Energy Gas Oil

Total Makes ‘Major’ Natural-Gas Discovery in Caspian Sea Off Azerbaijan

2011-09-10T14:23:00.000-07:00

By Stephen Bierman and Zulfugar Agayev - Sep 9, 2011 9:50 AM GMT-0500

Total SA (FP), Europe’s third-biggest oil company, has made a “major” natural gas discovery in the Caspian Sea off Azerbaijan that may boost supplies of the fuel pumped to the European Union.

“This discovery could be very significant in terms of resources,” Marc Blaizot, Total vice president for exploration, said in an e-mailed statement. The Absheron block well’s first results show a potential of several trillion cubic feet of gas and associated condensates, the company said.

The European Union wants to bring gas supplies from Azerbaijan and the Caspian Sea basin to replace dwindling North Sea output and reduce reliance on Russia and North Africa.

“Total’s Absheron discovery is extremely significant,” Jennifer Coolidge, executive director of CMX Caspian and Gulf Consultants Ltd., said today by e-mail. “It means the total quantity of gasAzerbaijan will seek to move westward through the Southern Corridor to Europe should increase, benefiting pipeline projects designed for larger-scale deliveries or multiple pipeline projects.”

State Oil Co. of Azerbaijan, also known as Socar, said in June the country would have 25 billion to 30 billion cubic meters of gas for export by 2020-2025. Azerbaijan has guaranteed 10 billion cubic meters of gas a year for Europe from the second phase of the BP-led Shah Deniz deposit.

President ‘Confident’

“I am confident that all transit issues will be resolved by year-end and new markets will be found for Azeri gas,” Azeri President Ilham Aliyev told state news agency Azertac. “This will certainly boost the importance of our state.”

Transit projects such as the OMV AG-led Nabucco pipeline, the Trans-Adriatic Pipeline managed by Statoil ASA (STL) and EON AG, and a third link led by Edison SpA, Depa SA and Boru Hatlari Ile Petrol Tasima AS are vying to carry Azeri output to Europe.

Nabucco has the largest projected capacity among them, seeking to transport 30 billion cubic meters of the fuel.

Total operates the Absheron development with a 40 percent interest. The other shareholders are Socar with 40 percent and GDF Suez (GSZ) SA with 20 percent.

The find at Absheron, which was previously abandoned by a Chevron Corp-led group that included Total, marks a second success since Socar announced a gas find at the Umid structure in November.

Socar estimates the field holds 300 billion cubic meters of gas, according to a presentation.

Source:

http://www.bloomberg.com/news/2011-09-09/total-claims-major-gas-discovery-in-azeri-caspian-sea-1-.html

Saudi Arabia Oil Port May Have Loaded 7.6 Million Barrels a Day

2011-09-10T14:18:00.000-07:00

By Rob Sheridan - Sep 9, 2011 11:56 AM GMT-0500

Oil tankers that can carry about 7.6 million barrels a day went to Saudi Arabia’s Ras Tanura, the world’s largest export facility for crude oil, last week, ship- tracking data compiled by Bloomberg show.

Vessels with a combined capacity of at least 7.3 million deadweight tons were at the facility from Aug. 28 to Sept. 3. To estimate what that equates to in barrels a day, the figure was first multiplied by 7.33 to calculate the total barrels, and then divided by seven, the number of days in the period.

Japan will get the largest share of shipments loaded this week. Supertankers with a combined capacity of 2.4 million tons, carrying about 17.6 million barrels of crude, are sailing to the country after going to the terminal. China, South Korea and the U.S. will get three tankers each, according to data captured by satellites and shore-based antennae.

Following are the ships loading in Saudi Arabia and the companies that hired them and their estimated time of arrival, where data are available. Drafts are expressed as a percentage of maximum sailing depth and are an indication of cargo size.

Vessel Name         Charterer DWT       ETA       Draft

Brazil
Astro Chloe         Reliance  318,440   Oct. 4    95

China
Xin Yue Yang        Unipec    297,232   Sept. 20  95
New Vista           Unipec    297,252   Sept. 23  93
Chang Jiang Zhi Hui Unipec    296,481   Sept. 20  94
Total                         890,965

Egypt
Maersk Newton       CPC       307,284   Sept. 11  98

France
Maersk Sara         ExxonMobil323,182   Oct. 8    93

India
Maharshi Parashuram Reliance  93,322    Sept. 13  96

Japan
Tohshi              S-Oil     300,363   Sept. 26  98
Nichihiko           Thaioil   281,705   Sept. 25  98
Toba                ExxonMobil299,980   Sept. 22  98
Kou-Ei              Thaioil   279,999   Sept. 22  99
Kaminesan           SK        303,896   Sept. 24  98
Starlight Venture   Fuji      317,970   Sept. 28  64
C Majesty           Idemitsu  316,427   Sept. 22  90
Maersk Hakata       Fuji      302,550   Sept. 19  96
Total                         2,402,890

Indonesia
Arena XXVII         BP        307,190   Sept. 16  85

Malaysia
Constantinos        Petrobras 73,307    Sept. 15  82

Saudi Arabia
Stavanger Bliss     Chevron   105,400   Sept. 11  87

Singapore
Front Tina          Chevron   298,824   Sept. 20  95

South Korea
Universal Prime     Reliance  299,985   Oct. 2    94
Blue Pearl          Ssangyong 321,050   Sept. 24  87
Kai-Ei              Caltex    299,997   Jan 1, 2012    95
Total                         921,032

Taiwan
New Valor           CPC       284,631   Sept. 18  97

U.S.
Gemini Voyager      Reliance  310,139   Oct. 9    96
Habari              Reliance  317,664   Oct. 15   95
Janah Star          PetroChina319,464   Oct. 18   95
Total                         947,267

Source:

http://www.bloomberg.com/news/2011-09-09/saudi-arabia-oil-port-may-have-loaded-7-6-million-barrels-a-day.html

Gulf Gasoline Slips as Nate Storm Threat Diminished to Refiners

2011-09-10T14:11:00.000-07:00

By Paul Burkhardt - Sep 9, 2011 12:48 PM GMT-0500

Gulf Coast gasoline weakened on speculation that Tropical Storm Nate won’t impair production by U.S. refiners in the region.

The government of Mexico issued hurricane watches for the southeastern coast from Tampico to Veracruz as Tropical Storm Nate moved northwest through the Bay of Campeche toward an expected landfall in Mexico as soon as Sept. 11, the U.S. National Hurricane Center said in an advisory at about 10:40 a.m. East Coast time.

