On Energy Source:
On Energy Source:
The hunt for oil off the coast of Greenland was given a significant boost yesterday when Cairn Energy, the London-listed independent that hit big in India, agreed a farm-in deal with Petronas of Malaysia.
It was not that the sums involved were very large: Petronas is paying $70m for 10 per cent of Cairn’s six operated blocks in Greenland’s waters. But the deal does for the first time give an insight into the value that a serious industry player, not previously involved in the region, places on acreage there.
The world has seen quite a few “new frontiers” open up in the past year or two: the Brazilian sub-salt, Iraq – both the Kurdish region and, more tentatively, the rest of the country – and west Africa from Ghana round to Sierra Leone. Will Greenland be the next? It certainly could be.
Oil demand in developed countries – which currently accounts for 54 per cent of all oil demand – likely reached its all-time peak in 2005, according to new research by IHS Cambridge Energy Research Associaties (CERA). That demand, which was lost in 30 developed countries that comprise the Organization for Economic Cooperation and Development (OECD) is unlikely to ever be regained.
Crude oil prices hit a fresh 2009 high on Thursday and approached $76 a barrel on prospects for higher energy demand and a weakening US dollar, the currency in which the commodity is priced.
Nymex November West Texas Intermediate hit an intraday high of $75.96 a barrel in early trade and later it was 48 cents higher at $75.66 a barrel. ICE November Brent rose to $73.86 a barrel and later traded 42 cents higher at $73.52 a barrel.
Oil prices have surged 60 per cent since January.
The Supreme Court’s decision to consider the appeal of Jeffrey Skilling is giving the former chief executive of Enron a glimmer of hope that his 24-year prison term arising from the collapse of the energy company could be overturned. In 2006, Mr Skilling was convicted of orchestrating the fraud and conspiracy that destroyed the giant energy trader and forced tighter regulatory scrutiny across corporate America.
Mr Skilling’s lawyer, Daniel Petrocelli, has been arguing since then that his client was denied a fair trial because the proceedings were held in Houston, where there was a huge community bias against him. Indeed, it would have been hard to find a jury in this city who was untouched in some way by Enron. A total of 6,000 Enron employees lost jobs in the city, and many more lost money they had invested in the company. Beyond that, everyone seemed to know someone hurt in the downfall.
China and Kenya in infrastructure talks
Investment could provide a new route for Chinese oil in southern Sudan (FT)
Crude oil reaches 1-year high
Price pushed north by weak dollar and economic optimism (Bloomberg)
EU attacks carbon border tax initiative
Commissioner said tax should not be used to force a climate deal (FT)
Climate legislation would cost US jobs, CBO’s Elmendorf says
‘Significant shifts’ in employment from industries with heavy emissions (Bloomberg)
Farm bureau aims to kill climate bill
Lobby to seeks to derail Congressional bills to combat climate change (NYT)
Cairn raises $310m for Greenland exploration
Indian group to fund its exploration through a deal with Petronas (FT)
Voyage of discovery in the Northwest Passage
More ice in the Arctic than in the past two years (FT)
Crescent Point to raise C$500 mln in bought deal
Canadian group plans to sell shares worth $486m (Reuters)
RWE claims bid for Enea too expensive
Polish energy company worth around €1.5bn (FT)