Opinion | Solar Action

By: Solar Action  06-Dec-2011
Keywords: Oil

Reiterating criticism first made in April, the National Hydrocarbons Commission, or CNH, said state oil monopoly Pemex's huge bet on Chicontepec still had "fundamental problems" and risked being unprofitable for decades.

.. Mexico has bet billions of dollars that the technically challenging Chicontepec area can quickly replace oil output being lost at other major fields but disappointments at the project have underscored the fragility of the forecasts of the world's No. 7 oil producer.

Pemex has sunk more than $5 billion into Chicontepec in a bid to turn it into a major producer, but the Luxembourg-sized area produces less than 50,000 barrels per day of crude, only a fraction of what the company has previously thought it would yield.

According to the statistics published in BP's statistical review in June, the world has about 40 years of oil reserves remaining at current projected consumption rates.

Now, with only two months or less until operators are able to resume drilling new wells in one of the most prospective oil frontiers in the world, many fear that the newly tightened reins of regulators may choke investment for months longer.

With nine days left to apply, a spokesman for the charity running the program told The Associated Press on Tuesday that only 356 people have come forward. Up to 9,000 people had been expected to seek grants of $3,000 to $30,000.

Most filling stations in the country credited as the region's economic hub admitted that their pumps had run dry even as manufacturers called on the government to find a quick solution.

The government was initially supposed to introduce this policy in the last budget but due to lack of consensus among major players in oil industry the decision was postponed, they said.

"We have an ongoing civil nuclear cooperation agreement with China which is according to our respective international obligations for peaceful purposes under the IAEA safeguards," foreign office spokesman Abdul Basit told AFP, referring to the International Atomic Energy Agency.

..During OPEC’s hegemony, oil’s dominance has been unrelentingly eroded. From more than half of all global energy on the eve of the first oil crisis in 1973, oil now supplies just 34 per cent. When OPEC was founded, it took more than six barrels of oil to generate US$1,000 (Dh3,673) of economic output. Now less than a half a barrel suffices: the world has become more than 12 times more efficient in using oil.

This fading of oil as the world’s premier energy source should have aroused more concern than it has in Caracas, Riyadh or Tehran. At this rate, they will leave billions of barrels in the ground at the end of the oil age.

Japan's NHK TV reported last week that the United States and southeast Asian countries may announce a joint statement on September 24 that obliquely presses China over its recent activities near disputed isles in the South China Sea.

China has been increasingly strident in asserting its territorial claims, especially maritime ones.

The explosion triggered the biggest oil spill in American history. Following the disaster - one of the largest losses ever to hit the energy market - global energy premium rates have gone up from 10 to 30 per cent, according to Lancashire, a large insurer of energy risks.

But insurers warn that the full impact will not be felt until after January 1 when the bulk of reinsurance is bought. The disaster has also fuelled demand for insurance, as regulators take a tougher stance on the cover needed by oil and gas companies. BP was self-insured.

Eleven are in Silicon Valley. One of those is near Highway 237 and Ranch Drive on the San Jose-Milpitas border and was ranked seventh among the 100.

Huhne's statement is in line with the coalition agreement but he made it to delegates at the Liberal Democrat conference, challenging sceptics in his own party who oppose nuclear power.

The most recent Intergovernmental Panel on Climate Changes (IPCC) report projected a sea level rise this century of between 18cm-59cm, unless there is dramatic loss of Greenland and/or Antarctic ice.

But international researchers have now upped the ante with some noted academics picking rises of three times that, and some expecting the oceans to lift as much as 2.2m, according to an "emerging issues" paper released today by New Zealand's science academy, the Royal Society.

If making this industry safe makes oil more expensive, so be it.

An Energy Department report tomorrow will probably show that refineries operated at 86.8 percent of capacity, down 0.8 percentage point from the previous week, according to the median of 14 analyst estimates in a Bloomberg News survey. It would be the lowest utilization rate since the week ended April 16. October futures expire today and are cheaper than November, a condition known as contango.

“We’re seeing a step-back from yesterday’s surge,” said Thorbjoern Bak Jensen, a Global Risk Management analyst based in Middelfart, Denmark. “The large contango signals that inventories remain high. But we think the $70 to $80 range will hold.”

Inventories slipped 1.6 million barrels, or 0.4 percent, in the seven days ended Sept. 17 from 357.4 million a week earlier, according to the median of 14 analyst estimates before an Energy Department report tomorrow. Thirteen forecast a drop and one a gain. It would be the third consecutive decrease.

Efforts to stop the $7 billion Keystone XL project because lawmakers say developing tar sands may release more greenhouse gases than other types of oil production will result in the crude being redirected from the U.S., Girling said.