“The storm headed into Mexico is unlikely to affect refinery operations here,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

The discount for reformulated 87-octane gasoline in the Gulf Coast widened 0.62 cent to 1 cent a gallon versus futures traded on the New York Mercantile Exchange at 12:38 p.m., according to data compiled by Bloomberg. Prompt delivery fell 12.13 cents to $2.7602 a gallon.

The same fuel in New York Harbor fell 2 cents to 14.5 cents a gallon. It’s the lowest premium since Aug. 31.

Source:

http://www.bloomberg.com/news/2011-09-09/gulf-gasoline-slips-as-nate-storm-threat-diminished-to-refiners.html

DOE Supports Project to Cut Solar Power Photovoltaic Wafer Costs 50%

2011-09-10T14:06:00.000-07:00

september 10, 2011

Energy Secretary Steven Chu had a crowded slate Thursday as the DOE announced a series of clean energy financing initiatives aimed at spurring solar energy, geothermal energy, offshore wind power and electric vehicles.

U.S. Energy Secretary Steven Chu finalized a $150 million loan guarantee to 1366 Technologies, Inc. for the development of a multicrystalline wafer manufacturing project that could significantly drive down the costs of solar manufacturing. The project will be capable of producing approximately 700 to 1,000 megawatts (MW) of silicon-based wafers annually using a revolutionary manufacturing process called Direct Wafer. The innovative process could reduce manufacturing costs of the wafers by approximately 50 percent, dramatically cutting the cost of solar power. Phase 1 of the project will be located in Lexington, Massachusetts and is expected to fund 70 permanent jobs and 50 construction jobs. The company is evaluating site locations for another planned phase, which they anticipate will fund hundreds of additional jobs.

“This project is a good example of how investments in American innovation can create jobs and make our manufacturing industry more competitive,” said Secretary Chu. “This type of pioneering technology is needed to compete and thrive in the global race for solar manufacturing, a market worth billions of dollars and tens of thousands of jobs in the years ahead.”

The original development of the company’s Direct Wafer technology was supported with a $4 million grant from the Department’s Advanced Research Projects Agency - Energy program and a $3 million grant from the Department’s Office of Energy Efficiency and Renewable Energy. The innovative manufacturing process reduces four separate manufacturing steps into a single, low cost continuous process and greatly reduces silicon waste by forming individual wafers directly from a bath of molten silicon. A thin sheet of silicon freezes inside the direct wafer furnace and is then removed and laser-trimmed to size. At full production, the entire wafer formation process is completed in just 25 seconds when compared to conventional batch processing, which can take up to three days. The company’s revolutionary one-step process requires 90 percent less energy and results in an industry-standard product that can be used by multicrystalline cell manufacturers.

The Department of Energy's Loan Programs Office (LPO) administers three separate programs: the Title XVII Section 1703 and Section 1705 loan guarantee programs, and the Advanced Technology Vehicle Manufacturing (ATVM) loan program. The loan guarantee programs support the deployment of commercial technologies along with innovative technologies that avoid, reduce, or sequester greenhouse gas emissions, while ATVM supports the development of advanced vehicle technologies. To date, LPO has issued loans, loan guarantees or offered conditional commitments for loan guarantees totaling nearly $40 billion to support more than 40 clean energy projects across the United States. LPO has issued conditional commitments or loan guarantees to support numerous projects, including several of the world’s largest solar generation facilities, three geothermal energy projects and the world’s largest wind farm.

www.lpo.energy.gov

India to add 20,000 MW nuclear power capacity by 2020

2011-09-10T14:03:00.000-07:00

Dileep Athavale, TNN | Sep 9, 2011, 05.25PM IST

PUNE: India has chalked out a largely indigenousnuclear power programme and expects to have 20,000 MW nuclear capacity on line by 2020 and 63,000 MW by 2032. Foreign technology and fuel are expected to boost India's nuclear power plans considerably.

The country aims to supply 25 per cent of electricity from nuclear power by 2050. India's fuel situation, with shortage of fossil fuels, is driving the nuclear investment for electricity for 2050 when 1094 GWe (Giga Watt Electricity) of base-load capacity is expected to be required.

However, Nuclear Energy has become a controversial subject after the recent earthquake in Japan and particularly after the incident of Fukushima. India Nuclear Energy 2011 International Exhibition and Conference scheduled from 29 September 2011 to 1 October 2011 at Bombay Exhibition Center, Mumbai, will provide a global platform for showcasing latest cutting edge nuclear technology and component supplying companies as well as raw material suppliers.

The meet, co-partnered by Department of Atomic Energy(DAE), the nodal Government in the Indian Nuclear Energy sector and supported by Indian Nuclear Society (INS), will have participation from government and private sector companies including DAE, NPCIL, BHEL, L&T, GMR, Areva, GE, Westinghouse and Alstom. Srikumar Banerjee, Chairman Atomic Energy Commission, shall deliver the keynote address for the summit on 29 September 2011.

Source:

http://timesofindia.indiatimes.com/business/india-business/India-to-add-20000-MW-nuclear-power-capacity-by-2020/articleshow/9924153.cms

Canada shifts away from coal fired energy

2011-09-10T13:59:00.000-07:00

Saturday, 10 Sep 2011

Megawatt Daily reported that Canadian government has said it plans to phase out coal-fired electricity by 2015 in a bid to significantly reduce greenhouse gas emissions.

The draft regulation, which is expected to be finalized by 2012, calls for all new coal fired power plants to meet emission performance standards. The government said this is part of a slow phase out process, in order to avoid an electricity price shock.

Environment minister Mr Peter Kent said that “These proposed regulations take into account the fact that many electricity facilities across Canada are old and need to be replaced soon.”

He added that “We're acting now to ensure that power companies understand today, the rules that will affect the new investments they have to make tomorrow. It allows for an orderly process the bedrock of certainty. We want to encourage the shift to cleaner alternatives and to ensure money is spent on clean technology and innovation like carbon capture and storage.”

(Sourced from coalportal.com)

Egypt and Jordan gas deal expected within days

2011-09-10T13:55:00.000-07:00

A long awaited natural gas deal between Egypt and Jordan is expected to be finalized within a week, pending approval from Cairo.

Mr Khaled Toukan minister of energy and Mineral Resources said that Egyptian and Jordanian officials are days away from signing an amended natural gas agreement which was ratified by the Cabinet late last month. Constitutionally, everything is set from our part and we are awaiting approval from the Egyptian government.

