BP’s retreat ‘back to petroleum’ continues today with the news that it has sold its Indian wind business for about $95m. The buyer is Green Infra Limited, an independent electricity generator backed by IDFC Private Equity.
The news is no surprise: BP has long made it clear that it is focusing its wind business on the US, because that is where it has the best chance of being profitable. US tax credits and the ready availability of land for wind farms help make America the most attractive country in the world for investment in renewables. Read more
The World Bank’s Development Report 2010 says that wealthy countries must help the developing world shift to a low-carbon development path. Both technical and financial assistance should be provided, the organisation says.
The World Bank’s president, Robert Zoellick, says that climate change will affect developing countries worst, even though it’s “a crisis not of their making”. This, he says, makes an equitable agreement at Copenhagen more vital. These are strong words on what is turning out to be the most sensitive negotiating points ahead of the meeting.
The report itself is adamant that in addition to providing support to the developing world, developed countries have to do their bit to reduce their own emissions, too. Read more
Opec has made clear its views on climate change in a blog posted today on the Copenhagen summit website.
The blog was written by Abdalla Salem El-Badri, the group’s secretary-general, and is the most comprehensive opinion piece the group’s biggest oil producers have come up with.
Opec has two main points. One, that developing countries should not have to bear the main burden of mitigating climate change. Indeed , the group very much sees itself as a champion of developing countries, and despite its oil wealth, generally feels it fits into that club far better than the other. But there is another good reason developing countries are important to Opec. Read more
Confused by those regularly-revised oil demand forecasts from the IEA, EIA, and Opec?
JBC Energy has produced a nifty chart showing how much more pessimistic forecasts became for the whole of 2009 over the past year – and how the upward revisions in the past couple of months, all things considered, are pretty small beer. The IEA’s forecast, meanwhile, went lower than anyone else’s: Read more
So does finding oil off the coast of Sierra Leone mean there are oil reserves all the way along the coast to Ghana?
Anadarko and Tullow are certainly hoping so.
Anadarko is expected to announce soon that it has found oil at its Venus field, located in Sierra Leone’s waters. This might increase the odds of an entire stretch of oil reserves similar to the Jubilee field off Ghana’s coast, which is thought to hold up to 2bn barrels of oil. Read more
Crude oil prices dipped ahead of the latest US inventories data, with Nymex October West Texas Intermediate down 27 cents at $70.66 a barrel. ICE October Brent lost 36 cents at $69.50.
US crude stocks were expected to have fallen 2.4m barrels last week, according to a poll of analysts by Reuters, while petrol inventories were expected to rise 600,000 barrels and distillate stocks (including heating oil) to have increased 1.3m barrels. Read more
The answer is yes, according to the National Commission on Energy Policy: but it’s not the end of the world.
Many of the cost estimates of the proposed Waxman-Markey cap and trade scheme in the US assume that quite a lot of the international carbon offset credits allowed by the legislation – up to 1.5bn tonnes worth per year – will be used. In fact as the EPA estimated, without those offsets, the costs of the scheme would be almost double. (That report, by the way, put the cost at a relatively modest $98 to $140 a year.)
But NCEP, a bipartisan group that advises on policy, says there won’t be enough international offsets to reach that level, particularly in the early years of a US cap and trade scheme. Worldwide carbon offsets created under the UN’s Carbon Development Mechanism, they point out, only add up to 300m tonnes of carbon a year now – and scaling up massively to meet US demand is not going to happen quickly. Read more
China and India warned over emissions
Climate envoy says they run risk of protectionist measures in US Congress (FT)
Anadarko venture discovers new oil frontier
Stretches 1,100km along the coast from Ghana to Sierra Leone (FT)
France signals power market reform
Paris pledged to open its electricity market to greater competition (FT)
Opec raises 2009-10 oil demand forecasts
Cartel expects the world economy will rebound (Bloomberg)
Democrats draw battle lines on energy use
John Kerry to submit a bill to tackle global warming (FT)
Apollo buys Parallel Petroleum in $483m deal
Company will become part of an entity with over $38bn in assets (Bloomberg) Read more