliminary findings suggest that Buzzard will be operating at these reduced rates for the next several weeks.”

Eni Stake Sale Could Be Risky for Italy, Poli Tells Corriere

(Bloomberg) — An Italian government sale of its stake in Eni SpA could be “dangerous and problematic” for the country, Chairman Roberto Poli told Corriere della Sera.

Italy has “lost too many essential companies through pure financial operations,” Poli said in an interview with the daily.

Brazil’s Petrobras announces oil discoveries in Angola

Brazil’s state-owned oil and gas giant Petrobras announced on Thursday two oil discoveries in Angola.

According to the company, the discoveries were made in wells of Nzanza-1 and Cinguvu-1, which are located in Block 15/06, some 350 kilometers northwest of Angola’s capital city Luanda. The oil was found in a water depth of some 1,400 meters.

Frantic Warning Given Before Blast At Middletown Plant

Minutes before a deadly power plant explosion in Middletown, an employee monitoring natural gas levels discovered a dangerously high concentration and broadcast a frantic radio message urging workers to evacuate.

The warning came too late for five men who were killed and the dozens who were injured in the 11:17 a.m. blast on Feb. 7. Since then, a survivor, other plant workers, investigators and engineering experts have described in detail conditions at the plant that preceded the radio message — conditions they believe may have contributed to an explosion that was heard and felt for miles.

Falklanders ‘disappointed’ at Argentinian moves

LONDON (AFP) – Falkland islanders are “disappointed” at Argentina’s move to disrupt oil drilling in the south Atlantic archipelago, their leaders said amid a war of words between London and Buenos Aires.

In a statement posted on the Falkland Islands government website, they insisted that drilling would begin as planned next week, “weather permitting.”

Niger leader Mamadou Tandja held after military coup

Niger President Mamadou Tandja and his cabinet are being held by soldiers after a gun battle and coup attempt in the capital, Niamey.

Gunfire broke out around the presidential palace at about 1300 (1200 GMT) and continued for 30 minutes, says the BBC’s Idy Baraou in the capital.

State radio is playing military music – a similar pattern to two coups in the 1990s.

Tensions have been growing in the uranium-rich nation since last year.

Oil Addiction: Fueling Our Enemies

In Iraq and Afghanistan today, our military is facing down bullets and improvised explosive devices that are being paid for right here at home!

The U.S sends approximately one billion dollars a day overseas to import oil. While this figure is staggering by itself, the dangerous implications of our addiction are even more pronounced when analyzing where our money goes — and whom it helps to support.

Today, the Truman National Security Project is releasing our latest report, Oil Addiction: Fueling Our Enemies.

As an Iraq veteran, I am joining with hundreds of my fellow veterans as part of Truman National Security Project’s Operation Free to secure American with clean energy. We want to make sure Americans understand the true costs of our addiction to oil.

Audi A3 gets diesel right, but noises can annoy

Car companies that believe they must tune transmissions to shift somewhat unresponsively to get good fuel economy should run the A3 TDI around their test tracks, then try to develop something as good as the six-speed S Tronic — a dual-clutch, automatically shifted manual. Those are growing in popularity because they are more fuel-efficient than most automatics or even conventional manuals.

Frost & Sullivan’s view of car sharing

As the population swells and clusters increasingly in urban centers, appetites for personal convenience surge and the environment suffers. The increasingly urgent need to address consequent issues, and especially the pressing need to mitigate climate change, have fuelled interest in alternative transportation modes. One of the most innovative and promising of these is car sharing, a personal transportation solution based on shared, self-service, on-demand, pay-as-you-use, short-term vehicle usage. This form of car rental slashes the fixed costs of vehicle ownership, curbs fuel costs, reduces vehicle congestion and emissions, and, importantly, provides a solid platform for the growth and acceptance of EVs.

From ‘Pawn Stars’ to ‘Pickers,’ America’s trash is TV’s treasure

Historical significance and story lines aside, the lingering effects of the recession and unemployment angst appear to be behind the growing interest in salvaging treasure from castoffs and clutter, giving waste management a whole new meaning.

“Not all of us are going to hit the lottery, but all of us have something laying around the house,” says independent media analyst Shari Anne Brill. “The beauty of these shows is they can help you assess if the junk you have is actually worth something.”

…”Before the recession, it was about families raising money for luxury items like hot tubs,” Sencio says. “But that morphed into something more practical — like raising money for a new stove.”

World’s top firms cause $2.2tn of environmental damage, report estimates

The cost of pollution and other damage to the natural environment caused by the world’s biggest companies would wipe out more than one-third of their profits if they were held financially accountable, a major unpublished study for the United Nations has found.

The report comes amid growing concern that no one is made to pay for most of the use, loss and damage of the environment, which is reaching crisis proportions in the form of pollution and the rapid loss of freshwater, fisheries and fertile soils.

‘Main Street’ economic conditions misread by GDP

Traditional gauges of economic activity severely overstate the standard of living as experienced on ‘Main Street,’ say University of Maryland researchers, who have worked with their state officials to apply a more accurate and greener index.

Maryland recently became the fourth U.S. state to adopt the Genuine Progress Indicator (GPI) as a supplement to the traditional state-level economic index, the Gross State Product (GSP).

“This is not merely a question of dueling statistics – the difference in the two figures can be startling and represents very different pictures of our standard of living,” says Matthias Ruth, director of the University of Maryland’s Center for Integrative Environmental Research (CIER), which calculated the GPI for the state.

Palm Oil, Sugar Cane Most Sustainable Energy Crops, Study Shows

(Bloomberg) — Sugar cane grown in Brazil and palm oil from Malaysia and Indonesia rank as the most sustainable of the current generation of biofuel crops, according to researchers at Wageningen University in the Netherlands.

Researchers at the university’s plant-science department compared nine crops on criteria including soil erosion, water use for each unit of energy produced and nitrogen usage, according to Sander de Vries, author of the comparative study.

“In terms of net energy, sugar cane has the best score of all energy crops,” Wageningen University’s De Vries said by telephone yesterday. “A crop like corn, which scores poorly, is at 10 percent of that.”

Electric avenue: Electric cars on a two-way street?

Think of it as the end of cars’ slacker days: No more sitting idle for hours in parking lots or garages racking up payments, but instead earning their keep by helping store power for the electricity grid.

“Cars sit most of the time,” said Jeff Stein, a mechanical engineering professor at the University of Michigan. “What if it could work for you while it sits there? If you could use a car for something more than just getting to work or going on a family vacation, it would be a whole different way to think about a vehicle, and a whole different way to think about the power grid, too.”

Russia to fund Bulgaria Belene nuclear project

SOFIA (Reuters) – Russia will extend funding to Bulgaria for the construction of the stalled Belene nuclear power plant project until Sofia finds a strategic investor, Bulgaria’s economy and energy minister said on Friday.

Ormat CEO Expects to Double Power Output From Geothermal Plants

(Bloomberg) — Ormat Industries Ltd., the second- biggest owner of geothermal power plants in the U.S., expects to double its output, aided by cash from government stimulus programs, Chief Executive Dita Bronicki said.

Scientists, Amish to fight Chesapeake Bay pollution

The latest effort to clean up one of America’s most polluted waterways is focusing on an unusual target — two dozen mostly Amish farmers.

Federal and state environmental officials are working with Lancaster County, Pa., farmers to stop cow manure from draining during rainstorms into a nearby stream. That stream flows into the Chesapeake Bay, which has remained highly polluted despite $6 billion spent over the past 25 years to clean it up.

Vehicle Tests on Emissions Were Faked

Dozens of auto repair shops and service stations in New York City, Long Island and Westchester County faked the results of emissions tests, giving nearly 21,000 cars and light trucks passing grades, state environmental officials said Thursday.

Proposal calls for emissions study with new government-approved projects

The Obama administration proposed rules Thursday that could affect construction of coal-fired power plants and other government-approved projects that produce large amounts of greenhouse gases.

The guidelines for the first time set uniform standards on how federal agencies consider the causes and effects of climate change during their environmental analyses. They would require study of the greenhouse gas emissions of any project expected to emit at least 25,000 metric tons of carbon dioxide a year — roughly 4,600 cars’ worth.

