More oil is put into storage, waiting for prices to rise
NEW YORK (MarketWatch) — Oil producers, refiners and investors have put a record amount of crude oil into storage at a key delivery point as they try to profit from an unusual form of “super contango” that indicates the market expects prices to rise sharply by summer.
Inventories in Cushing, Okla., the delivery point for futures traded on the New York Mercantile Exchange, have jumped more than 40% in the month ended Jan. 2 to the highest level since at least April, 2004, when the government started collecting Cushing data.
Investment banks hoarding oil (transcript and audio)
Fifty million barrels of oil are just sitting around on supertankers. They’re not getting unloaded because investors are waiting for the price of oil to go up. Mitchell Hartman explains.
Post Carbon Institute Proposes “Real New Deal For Energy, Economic And Environmental Recovery” To Incoming Obama Administration - Plan Endorsed by Bill McKibben, Michael Moore, Randy Udall, Lester Brown
SEBASTOPOL, CA, January 13, 2009 –/WORLD-WIRE/– Post Carbon Institute today announced the release of “The Real New Deal: Energy Scarcity and the Path to Energy, Economic, and Environmental Recovery,” a proposal to the incoming Obama Administration.
The plan calls for responding to the current economic crisis with a massive policy and investment shift towards a fossil fuel-independent economy. Noting the urgency to address global fossil fuel depletion and climate change, the “Real New Deal” calls for a series of bold measures to electrify the transportation system, rebuild the electricity grid, relocalize the food system, and retrofit the nation’s building stock for both energy efficiency and energy production.
The plan’s lead author is Post Carbon Institute Senior Fellow Richard Heinberg, author of “The Party’s Over: Oil, War, and the Fate of Industrial Societies” and an internationally recognized expert on fossil fuel depletion. Heinberg said, “While there are many ‘new deal’ plans being offered to President-elect Obama, our plan recognizes that declining fossil fuel supplies and rising greenhouse gas emissions put us at tremendous and immediate risk. Building more roads and bridges as a stimulus for jobs is the wrong tactic. We must re-engineer our country now to deal with the end of cheap energy and to stop catastrophic climate change.”
Kenya: Oil sector crisis deepens
Accusations and Counter accusations continue to emerge in the Oil sector with the latest allegations of grand corruption at the Kenya Pipeline.
Major Oil Marketers says the latest scenario of artificial fuel shortage is only a tip of the ice berg saying the Kenyan oil industry has suffered gross malpractices since 2004 with loses hitting at billions of shillings.
War strains Gazans’ survival skills
In Khaled al-Dali’s two-room shack in the Shati refugee camp, 21 people — half of them relatives who fled the fighting — take turns sleeping because there aren’t enough mattresses to go around. Without fuel, the family cooks on fires made from trash. He has sold most of his furniture to buy food.
Lobster business fishes for a lifeline
Because of a gloomy economy, the price of lobsters sank from October through Christmas, the peak fishing period.
In the 15 years Dexter, 40, has been in the business, things have never been worse. The “boat price” that lobstermen get fell to $2.25 a pound this season, the lowest they’ve been in 20 years — at the same time that the costs of fuel, bait and insurance are going up.
UK: Wind farm plans scrapped as economic crisis takes its toll
AN AMBITIOUS scheme which aimed to establish the UK’s first rural sector power company has been closed after the economic crisis threw the plans into disarray.
Volt, Prius lead another day of fuel-efficient focus
DETROIT (MarketWatch) — Two years removed from its high-profile unveiling, the Chevrolet Volt is still stealing headlines at the North American International Auto Show, thanks to a committed marketing push and great timing.
In fact, the electric future overall has been just about the only product-related news at the big Detroit show that has drawn attention away from the struggles of the broader industry.
‘Green coal’ to get a tryout: Charred wood shows promise as renewable option but challenges remain
North Carolina is about to become the nation’s test case for what marketers call “green coal” — wood that has been baked into charcoal.
If successful, the experiment — a partnership of sorts between Progress Energy, N.C. State University and an Asheville start-up — could mark the end of the state’s reliance on dirty coal.
Firewood demand soars in Vermont
A Vermont firewood program is getting more interest than it has in decades, as people look for more affordable and renewable fuel sources.
In fact, the “wood warms” program may have to rely on a lottery system this year, since demand for wood is expected to exceed supply.
Americans seeing the light on carbon tax
A carbon tax is beginning to win supporters south of the border and is gaining favour from some unexpected corners as a better alternative to the kind of (watered down) carbon cap-and-trade system Harper supports.
Reality Report: Bill McKibben (audio)
The Reality Report talks to Bill McKibben, author of Deep Economy: The Wealth of Communities and the Durable Future and co-founder of the climate change group 350.org.
