Opec oil ministers appear pretty much in agreement not to rock the boat by changing their production quotas at tomorrow’s meeting. Oil prices are where they want them to be, and demand seems to be recovering. No-one is really willing to make much fuss about the group’s lack of compliance to the cuts announced in Algeria in December 2008.
On FT Energy Source:
- A rather strong smackdown of peak oil demand
- Oil cheats could make Opec’s life difficult
- The recycled carbon offset mini-storm
- Who snubbed who - and Wen – at Copenhagen?
- Backlash against solar subsidies?
- A continuing refining headache
- Anti-oil sands campaign and Consol/Dominion in Energy headlines
- A long, scary discussion about a geoengineering framework
- US automakers not so enamoured with nat gas
- What do Republicans and (some) environmentalists agree on?
- Turning gas flares into fuel
- Nuclear socialism
- Two risks to Consul’s deal
- Fertilising oceans to fight climate change could kill sea mammals
- The 1970s photos that made us want to save the world
- Using broadband to monitor energy consumption
- Gaps in US climate strategy
“The upstream has always been the more glamorous part of the industry,” write Barclays Capital analysts today, “as it generated economic rents, rents which were further protected by OPEC policy, and which also generated most of the past and the present leaders of the major international oil companies.”
By contrast, crude oil refining, as well as being less glamorous, has the drawbacks of being seen as a value destroyer and subject to vagaries of high exit costs, protectionism and ‘perverse responses to price incentives’.
But it has one thing in common with more bouyant upstream world: trends in non-OECD countries are increasing influencing the OECD refining market.
The fears around Hungary ‘recycling‘ UN-approved carbon offsets on Friday appeared to have had a limited effect on carbon markets – at least, so far.
It did push down prices for European carbon allowances (EUAs) at the end of the week, though they began to recover on Monday.
But the more lasting effect could be the widening spread between the offset credits (CERs) and the EUAs for which they are exchangable.
It’s been a somewhat disappointing year for the solar industry, at least in Europe, with cuts to subsidies in Germany sparking fears of a Spain-style slump in European demand.
The announcement in late January that Germany would cut its subsidies hit some solar manufacturers hard – and they still haven’t recovered (as the Solarworld chart on the right demonstrates).
Is the news for the solar PV industry about to get better in Europe?