Climate pact appears increasingly fragile; U.N. official quits

Just two months after patching together a climate deal in Copenhagen, the world’s biggest emitters of greenhouse gases are trying to figure out how to keep the fragile accord together, while the United Nations, which has played a central part in 15 rounds of climate talks, seems destined for a smaller role in the future.

Climate sceptics are recycled critics of controls on tobacco and acid rain

The fact is that the critics — who are few in number but aggressive in their attacks — are deploying tactics that they have honed for more than 25 years. During their long campaign, they have greatly exaggerated scientific disagreements in order to stop action on climate change, with special interests like Exxon Mobil footing the bill.

U.S. Climate Data Reliable

A study by scientists from the U.S.’s National Climatic Data Center refutes claims from climate change skeptics that data from U.S. weather stations was seriously flawed and exaggerated the rate of temperature increases.

The study, published in the Journal of Geophysical Research, says that U.S. weather stations may have actually slightly underestimated temperature increases.

Missing ‘Ice Arches’ Contributed to 2007 Arctic Ice Loss

PASADENA, Calif. – In 2007, the Arctic lost a massive amount of thick, multiyear sea ice, contributing to that year’s record-low extent of Arctic sea ice. A new NASA-led study has found that the record loss that year was due in part to the absence of “ice arches,” naturally-forming, curved ice structures that span the openings between two land points. These arches block sea ice from being pushed by winds or currents through narrow passages and out of the Arctic basin.

Beginning each fall, sea ice spreads across the surface of the Arctic Ocean until it becomes confined by surrounding continents. Only a few passages — including the Fram Strait and Nares Strait — allow sea ice to escape.

“There are a couple of ways to lose Arctic ice: when it flows out and when it melts,” said lead study researcher Ron Kwok of NASA’s Jet Propulsion Laboratory in Pasadena, Calif. “We are trying to quantify how much we’re losing by outflow versus melt.”

OPEC said Wednesday its crude oil price rose to $73.06 a barrel on Tuesday.

Read more….

Gas market goes global – Shale’s impact felt around the world

Within the past week, Russia’s energy giant OAO Gazprom has announced it is delaying the development of the Shtokman natural gas field, while at the same time trotting through major investment centres saying the company is poised for growth. Is it another sign of the rapidly changing nature of the world’s natural gas markets or a fresh instance of Russia looking to flex its muscles using its natural resources?

One of the reasons given for the decision was the shale gas phenomenon in North America that has effectively decimated the need for imports of liquefied natural gas.

But the very fact Russia is making a decision to delay the development of a massive natural gas field as a result of what’s happening halfway around the globe potentially speaks volumes that the market for the commodity is moving slowly but surely from being continental to one that is global.

DECC react to peak oil report

The man responsible for planning the country’s energy security made a surprise appearance at the launch of a report into peak oil.

‘The Oil Crunch: A wake up call for the UK Economy’ was launched today (February 10) by leading business figures including Sir Richard Branson.

Following the launch of the report, which claims UK oil will peak in five years leaving the country exposed to rising prices, Chris Barton form the Department for Energy and Climate Change gave the government side.

Peak oil or “oil crunch”: Richard Branson puts the case for UK business

When Richard Branson starts talking about peak oil, it would be only natural to react with suspicion. He has no qualifications in this area, and his principal business depends on burning huge volumes of oil-based fuel.

As my colleague Kate Mackenzie observes, if you believe we are facing an “oil crunch”, should you really be investing a lot of money into space tourism? (The Virgin Galactic space plane is a rocket, not a jet, but it needs to be launched from a aircraft, and the rocket fuel needs to be manufactured.)

Oil Success Could Herald Sea Change for Falklands, Lift UK Firms

With a new drilling campaign about to kick off in the Falkland Islands, a leading lawyer believes a major oil find could bring fresh business opportunities for the UK’s oil and gas sector.

Gavin Farquhar said the arrival of the Ocean Guardian drilling rig, due to arrive in the South Atlantic fresh from the Cromarty Firth on Valentine’s Day, could herald the beginning of a new love affair between the UK and the Falklands.

US EIA raises 2010 world oil demand growth forecast

WASHINGTON (Reuters) – The U.S. Energy Information Administration on Wednesday said it expected world oil demand to rise 1.2 million barrels per day in 2010 from a year earlier.

2 U.S. firms won’t use tar sands oil

WASHINGTON-Canada’s controversial tar sands industry took its first retail blow Wednesday as two Fortune 500 companies announced plans to eliminate the high-carbon Alberta fuel from its supply chain.

The U.S.-based firms Whole Foods Market Inc. and Bed, Bath and Beyond Inc. both unveiled new fuel policies designed to wean themselves off “higher-than-normal greenhouse gas footprints” inherent in feedstock from the Alberta tar sands.

Colombian gas exports to Venezuela collapse in January

Exports of Colombian gas to Venezuela declined to 60 million cubic feet per day (cbpd) in January compared with an average of 179 cbpd last year, the US oil company Chevron reported on Tuesday.

The sharp decline in gas supply could further increase energy problems in the western region of Venezuela. This part of the country has been affected by serious power outages that may last seven hours, due to the energy crisis.

Venezuela to OK first major oil deals under Chavez

CARACAS (Reuters) – Venezuela was to award the
largest oil investment of President Hugo Chavez’s 11-year rule
on Wednesday, drawing tens of billions of dollars of
much-needed foreign finance to the Orinoco Belt just three
years after the leftist leader nationalized operations there.

Power struggle could portend a cold, dark winter in Gaza Strip

Reporting from Ramallah, West Bank – The Gaza Strip’s beleaguered residents face worsening power outages, even as winter temperatures drop, because of a financial dispute between the Ramallah-based Palestinian Authority and Gaza’s electricity distributor.

Is China stalling over Hummer buy?

BEIJING/NEW YORK (Reuters) – A Chinese machinery maker’s acquisition of General Motors Co’s loss-making Hummer brand could be stalling as Beijing frets that a failure to turn around the macho gas-guzzler may dent China’s image abroad.

Chances for regulatory approval of the deal have dimmed in recent weeks, according to three sources with links to Chinese regulators, GM and the buyer, Sichuan Tengzhong Heavy Industrial Machinery — a little-known company with no experience in either making cars or managing a foreign company.

Oil attack halves production at Baghdad refinery

BAGHDAD — Attackers bombed a frequently targeted oil pipeline north of Baghdad, slowing production at a refinery in the capital by half, Iraq’s oil ministry said Wednesday.

‘Another fire’ at Suncor worries analysts

Suncor Energy Inc. has been on fire lately, but for all the wrong reasons.

Yesterday, the country’s largest energy company had another fire at its oil sands operations, its third in five months. Analysts were not impressed, with some now questioning the company’s reliability.

India may hike fuel prices on Thursday

NEW DELHI: The Union Cabinet is likely to discuss tomorrow a Petroleum Ministry proposal for freeing petrol prices from government control and a moderate increase in diesel, cooking gas and kerosene rates, ahead of which Oil Minister Murli Deora held consultations with key allies DMK and Trinamool Congress on the subject.

Job Losses Push Need for Energy Bill

The solution to this jobs vs. savings conundrum is to invest money now, into projects that when completed will help us individually and as a nation to save more.

For instance, an investment now into energy efficient buildings would create desperately needed construction jobs, but pay for itself with increased energy savings.

Out of this world: are we running out of materials?

Next time you go hospital for a scan, spare a thought for the machine itself: the materials on which its function depends, are running out, and very few people seem to know or care. The former chief scientific officer, Professor Sir David King cares. He will tell anyone who asks, that we are about to enter a period of history where resources wars are a distinct possibility. He claims that there are just not enough of certain materials on planet to sustain the growing use of hospital equipment, electronics, and many other new technologies.

