Daily Archives: September 15, 2009

Kate Mackenzie

The IEA remains concerned that oil prices are going too high for the fragile global economy:

PARIS, Sept 15 (Reuters) – If oil prices continue to rise, they could damage a fragile economic recovery, IEA Executive Director Nobuo Tanaka said on Tuesday.
“If prices move up further, it could create problems, but it depends on how the economic recovery happens,” Tanaka told reporters.

Tanaka gave a similar warning in early June, when oil prices were also in the $65 to $70 range. His language may be somewhat tempered – he does say it depends on how the economy recovers – but it’s interesting that despite the signs of economic improvement that some have leapt on, Tanaka views the risk as still present.

By Miles Johnston

Knight Vinke – thy name strikes fear into the hearts of chief executives across the land.

The activist investor, armed with just a minority stake, has in the past jousted with such dragons of corporate waste as Royal Dutch Shell and its British-Dutch dual board structure, as well as mighty HSBC’s disastrous sojourn into the US mortgage market.

But in its most recent duel with Italian energy conglomerate Eni, the valiant knight appears more quixotic than courtly.

Eni, the argument goes, is worth much more than the sum of its parts. Slice the high octane oil and gas exploration arm from the mundane utility-like power division and the blood of shareholder value will rain down upon the land.

Kate Mackenzie

On FT Energy Source:

Markets: Oil recovers in spite of trade tensions

Opec still has storage concerns

A signal for carbon trading?

Should the US majors be rushing into shale gas?

Natgas shoots up 11%

Further reading:

FERC chairman urges overhaul of US grid, regardless of Waxman-Markey vote (Climate and Energy)

Better Place unveils electric car software (NY Times)

ONGC Russian unit slashes oil output, costs rocket (Economic Times)

Audi shows electric E-tron concept, but maintains electric vehicles are still ‘outsiders’ (Autoblog)

Will Scharzenegger classify nuclear power as a ‘renewable’? (WSJ Environmental Capital)

Angola is a US priority for oil supply (Bloomberg)

Study shows clean energy will create more jobs than coal (Consumer Energy Report)

Crude oil prices made modest gains on Tuesday while base metal prices edged higher as concerns that a trade row between the US and China continued to unsettle investors in commodity markets.

In energy markets, crude oil prices managed a partial recovery after falling in the previous two sessions. Nymex October West Texas Intermediate rose 44 cents to $69.30 a barrel while ICE October Brent traded 3 cents higher at $67.47.

In Shanghai, rubber futures fell to the lowest level since July after dropping by the 5 per cent daily trading limit on Monday. January rubber dropped 4.9 per cent to Rmb16,850 a tonne before trading at Rmb17,280 a tonne.

Read the full commodities report

Kate Mackenzie

At last week’s Opec meeting in Vienna, no change was made to production levels – but there were distinct rumblings about whether the amount of crude oil held in storage around the world should be taken more into account.

This seemed to be underlined by the fact that Opec referred to production levels, rather than quota levels – production levels, of course, are higher than the quotas would suggest, and the estimated level of compliance with the quotas has slipped from as high as 90 per cent early this year to around 65 per cent.

Today, Opec has highlighted the oil stocks issue again.

Kate Mackenzie

Is all the fuss about EcoSecurities, a carbon trader and carbon offset developer, a sign of confidence that more countries will introduce cap-and-trade schemes?

Bids from an EDF subsidiary was rejected in June and Swedish company Tricorona dropped out of the running in September. Another offer from Guanabara, a vehicle set up by EcoSecurities’ co-founder Pedro Moura Costa, at 90p a share gained support from shareholders with 25.5 per cent of shares, JP Morgan yesterday announced its 100p bid would be recommended by the company’s directors.

James Fontanella-Khan

GE boosts solar power production
Crucial step to boost its multibillion-dollar renewables business (FT)

Seabed minerals drive India’s naval strategy
Navy has identified future energy resources in Indian Ocean (FT)

Wheat drops to lowest since April 2007
Price falls as global supplies swell (Bloomberg)

Zac Goldsmith: ‘I don’t need to become a political automaton’
Tory candidate on how he is going to green the party (Guardian)

Commissioner calls for wider CFTC powers
Plans to call for broader powers to police manipulation (FT)

Europe signals limits on climate funds
EU wary of offering more than is necessary to secure global climate deal (NYT)

Bglobal in Gazprom deal
Russian giant plans to attack the UK electricity market (FT)

Petrobras oil reserves to hit 30-35bn barrels by 2012
Drilling costs now $100m per well, but could fall (Reuters)

Editorial comment: Resource nationalism
$70 oil is high enough to produce stirrings of nationalism (FT)

BP says biofuel to replace 25% of gasoline in US
Change will occur in the next 20 years (Bloomberg)

JPMorgan counters EcoSecurities bid
JPM offered £129 for the carbon trading company (FT)

Roc Oil quits Aim in cost-cutting move
Comapany has merged with Anzon Energy in Australia (FT)

Energy Source is no longer updated but it remains open as an archive.

Insight into the financial, economic and policy aspects of energy and the environment.

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