Gazprom deputy chief executive Alexander Medvedev told Japan's Nikkei business daily that his shortlist includes Japanese trading giants Mitsui & Co. and Mitsubishi Corp. as well as Royal Dutch Shell plc.

“New partnerships for oil and gas exploration in the Black Sea outside those now existing are possible,” said Mehmet Uysal, head of Turkiye Petrolleri AO. “In three years we plan $4 billion in investments, large and small, to open close to 500 wells,” Uysal said.

"The increase will be less than a percent," the source, who is not authorised to speak to the media, told Reuters.

It wasn't the Exxon Valdez captain's driving that caused the Alaskan oil spill. It was yours.

I always liked that because it really got at the root of the problem: consumer behavior.

Money spent on freeways and bypasses has added to pollution, reduced liveability and, in the long term, done nothing to relieve congestion - all objectives that could have been achieved by getting rid of the private franchisees who run public transport and reinvesting the savings in an integrated public transport system. Over the same period, the government invested only $322 million on fixed public transport infrastructure.

Bus companies are aggressively pursuing business travelers in a bid to give the airlines and Amtrak a run for their money. They're offering new coaches, rock-bottom fares and perks such as free Internet access so road warriors can work while they ride.

“This is not just about finding ways to save money,” said Ken Rubino, president of the North Fork Environmental Council. “It’s about exposing the next generation to new ways of doing things, new career opportunities and a world of new possibilities.”

Concerned by a lack of action and fearful that the subject of global warming may be distracting people from a more imminent issue, Dr. Hirsch and his colleagues decided to take action and write the book. They argue that oil production reached a plateau in 2004 and has remained relatively consistent ever since. They are concerned that a decline in world oil production is potentially two to five years away and will have significant economic consequences.

“My neighbor’s house was completely destroyed,” said Mr. Feemster, 58. “I guess it was one of the crackheads in that vacant house.”

Perhaps. But the blaze, one of 391 fires at vacant buildings in the city over the past two years, may have had a more sinister cause. Law enforcement officials, politicians and historic preservationists here have concluded that brick thieves are often to blame, deliberately torching buildings to quicken their harvest of St. Louis brick, prized by developers throughout the South for its distinctive character.

“The firemen come and hose them down and shoot all that mortar off with the high-pressure hose,” said Alderman Samuel Moore, whose predominantly black Fourth Ward has been hit particularly hard by brick thieves. When a thief goes to pick up the bricks after a fire, “They’re just laying there nice and clean.”

It is a crime that has increased with the recession. Where thieves in many cities harvest copper, aluminum and other materials from vacant buildings, brick rustling has emerged more recently as a sort of scrapper’s endgame, exploited once the rest of a building’s architectural elements have been exhausted. “Cleveland is suffering from this,” said Royce Yeater, Midwest director for the National Trust for Historic Preservation. “I’ve also heard of it happening in Detroit.”

But since August they have also been helping to farm arugula, chervil, fun jen and komatsuna in a machine installed in a fourth-floor science classroom that grows crops without soil or sunshine.

However, the people of Wolvercote have reclaimed their green for a more traditional activity.

"We're all commoners in this village and some of us have rights to graze cattle," Michael Buck told BBC Oxford.

Mr Buck has now exercised this right and purchased a cow and a calf. They are the first cattle on the grass in 60 years.

The broader presently non-existing discussion - and it should include everybody from David Spratt to Matt Ridley - should be: Are our actions today possibly (probably - potentially?) causing catastrophic consequences for future generations? And, if so, can and should we initiate effective mitigation today? And if systemic change is necessary for mitigation is such change possible within BAU, or, if not, how do we unblock so that systemic change is possible quickly?

“The gap between what needs to be done and what’s actually happening is getting wider,” Soros, founder of Soros Fund Management LLC that oversees about $25 billion in assets, said today at a New York panel discussion on climate change.

Taiwan's Environmental Protection Administration passed rules on Sept. 10 in which companies were requested to supply emissions data needed to launch a carbon trading platform by year's end, EPA officials said.

From Thailand to Texas, corals are reacting to the heat stress by bleaching, or shedding their color and going into survival mode. Many have already died, and more are expected to do so in coming months. Computer forecasts of water temperature suggest that corals in the Caribbean may undergo drastic bleaching in the next few weeks.

"More than 800 million people could end up living in a state of emergency if temperatures do not stop increasing," Shoigu said at a press conference ahead of a three-day Arctic forum in Moscow.

"The Arctic sea ice has reached its four lowest summer extents (area covered) in the last four years," said Mark Serreze, director of the National Snow and Ice Data Center in the U.S. city of Boulder, Colorado.

The volume - extent and thickness - of ice left in the Arctic likely reached the lowest ever level this month, Serreze told IPS.

The information in this article was current at 02 Dec 2011

Keywords: Oil

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