Plan B 4.0 by the Numbers – Data Highlights on the Global Food Supply

World agriculture today faces pressure from many sources. On the production side, the amount of unused arable land worldwide has dwindled. Overworked soils are becoming eroded and degraded, and overpumped aquifers are being depleted. Meanwhile, as the global population grows and increasing biofuel production converts grain into fuel for cars, demand for food continues to climb. In Chapters 2 and 9 of Plan B 4.0, Lester Brown discusses these challenges. Here are some highlights from the supporting data:

In Nigeria, Africa’s most populous country, human populations increased threefold from 1961 to 2007, while livestock populations grew 12-fold. Increasing foraging needs and human food needs have placed excessive demands on soils. The country is losing 867,000 acres of cropland and rangeland to desertification each year.

Climate ‘Tipping Points’ May Arrive Without Warning, Says Top Forecaster

(PhysOrg.com) — A new University of California, Davis, study by a top ecological forecaster says it is harder than experts thought to predict when sudden shifts in Earth’s natural systems will occur — a worrisome finding for scientists trying to identify the tipping points that could push climate change into an irreparable global disaster.

“Many scientists are looking for the warning signs that herald sudden changes in natural systems, in hopes of forestalling those changes, or improving our preparations for them,” said UC Davis theoretical ecologist Alan Hastings. “Our new study found, unfortunately, that regime shifts with potentially large consequences can happen without warning — systems can ‘tip’ precipitously.

“This means that some effects of global climate change on ecosystems can be seen only once the effects are dramatic. By that point returning the system to a desirable state will be difficult, if not impossible.”

The Story of Coal’s Dirty, Deadly Legacy

Most of us take it for granted that when we flip the switch, the lights will go on. Sure, we write the electric company a monthly check, but otherwise lend no thought to the source of the power — like urban kids clueless that chicken originates someplace other than the freezer aisle of chain groceries.

But this month, an energetic author from the rugged, coal-laden hills of southern Illinois hopes to relay the message — utterly apropos in a country where coal generates nearly half the electricity — that a consequence of that national dependence is the outright decimation of the communities surrounding the mines.

Post-Carbon Schools: Back from Hell

SUMMARY: Creeping corporate influence on K-12 education promises to corrupt what little soul remains of our disintegrating industrial culture. As an alternative in the coming post-carbon era, I suggest here a curriculum centered on morals, community, and the Land Ethic — with emphasis on practical skills — as the foundations of our schools. Long live the sacred!

We’re running into oil rather than running out

Oil pessimists explain that given its finite nature, the world’s growing reliance on oil could soon lead us into a cold, 21st century Dark Age. They are far from the first to believe that they are Cassandra. When Jimmy Carter was in the White House, he warned that the world’s reserves would run dry by the turn of the millennium.

The “peak oil” frenzy of the 1970s has reared its head again. The world’s increasing demand and a fixed, finite supply should have led us to a point of no return by now. So what happened?

The gross demand for oil has remained well below the amount of the world’s oil reserves. In 1971, the demand for oil was at 49.4 billion barrels per year and world reserves were estimated to hold 521 billion barrels, according to the US department of energy. According to the theories of the oil pessimists, this would mean that the world would be out of oil in a little more than a decade. Instead of facing doom in the 1980s as the depletionists predicted, the amount of oil in reserves increased to approximately 700 billion barrels as demand increased. Since 1971, when reserves held 521 billion barrels, the world has consumed 900 billion barrels of oil, and today, reserves are currently at an estimated 1.36 trillion barrels.

Jeremy Leggett: Society ignores the oil crunch at its peril

With modern economies geared to their rivets on just-in-time supply of copious amounts of affordable oil, society surely ignores this risk issue at its massive peril.

But that is what BP, Exxon, Saudi Aramco and many other institutions of the hydrocarbon era would have us do. And theirs is the perceived wisdom. I do not know of a single company, outside the taskforce group, where peak oil is on the agenda as a serious risk issue. As for government, Whitehall’s official line is typical, as things stand: there is 40 years of oil supply, no need to worry, and certainly no crisis. To be fair, that view may be in the process of changing, in the light of recent events in the energy markets.

Policies ‘must anticipate’ oil price rises

A group of business leaders are calling for urgent action to prepare the UK for peak oil, the point at which supply can no longer meet world demands ending cheap oil.

John Miles, global leader for energy resources and industry at Arup and one of the report’s authors, analyses the prospect of peak oil.

Peak oil warnings turn up in the strangest places

It’s always intriguing to see how companies come out on the big – and often controversial – questions of energy future.

Readers Respond on “Squeezing More Oil from the Ground”

In “Squeezing More Oil from the Ground,” Leonardo Maugeri, director of strategies and development of an international oil company, expresses the conventional view of his profession, assuming a world of near-infinite oil resources to be produced under market forces. Maugeri is particularly dismissive of our Scientific American article “The End of Cheap Oil” [March 1998]. It is difficult to find fault with at least its title, considering that the average price of oil over the preceding 10 years was $28 a barrel but rose to $45 over the ensuing decade to reach a peak of almost $150 in 2008.

Think further ahead about oil, buyers told

Fossil fuel buyers need to buy further in advance and reduce their dependency on oil-based fuels if they are to cope with an impending oil crunch.

The advice follows mounting fears over “peak oil” – the point at which the world’s oil output reaches a maximum, and either plateaus or goes into terminal decline.

North Dakota Production Surprises

One of the canons of the peak oil crowd is that a decline in oil production from the “mature” United States is a given that no amount of exploration and development can arrest.

An examination of recent developments in North Dakota indicates that the application of new technology renders this claim suspect. Oil production in North Dakota had been declining for years, peaking in the mid 1980s at close to 150,000 barrels per day, and then beginning a 20 year decline to approximately 80,000 barrels per day by 2003.

Oil near $74 as weak dollar offsets high supplies

Oil prices rose to near $74 a barrel Wednesday, boosted by a weaker dollar but held back by a report showing unexpected growth in U.S. crude inventories, casting more doubt on the recovery in the world’s biggest economy.

OPEC: Global oil demand will be higher than forecast

OPEC expects the world will need more of its crude oil this year than previously forecast, as the organization lowered its outlook for production of natural gas liquids.

The Organization of Petroleum Exporting Countries, responsible for 40 percent of global supplies, predicted in a monthly report today that consumers worldwide will need 28.75 million barrels a day of OPEC crude in 2010. While that’s 150,000 barrels a day more than anticipated in last month’s report, the resulting “call on OPEC” in 2009 is unchanged from last year.

New report: Consumers spent modestly in January

NEW YORK — Americans backed off from holiday spending in January, but retail sales rose for a third month in a row compared with a year earlier, largely because of gas price hikes, according to figures released Wednesday by a key data service.

Kuwait Holds Oil Price Discount on Weak Asian Demand

(Bloomberg) — Kuwait Petroleum Corp. maintained a discount for its official crude oil price to Asia as refiners kept processing rates low amid weak fuel demand.

Iraq Offers Indian Refiners More Crude on Planned Output Gain

(Bloomberg) — Iraq is offering to supply more crude oil to Indian refiners on long-term contracts as the Middle Eastern country boosts output.

Iraq is offering to increase crude sales to India by as much as 60 percent, said an oil ministry official who was at the meeting between India’s Oil Minister Murli Deora and Iraq’s Industry and Minerals Minister Fawzi Hariri in New Delhi today. Indian Oil Corp., the nation’s second-biggest refiner, currently buys about 11 metric million tons, or about 220,000 barrels a day, of Iraqi crude, Chairman Sarthak Behuria said.

Saudi Arabia keeps March crude supplies steady

TOKYO/LONDON – Top oil exporter Saudi Arabia will supply steady volumes to most customers in March as demand recovers and prices stay in its comfort zone.

Sources at seven of the Asian term buyers said on Wednesday state oil firm Saudi Aramco told them they would continue to receive fully contracted crude volumes for March, something it did for January and February for most of the region.

Commodities Are Poor Inflation and Currency Hedges

Just because the value of paper money is declining doesn’t mean the value of a static asset has to increase.

Saudi Arabia, Angola, Iran remain top 3 oil suppliers to China

Saudi Arabia, Angola and Iran remained the three largest oil sources for China in 2009, with the three supplying 47.7 percent of China’s total imports, according data released Wednesday by the General Administration of Customs (GAC).