Mr Toukan said that once the agreement is signed and ratified, Egypt is to supply Jordan with 150 million cubic feet of natural gas per day, a quantity that is to reach 220 million cubic feet by 2012. The agreement, which brings to an end a favorable pricing structure under which Amman received gas at prices less than half of the international rate includes safeguards stipulating penalties should the supply dip below 175 million cubic feet per day.

As part of the revamped deal starting in 2013, Cairo is to supply Amman with additional gas quantities as compensation for the multiple disruptions in supply caused by five separate acts of sabotage on the Arab Gas Pipeline earlier this year. Separate attacks on the pipeline in the Sinai Peninsula in February, April and July forced the Kingdom's power plants on their diesel and heavy oil reserves at a cost of around JOD 3 million per day.

According to finance ministry estimates, the disruptions in Egyptian gas supplies which Jordan relies on for 80% of its electricity generation needs cost the Kingdom a total of JOD 637 million in the first half of the year. An increased military presence in the Sinai region, combined with Egyptian authorities recent foiling of a sixth sabotage attempt have assured energy officials in Amman of the supply's stability.

Mr Toukan said that we are more confident of recent measures taken by our Egyptian counterparts and are looking forward to resuming pumping. Currently the Kingdom receives 80 million cubic feet of Egyptian gas per day around one third of the amount stipulated in the original 12 year agreement.

Meanwhile, the ministry has received over a dozen expressions of interest for the supply of liquefied gas with Amman set to release a request for a proposal for the construction of an offshore terminal in the Port of Aqaba by the end of the year.

The drive for liquefied gas comes as energy officials attempt to address a five year gap ahead of the development of domestic energy resources including wind, oil shale and nuclear power. Jordan imports 97% of its energy needs at a cost of one fifth of the gross domestic product.

(Sourced from Jordan Times)

UPDATE 1-US natgas rig count falls by 3 to 892-Baker Hughes

2011-09-10T13:48:00.000-07:00

Fri Sep 9, 2011 5:26pm GMT

* Gas-drilling rig count slips for third straight week
   * Horizontal rigs fall after record high two week's ago
 (Adds price reaction, details, background)
    NEW YORK, Sept 9 (Reuters) - The number of rigs drilling
for natural gas in the United States fell by three this week to
892, the third straight weekly decline, data from oil services
firm Baker Hughes showed on Friday.
    Horizontal rigs -- the type most often used to extract oil
or gas from shale -- fell two to 1,134 after hitting a record
high of 1,140 two week's ago. Horizontal drilling rigs comprise
part of the overall gas rig count.
    (Rig graphic: r.reuters.com/dyb62s )
    Front-month U.S. natural gas futures NGc1 were unmoved by
the data, remaining about 5 cents, or 1.3 percent, down at
$3.93 per million British thermal units after the report.
    The gas rig count is 88 rigs below the same week last
year.
    Some firms have shifted spending away from gas to more
profitable liquids or oil-related ventures due to relatively
low gas prices. The changes have yet to be reflected in
industry data, which still show production at record levels.
    The U.S. Energy Information Administration expects marketed
natural gas production this year to climb to a record high
65.80 billion cubic feet per day, easily eclipsing the previous
high of 62.05 bcf daily in 1973.
    There has been record heat and power demand this summer,
but traders said high gas production has easily offset the
surge in cooling needs and some storm-related supply cuts.
    The gas rig count of 892 remains well above the 800 level
some analysts say is needed to cut production significantly and
tighten overall supplies.
    Most analysts expect no major slowdown in domestic gas
output until early next year.
 (Reporting by Edward McAllister; Editing by Alden Bentley)

Source:

http://af.reuters.com/article/energyOilNews/idAFN1E78813F20110909

Indian shares snap rally on profit taking, U.S. worries

2011-09-10T13:40:00.000-07:00

Fri Sep 9, 2011 7:23am EDT

By Nandita Bose

MUMBAI, Sept 9 (Reuters) - Indian shares fell 1.7 percent on
Friday, snapping a three-day winning streak, as profit booking
emerged and a lack of clarity on new stimulus measures
re-ignited concerns over the health of the U.S. economy and
drove investors away from equities.

Disappointment grew after a speech by the U.S. Federal
Reserve chief lacked details on plans to spur economic growth
after a $447 billion jobs package plan by U.S. President Barack
Obama.

The 30-share BSE index fell 1.74 percent, or 298.57
points, to 16,866.97, with 23 of its components declining. The
index had gained nearly 3 percent in the past three trading
sessions and on Thursday touched its highest close since Aug. 5.

Software stocks led the losses. The United States is one of
the biggest markets for India's $76 billion information
technology sector.

No.2 software services exporter Infosys fell 2.74
percent, while sector leader Tata Consultancy Services ,
ended 1.93 percent down.

"The correction has a lot to do with profit booking that has
come in during the day as investors chose to cash in on the
gains made in the past few sessions. It did look like 5,100
levels will be a strong resistance," said Gajendra Nagpal, chief
executive, Unicon Financial Intermediaries.

"The weakness in the global markets has also definitely
added to the negative sentiment."

A pick-up in foreign fund inflows over the past few sessions
has underpinned India even as global markets have been dominated
in recent weeks by fears of a U.S. relapse into recession and
Europe's snowballing debt crisis.

The main index rose 0.27 percent this week, its second
straight weekly gain after falling for five consecutive weeks.

Foreign funds bought just over $500 million of local stocks
so far in September after selling $2.2 billion in the last
month, according to data from the market regulator.

"In the coming sessions the market is expected to move
sideways and consolidate at around 5,050," Nagpal said.

The 50-share NSE index closed down 1.82 percent at
5,059.45. In the broader market, advancing stocks led declines
493 to 940 on a volume of 763 million shares.

Energy major Reliance Industries ended down 3.13
percent a day after India's federal auditor criticised the
company and the government over development of the country's key
natural gas field in the Krishna Godavari (KG) basin and called
for revamping profit sharing arrangements from oil and gas
blocks.

The auditor report could form the basis of any possible
government action against Reliance in future, analysts said.

Reliance shares, which have the heaviest weight on the main
index, are down 22 percent year to date, compared with a 18
percent fall in the benchmark index

Banking stocks also fell 2 to 4 percent on expectations the
central bank may again raise rates next week.

The Reserve Bank of India remains bent on fighting domestic
inflation despite weakening global conditions, officials with
direct knowledge of policymaking said on Wednesday. It is
scheduled to review policy next Friday.

HDFC Bank ended down 2.16 percent, while bigger
rival ICICI Bank fell 2.41 percent. State Bank of
India , the market leader, ended down 3.52 percent.

Aluminium producer Hindalco fell 5.72 percent
after Morgan Stanley downgraded it to "underweight" from
"overweight" and slashed its price target by nearly half.

