Daily Archives: June 24, 2009

Kate Mackenzie

The US Congressional Budget Office’s new analysis of the cost of the measures proposed in the Waxman-Markey legislation had many supporters of the new rules hoping it would settle the debate on the financial burden of the proposals – or at least, damp down claims that it would cost thousands of dollars per year to most households.

Dissent has come out in just a few days, however: the American Petroleum Institute has written to congress members saying that the CBO’s analysis suggests gasoline will cost 77c more, at today’s prices, by 2020.

Them’s scary numbers. But where do they come from? Read more

Sheila McNulty

The US may be the world’s biggest generator of wind energy, but offshore it is nowhere near the head of the pack. Indeed, Ken Salazar, US Secretary of the Interior, notes that other nations have been using offshore wind energy for more than a decade.

It was not until the Obama Administration made renewables a priority that the likelihood of offshore wind in the US began to take shape. Read more

By Izabella Kaminska

The epic flows of the last few months into the United States Natural Gas Fund ETF may be very counter-intuitive as far as predicting an upturn in the price of natural gas.

That, at least, is the message from Goldman Sachs on Wednesday, which sees natural gas prices remaining weak throughout the coming weeks. Read more

Kate Mackenzie

On Energy Source:

Iraq: Enthusiasm doesn’t guarantee a good party Read more

Kate Mackenzie

Microsoft is the latest tech heavyweight to enter the world of energy with its free monitoring software Hohm.

ReadWriteWeb notes it is similar to Google’s Power Meter in that it will hook into data from smart meters, allowing households to monitor and reduce or smooth out energy use. Read more

Depending on the goodwill of politicians is nail-biting stuff when your core business evokes memories of Windscale, Three Mile Island and Chernobyl.

But Britain’s nuclear energy industry stands or falls on government policy, and RWE, Eon and EDF, the main companies lined up to invest in new nuclear power stations, have been on at the government for years to provide guarantees of “stability”.

In practice, that has meant avoiding policy reversals and help getting new nuclear projects through the planning process. But any way of underpinning revenues – please don’t call it a subsidy – would also be welcome. Read more

Kate Mackenzie

Neil Dennis writes:

Oil prices fell on Wednesday after data from the US showed an unexpected rise in petrol reservoir volumes. Read more

Kate Mackenzie

Sinopec has come through with the rumoured offer for Addax, a London- and Toronto-listed small oil company that has operations in Kurdistan and Africa.

June 24 (Reuters) – China’s Sinopec Group agreed to buy
Addax Petroleum Corp <AXC.TO> for about C$8.27 billion ($7.24
billion) in a bid to gain access to the Swiss oil and gas
explorer’s high potential oil blocks in West Africa and the Taq
Taq field in Iraq.
The offer of C$52.80 per share from Sinopec International
Petroleum Exploration and Production Corp, which was in a race
with Korea National Oil Co (KNOC) for the bid, is about 16
percent higher than Addax’s Tuesday closing price. Read more

Sheila McNulty

The US government may be intent upon building a new energy economy, handing out the first ever federal leases for offshore wind energy development, promising stimulus funds to the sector and so on. But Big Oil has continued marching to its own drummer.

Two big announcements by ExxonMobil, the world’s biggest oil company, and Chevron, the world’s third biggest, bring home the fact that conventional oil and natural gas are still the key commodities of the energy sector.

Exxon said it had just completed building new field processing capacity at its Piceance Project on the western slope of the Rocky Mountains. It can handle up to 200m cubic feet per day of natural gas. Exxon has been producing natural gas at the site for 50 years and now produces about 100m cubic feet per day, so its plans to expand that are clear. Read more

By Neil Hume

Forget Deutsche Borse, London Stock Exchage, NYSE or Nasdaq, the action in the exchange world is in emissions trading at the moment.

As a bid battle rage for EcoSecurities, the  Intercontinental Exchange has just picked up a 4.8 per cent holding in Climate Exchange, the dominant carbon trading exchange in Europe.

There a couple of reasons for the burst of fresh interest. First, business is booming. Climate Exchange has just recorded a 203% increase in contracts traded during May. Read more