Daily Archives: September 21, 2010

Kiran Stacey

I wrote below about whether the industry would get what it wanted from Chris Huhne, the energy secretary, in his speech to the Liberal Democrats today. Now his brief but initiative-packed speech is over, did they get what they wanted?

Roger Salomone, energy adviser at EEF, wanted to see reassurances over nuclear power. This is what Huhne said:

I’m fed up with the stand-off between renewable and nuclear which means we have neither – we will have both. We will have low-carbon energy, and security of supply.

And EEF’s reaction:

Given the audience that was a reassuring message on nuclear power from our perspective. He linked nuclear power to some positive things, like energy security and tackling climate change.

Sylvia Pfeifer

Shares in Cairn Energy are up 2.95 per cent to 439.40p this afternoon in London after the Edinburgh-based oil and gas explorer said it had found oil off the shores of Greenland. The company, led by founder Sir Bill Gammell, has been drilling there since early summer.

Cairn said its Alpha-1S1 well in Baffin Bay, between Greenland and Canada, “observed oil intermittently over a 400m section” and initial analysis of various hydrocarbon samples recovered from the well confirms the presence of two oil types.

“The presence of both oil and gas confirms an active, working petroleum system in the basin and is extremely encouraging at this very early stage of our exploration campaign for the Sigguk block and the entire area,” said Sir Bill in a statement.

Kiran Stacey

Chris Huhne, the UK energy secretary, stands up to speak to the Liberal Democrat party conference this afternoon. But his audience stretches far beyond a convention centre in Liverpool. The energy industry will be watching, and here is what they want to hear:

Roger Salomone, energy adviser at EEF, the manufacturers association – Nuclear power

A strong reassurance that the coalition is going to push the role of nuclear power and build the right kind of business environment for that. If he demonstrated his commitment to nuclear in front of the Lib Dems, who are the most hostile, that would be a very strong signal.

NB – Salomone’s point about resistance from within the party is going to become clear today in a speech by Simon Hughes, the deputy leader, who will urge Huhne to oppose nuclear power, as my colleague Jim Pickard wites here.

Kiran Stacey

Opec said earlier this month that it was “comfortable” with crude oil prices at between $70 and $80 per barrel.

Brent Crude Oil priceWell, if the latest analysis from the Centre for Global Energy Studies is to be believed, its members will remain “comfortable” for a while longer.

The centre’s “reference case” - its most likely scenario - predicts that macroeconomic declines will cut oil demand but supplies will also fall with fewer new projects coming onstream. Overall, the study says:

The rates of growth of both oil demand and oil supply decline in 2H10, but the slowdown on the demand side is more pronounced.

At last — some de-equitisation.

From RNS on Tuesday:

The Board of Wellstream has noted the movement in its share price and confirms that it has received a number of preliminary approaches regarding a possible offer for the Company.

There can be no certainty that an acceptable offer will ultimately be made. A further announcement will be made in due course.

So who might these suitors be?

FT Energy Source

- Petrobras debt costs rise over worries stock sale will not suffice – Bloomberg

- RBS comes closer to offloading energy trading unit – The Times (£)

- China’s crude regime pushes Haike into the red – FT

- Taxpayer-funded windpower manufacturer awaits rescue – The Times (£)

- White House adviser tries to rebrand ‘global warming’ – NY Times Green Blog

- US renewables target not dead yet – Mother Jones

- New Zealand expands energy arm – Argus

- How solar power changed a German mining town – FT

- Survey suggests US crude at five-week low – Bloomberg

- Charles Maxwell forecasts peak oil in seven years – Oil Drum

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