Georgia to Build Black Sea Oil Port to Boost Caspian Flows

(Bloomberg) — Georgia plans to build another Black Sea port to boost transit fees from cargo shipments such as crude oil from the Caspian Sea region.

The Supsa port will cost “half a billion dollars” and take less than two years to build once the government gives the final okay, said Shalva Tsakadze, head of Black Sea Product Ltd., the developer of the project.

Scrap UK’s wind farm plans, says Gazprom boss

Plans to build thousands of wind farms in the UK are irrational and should be scrapped in favour of more gas plants, according to the deputy chairman of the Russian energy firm Gazprom.

Warsaw nears Russia gas deal

Poland’s government may finally approve a long-awaited gas deal with Russia later today, Treasury Minister Aleksander Grad said.

Kazakhstan halts oil exports to Slovakia, Hungary

MOSCOW (Reuters) – Kazakhstan has halted Urals crude oil supplies to Slovakia and Hungary via the Druzhba pipeline amid a trade dispute with Ukraine, prompting Russian oil firm LUKOIL to intervene to compensate for the loss, traders said on Tuesday.

‘Kurdistan taps back on in days’

Oil exports from Iraq’s northern Kurdistan region should resume in the “coming days”, Iraq’s Oil Minister Hussain Shahristani told reporters today.

Shell takes proposed Philippines seizure to nation’s high court

The Philippines won’t seize oil imports belonging to Royal Dutch Shell Plc until the nation’s high court issues a final ruling, Executive Secretary Eduardo Ermita said.

“Shell brought the case to the Supreme Court,” Ermita told reporters today in Malolos, Bulacan north of Manila. “We will observe status quo.”

Nigeria oil rebels say watching political developments

LAGOS (Reuters) – The main militant group in Nigeria’s oil-producing Niger Delta said on Wednesday it was monitoring developments after Vice President Goodluck Jonathan assumed presidential powers, but declined to comment further.

“We are monitoring the unfolding drama and will react at the appropriate time,” the Movement for the Emancipation of the Niger Delta (MEND) said in an email to Reuters.

Bangladesh to Deploy Floating Unit for LNG Imports

(Bloomberg) — Bangladesh, which has delayed exploration awards to ConocoPhillips and Tullow Oil Plc after disputes with neighbors, may deploy a floating liquefied natural gas unit this year to plug a shortage of gas, an official said.

Toyota recalls new Prius in latest safety fix

WASHINGTON/DETROIT (Reuters) – The spiraling crisis at Toyota Motor Corp deepened on Tuesday as the automaker said it would recall thousands of Camry sedans as well as nearly half a million new Prius and other hybrid cars to fix steering and braking problems.

U.S. regulators also said they are reviewing dozens of complaints about potential steering problems in newer Toyota Corollas.

High-speed rail: Skipping your town

NEW YORK (CNNMoney.com) — Most of the $8 billion in high-speed rail funds that President Obama awarded last month will not be used for high-speed projects, but rather to improvements designed to make existing lines faster.

Only $3.5 billion is being spent on truly high-speed rail, a sum that’s not remotely close to what’s needed to build a 21st century rail network. The money is going toward two projects — one in California and the other in Florida — that have yet to begin construction.

Obama Pushes Sanctions to Block Iran’s Path Toward Nuclear Bomb

(Bloomberg) — President Barack Obama said the U.S. is shifting toward sanctions pressure on Iran to prevent the development of a nuclear weapon, when asked about the Iranian regime’s move to step up uranium enrichment.

Kuwait projects huge deficit in next fiscal year

Spending is expected to reach 56.1 billion dollars, a rise 33.5 percent from the current year’s estimates of 42.1 billion dollars.

The draft budget projects an oil income of 29.9 billion dollars for the coming fiscal year, with the oil price forecast raised from 35 dollars a barrel this year to 43 dollars in 2010/2011.

Jeff Rubin: Why Obama has fallen from grace

There are many factors associated with Barack Obama’s plunging popularity. Botched health care reform certainly hasn’t helped. Neither has a near-double-digit national jobless rate, nor a $1.6-trillion budget deficit. But what outrages American voters most is the billions of dollars given to Wall Street investment bankers, who continue to live la dolce vita and flaunt their arrogance in taxpayers’ faces.

As I’ve argued before in this blog and in chapter 7 of my book, it wasn’t too-big-to-fail financial institutions but the interest rate shock from soaring oil prices that deep-sixed the economies of both the US and the rest of the oil-guzzling world. Interest rates didn’t just rise from around one per cent to almost six per cent because no one was minding the store at the Federal Reserve Board. It was soaring oil prices that did all that heavy lifting.

Eastern Syria faces ‘catastrophe’

DAMASCUS // Free market economic reforms have helped create a “catastrophe” in eastern regions of Syria, greatly exacerbating the effects of a devastating drought, according to leading critics of government policy.

Speaking at a weekly meeting of the Syrian economics society, a group of high-profile academics said a decision to end fuel and seed subsidies just as the drought was at its peak had destroyed the livelihoods of hundreds of thousands of farmers.

Robert Kenner: Big Food will do everything to stop you talking about this

LS: What do you hope people will take away from the film?

RK: That the system is unsustainable. We’ve created a world where we’re using up our natural resources and, in doing so, robbing our children and our grandchildren. We have to think about growing and producing food in a fairer way.

Agricultural Commodities in Light of Peak Oil

The subject of Peak Oil seems timely this week, as it has been pointed to in a number of news-worthy articles and video interviews. It is imperative to stay informed on this issue. This article hopes to provide some of the latest pertinent information on the subject while tying together how agricultural and oil commodities may relate to Peak Oil.

New Santa Cruz action group tackles affordable housing as larger concern about peak oil

SANTA CRUZ — Transition Santa Cruz, a new grass-roots group working to reduce the local demand for fossil fuels, has re-energized the decades-old debate about creating more affordable housing.

The group, which has attracted about 500 members, is examining affordability and development in the context of creating self-supporting communities to prepare for “peak oil,” or the point at which global demand for oil surpasses the supply. That means also advocating for jobs, more public transit and more locally produced food — all with a light footprint on the environment.

Solutions for a Post Carbon World

With the avalanche of opinions on the challenging issues that face Montanans and the world today, it’s hard to know where to get reliable information. We know the conundrums of climate, energy, resource depletion, and the economy are complex and interrelated, but it can be difficult to grasp exactly how they fit together. And just what are we going to do to slow these run-away trains?

I recently got some clarity on this subject when I attended a gathering for the Fellows of the Post Carbon Institute. The Fellows are a think-tank focused on today’s interconnected sustainability crises —a one-stop shop for cutting edge thinking on the transition to a post-carbon world.

Chinese farms cause more pollution than factories, says official survey

Farmers’ fields are a bigger source of water contamination in China than factory effluent, the Chinese government revealed today in its first census on pollution.

Senior officials said the disclosure, after a two-year study involving 570,000 people, would require a partial realignment of environmental policy from smoke stacks to chicken coops, cow sheds and fruit orchards.

For L3C companies, profit isn’t the point

NEW YORK (CNNMoney.com) — When organic dairy farmer Vaughn Chase received a letter informing him that processor H. P. Hood would no longer be taking his milk, he feared he’d be forced out of business.

Three years earlier, he had invested $25,000 in converting his 600-acre family farm to meet the U.S. Department of Agriculture’s organic certification standards. But now he couldn’t find another organic processor willing to take the milk from his remote farm in Maine. With the price of non-organic milk plummeting below production costs, returning to conventional farming wasn’t an option either.

Japan’s Solar Panel Sales Rise to Record on Subsidy

(Bloomberg) — Japan’s solar-panel sales by capacity rose to a record in 2009 led by domestic demand after the government offered incentives to switch to renewable power.

Sales increased 21 percent to 1,387.03 megawatts last year, the Japan Photovoltaic Energy Association said today. The figure is the highest since 1981, when the group started releasing data. Domestic sales more than doubled to 483.96 megawatts, while exports fell 2.4 percent to 903.07 megawatts.