Indian shares have been one of the world's worst performers
this year, with the BSE index down 18 percent, as rising
interest rates dent growth.

The MSCI's measure of Asian markets other than Japan
 fell 0.98 percent, while Japan's Nikkei 
ended down 0.63 percent.

Source:

http://www.reuters.com/article/2011/09/09/indian-stocks-idUSL3E7K91GF20110909

Oil prices ended the week falling | gold prices slightly rose – September 9

2011-09-10T13:00:00.000-07:00

September 10, 2011

Gold price ended the week with light rises, while silver prices ended with falls. Crude oil prices, much like the US stock markets, sharply fell on Friday. Natural gas spot price (Henry Hub) changed direction and declined. Here is a summary of the price movements of precious metals and energy commodities for September 9^th:
Precious Metals prices:
Gold price slightly inclined yesterday by 0.11% to $1,859; Silver price on the other hand decreased by 2.13% to $41.62. During September, gold prices increased by 1.5%, while silver price fell by 0.3%.
The EURO to US Dollar exchange rate sharply fell again yesterday by 1.63% to 1.3657 – i.e. the USD appreciated against the EURO. During September, the EURO to US Dollar declined by 4.96%. This drop is after the ECB decided to keep its interest rates unchanged at 1.5%.
Oil and Gas prices:
WTI Spot oil price sharply fell by 2.03%; it settled at $87.24 per barrel; Brent spot price also decreased by 1.80% to $112.24 per barrel; during September the WTI spot oil price declined by 1.8% and Brent oil fell by 3.6%.
Due to these changes, the difference between Brent and WTI slipped again to $25.00/bbl.
Natural gas Henry Hub future price (October delivery) fell by 1.51% to $3.92/mmbtu. The Henry Hub spot price also slipped by 0.25% to $3.96/mmbtu; the gap between the spot and future price fell to -$0.04, i.e. backwardation. During September, natural gas spot price (Henry Hub) fell by 0.3%.

Source:

http://www.tradingnrg.com/gold-price-rose-and-silver-prices-fell-oil-declined-september-9/

Death of Yucca Mountain caused by political maneuvering -- GAO

2011-05-10T12:12:00.000-07:00

Tuesday, May 10, 2011 -- 12:59 PM

The Obama administration's rushed efforts to shut down Yucca Mountain were strictly political and could set back the opening of a nuclear waste repository by more than 20 years, according to a new report by a federal watchdog. The administration killed the repository program last year without citing technical or safety issues, and restarting the costly and time-consuming process of finding a permanent repository or an alternative solution could take decades and cost billions of additional dollars, the Government Accountability Office reported yesterday.

Source:

http://www.eenews.net/gw/

Gasoline Gains Most in 21 Months on Flooding, Refinery Problems

2011-05-10T12:04:00.000-07:00

By Barbara Powell - May 9, 2011 3:32 PM GMT-0500

Gasoline advanced the most since July 2009 on speculation that fuel production and distribution will be disrupted by Mississippi River flooding and refinery unit shutdowns from the Midwest to the Gulf Coast.

Futures jumped 6.1 percent as Chevron had a crude unit fire in its Mississippi refinery and Exxon Mobil Corp. had a unit failure in its Illinois plant. The Mississippi River, the largest U.S. river system, is forecast to crest today in Memphis, Tennessee, just below its 74-year-old record as a bulge of water moves south toward the riverside refineries in Louisiana.

“There’s strength in the spot market, there was a laundry list of refinery issues over the weekend, and there’s just no refinery selling on the Gulf Coast,” said Tom Knight, vice president of trading and supply at Truman Arnold Cos. in Texarkana, Texas. “There may be concerns about disruptions of incoming crude, concerns about flooding.”

Gasoline for June delivery rose 18.83 cents to settle at $3.2784 a gallon on the New York Mercantile Exchange. It was the first gain in six days and follows a loss of 11 percent last week. Gasoline was the biggest gainer on the Thomson Reuters/Jefferies CRB Index.

Mississippi Flooding

Flooding may disrupt fuel production from plants along the river from New Orleans to Baton Rouge. That area contains 11 refineries with a combined capacity of 2.5 million barrels a day, or 13 percent of U.S. fuel output, said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

“There is potential impact to refinery supplies due to Mississippi River flooding, so gasoline is biased to the upside,” Lipow said. “Supplies, especially in the Northeast, are quite tight.”

Futures were supported by higher spot prices. Regular gasoline in Chicago traded at a 21-cent premium to futures, compared with a 10-cent premium on May 6, according to data compiled by Bloomberg. Gulf Coast gasoline rose 6.25 cents to trade at a 3-cent premium.

“There were spot shortages at some terminals,” said Lewis Adam, president of ADMO Energy LLC, a supply consultant in Kansas City.

Exxon shut a fuel terminal in Memphis April 29 in advance of flooding, Kevin Allexon, a company spokesman, said in an e- mail. “Severe weather” forced Valero Energy Corp. to cut off sales to unbranded spot customers in Paducah, Kentucky, Bill Day, a spokesman for Valero in San Antonio, said. “We will meet obligations to our branded customers,” he said.

Supply Drop

Futures also surged on speculation prices fell too far last week with supplies at a 22-month low before the summer driving season. Gasoline stockpiles dropped 11 consecutive weeks from Feb. 11 to April 29, according to Energy Department data, and shed 36.6 million barrels. Refiners operated at 82.8 percent of capacity, 6.8 percentage points below a year earlier.

“Last week’s drop was a little overdone,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Until we see signs that refineries are going to start ramping up production for the summer, gasoline will have a bit of a bid in it.”

The premium of June futures over July increased to 11.4 cents a gallon from 9.45 cents on May 6, the widest backwardation for the contracts nearest to expiration since Aug. 31, 2009. Supplies in Padd 1 are the lowest since October 2008, according to Energy Department data. The region includes New York Harbor, the delivery point of the Nymex gasoline contract.

Supply Survey

Supplies of the motor fuel probably fell 750,000 barrels last week to 203.9 million barrels, the lowest level since June 2009, according to the median estimate of 11 analysts in a survey by Bloomberg News. Supply disruptions that occurred after May 6 would not be reflected in department’s report, to be released on May 11.

Gasoline use typically climbs in mid-year when summer vacations boost consumption. The peak demand period starts after the Memorial Day holiday in late May and ends on Labor Day in early September. The holidays fall on May 30 and Sept. 5 this year.