Over the past year or so, much of the thinking about the severity and timeline of climate change has undergone a major shift. In the fall of2007, a report titled The Big Melt came out that reviewed the rapid loss of polar ice and the likely implications. In December 2007 James Hansen presented a paper at the American Geophysical Union in which it was argued that safe levels of the greenhouse gas carbon dioxide were at least below350 parts per million, and in fact may be less than 300 ppm. For anyone familiar with climate science and policy this was a stunning conclusion because current levels of SO2 are over 385 ppm. During the winter of 2008 anew report titled Climate Code Red was released that greatly expanded upon The Big Melt and delved into the socio-political implications of the new scientific information, essentially framing the issue in terms of survival requirements on a damaged spaceship Earth. Soon afterwards, a climate activist group called 350.org was formed by Bill McKibben and friends to spread the message that policy targets need to reflect the scientific imperative.
Oil falls below $37 on gloomy demand outlook
Oil prices fell below $37 a barrel Tuesday on expectations crude demand will weaken amid a severe global economic slowdown.
By midday in Europe, light, sweet crude for February delivery was down 91 cents at $36.68 a barrel in electronic trading on the New York Mercantile Exchange.
An Economic Prediction That Actually Came True
Roughly a year ago, as 2007 came to a close, someone I knew asked for my prediction as to “Who or what will be making headlines in 2008?” for her newsletter. My response — which seems prescient now, but looked more wrong than the Dow at 36,000 halfway through the year — was “The low price of oil.”
Why (and How) We May Survive Peak Oil
Peak oil implies not just high prices (which would provide unambiguous price signals to innovate) but extreme price volatility: wild swings in energy prices as the marginal cost of producing an additional unit of energy skyrockets, and the resulting super-spike in prices stalls economic growth.
In such a volatile environment of spikes followed by recessions, investment in new technologies actually slows due to a tightening of capital markets and the increased risk of soft or unreliable demand.
Business, civil society urge EU to slash oil dependency
Europe must reduce its oil demand by over half within the next forty years to tackle climate change and address growing difficulties in securing access to fossil fuels, an EU consultative body argued last week.
Bush asserts U.S. sea power over Arctic straits
OTTAWA — In his final days in power, President George W. Bush asserted U.S. military “sea power” over the oil-rich Arctic on Monday, in another forceful rebuttal of Canada’s claims of sovereignty over the Northwest Passage.
The White House formally released the text of a sweeping new directive on the Arctic, two years in the making, just eight days before Barack Obama is to be sworn in as the 44th U.S. president.
Europe gas halted as Russia-Ukraine deal falters
MOSCOW (AFP) – Russia’s natural gas supplies bound for a freezing Europe were halted on Tuesday only a few hours after starting again as an EU-brokered accord between Russia and transit state Ukraine broke down.
Ukraine state gas company Naftogaz said it was blocking transit of the gas through its territory because Russian energy giant Gazprom was imposing “unacceptable” conditions for the transit.
Saudi Arabia Will Pump Less Oil Than Quota in Feb.
(Bloomberg) — Saudi Arabia will produce less than its agreed quota of oil in February as the country takes the lead among exporters trying to halt a six-month slide in oil prices, the country’s Oil Minister said.
February production “is lower than the target,” Ali al-Naimi said as he arrived at his hotel in New Delhi today. “We are working hard to bring the market in balance. We will do what it takes to bring the market in balance.”
With most of the world’s ‘easy’ oil now held beyond the grasp of Western explorers in inhospitable Opec states, and speculation over whether the world has passed ‘peak oil’ (beyond which global production enters terminal decline), attention has in recent years turned to ‘unconventional’ hydrocarbons. These are oil and gas resources that can’t be recovered by conventional well techniques and instead require more innovative recovery approaches.
Nine Surprises to Expect in 2009
6. After hiding out for months during the Energy Bear market, Matt Simmons is finally located in Carthage, Illinois and beaten by a crowd of angry peak oil enthusiasts. He is quoted as being “flabbergasted” by his treatment by the mob.
More seek heating-bill help with low-income energy assistance
With unemployment soaring, a record number of people are seeking federal assistance to pay energy bills this winter, a survey set to be released Tuesday indicates.
About 7.3 million households, 1.5 million more than last year, will likely receive $5.1 billion in subsidies from the Low Income Home Energy Assistance Program, the National Energy Assistance Directors’ Association says.
Nigeria: Airlines Operators Decry High Cost of Aviation Fuel
Abuja — Airline operators yesterday protested the increasing cost of aviation fuel in the country and warned that the situation could lead to collapse of aviation businesses.
The operators lamented that despite the crash in the price of crude oil in the international market, the cost of aviation fuel had continued to rise at an alarming rate.
Chinese automakers test waters in Detroit
DETROIT — Chinese automakers looking to make the jump to the U.S. market are facing increasingly strong headwinds, including a global financial crisis that has slowed growth where they already sell cars and sapped the potential for partnerships that would ease their expansion.
But BYD Auto Co. and Brilliance Auto are making China’s most prominent appearance yet at this year’s North American International Auto Show, sandwiched between displays by General Motors Corp. and Ford Motor Co. instead of tucked away in the basement or outside the main exhibits. And they remain interested in eventually selling in the U.S., although that looks to be years away.