Ecuador May Develop $6 Billion Dam Project After Shortages

(Bloomberg) — Ecuador may develop a $6 billion hydroelectric project to create energy supplies for new mines and avert power shortages similar to the ones the South American country experienced in 2009.

U.S. Officials Plan $78.5 Million Effort to Keep Dangerous Carp Out of Great Lakes

CHICAGO — Federal authorities on Monday presented a $78.5 million plan intended to block Asian carp, a hungry, huge, nonnative fish, from invading the Great Lakes.

The Rise of ‘Green’ Modular Homes

Kevin Clayton, the chief executive of Clayton Homes, a modular home manufacturer based in Maryville, Tenn., predicted last year that his company’s “i-house” — a solar modular home — would command 10 percent of its profits.

That prediction hasn’t quite panned out, but the manager of Clayton’s i-house division, Brandon O’Connor, says it is raising production of the energy-efficient model — even as other builders are cutting projects in the down economy.

When Coal Flows Between Countries, Who ‘Owns’ the CO2?

Once emitted, carbon dioxide is a “globally well mixed gas” that knows no borders. Every year, commerce becomes increasingly “globally well mixed” as well. So if the world moves toward a system for tracking emissions, who is responsible for a particular batch of carbon dioxide — the company that mined and sold the coal, the power plant that burned it, the consumer who buys the exported widget made with the electricity generated by that combustion, or…?

Another Snowstorm: What Happened to Global Warming?

As the meteorologist Jeff Masters points out in his excellent blog at Weather Underground, the two major storms that hit Philadelphia, Baltimore and Washington, D.C., this winter — in December and during the first weekend of February — are already among the 10 heaviest snowfalls those cities have ever recorded. The chance of that happening in the same winter is incredibly unlikely.

But there have been hints that it was coming. The 2009 U.S. Climate Impacts Report found that large-scale cold-weather storm systems have gradually tracked to the north in the U.S. over the past 50 years. While the frequency of storms in the middle latitudes has decreased as the climate has warmed, the intensity of those storms has increased. That’s in part because of global warming — hotter air can hold more moisture, so when a storm gathers it can unleash massive amounts of snow. Colder air, by contrast, is drier; if we were in a truly vicious cold snap, like the one that occurred over much of the East Coast during parts of January, we would be unlikely to see heavy snowfall.

Gas market goes global – Shale’s impact felt around the world

Within the past week, Russia’s energy giant OAO Gazprom has announced it is delaying the development of the Shtokman natural gas field, while at the same time trotting through major investment centres saying the company is poised for growth. Is it another sign of the rapidly changing nature of the world’s natural gas markets or a fresh instance of Russia looking to flex its muscles using its natural resources?

One of the reasons given for the decision was the shale gas phenomenon in North America that has effectively decimated the need for imports of liquefied natural gas.

But the very fact Russia is making a decision to delay the development of a massive natural gas field as a result of what’s happening halfway around the globe potentially speaks volumes that the market for the commodity is moving slowly but surely from being continental to one that is global.

DECC react to peak oil report

The man responsible for planning the country’s energy security made a surprise appearance at the launch of a report into peak oil.

‘The Oil Crunch: A wake up call for the UK Economy’ was launched today (February 10) by leading business figures including Sir Richard Branson.

Following the launch of the report, which claims UK oil will peak in five years leaving the country exposed to rising prices, Chris Barton form the Department for Energy and Climate Change gave the government side.

Peak oil or “oil crunch”: Richard Branson puts the case for UK business

When Richard Branson starts talking about peak oil, it would be only natural to react with suspicion. He has no qualifications in this area, and his principal business depends on burning huge volumes of oil-based fuel.

As my colleague Kate Mackenzie observes, if you believe we are facing an “oil crunch”, should you really be investing a lot of money into space tourism? (The Virgin Galactic space plane is a rocket, not a jet, but it needs to be launched from a aircraft, and the rocket fuel needs to be manufactured.)

Oil Success Could Herald Sea Change for Falklands, Lift UK Firms

With a new drilling campaign about to kick off in the Falkland Islands, a leading lawyer believes a major oil find could bring fresh business opportunities for the UK’s oil and gas sector.

Gavin Farquhar said the arrival of the Ocean Guardian drilling rig, due to arrive in the South Atlantic fresh from the Cromarty Firth on Valentine’s Day, could herald the beginning of a new love affair between the UK and the Falklands.

US EIA raises 2010 world oil demand growth forecast

WASHINGTON (Reuters) – The U.S. Energy Information Administration on Wednesday said it expected world oil demand to rise 1.2 million barrels per day in 2010 from a year earlier.

2 U.S. firms won’t use tar sands oil

WASHINGTON-Canada’s controversial tar sands industry took its first retail blow Wednesday as two Fortune 500 companies announced plans to eliminate the high-carbon Alberta fuel from its supply chain.

The U.S.-based firms Whole Foods Market Inc. and Bed, Bath and Beyond Inc. both unveiled new fuel policies designed to wean themselves off “higher-than-normal greenhouse gas footprints” inherent in feedstock from the Alberta tar sands.

Colombian gas exports to Venezuela collapse in January

Exports of Colombian gas to Venezuela declined to 60 million cubic feet per day (cbpd) in January compared with an average of 179 cbpd last year, the US oil company Chevron reported on Tuesday.

The sharp decline in gas supply could further increase energy problems in the western region of Venezuela. This part of the country has been affected by serious power outages that may last seven hours, due to the energy crisis.

Venezuela to OK first major oil deals under Chavez

CARACAS (Reuters) – Venezuela was to award the
largest oil investment of President Hugo Chavez’s 11-year rule
on Wednesday, drawing tens of billions of dollars of
much-needed foreign finance to the Orinoco Belt just three
years after the leftist leader nationalized operations there.

Power struggle could portend a cold, dark winter in Gaza Strip

Reporting from Ramallah, West Bank – The Gaza Strip’s beleaguered residents face worsening power outages, even as winter temperatures drop, because of a financial dispute between the Ramallah-based Palestinian Authority and Gaza’s electricity distributor.

Is China stalling over Hummer buy?

BEIJING/NEW YORK (Reuters) – A Chinese machinery maker’s acquisition of General Motors Co’s loss-making Hummer brand could be stalling as Beijing frets that a failure to turn around the macho gas-guzzler may dent China’s image abroad.

Chances for regulatory approval of the deal have dimmed in recent weeks, according to three sources with links to Chinese regulators, GM and the buyer, Sichuan Tengzhong Heavy Industrial Machinery — a little-known company with no experience in either making cars or managing a foreign company.

Oil attack halves production at Baghdad refinery

BAGHDAD — Attackers bombed a frequently targeted oil pipeline north of Baghdad, slowing production at a refinery in the capital by half, Iraq’s oil ministry said Wednesday.

‘Another fire’ at Suncor worries analysts

Suncor Energy Inc. has been on fire lately, but for all the wrong reasons.

Yesterday, the country’s largest energy company had another fire at its oil sands operations, its third in five months. Analysts were not impressed, with some now questioning the company’s reliability.

India may hike fuel prices on Thursday

NEW DELHI: The Union Cabinet is likely to discuss tomorrow a Petroleum Ministry proposal for freeing petrol prices from government control and a moderate increase in diesel, cooking gas and kerosene rates, ahead of which Oil Minister Murli Deora held consultations with key allies DMK and Trinamool Congress on the subject.

Job Losses Push Need for Energy Bill

The solution to this jobs vs. savings conundrum is to invest money now, into projects that when completed will help us individually and as a nation to save more.

For instance, an investment now into energy efficient buildings would create desperately needed construction jobs, but pay for itself with increased energy savings.

Out of this world: are we running out of materials?

Next time you go hospital for a scan, spare a thought for the machine itself: the materials on which its function depends, are running out, and very few people seem to know or care. The former chief scientific officer, Professor Sir David King cares. He will tell anyone who asks, that we are about to enter a period of history where resources wars are a distinct possibility. He claims that there are just not enough of certain materials on planet to sustain the growing use of hospital equipment, electronics, and many other new technologies.