The premium of gasoline over crude oil on Nymex gained $2.54 to $35.14 a barrel. That’s the largest crack spread for the contract nearest to expiration since May 2007.

“It’s the supply issues, ahead of the Memorial Day weekend,” said Fred Rigolini, vice president of Paramount Options Inc. in New York. “People are thinking there could be supply issues going into the summer.”

Regular retail gasoline fell 0.6 cent to $3.96 a gallon yesterday, AAA said on its website.

Volume for gasoline futures was 173,895 contracts in electronic trading as of 3:06 p.m., 45 percent above the average over the past three months. Heating oil volume was 128,481 lots, 4.5 percent above the average.

Heating oil for June delivery rose 11.61 cents, or 4.1 percent, to settle at $2.9618 a gallon on the exchange.

Source:

http://www.bloomberg.com/news/2011-05-09/gasoline-futures-rise-on-lower-supplies-ahead-of-driving-season.html

IPCC: 80% renewable energy by 2050, wind power will have an increasingly important role

2011-05-10T11:57:00.000-07:00

may 10, 2011

The Global Wind Energy Council, (GWEC), welcomes the news, saying wind power will have an increasingly important role to play in the future energy mix.

Renewable energy sources are expected to contribute up to 80% of global energy supply by 2050, according to a new report published by the Intergovernmental Panel on Climate Change (IPCC). Following a review of 164 scenarios, the IPCC found that renewables will play the major role in any successful plan to combat climate change.

“The report clearly demonstrates that renewable technologies could supply the world with more energy than it would ever need, and at a highly competitive cost,” said Steve Sawyer, Secretary General of the Global Wind Energy Council. “The IPCC report will be a key reference for policy makers and industry alike, as it represents the most comprehensive high level review of renewable energy to date.”

The 1,000 page report, which was adopted by 194 governments after marathon negotiations on 9 May, considers the potential contribution from biomass, geothermal, hydro, ocean, solar and wind energy, as well as their potential to reduce greenhouse gas emissions, their integration into the energy networks, their contribution to sustainable development, and the policies which are needed to put them in place.

An increasing number of technologies are already economically competitive, and this will increase as further cost reductions and technology improvements are made. The report also emphasises that wind power alone is capable of supplying more than 100% of future demand, and solar many times more.

The scenarios assessed by the IPCC estimate that renewable energy can save between 220 and 560 Gigatonnes of CO2 in the period between 2010 and 2050.

“One key message from the report is that renewable energy sources will be paramount in the global battle against climate change, and their role in saving greenhouse gas emissions will be considerably more important than that of natural gas, carbon capture and storage, or nuclear power,” said Sawyer. “However, it is up to policy makers to make this happen with adequate support and long-term commitment. One crucial opportunity for this will be the next round of climate negotiations in South Africa in December this year.”

In 2009, around 12.9% of global primary energy supply, and 19% of the global electricity supply, was covered by renewable sources, including traditional biomass. The world’s wind power capacity installed at the end of 2010 produces enough power to cover for around 2.5% of global electricity demand, and in the scenarios examined by the IPCC, this share could increase tenfold to reach 25% in 2050.

The Working Group III Special Report on Renewable Energy Sources and Climate Change Mitigation (SRREN) presents an assessment of the literature on the scientific, technological, environmental, economic and social aspects of the contribution of six renewable energy (RE) sources to the mitigation of climate change. It is intended to provide policy relevant information to governments, intergovernmental processes and other interested parties.

This Summary for Policymakers provides an overview of the SRREN, summarizing the essential findings. The SRREN consists of 11 chapters. Chapter 1 sets the context for RE and climate change; Chapters 2 through 7 provide information on six RE technologies, and Chapters 8 through 11 address integrative issues.

Renewable energy and climate change

Demand for energy and associated services, to meet social and economic development and improve human welfare and health, is increasing. All societies require energy services to meet basic human needs (e.g., lighting, cooking, space comfort, mobility and communication) and to serve productive processes. Since approximately 1850, global use of fossil fuels (coal, oil and gas) has increased to dominate energy supply, leading to a rapid growth in carbon dioxide (CO2) emissions.

GHG emissions resulting from the provision of energy services have contributed significantly to the historic increase in atmospheric GHG concentrations. The IPCC Fourth Assessment Report (AR4) concluded that “Most of the observed increase in global average temperature since the mid-20th century is very likely2 due to the observed increase in anthropogenic greenhouse gas (GHG) concentrations.”

Recent data confirms that consumption of fossil fuels accounts for the majority of global anthropogenic GHG emissions3. Emissions continue to grow and CO2 concentrations had increased to over 390 ppm, or 39% above preindustrial levels, by the end of 2010.

There are multiple options for lowering GHG emissions from the energy system while still satisfying the global demand for energy services. Some of these possible options, such as energy conservation and efficiency, fossil fuel switch, RE, nuclear and CCS were assessed in the AR4. A comprehensive evaluation of any portfolio of mitigation options would involve an evaluation of their respective mitigation potential as well as all associated risks, costs and their contribution to sustainable development.

This report will concentrate on the role that the deployment of RE technologies can play within such a portfolio of mitigation options As well as having a large potential to mitigate climate change, RE can provide wider benefits. RE may, if implemented properly, contribute to social and economic development, energy access, a secure energy supply, and reducing negative impacts on the environment and health.

Under most conditions increasing the share of RE in the energy mix will require policies to stimulate changes in the energy system. Deployment of RE technologies has increased rapidly in recent years, and their share is projected to increase substantially under most ambitious mitigation scenarios. Additional policies would be required to attract the necessary increases in investment in technologies and infrastructure.

Renewable energy technologies and markets

RE comprises a heterogeneous class of technologies. Various types of RE can supply electricity, thermal energy and mechanical energy, as well as produce fuels that are able to satisfy multiple energy service needs. Some RE technologies can be deployed at the point of use (decentralized) in rural and urban environments, whereas others are primarily deployed within large (centralized) energy networks.

Though a growing number of RE technologies are technically mature and are being deployed at significant scale, others are in an earlier phase of technical maturity and commercial deployment or fill specialized niche markets [1.2]. The energy output of RE technologies can be (i) variable and - to some degree - unpredictable over differing time scales (from minutes to years), (ii) variable but predictable, (iii) constant, or (iv) controllable.

Renewable energy sources and technologies considered in this report

Bioenergy can be produced from a variety of biomass feedstocks, including forest, agricultural and livestock residues; short-rotation forest plantations; energy crops; the organic component of municipal solid waste; and other organic waste streams. Through a variety of processes, these feedstocks can be directly used to produce electricity or heat, or can be used to create gaseous, liquid, or solid fuels. The range of bioenergy technologies is broad and the technical maturity varies substantially. Some examples of commercially available technologies include small- and large-scale boilers, domestic pellet-based heating systems, and ethanol production from sugar and starch.

