On FT Energy Source this week:
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McKinsey might think that new standards and loan guarantees are the way get better energy efficiency.
Bah. What about just wearing more climate-appropriate clothes?
The EU’s energy commissioner Andris Piebalgs (not pictured right) is all over the idea on his blog:
Many experts consider that the most efficient way of saving heating or cooling is simply reduce or increase by 1º the temperature that of our thermostats. One degree variation could lead to up to 10% energy savings. And however, it is not so unusual to find people that sleep with a blanket in the middle of the summer because they keep the air conditioning too high. Equally, you see some people in the middle of the winter walking around their apartments with a simple t-shirt. Maybe the right choice of clothes together with a wiser use of the heating and cooling systems may have a positive impact on their comfort and also on their energy bills.
As Piebalgs notes, the idea is not without precedent. As Japan recoiled from the oil shock of 1973, one measure it took (along with mandating strict efficiency rules for businesses) was to introduce the ‘energy conservation look’. Read more
In the slew of second quarter losses announced by oil companies this week, lower oil prices has been universally cited as the key problem for oil majors. As long they are able to weather the downturn in demand and prices, and adequately replace their reserves, they stand to reap huge profits again when prices rise.
However as some of the big, easily accessible oil reserves begin to ebb, much of this reserve replacement is being done in areas of more marginal production – meaning the cost of replacing oil reserves is gradually rising.
But will higher oil prices necessarily mean more profits for years to come? Read more
A survey by the University of Maryland found that interest in climate change efforts is strong, with a majority in almost all of the 15 countries covered supporting greater action by governments. A look at the figures however shows that the US had one of the lowest levels of support.
European crude oil prices dipped on Friday while base metals rose and gold consolidated above the $930 level as commodity markets traded cautiously ahead of vital US second-quarter growth data, due for release later in the session.
Carousel fraud has found its way to the carbon market. The particularly European type of fraud entails setting up complicated import and export schemes between EU member countries, charging buyers for value-added tax in the country of destination, and then absconding with the tax rather than handing it over to the governments.
In 2006 the UK and German governments embarked on a series of raids in 2006, and the UK introduced ‘reverse charging’ for VAT on certain items prone to carousel fraud. At the time carousel fraud was mainly seen as confined to small electronic goods such as mobile phones and computer chips. Read more
Profits slump at Shell and Exxon
Regulators to review London oil markets (FT)
US Senate cuts some Obama priorities in energy spending bill
White House says cuts would hamper energy policy efforts (Platts)
China bows to activist pressure by moving $5bn refinery plant
Public outcry over Kuwait joint venture (FT)
Chesapeake continues gas-production increase
Growth comes despite low prices and growing oversupplies (WSJ)
UK regulator summons oil market players
Meeting follows episode of rogue trading (FT)
Treasury acts on carbon-credit fraud fears
UK Treasury imposes zero rate of value (FT)
US Gulf Coast spot natural gas prices fall on storage build
Expectations of significant build to gas stocks (Platts)