Plan B 4.0 by the Numbers – Data Highlights on the Global Food Supply

World agriculture today faces pressure from many sources. On the production side, the amount of unused arable land worldwide has dwindled. Overworked soils are becoming eroded and degraded, and overpumped aquifers are being depleted. Meanwhile, as the global population grows and increasing biofuel production converts grain into fuel for cars, demand for food continues to climb. In Chapters 2 and 9 of Plan B 4.0, Lester Brown discusses these challenges. Here are some highlights from the supporting data:

In Nigeria, Africa’s most populous country, human populations increased threefold from 1961 to 2007, while livestock populations grew 12-fold. Increasing foraging needs and human food needs have placed excessive demands on soils. The country is losing 867,000 acres of cropland and rangeland to desertification each year.

Climate ‘Tipping Points’ May Arrive Without Warning, Says Top Forecaster

(PhysOrg.com) — A new University of California, Davis, study by a top ecological forecaster says it is harder than experts thought to predict when sudden shifts in Earth’s natural systems will occur — a worrisome finding for scientists trying to identify the tipping points that could push climate change into an irreparable global disaster.

“Many scientists are looking for the warning signs that herald sudden changes in natural systems, in hopes of forestalling those changes, or improving our preparations for them,” said UC Davis theoretical ecologist Alan Hastings. “Our new study found, unfortunately, that regime shifts with potentially large consequences can happen without warning — systems can ‘tip’ precipitously.

“This means that some effects of global climate change on ecosystems can be seen only once the effects are dramatic. By that point returning the system to a desirable state will be difficult, if not impossible.”

The Story of Coal’s Dirty, Deadly Legacy

Most of us take it for granted that when we flip the switch, the lights will go on. Sure, we write the electric company a monthly check, but otherwise lend no thought to the source of the power — like urban kids clueless that chicken originates someplace other than the freezer aisle of chain groceries.

But this month, an energetic author from the rugged, coal-laden hills of southern Illinois hopes to relay the message — utterly apropos in a country where coal generates nearly half the electricity — that a consequence of that national dependence is the outright decimation of the communities surrounding the mines.

Post-Carbon Schools: Back from Hell

SUMMARY: Creeping corporate influence on K-12 education promises to corrupt what little soul remains of our disintegrating industrial culture. As an alternative in the coming post-carbon era, I suggest here a curriculum centered on morals, community, and the Land Ethic — with emphasis on practical skills — as the foundations of our schools. Long live the sacred!

We’re running into oil rather than running out

Oil pessimists explain that given its finite nature, the world’s growing reliance on oil could soon lead us into a cold, 21st century Dark Age. They are far from the first to believe that they are Cassandra. When Jimmy Carter was in the White House, he warned that the world’s reserves would run dry by the turn of the millennium.

The “peak oil” frenzy of the 1970s has reared its head again. The world’s increasing demand and a fixed, finite supply should have led us to a point of no return by now. So what happened?

The gross demand for oil has remained well below the amount of the world’s oil reserves. In 1971, the demand for oil was at 49.4 billion barrels per year and world reserves were estimated to hold 521 billion barrels, according to the US department of energy. According to the theories of the oil pessimists, this would mean that the world would be out of oil in a little more than a decade. Instead of facing doom in the 1980s as the depletionists predicted, the amount of oil in reserves increased to approximately 700 billion barrels as demand increased. Since 1971, when reserves held 521 billion barrels, the world has consumed 900 billion barrels of oil, and today, reserves are currently at an estimated 1.36 trillion barrels.

Jeremy Leggett: Society ignores the oil crunch at its peril

With modern economies geared to their rivets on just-in-time supply of copious amounts of affordable oil, society surely ignores this risk issue at its massive peril.

But that is what BP, Exxon, Saudi Aramco and many other institutions of the hydrocarbon era would have us do. And theirs is the perceived wisdom. I do not know of a single company, outside the taskforce group, where peak oil is on the agenda as a serious risk issue. As for government, Whitehall’s official line is typical, as things stand: there is 40 years of oil supply, no need to worry, and certainly no crisis. To be fair, that view may be in the process of changing, in the light of recent events in the energy markets.

Policies ‘must anticipate’ oil price rises

A group of business leaders are calling for urgent action to prepare the UK for peak oil, the point at which supply can no longer meet world demands ending cheap oil.

John Miles, global leader for energy resources and industry at Arup and one of the report’s authors, analyses the prospect of peak oil.

Peak oil warnings turn up in the strangest places

It’s always intriguing to see how companies come out on the big – and often controversial – questions of energy future.

Readers Respond on “Squeezing More Oil from the Ground”

In “Squeezing More Oil from the Ground,” Leonardo Maugeri, director of strategies and development of an international oil company, expresses the conventional view of his profession, assuming a world of near-infinite oil resources to be produced under market forces. Maugeri is particularly dismissive of our Scientific American article “The End of Cheap Oil” [March 1998]. It is difficult to find fault with at least its title, considering that the average price of oil over the preceding 10 years was $28 a barrel but rose to $45 over the ensuing decade to reach a peak of almost $150 in 2008.

Think further ahead about oil, buyers told

Fossil fuel buyers need to buy further in advance and reduce their dependency on oil-based fuels if they are to cope with an impending oil crunch.

The advice follows mounting fears over “peak oil” – the point at which the world’s oil output reaches a maximum, and either plateaus or goes into terminal decline.

North Dakota Production Surprises

One of the canons of the peak oil crowd is that a decline in oil production from the “mature” United States is a given that no amount of exploration and development can arrest.

An examination of recent developments in North Dakota indicates that the application of new technology renders this claim suspect. Oil production in North Dakota had been declining for years, peaking in the mid 1980s at close to 150,000 barrels per day, and then beginning a 20 year decline to approximately 80,000 barrels per day by 2003.

Oil near $74 as weak dollar offsets high supplies

Oil prices rose to near $74 a barrel Wednesday, boosted by a weaker dollar but held back by a report showing unexpected growth in U.S. crude inventories, casting more doubt on the recovery in the world’s biggest economy.

OPEC: Global oil demand will be higher than forecast

OPEC expects the world will need more of its crude oil this year than previously forecast, as the organization lowered its outlook for production of natural gas liquids.

The Organization of Petroleum Exporting Countries, responsible for 40 percent of global supplies, predicted in a monthly report today that consumers worldwide will need 28.75 million barrels a day of OPEC crude in 2010. While that’s 150,000 barrels a day more than anticipated in last month’s report, the resulting “call on OPEC” in 2009 is unchanged from last year.

New report: Consumers spent modestly in January

NEW YORK — Americans backed off from holiday spending in January, but retail sales rose for a third month in a row compared with a year earlier, largely because of gas price hikes, according to figures released Wednesday by a key data service.

Kuwait Holds Oil Price Discount on Weak Asian Demand

(Bloomberg) — Kuwait Petroleum Corp. maintained a discount for its official crude oil price to Asia as refiners kept processing rates low amid weak fuel demand.

Iraq Offers Indian Refiners More Crude on Planned Output Gain

(Bloomberg) — Iraq is offering to supply more crude oil to Indian refiners on long-term contracts as the Middle Eastern country boosts output.

Iraq is offering to increase crude sales to India by as much as 60 percent, said an oil ministry official who was at the meeting between India’s Oil Minister Murli Deora and Iraq’s Industry and Minerals Minister Fawzi Hariri in New Delhi today. Indian Oil Corp., the nation’s second-biggest refiner, currently buys about 11 metric million tons, or about 220,000 barrels a day, of Iraqi crude, Chairman Sarthak Behuria said.

Saudi Arabia keeps March crude supplies steady

TOKYO/LONDON – Top oil exporter Saudi Arabia will supply steady volumes to most customers in March as demand recovers and prices stay in its comfort zone.

Sources at seven of the Asian term buyers said on Wednesday state oil firm Saudi Aramco told them they would continue to receive fully contracted crude volumes for March, something it did for January and February for most of the region.

Commodities Are Poor Inflation and Currency Hedges

Just because the value of paper money is declining doesn’t mean the value of a static asset has to increase.

Saudi Arabia, Angola, Iran remain top 3 oil suppliers to China

Saudi Arabia, Angola and Iran remained the three largest oil sources for China in 2009, with the three supplying 47.7 percent of China’s total imports, according data released Wednesday by the General Administration of Customs (GAC).

