The British government has launched what it descibes – with good reason – as “the most environmentally ambitious coal conditions of any country in the world”. As arguments over the future of coal power rage worldwide, particularly in the US, Britain’s Labour government has set a lead that it hopes will be followed in China, India and America.
It has made a commitment to “clean coal” technology – power stations fitted with equipment to capture and store their carbon dioxide emissions – which means that an important part of Britain’s future energy security and contribution to the fight against climate change will be based on an essentially unproven technology. Read more
Sibir Energy shares were suspended on February 19 at 174.75p after the company revealed that it had lent $325m to its main owner and founder, Shalva Tchigirinsky.
BP-TNK yesterday confirmed it was offering 430p a share for Sibir. Read more
Investment in oil and gas production is a double-edged sword. On the one hand, falling investment, in response to falling prices, will likely contribute to an unwelcome sharp rise in prices as soon as demand recovers. The IEA, among others, has repeatedly warned of this in the past six months.
But big production projects are expensive and requires years of planning, so they are not easy to turn around (which is why they tend to be delayed rather than cancelled). So even though demand is falling, production capacity is, for the time being, continuing to increase – which is why we are seeing inventories rise. Read more
While the Waxman-Markey bill is making its way through Congress, the administration has stopped short of endorsing it, although President Obama is calling for a carbon cap-and-trade scheme to be approved, which is part of the bill, to be approved.
However two crucial aspects of the cap-and-trade system are being worked out “behind the scenes“, writes the New York Times: the number of free permits that will be given away, and where the money raised from the initial auction of permits, expected to raise about $650bn – will be spent. Read more
Energy news from elsewhere:
- Margin squeeze to hit Reliance; ONGC profit to rise (Reuters) Read more
Energy news from the FT:
- Peter Hambro Mining moves to LSE
PHM shares rose 3 per cent to 535p on the first day
- TNK-BP bids for minority stake in Sibir Energy
Analysts said it was not yet clear whether TNK-BP would wind a controlling stake
- RWE chairman announces surprise departure
Thomas Fischer said he plans to step aside due to personal reasons Read more