Carmakers lean toward higher gas tax to fuel small-car sales
DETROIT — The auto industry is warming up to the idea of higher taxes on gasoline to force buyers to keep considering fuel-efficient and small cars.
Automakers have shifted dramatically to production of small cars and expensive fuel-saving technologies partly to meet looming stricter government fuel-economy regulations.
The carmakers acknowledge that raising the gas tax is an unpopular idea, but they also saw how fast consumer preference shifted toward small cars when gasoline prices topped $4 a gallon last summer. Without that economic incentive, the tide is turning back to bigger cars, crossovers and trucks.
Gulf Oil States Seeking a Lead in Clean Energy
ABU DHABI, United Arab Emirates — With one of the highest per capita carbon footprints in the world, these oil-rich emirates would seem an unlikely place for a green revolution.
Gasoline sells for 45 cents a gallon. There is little public transportation and no recycling. Residents drive between air-conditioned apartments and air-conditioned malls, which are lighted 24/7.
Still, the region’s leaders know energy and money, having built their wealth on oil. They understand that oil is a finite resource, vulnerable to competition from new energy sources.
Alternative-Energy Companies Grow Even as Others Falter
While many small businesses continue to struggle with tight credit and declining sales, one fledgling industry is seeing a boom in investment and sales growth: alternative energy.
Prices for rooftop solar systems fall as supply grows
Here’s a bright spot in an overcast economy: Solar panel prices are tumbling.
Prices for rooftop solar systems, including installation, already have fallen 8% to 10% since October and are expected to drop another 15% to 20% this year.
Fueling the trend are an oversupply of worldwide manufacturing capacity and lower demand, especially in Spain and Germany, which have been growth engines for the industry.
Stanford creates 100 mln dlr energy research center
SAN FRANCISCO, (AFP) – Stanford University is creating a 100-million-dollar research institute that will focus on energy issues, including the search for ways to reduce global warming, officials said.
Eyeing uranium supply, India to back Kazakh bid for WTO
NEW DELHI: State-owned Nuclear Power Corporation and Kazakh national atomic firm Kazatomprom are working on a uranium supply deal that may eventually see India’s sole N-power firm set up its first overseas plant in joint venture in Central Asia’s fastest-growing economy.
A team of Kazatomprom executives is coming to India for advanced negotiations. The two sides will try and sew up talks so that a deal may be signed when Kazakh president Nursultan Nazarbayev visits India as the Republic Day chief guest. The talks will first focus on getting nuclear supplies from Kazakhstan and could later move to setting up reactors in joint venture.
A nuclear Iran: live and let live, or die another day?
What would it take to eliminate Iran’s uranium enrichment effort?
To begin with, it would entail a diplomatic package that offered Iran access to nuclear energy but not physical control over nuclear materials. Economic sanctions hurting Iran’s troubled economy could be eased. Security assurances could be provided to Iran and normal diplomatic relations between it and the US and others established.
There is no guarantee Iran would accept such an offer. But it might, especially now the price of oil has fallen below $50 a barrel, a level that leaves Iran’s inefficient economy in worse shape than ever.
Removing species from sub-Antarctic island ’caused disaster’
PARIS (AFP) – Efforts to remove an invasive species from a sub-Antarctic island that has been named a World Heritage site accidentally triggered an environmental catastrophe, a study to be published on Tuesday says.
The eradication programme on Macquarie Island, lying halfway between Australia and Antarctica, is a cautionary tale about the complex web of ecosystems, its authors say.
Greenpeace buys land to foil London runway plans
LONDON – Greenpeace says it bought a small plot of land within a site proposed for a third runway at London’s Heathrow Airport in hopes of blocking the project.
The earth’s magnetic field impacts climate: Danish study
COPENHAGEN (AFP) – The earth’s climate has been significantly affected by the planet’s magnetic field, according to a Danish study published Monday that could challenge the notion that human emissions are responsible for global warming.
“Our results show a strong correlation between the strength of the earth’s magnetic field and the amount of precipitation in the tropics,” one of the two Danish geophysicists behind the study, Mads Faurschou Knudsen of the geology department at Aarhus University in western Denmark, told the Videnskab journal.
A report released today by the World Economic Forum warns of challenging risks to the global economy in 2009.
Global Risks 2009 identifies deteriorating fiscal positions, a hard landing in China, a collapse in asset prices, gaps in global governance and issues relating to natural resources and climate as the pivotal risks facing the world this year.
Food Production Chaos Looms in Africa as Soil Quality Worsens
(Bloomberg) — African farmers and climate change are combining to damage soil at a rate that may plunge the continent, home to about 1 billion people, into chaos as food production declines.
“The situation is very severe and soil fertility is declining rapidly,” Jeroen Huising, a scientist who studies soils at the International Center for Tropical Agriculture, or CIAT, said today in an interview. “Many countries like Kenya already don’t have enough food to feed their population and soil degradation is worsening an already critical situation.”