Georgia to Build Black Sea Oil Port to Boost Caspian Flows

(Bloomberg) — Georgia plans to build another Black Sea port to boost transit fees from cargo shipments such as crude oil from the Caspian Sea region.

The Supsa port will cost “half a billion dollars” and take less than two years to build once the government gives the final okay, said Shalva Tsakadze, head of Black Sea Product Ltd., the developer of the project.

Scrap UK’s wind farm plans, says Gazprom boss

Plans to build thousands of wind farms in the UK are irrational and should be scrapped in favour of more gas plants, according to the deputy chairman of the Russian energy firm Gazprom.

Warsaw nears Russia gas deal

Poland’s government may finally approve a long-awaited gas deal with Russia later today, Treasury Minister Aleksander Grad said.

Kazakhstan halts oil exports to Slovakia, Hungary

MOSCOW (Reuters) – Kazakhstan has halted Urals crude oil supplies to Slovakia and Hungary via the Druzhba pipeline amid a trade dispute with Ukraine, prompting Russian oil firm LUKOIL to intervene to compensate for the loss, traders said on Tuesday.

‘Kurdistan taps back on in days’

Oil exports from Iraq’s northern Kurdistan region should resume in the “coming days”, Iraq’s Oil Minister Hussain Shahristani told reporters today.

Shell takes proposed Philippines seizure to nation’s high court

The Philippines won’t seize oil imports belonging to Royal Dutch Shell Plc until the nation’s high court issues a final ruling, Executive Secretary Eduardo Ermita said.

“Shell brought the case to the Supreme Court,” Ermita told reporters today in Malolos, Bulacan north of Manila. “We will observe status quo.”

Nigeria oil rebels say watching political developments

LAGOS (Reuters) – The main militant group in Nigeria’s oil-producing Niger Delta said on Wednesday it was monitoring developments after Vice President Goodluck Jonathan assumed presidential powers, but declined to comment further.

“We are monitoring the unfolding drama and will react at the appropriate time,” the Movement for the Emancipation of the Niger Delta (MEND) said in an email to Reuters.

Bangladesh to Deploy Floating Unit for LNG Imports

(Bloomberg) — Bangladesh, which has delayed exploration awards to ConocoPhillips and Tullow Oil Plc after disputes with neighbors, may deploy a floating liquefied natural gas unit this year to plug a shortage of gas, an official said.

Toyota recalls new Prius in latest safety fix

WASHINGTON/DETROIT (Reuters) – The spiraling crisis at Toyota Motor Corp deepened on Tuesday as the automaker said it would recall thousands of Camry sedans as well as nearly half a million new Prius and other hybrid cars to fix steering and braking problems.

U.S. regulators also said they are reviewing dozens of complaints about potential steering problems in newer Toyota Corollas.

High-speed rail: Skipping your town

NEW YORK (CNNMoney.com) — Most of the $8 billion in high-speed rail funds that President Obama awarded last month will not be used for high-speed projects, but rather to improvements designed to make existing lines faster.

Only $3.5 billion is being spent on truly high-speed rail, a sum that’s not remotely close to what’s needed to build a 21st century rail network. The money is going toward two projects — one in California and the other in Florida — that have yet to begin construction.

Obama Pushes Sanctions to Block Iran’s Path Toward Nuclear Bomb

(Bloomberg) — President Barack Obama said the U.S. is shifting toward sanctions pressure on Iran to prevent the development of a nuclear weapon, when asked about the Iranian regime’s move to step up uranium enrichment.

Kuwait projects huge deficit in next fiscal year

Spending is expected to reach 56.1 billion dollars, a rise 33.5 percent from the current year’s estimates of 42.1 billion dollars.

The draft budget projects an oil income of 29.9 billion dollars for the coming fiscal year, with the oil price forecast raised from 35 dollars a barrel this year to 43 dollars in 2010/2011.

Jeff Rubin: Why Obama has fallen from grace

There are many factors associated with Barack Obama’s plunging popularity. Botched health care reform certainly hasn’t helped. Neither has a near-double-digit national jobless rate, nor a $1.6-trillion budget deficit. But what outrages American voters most is the billions of dollars given to Wall Street investment bankers, who continue to live la dolce vita and flaunt their arrogance in taxpayers’ faces.

As I’ve argued before in this blog and in chapter 7 of my book, it wasn’t too-big-to-fail financial institutions but the interest rate shock from soaring oil prices that deep-sixed the economies of both the US and the rest of the oil-guzzling world. Interest rates didn’t just rise from around one per cent to almost six per cent because no one was minding the store at the Federal Reserve Board. It was soaring oil prices that did all that heavy lifting.

Eastern Syria faces ‘catastrophe’

DAMASCUS // Free market economic reforms have helped create a “catastrophe” in eastern regions of Syria, greatly exacerbating the effects of a devastating drought, according to leading critics of government policy.

Speaking at a weekly meeting of the Syrian economics society, a group of high-profile academics said a decision to end fuel and seed subsidies just as the drought was at its peak had destroyed the livelihoods of hundreds of thousands of farmers.

Robert Kenner: Big Food will do everything to stop you talking about this

LS: What do you hope people will take away from the film?

RK: That the system is unsustainable. We’ve created a world where we’re using up our natural resources and, in doing so, robbing our children and our grandchildren. We have to think about growing and producing food in a fairer way.

Agricultural Commodities in Light of Peak Oil

The subject of Peak Oil seems timely this week, as it has been pointed to in a number of news-worthy articles and video interviews. It is imperative to stay informed on this issue. This article hopes to provide some of the latest pertinent information on the subject while tying together how agricultural and oil commodities may relate to Peak Oil.

New Santa Cruz action group tackles affordable housing as larger concern about peak oil

SANTA CRUZ — Transition Santa Cruz, a new grass-roots group working to reduce the local demand for fossil fuels, has re-energized the decades-old debate about creating more affordable housing.

The group, which has attracted about 500 members, is examining affordability and development in the context of creating self-supporting communities to prepare for “peak oil,” or the point at which global demand for oil surpasses the supply. That means also advocating for jobs, more public transit and more locally produced food — all with a light footprint on the environment.

Solutions for a Post Carbon World

With the avalanche of opinions on the challenging issues that face Montanans and the world today, it’s hard to know where to get reliable information. We know the conundrums of climate, energy, resource depletion, and the economy are complex and interrelated, but it can be difficult to grasp exactly how they fit together. And just what are we going to do to slow these run-away trains?

I recently got some clarity on this subject when I attended a gathering for the Fellows of the Post Carbon Institute. The Fellows are a think-tank focused on today’s interconnected sustainability crises —a one-stop shop for cutting edge thinking on the transition to a post-carbon world.

Chinese farms cause more pollution than factories, says official survey

Farmers’ fields are a bigger source of water contamination in China than factory effluent, the Chinese government revealed today in its first census on pollution.

Senior officials said the disclosure, after a two-year study involving 570,000 people, would require a partial realignment of environmental policy from smoke stacks to chicken coops, cow sheds and fruit orchards.

For L3C companies, profit isn’t the point

NEW YORK (CNNMoney.com) — When organic dairy farmer Vaughn Chase received a letter informing him that processor H. P. Hood would no longer be taking his milk, he feared he’d be forced out of business.

Three years earlier, he had invested $25,000 in converting his 600-acre family farm to meet the U.S. Department of Agriculture’s organic certification standards. But now he couldn’t find another organic processor willing to take the milk from his remote farm in Maine. With the price of non-organic milk plummeting below production costs, returning to conventional farming wasn’t an option either.

Japan’s Solar Panel Sales Rise to Record on Subsidy

(Bloomberg) — Japan’s solar-panel sales by capacity rose to a record in 2009 led by domestic demand after the government offered incentives to switch to renewable power.

Sales increased 21 percent to 1,387.03 megawatts last year, the Japan Photovoltaic Energy Association said today. The figure is the highest since 1981, when the group started releasing data. Domestic sales more than doubled to 483.96 megawatts, while exports fell 2.4 percent to 903.07 megawatts.