Advanced biomass integrated gasification combined-cycle power plants and lignocellulose-based transport fuels are examples of technologies that are at a pre-commercial stage, while liquid biofuel production from algae and some other biological conversion approaches are at the research and development (R&D) phase. Bioenergy technologies have applications in centralized and decentralized settings, with the traditional use of biomass in developing countries being the most widespread current application.

Bioenergy typically offers constant or controllable output. Bioenergy projects usually depend on local and regional fuel supply availability, but recent developments show that solid biomass and liquid biofuels are increasingly traded internationally.

Direct solar energy technologies harness the energy of solar irradiance to produce electricity using photovoltaics (PV) and concentrating solar power (CSP), to produce thermal energy (heating or cooling, either through passive or active means), to meet direct lighting needs and, potentially, to produce fuels that might be used for transport and other purposes. The technology maturity of solar applications ranges from R&D (e.g., fuels produced from solar energy), to relatively mature (e.g., concentrated solar energy), to mature (e.g. passive and active solar heating, and wafer-based silicon PV).

Many but not all of the technologies are modular in nature, allowing their use in both centralized and decentralized energy systems. Solar energy is variable and, to some degree, unpredictable, though the temporal profile of solar energy output in some circumstances correlates relatively well with energy demands. Thermal energy storage offers the option to improve output control for some technologies such as CSP and direct solar heating.

Geothermal energy utilizes the accessible thermal energy from the Earth’s interior. Heat is extracted from geothermal reservoirs using wells or other means. Reservoirs that are naturally sufficiently hot and permeable are called hydrothermal reservoirs, whereas reservoirs that are sufficiently hot but that are improved with hydraulic stimulation are called enhanced geothermal systems (EGS). Once at the surface, fluids of various temperatures can be used to generate electricity or can be used more directly for applications that require thermal energy, including district heating or the use of lower-temperature heat from shallow wells for geothermal heat pumps used in heating or cooling applications. Hydrothermal power plants and thermal applications of geothermal energy are mature technologies, whereas EGS projects are in the demonstration and pilot phase while also undergoing R&D. When used to generate electricity, geothermal power plants typically offer constant output.

Hydropower harnesses the energy of water moving from higher to lower elevations, primarily to generate electricity. Hydropower projects encompass dam projects with reservoirs, run-of-river and in-stream projects and cover a continuum in project scale. This variety gives hydropower the ability to meet large centralized urban needs as well as decentralized rural needs. Hydropower technologies are mature. Hydropower projects exploit a resource that varies temporally. However, the controllable output provided by hydropower facilities that have reservoirs can be used to meet peak electricity demands and help to balance electricity systems that have large amounts of variable RE drinking water, irrigation, flood and drought control, and navigation, as well as energy supply.

Ocean energy derives from the potential, kinetic, thermal and chemical energy of seawater, which can be transformed to provide electricity, thermal energy, or potable water. A wide range of technologies are possible, such as barrages for tidal range, submarine turbines for tidal and ocean currents, heat exchangers for ocean thermal energy conversion, and a variety of devices to harness the energy of waves and salinity gradients. Ocean technologies, with the exception of tidal barrages, are at the demonstration and pilot project phases and many require additional R&D. Some of the technologies have variable energy output profiles with differing levels of predictability (e.g., wave, tidal range and current), while others may be capable of near-constant or even controllable operation (e.g., ocean thermal and salinity gradient).

Wind energy harnesses the kinetic energy of moving air. The primary application of relevance to climate change mitigation is to produce electricity from large wind turbines located on land (onshore) or in sea- or freshwater (offshore). Onshore wind energy technologies are already being manufactured and deployed on a large scale. Offshore wind power technologies have greater potential for continued technical advancement. Wind electricity is both variable and, to some degree, unpredictable, but experience and detailed studies from many regions have shown that the integration of wind energy generally poses no insurmountable technical barriers.

Accounting for primary energy in the SRREN

There is no single, unambiguous accounting method for calculating primary energy from noncombustible energy sources such as non-combustible RE sources and nuclear energy. The SRREN adopts the ‘direct equivalent’ method for accounting for primary energy supply. In this method, fossil fuels and bioenergy are accounted for based on their heating value while non-combustible energy sources, including nuclear energy and all non-combustible RE, are accounted for based on the secondary energy that they produce. This may lead to an understatement of the contribution of non-combustible RE and nuclear compared to bioenergy and fossil fuels by a factor of roughly 1.2 up to 3.

The selection of the accounting method also impacts the relative shares of different individual energy sources. Comparisons in the data and figures presented in the SRREN between fossil fuels and bioenergy on the one hand, and non-combustible RE and nuclear energy on the other, reflect this accounting method.

On a global basis, it is estimated that RE accounted for 12.9% of the total 492 Exajoules (EJ) of primary energy supply in 2008. The largest RE contributor was biomass (10.2%), with the majority (roughly 60%) being traditional biomass used in cooking and heating applications in developing countries but with rapidly increasing use of modern biomass as well.6 Hydropower represented 2.3%, whereas other RE sources accounted for 0.4%.

In 2008, RE contributed approximately 19% of global electricity supply (16% hydropower, 3% other RE) and biofuels contributed 2% of global road transport fuel supply. Traditional biomass (17%), modern biomass (8%), solar thermal and geothermal energy (2%) together fuelled 27% of the total global demand for heat. The contribution of RE to primary energy supply varies substantially by country and region.

Deployment of RE has been increasing rapidly in recent years. Various types of government policies, the declining cost of many RE technologies, changes in the prices of fossil fuels, an increase of energy demand and other factors have encouraged the continuing increase in the use of RE. Despite global financial challenges, RE capacity continued to grow rapidly in 2009 compared to the cumulative installed capacity from the previous year, including: wind power (32% increase, 38 Gigawatts (GW) added), hydropower (3%, 31 GW added), grid-connected photovoltaics (53%, 7.5 GW added), geothermal power (4%, 0.4 GW added), and solar hot water/heating (21%, 31 GWth added). Biofuels accounted for 2% of global road transport fuel demand in 2008 and nearly 3% in 2009. The annual production of ethanol increased to 1.6 EJ (76 billion litres) by the end of 2009 and biodiesel to 0.6 EJ (17 billion litres).

