A technology agreement between Rio Tinto and Codelco - two of the world’s biggest copper mining companies - raises the prospect that large resource companies might pool tech R&D, jointly funding and jointly benefiting from new ways of uncovering more geologically difficult deposits.

Rio and Codelco’s “Rio de Cobre” alliance, announced last week, allows both companies absolute rights to ‘peer over the fence’ at each other’s copper-extracting technologies, said John McGagh, head of innovation at Rio, when talking to the FT yesterday. Rio has a greater expertise in surface mining technology. Codelco, experienced in Chile’s mature mines, has unrivalled expertise in underground copper mining. It is expertise Rio can use if it is to go underground at new projects like Oyu Tolgoi in Mongolia.

The idea would have been unheard-of not long ago, with proprietary mining technology a target more for industrial espionage than cooperation. After all, these are two of the world’s biggest companies and both have large R&D and tech budgets. The idea made sense, said Mr McGagh, because of the increasing complexity of prospective mineral deposits and the clear advantage of extracting metal as soon as possible from these complex deposits. Continue reading "Rio Tinto and Codelco’s pragmatic cooperation: a trend in mining that could spread to oil?"

Lex: Commodity prices
In spite of analysts’ buy calls, oil, copper and cotton price halved (FT)

CNPC, Sudan sign oil refining agreement
China’s largest oil company to expand a refinery in Khartoum and swap assets (Bloomberg)

CIC buys 20% stake in solar operator
Chinese group bought GCL-Poly Energ for $705 (FT)

Russia’s Putin says Ukraine gas deals ensure supplies
Neighbours on freindlier terms (Reuters)

Statoil says US drops bribery probe into Iran case
Horton case brought down previous Statoil executives (Reuters)

New California rules to make TVs greener
State sets US first energy-efficiency standard for TVs (WSJ)

Regal’s fine puts focus on Aim regulation
Spotlight on to London’s junior stock market (FT)

On Energy Source

Iraq woos French investors

Cera says no peak oil thanks to technology

Elsewhere

French court clears Total and its former boss in 2001 Toulouse explosion (France24/Reuters)

California sets TV standards (WSJ)

Premier cuts 2009 production guidance (Reuters)

Oil tankers anger British tabloid (Daily Mail)

Chavez blames economic woes on Opec cuts (Reuters)

Trafigura says oil glut means prices are too high

Marathon finds oil in North Sea (Houston Chronicle)

More shale gas boom shows up in water treatment permits (Penn Live)

Secret oil rigs uncovered in California (Huffington Post)

How to clean up an arctic oil spill (KTUU)

The Iraqi government on Thursday stepped up its efforts to woo French business to invest in the oil-rich country, telling Total, the French oil group, it could expect favourable treatment.

On a state visit to France, Jalal Talabani, the Iraqi president, sought to draw a line under differences over the US-led invasion of Iraq in 2003, telling French business leaders they should “show courage and invest in all sectors”.

Mr Talabani directed his strongest entreaty at Total, suggesting that it could win forthcoming tenders to exploit Iraqi fields even if the company did not come in with the highest bid.

Continue reading "Iraq oil: Baghdad bats its eye lashes at France and Total"

Russia and EU plan system to limit energy supply disruption
Concerns persist over renewed tensions with Ukraine (FT)

Gas fears to dominate Yalta talks
Energy is not only issue Russia and Ukraine must iron out (FT)

Asia set to overtake US in green technology
US think-tanks say China is rapidly catching up (FT)

Russia raises its target for emissions cuts
Moscow willing to cut by 20-25% by 2020 (FT)

Clearing ground for a deal to save forests
Part 1 of FT series on global warming looks at deforestation (FT)

Europe’s appliance industry makes the grade
EU changes scheme for energy-efficiency labelling (FT)

Qatar to build $9.8bn plants in China and Vietnam
Country to partner with CNOOC on China plant (Bloomberg)

New EDF chief voices dissent
Calls for rethink of France’s nuclear industry (FT)

IHS Cera’s latest report on oil supply concludes that output is set to grow through 2030, with no peak evident. And while there are doubters out there, who contend oil already has peaked or is in the process of peaking, this latest report on the subject notes that 60 per cent of the more than 1,000 fields examined in detail in the study were found to have production levels that were either steady or climbing.

It is really no surprise to those in the industry, who note that technology continues to open up resources that many were certain were going to have to be left in the ground. Time was when the technology was not there to extract the resources, in many cases, or not to do so economically. But technology advancements are ever-present in the energy industry. Just take a look at the natural gas boom.

Continue reading "Cera sees no peak in oil supply, underlining technology role"

On Energy Source:

Petrobras and BG go for floating LNG

Where has Obama left Copenhagen?

Houston goes electric, a bit

Elsewhere:

Russia commits to a tougher target for emissions cuts, says the EU (Reuters)

The new chief executive of TNK-BP will be Maxim Barsky, the candidate backed by the Russian partners in the joint venture (Moscow Times)

Turkmenistan is in talks with Chevron about developing the massive South Iolotan (or Yolotan) gas field (Reuters)

…and following its bitter row with Russia, plans to triple gas sales to Iran (Upstream)

CERA sees oil production growing to 2030, with no sign of a peak (CERA)

…but CERA has been over-optimistic in the past, and may be again (Bit Tooth Energy)

Oil and gas companies in the Persian Gulf region are choked by fuel subsidies (The National)

A Chinese and an American company, attacked for plans to import wind turbines, now plan a factory in the US (NY Times)

…as another Chinese company plans a US solar panel plant (NY Times)

Hedging mistake costs budget airline Easyjet dear (FT)

And who will be the winners from building the smart cities of the future? (Gregor)

BG Group and Petrobras have announced they plan to set up a joint venture to produce liquefied natural gas from a floating LNG plant, putting themselves at the forefront of this emerging technology.

The plan is to use the associated gas that is present in the giant oil fields of the deep-water Santos basin, off the south coast of Brazil.

If the technology can be made to work - and it is still early days - this could be a strategic coup, opening up significant new reserves of gas, and helping Petrobras with its delicate political difficulties at home.

Continue reading "BG Group and Petrobras go for floating LNG in Brazil"