Monthly Archives: April 2011

BP reported a significant drop in the costs related to last year’s devastating Gulf of Mexico oil disaster in the first quarter as the UK oil group sought to rebuild its oil and gas exploration operations.

The company, which last week launched legal claims against three companies involved with the Deepwater Horizon drilling rig which blew up killing 11 men, said non-operating costs related to the Gulf of Mexico disaster were $384m in the three-month period to the end of March compared to more than $1bn in the fourth quarter. The total charge last year was $40.9bn.

Sheila McNulty

A year after the Macondo disaster, the industry has pulled together in the US and built not one, but two spill containment systems. These systems are really state-of-the-art and aimed at containing a massive spill in the deep water.

The first one, the Containment Response System, cost $1bn and is designed to be trucked to anywhere along the Gulf of Mexico, loaded onto a vessel, shipped out to a drill site and dispatched under water to contain oil spilling from a runaway well.

The system, complete with capture vessels, was developed by ExxonMobil, Royal Dutch Shell, Chevron and ConocoPhillips. It took several months to build and testing has shown it can operate in 8,000 feet of water, capturing 60,000 barrels of fluid per day at pressures of 15,000 pounds per square inch. A more comprehensive system, which can operate in 10,000 feet of water, and capture 100,000 barrels of fluid a day, will be available by the middle of next year.

Kiran Stacey

In this week’s readers’ Q&A session, Cameron O’Reilly (far left) and Steve Cunningham  answer your questions. They are CEO and UK and Ireland chief, respectively, of Landis+Gyr, the world’s biggest maker of smart meters by market share.

In this second of two posts, they talk about how manufacturers and grid operators can work together on rolling out meters and how big the global market for the devices could be.

Earlier, they discussed what can be done with the data from smart meters, and how concerned the public should be about the use of this data.

Now, over to Cameron and Steve:

Kiran Stacey

Cameron O'ReillySteve CunninghamIn this week’s readers’ Q&A session, Cameron O’Reilly (far left) and Steve Cunningham  answer your questions. They are CEO and UK and Ireland chief, respectively, of Landis+Gyr, the world’s biggest maker of smart meters by market share.

In the first of two posts, they discuss what can be done with the data from smart meters, and how concerned the public should be about the use of this data.

In the second post, published later on Friday, they talk about how manufacturers and grid operators can work together on rolling out meters and how big the global market for the devices could be.

Now, over to Cameron and Steve:

Kiran Stacey

Rolling out intelligent energy meters could help the UK reduce its energy usage by up to 15 per cent, five times current government estimates, the world’s biggest smart meter maker has said.

Answering Energy Source readers’ questions, Cameron O’Reilly and Steve Cunningham, the CEO and UK and Ireland chief (respectively) of Landis+Gyr, said the UK was being too pessimistic in their forecast for how much impact smart meters could make.

They said:

Even if the immediate benefit seen by home owners is the 2-3 per cent saving that the UK government’s model assumes, it is still a profoundly valuable exercise.

But we seriously doubt that those conservative savings will be the best that the UK achieves. Landis+Gyr’s experience is that deployments which have focused on encouraging energy budgeting have delivered usage reductions of 10-15 per cent, even when they have had far less sophisticated capabilities than those planned here. Our energy retailers are some of the most innovative in the world – it would be a surprise if, in partnership with their customers, they couldn’t at least match those figures.

The US Energy Information Administration, distributor of the world’s most scrutinised and transparent energy statistics, is facing tough budget choices on account of the government’s ongoing debt ceiling fiasco.

Indeed, as the now hard-up EIA stated in a press release on Thursday, it’s come to the point where it’s even holding meetings to seek advice on how it can make its data gathering processes more efficient:

The U.S. Energy Information Administration’s Office of Energy Statistics will lead a discussion of tough choices faced by its energy data programs as a result of the FY11 budget compromise. Meeting attendees will have the opportunity to comment and offer feedback. Participants will hear from all Energy Statistics program groups including Electricity, Uranium and Renewables, Natural Gas and Coal, Petroleum and Biofuels, Energy Consumption, and Integrated Statistics. The presentations will focus on choices and challenges as EIA moves to improve collection efficiency, data relevance, and data quality. Participants will have opportunities to offer feedback, suggestions, and alternatives on EIA’s data coverage and statistical programs.

FT Energy Source

- BP sues Transocean for $40bn – The Telegraph

- Cameron responsible for blowout, says BP – Bloomberg

- Gulf drilling delays fails to stem US oil flow – FT

- Chevron’s vote of confidence in deepwater drilling – FT

- Small companies stay in gulf’s deep waters – WSJ

- Fossil fuel firms use ‘biased’ study in shale lobbying – The Guardian

- Fracking firm battles to woo English villagers – The Guardian

- BHP Billiton lowers oil production outlook – FT

- Iraq to announce fourth oil bidding round on Monday – WSJ

- Deadlock over Iran oil and gas takes toll – FT

- Putin tells BP to make peace with oligarchs – The Times

- Exxon chief on supply, demand and $120 crude – FT

- Unreliable data help roil oil markets – WSJ

- Exxon sees nuclear power holding its own – FT

- RWE in warning about plant stoppages – FT

- Radioactive spills and breakdowns at British nuclear plants – The Guardian

- Japan bans entry into Fukushima evacuation zone – BBC

- Japan: More than a moment – FT

- Former Massey CEO paid $10.4m – WSJ

- Origin trading halted ahead of LNG announcement – Argus

- Green energy: California dreaming – FT Lex

- PV cells turn windows into solar panels – NY Times Green blog

Given the scale of the original reaction to troubles at Japan’s Fukushima-Daiichi nuclear plant, it’s interesting to see the degree to which uranium ore prices have stabilized since March. Especially since the crisis itself is doing anything but.

Indeed, via RBC Capital markets on Wednesday:

Shares in Rosneft were up 1.7  per cent on Wednesday, boosted by a buyback plan that is widely seen in Russia as preparation for the state-controlled group’s planned controversial stock- swap with BP.The modest $200m stock buyback announced late on Tuesday is hardly a game-changer in the context of the multi-billion dollar dispute raging around the proposed Rosneft-BP deal and the opposition generated from BP’s existing Russian partner, AAR. But, given the timing, it looks like Rosneft is increasing the pressure to try to secure a deal.

Energy Source is no longer updated but it remains open as an archive.

Insight into the financial, economic and policy aspects of energy and the environment.

Read our farewell note

About the blog

Archive

« Mar May »April 2011
M T W T F S S
 123
45678910
11121314151617
18192021222324
252627282930