Libyan oil production will take years, not months, to return to full capacity once a political solution to the conflict is found, according to Barclays Capital.
“The reincorporation of Libyan oil into the world market increasingly seems a distant possibility” according to the study, which warns of a lasting political vacuum after the potential fall of the Gaddafi regime.
Israel may be considering its energy options after a pipeline bringing gas from Egypt suffered four attacks in the space of five months.
This link provides Israel with 40 per cent of its gas and the most recent explosion, which took place at a monitoring station near the Egyptian town of Al-Arish, was the second incident in as many weeks.
UK electricity reform, Australian carbon pricing, Macarthur Coal
In this week’s podcast: We talk to former speaker of the California state assembly and founder of G24 Innovations, Bob Hertzberg, about the UK’s white paper on reforming the electricity market; we look at Australian prime minister, Julia Gillard’s announcement on carbon pricing; and, we discuss the possible takeover of mining company Macarthur Coal by US-based Peabody Energy.
Presented by David Blair with Pilita Clark and William MacNamara.
Produced by LJ Filotrani
When the Republic of South Sudan becomes the world’s newest state on Saturday, the new government in Juba will begin to assess how it can establish an independent export route for its vast oil reserves.
India seems to hold the upper-hand over Iran in a dispute over payments for crude oil shipments that has been rumbling for over six months.
Iran supplies India with 12-14 per cent of its total imports, making it India’s second biggest provider after Saudi Arabia. But a payments dispute has left India owing debts estimated at anywhere between $2-6 billion. In effect, this means India has been importing Iranian oil on credit since December 2010.
Pakistan is to become a key buyer of Iranian natural gas at a time when relations with Washington are at their most strained in recent years.
Work on extending the Iran-Pakistan gas pipeline will begin in the next six months and is set to be complete by 2014, according to Asim Hussain, the Pakistani natural resources minister. Some 1,100 km of the 2,700 km pipeline has already been completed on the Iranian side of the border, stretching from the South Pars field to the frontier with Pakistan.
I speculated this month somewhat idly on whether the UK or US energy secretary would be the first to quit his post. Many in the gossipy world of Westminster politics are betting on an imminent departure of Chris Huhne. But after one of the stormiest weekends of his political life, it is difficult to say whether he is now stronger or weaker.
The story that might yet kill Huhne’s political career, at least in the short term, is entirely non energy-related. Police are considering whether to investigate claims that he asked another person to take driving penalty points on his behalf for a speeding offence. He denies any wrongdoing.
While the lack of a coherent national energy policy is nothing new for the US, Standard & Poor’s ratings service says in a new report that Washington’s current inability to definitively establish long-lasting energy policies and regulations distinguishes today’s situation from earlier eras. I quote:
Making resource decisions and committing a utility’s balance sheet to support those decisions has never been more complicated or littered with more potential pitfalls, and diminishing credit quality is a result.
Clear policy direction and consistent application by all branches of government of the various policies, ideally with maximum flexibility and abundant time for implementation, would benefit utility bondholders by promoting credit stability.