Ecuador May Develop $6 Billion Dam Project After Shortages

(Bloomberg) — Ecuador may develop a $6 billion hydroelectric project to create energy supplies for new mines and avert power shortages similar to the ones the South American country experienced in 2009.

U.S. Officials Plan $78.5 Million Effort to Keep Dangerous Carp Out of Great Lakes

CHICAGO — Federal authorities on Monday presented a $78.5 million plan intended to block Asian carp, a hungry, huge, nonnative fish, from invading the Great Lakes.

The Rise of ‘Green’ Modular Homes

Kevin Clayton, the chief executive of Clayton Homes, a modular home manufacturer based in Maryville, Tenn., predicted last year that his company’s “i-house” — a solar modular home — would command 10 percent of its profits.

That prediction hasn’t quite panned out, but the manager of Clayton’s i-house division, Brandon O’Connor, says it is raising production of the energy-efficient model — even as other builders are cutting projects in the down economy.

When Coal Flows Between Countries, Who ‘Owns’ the CO2?

Once emitted, carbon dioxide is a “globally well mixed gas” that knows no borders. Every year, commerce becomes increasingly “globally well mixed” as well. So if the world moves toward a system for tracking emissions, who is responsible for a particular batch of carbon dioxide — the company that mined and sold the coal, the power plant that burned it, the consumer who buys the exported widget made with the electricity generated by that combustion, or…?

Another Snowstorm: What Happened to Global Warming?

As the meteorologist Jeff Masters points out in his excellent blog at Weather Underground, the two major storms that hit Philadelphia, Baltimore and Washington, D.C., this winter — in December and during the first weekend of February — are already among the 10 heaviest snowfalls those cities have ever recorded. The chance of that happening in the same winter is incredibly unlikely.

But there have been hints that it was coming. The 2009 U.S. Climate Impacts Report found that large-scale cold-weather storm systems have gradually tracked to the north in the U.S. over the past 50 years. While the frequency of storms in the middle latitudes has decreased as the climate has warmed, the intensity of those storms has increased. That’s in part because of global warming — hotter air can hold more moisture, so when a storm gathers it can unleash massive amounts of snow. Colder air, by contrast, is drier; if we were in a truly vicious cold snap, like the one that occurred over much of the East Coast during parts of January, we would be unlikely to see heavy snowfall.

The oil price of the Organization of the Petroleum Exporting Countries (OPEC) continued falling at the start of the week the cartel announced Tuesday.

Read more….

Organization of the Petroleum Exporting Countries (OPEC) said Wednesday that its basket oil price rebounded to $73.05 on the previous day as markets reacted to strong economic growth in the United States.

Read more….

The January 2010 edition of Oilwatch Monthly can be downloaded at this weblink (PDF, 1.24 MB, 33 pp).

The Oilwatch Monthly is a newsletter that is available free of charge with the latest data on oil supply, demand, oil stocks, spare capacity and exports.

A summary and latest graphics below the fold.

Subscribe to receive Oilwatch Monthly by e-mail

Latest Developments:

1) Conventional crude production – Latest figures from the Energy Information Administration (EIA) show that crude oil production including lease condensates increased by 592,000 b/d from September to October 2009, resulting in total production of crude oil including lease condensates of 73.12 million b/d.

2) Total liquid fuels production – In December 2009 world production of all liquid fuels increased by 270,000 barrels per day from November according to the latest fgures of the International Energy Agency (IEA), resulting in total world liquid fuels production of 86.17 million b/d. Liquids production for November 2009 was revised downwards in the IEA Oil Market Report of December from 85.94 to 85.9 million b/d. Average global liquid fuels production in 2009 was 84.97 versus 86.6 and 85.32 million b/d in 2008 and 2007.

3) OPEC Production – Total liquid fuels production in OPEC countries increased by 70,000 b/d from November to December to a level of 34.21 million b/d. Average liquid fuels production in 2009 was 33.7 million b/d, versus 36.09 and 35.02 million b/d in 2008 and 2007 respectively. All time high production of OPEC liquid fuels stands at 36.58 million b/d reached in July 2008. Total crude oil production excluding lease condensates of the OPEC cartel increased by 80,000 b/d to a level of 29.05 million b/d, from November to December 2009, according to the latest available estimate of the IEA. Average crude oil production in 2009 was 28.7 million b/d, versus 31.43 and 30.37 million b/d in 2008 and 2007 respectively. OPEC natural gas liquids remained stable from November to December 2009 at a level of 5.17 million b/d. Average OPEC natural gas liquids production in 2009 through November was 5.0 million b/d, versus 4.66 and 4.55 million b/d in 2008 and 2007 respectively.

4) Non-OPEC Production – Total liquid fuels production excluding biofuels in Non-OPEC countries increased by 147,000 b/d from November to December 2009, resulting in a production level of 50.17 million b/d according to the International Energy Agency. Average liquid fuels production in 2009 was 49.68 million b/d, versus 49.32 and 49.34 million b/d in 2008 and 2007 respectively. Total Non-OPEC crude oil production excluding lease condensates increased by 542,000 b/d to a level of 42.11 million b/d, from September to October 2009, according to the latest available estimate of the EIA. Average crude oil production in 2009 through October was 41.51 million b/d, versus 41.32 and 41.80 million b/d in 2008 and 2007 respectively. Non-OPEC natural gas liquids production increased by 61,000 from September to October to a level of 3.42 million b/d. Average Non-OPEC natural gas liquids production in 2009 through October was 3.39 million b/d, versus 3.65 and 3.79 million b/d in 2008 and 2007 respectively.

5) OECD Oil Consumption – Oil consumption in OECD countries increased by 25,000 b/d from September to October 2009, resulting in a consumption level of 44.11 million b/d. Average OECD oil consumption in 2009 through October was 43.86 million b/d, versus 46.10 and 47.68 million b/d in 2008 and 2007 respectively.

6) Chinese & Indian liquids demand – Oil consumption in China increased by 127,000 b/d from September to October 2009, resulting in a consumption level of 8.98 million b/d according to JODI statistics. Average oil consumption in China in 2009 through October was 8.06 million b/d, versus 6.92 and 7.29 million b/d in 2008 and 2007 respectively. Oil consumption in India increased by 103,000 b/d from September to October 2009, resulting in a consumption level of 2.82 million b/d. Average oil consumption in India in 2009 through October was 2.84 million b/d, versus 2.60 and 2.43 million b/d in 2008 and 2007 respectively.

7) OPEC spare capacity – According to the International Energy Agency, total effective spare capacity (excluding Iraq, Venezuela and Nigeria) increased from November to December 2009 by 2,000 b/d to a level of 5.37 million b/d. Of total effective spare capacity, an additional 3.55 million b/d is estimated to be producible by Saudi Arabia within 90 days, the United Arab Emirates 0.42 million b/d, Angola 0.24 million b/d, Iran 0.28 million b/d, Libya 0.23 million b/d, Qatar 0.10 million b/d, and the other remaining countries 0.55 million b/d.

Total OPEC spare production capacity in December 2009 increased by 10,000 b/d to a level of 5.03 million b/d from 4.93 million b/d in November according to the Energy Information Administration. Spare capacity figures from May 2009 to November 2009 were significantly revised upwards in the latest Oil Market Report, mainly due to an adjustment in Saudi Arabian spare capacity from 2.8 to 3.7 million b/d for November 2009.

OECD oil stocks – Industrial inventories of crude oil in the OECD in November 2009 increased to 984 million from 967 million barrels in October according to the latest IEA statistics. Current OECD crude oil stocks are 22 million barrels higher than the five year average of 962 million barrels. In the December Oil Market Report of the IEA, a total stock level of 968 million barrels was tabulated for October, but this level has been revised downwards to 967 million barrels in the January edition. Industrial product stocks in the OECD in November 2009 remained stable at 1466 from October levels according to the latest IEA Statistics. Current OECD product stocks are 64 million barrels higher than the five year average of 1402 million barrels. In the November Oil Market Report of the IEA, a total stock level of 1499 million barrels was tabulated for October, but this has been revised downwards to 1466 million barrels in the December edition.