Of the approximate 300 GW of new electricity generating capacity added globally over the twoyear period from 2008 to 2009, 140 GW came from RE additions. Collectively, developing countries host 53% of global RE electricity generation capacity. At the end of 2009, the use of RE in hot water/heating markets included modern biomass (270 GWthermal), solar (180 GWthermal), and geothermal (60 GWthermal). The use of decentralized RE (excluding traditional biomass) in meeting rural energy needs at the household or village level has also increased, including hydropower stations, various modern biomass options, PV, wind or hybrid systems that combine multiple technologies.

The global technical potential7 of RE sources will not limit continued growth in the use of RE. A wide range of estimates are provided in the literature, but studies have consistently found that the total global technical potential for RE is substantially higher than global energy demand.

The technical potential for solar energy is the highest among the RE sources, but substantial technical potential exists for all six RE sources. Even in regions with relatively low levels of technical potential for any individual RE source, there are typically significant opportunities for increased deployment compared to current levels. In the longer term and at higher deployment levels, however, technical potentials indicate a limit to the contribution of some individual RE technologies. Factors such as sustainability concerns, public acceptance, system integration and infrastructure constraints, or economic factors may also limit deployment of renewable energy technologies.

Climate change will have impacts on the size and geographic distribution of the technical potential for RE sources, but research into the magnitude of these possible effects is nascent. Because RE sources are, in many cases, dependent on the climate, global climate change will affect the RE resource base, though the precise nature and magnitude of these impacts is uncertain. The future technical potential for bioenergy could be influenced by climate change through impacts on biomass production such as altered soil conditions, precipitation, crop productivity and other factors.

The overall impact of a global mean temperature change of below 2°C on the technical potential of bioenergy is expected to be relatively small on a global basis. However, considerable regional differences could be expected and uncertainties are larger and more difficult to assess For solar energy, though climate change is expected to influence the distribution and variability of cloud cover, the impact of these changes on overall technical potential is expected to be small.

For hydropower the overall impacts on the global potential is expected to be slightly positive. However, results also indicate the possibility of substantial variations across regions and even within countries. Research to date suggests that climate change is not expected to greatly impact the global technical potential for wind energy development but changes in the regional distribution of the wind energy resource may be expected. Climate change is not anticipated to have significant impacts on the size or geographic distribution of geothermal or ocean energy resources.

The levelized cost of energy for many RE technologies is currently higher than existing energy prices, though in various settings RE is already economically competitive. Ranges of recent levelized costs of energy for selected commercially available RE technologies are wide, depending on a number of factors including, but not limited to, technology characteristics, regional variations in cost and performance, and differing discount rates.

Some RE technologies are broadly competitive with existing market energy prices. Many of the other RE technologies can provide competitive energy services in certain circumstances, for example, in regions with favourable resource conditions or that lack the infrastructure for other low-cost energy supplies. In most regions of the world, policy measures are still required to ensure rapid deployment of many RE sources.

Monetizing the external costs of energy supply would improve the relative competitiveness of RE. The same applies if market prices increase due to other reasons. The levelized cost of energy for a technology is not the sole determinant of its value or economic competitiveness. The attractiveness of a specific energy supply option depends also on broader economic as well as environmental and social aspects, and the contribution that the technology provides to meeting specific energy services (e.g., peak electricity demands) or imposes in the form of ancillary costs on the energy system (e.g., the costs of integration).

The cost of most RE technologies has declined and additional expected technical advances would result in further cost reductions. Significant advances in RE technologies and associated long-term cost reductions have been demonstrated over the last decades, though periods of rising prices have sometimes been experienced (due to, for example, increasing demand for RE in excess of available supply).

The contribution of different drivers (e.g., R&D, economies of scale, deployment-oriented learning, and increased market competition among RE suppliers) is not always understood in detail. Further cost reductions are expected, resulting in greater potential deployment and consequent climate change mitigation. Examples of important areas of potential technological advancement include: new and improved feedstock production and supply systems, biofuels produced via new processes (also called next-generation or advanced biofuels, e.g., lignocellulosic) and advanced biorefining; advanced PV and Concentrating Solar Power technologies and manufacturing processes; enhanced geothermal systems (EGS); multiple emerging ocean technologies; and foundation and turbine designs for offshore wind energy. Further cost reductions for hydropower are expected to be less significant than some of the other RE technologies, but R&D opportunities exist to make hydropower projects technically feasible in a wider range of locations and improve the technical performance of new and existing projects.

A variety of technology-specific challenges (in addition to cost) may need to be addressed to enable RE to significantly upscale its contribution to reducing GHG emissions. For the increased and sustainable use of bioenergy, proper design, implementation and monitoring of sustainability frameworks can minimize negative impacts and maximize benefits with regard to social, economic and environmental issues.

For solar energy, regulatory and institutional barriers can impede deployment, as can integration and transmission issues. For geothermal energy, an important challenge would be to prove that enhanced geothermal systems (EGS) can be deployed economically, sustainably and widely.

New hydropower projects can have ecological and social impacts that are very site specific, and increased deployment may require improved sustainability assessment tools, and regional and multi-party collaborations to address energy and water needs [5.6, 5.9, 5.10]. The deployment of ocean energy could benefit from testing centres for demonstration projects, and from dedicated policies and regulations that encourage early deployment. For wind energy, technical and institutional solutions to transmission constraints and operational integration concerns may be especially important, as might public acceptance issues relating primarily to landscape impacts.

Integration into present and future energy systems

The characteristics of different RE sources can influence the scale of the integration challenge. Some RE resources are widely distributed geographically. Others, such as large scale hydropower, can be more centralized but have integration options constrained by geographic location. Some RE resources are variable with limited predictability. Some have lower physical energy densities and integration and invoke additional system costs particularly when reaching higher shares of RE.

Integrating RE into most existing energy supply systems and end-use sectors at an accelerated rate -- leading to higher shares of RE -- is technologically feasible, though will result in a number of additional challenges. Increased shares of RE are expected within an overall portfolio of low GHG emission technologies. Whether for electricity, heating, cooling, gaseous fuels or liquid fuels, including integration directly into end-use sectors, the RE integration challenges are contextual and site specific and include the adjustment of existing energy supply systems.

The costs and challenges of integrating increasing shares of RE into an existing energy supply system depend on the current share of RE, the availability and characteristics of RE resources, the system characteristics, and how the system evolves and develops in the future. RE can be integrated into all types of electricity systems from large inter-connected continental-scale grids down to small stand-alone systems and individual buildings. Relevant system characteristics include the generation mix and its flexibility, network infrastructure, energy market designs and institutional rules, demand location, demand profiles, and control and communication capability. Wind, solar PV energy and CSP without storage can be more difficult to integrate than dispatchable hydropower, bioenergy, CSP with storage and geothermal energy.

