Daily Archives: December 16, 2010

Sheila McNulty

Chevron is pressing on in hope with new projects in the Gulf of Mexico. Its latest announcement, which came Thursday, was for the $4bn development of its Big Foot project in the deep water.

This follows its announcement in October to move forward on the $7.5bn development of two large fields in the Gulf of Mexico. That previous announcement represents the largest  investment in the Gulf of Mexico since the BP oil rig disaster in April and is the strongest signal that companies expect the region’s reserves will continue to be produced in spite of the spill.

Yes, says Fred Lucas of JPMorgan, who notes that BP is trading on an implied reserve multiple that’s 30 per cent below its peers and equal to ExxonMobil’s long run finding and development costs:

Chris Huhne this morning criticised a Telegraph headline – suggesting bills would rise by £500 because of his energy reforms – as “ludicrous” and “absolutely bonkers”.

The splash quoted uSwitch predicting that bills would rise per household by £500 from their current average energy bill of £1,157. (Although it’s not clear by when). Huhne said the rise would instead by from £500 per household to £660 by 2030.

Wednesday’s weekly EIA oil inventory data is worth coming back to on Thursday.

Not only did the EIA report an exceptionally large and unexpected crude draw, it turns out the draw was the largest of its kind for this time of year since 1989.

The snaps via Reuters:

Fiona Harvey

The Cancun climate change conference scored “eight out of 10″ as far as Chris Huhne, the UK’s energy and climate change secretary, was concerned. He told MPs on Wednesday afternoon that the conference marked “real progress”, and added that although there was hard work still to be done – he singled out agreeing on a legal form for any future climate deal as the toughest nut to crack – the willingness to move forward shown at Cancun was a good omen for the negotiations to come.

Greg Barker, a ministerial colleague of Huhne’s (though from the Conservative side of the coalition government, while Huhne is a Liberal Democrat), chided the secretary of state for being “unduly modest” in his account of the talks. The UK, along with the environment minister of Brazil, Izabella Teixera, chaired a working group that sought to agree a compromise on the future of the Kyoto protocol, a key sticking point in the talks.

FT Energy Source

- BP sued in $21bn US Gulf spill action – FT

- BP ‘failed to move safety strategy offshore’ – Argus

- BP suffered Azerbaijan leak, says Wikileaks – FT

- Big oil sells assets at record pace as China inflates prices – Bloomberg

- Oil sands report charges lax oversight – NY Times

- Icahn agrees to buy Dynegy for $665m – FT

- China’s push into wind worries US industry – NY Times

- Huhne heralds green energy upheaval – FT

- The biggest energy market shake-up in 25 years – Chris Huhne, The Telegraph

- Chris Huhne admits green bank may be scaled back – The Guardian

- Senate votes to extend ethanol subsidy for 2011 – Reuters

- Japan to impose higher environmental taxes – Argus

- Ghana enters new era with oil field launch – FT/Reuters

- ‘Resource curse’ looms over southern Sudan – FT

- Why Cancun gives us hope – The Guardian

- Origin and CLP acquire Australian power assets – FT

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