As the penetration of variable RE sources increases, maintaining system reliability may become more challenging and costly. Having a portfolio of RE technologies is one solution to reduce the risks and costs of RE integration. Other solutions include the development ofcomplementary flexible generation and the more flexible operation of existing schemes; improved short term forecasting, system operation and planning tools; electricity demand that can respond in relation to supply availability; energy storage technologies (including storage-based hydropower); and modified institutional arrangements.

Additional electricity network transmission (including inter-connections between systems) and/or distribution infrastructure may need to be strengthened and extended, partly because of the geographical distribution and fixed remote locations of many RE resources.

District heating systems can use low-temperature thermal RE inputs such as solar and geothermal heat, or biomass, including sources with few competing uses such as refusederived fuels. District cooling can make use of cold natural waterways. Thermal storage capability and flexible cogeneration can overcome supply and demand variability challenges as well as provide demand response for electricity systems.

In gas distribution grids, injecting biomethane, or in the future, RE-derived hydrogen and synthetic natural gas, can be achieved for a range of applications but successful integration requires that appropriate gas quality standards are met and pipelines upgraded where necessary.

Liquid fuel systems can integrate biofuels for transport applications or for cooking and heating applications. Pure (100%) biofuels, or more usually those blended with petroleumbased fuels usually need to meet technical standards consistent with vehicle engine fuel
specifications.

There are multiple pathways for increasing the shares of RE across all end-use sectors. The ease of integration varies depending on region, characteristics specific to the sector and the technology.

For transport, liquid and gaseous biofuels are already and are expected to continue to be integrated into the fuel supply systems of a growing number of countries. Integration options may include decentralized on-site or centralized production of RE hydrogen for fuel cell vehicles and RE electricity for rail and electric vehicles depending on infrastructure and vehicle technology developments.

Future demand for electric vehicles could also enhance flexible electricity generation systems.

In the building sector, RE technologies can be integrated into both new and existing structures to produce electricity, heating and cooling. Supply of surplus energy may be possible, particularly for energy efficient building designs. In developing countries, the integration of RE supply systems is feasible for even modest dwellings.

Agriculture as well as food and fibre process industries often use biomass to meet direct heat and power demands on-site. They can also be net exporters of surplus fuels, heat, and electricity to adjacent supply systems. Increasing the integration of RE for use by industries is an option in several sub-sectors, for example through electro-thermal technologies or, in the longer term, by using RE hydrogen.

The costs associated with RE integration, whether for electricity, heating, cooling, gaseous or liquid fuels, are contextual, site-specific and generally difficult to determine. They may include additional costs for network infrastructure investment, system operation and losses, and other adjustments to the existing energy supply systems as needed. The available literature on integration costs is sparse and estimates are often lacking or vary widely.

In order to accommodate high RE shares, energy systems will need to evolve and be adapted. Long-term integration efforts could include investment in enabling infrastructure; modification of institutional and governance frameworks; attention to social aspects, markets and planning; and capacity building in anticipation of RE growth. Furthermore, integration of less mature technologies, including biofuels produced through new processes (also called advanced biofuels or next-generation biofuels), fuels generated from solar energy, solar cooling, ocean energy technologies, fuel cells and electric vehicles, will require continuing investments in research, development and demonstration (RD&D), capacity building and other supporting measures.

RE could shape future energy supply and end-use systems, in particular for electricity which is expected to attain higher shares of RE earlier than either the heat or transport fuel sectors at the global level. Parallel developments in electric vehicles, increased heating and cooling using electricity (including heat pumps), flexible demand response services (including the use of smart meters), energy storage and other technologies could be associated with this trend.

As infrastructure and energy systems develop, in spite of the complexities, there are few, if any, fundamental technological limits to integrating a portfolio of RE technologies to meet a majority share of total energy demand in locations where suitable RE resources exist or can be supplied. However, the actual rate of integration and the resulting shares of RE will be influenced by factors, such as costs, policies, environmental issues and social aspects.

Renewable energy and sustainable development

Historically, economic development has been strongly correlated with increasing energy use and growth of GHG emissions and RE can help decouple that correlation, contributing to sustainable development (SD). Though the exact contribution of RE to SD has to be evaluated in a country specific context, RE offers the opportunity to contribute to social and economic development, energy access, secure energy supply, climate change mitigation, and the reduction of negative environmental and health impacts.

Providing access to modern energy services would support the achievement of the Millennium Development Goals. RE can contribute to social and economic development. Under favorable conditions, cost savings in comparison to non-RE use exist, in particular in remote and in poor rural areas lacking centralized energy access.

Costs associated with energy imports can often be reduced through the deployment of domestic RE technologies that are already competitive. [9.3.3] RE can have a positive impact on job creation although the studies available differ with respect to the magnitude of net employment.

RE can help accelerate access to energy, particularly for the 1.4 billion people without access to electricity and the additional 1.3 billion using traditional biomass. Basic levels of access to modern energy services can provide significant benefits to a community or household. In many developing countries, decentralized grids based on RE and the inclusion of RE in centralized energy grids have expanded and improved energy access. In addition, non-electrical RE technologies also offer opportunities for modernization of energy services, for example using solar energy for water heating and crop drying, biofuels for transportation, biogas and modern biomass for heating, cooling, cooking and lighting, and wind for water pumping.

The number of people without access to modern energy services is expected to remain unchanged unless relevant domestic policies are implemented, which may be supported or complemented by international assistance as appropriate.

RE options can contribute to a more secure energy supply, although specific challenges to integration must be considered. RE deployment might reduce vulnerability to supply disruption and market volatility if competition is increased and energy sources are diversified.

Scenario studies indicate that concerns regarding secure energy supply, could continue in the future without technological improvements within the transport sector.

The variable output profiles of some RE technologies often necessitate technical and institutional measures appropriate to local conditions to assure energy supply reliability.

In addition to reduced GHG emissions, RE technologies can provide other important environmental benefits. Maximizing these benefits depends on the specific technology, management, and site characteristics associated with each RE project.

Lifecycle assessments (LCA) for electricity generation indicate that GHG emissions from RE technologies are, in general, significantly lower than those associated with fossil fuel options, and in a range of conditions, less than fossil fuels employing CCS. The median values for all RE are ranging from 4 to 46 g CO2 eq/kWh while those for fossil fuels range from 469 to 1001g CO2-eq/kWh (excluding land use change emissions).

Most current bioenergy systems, including liquid biofuels, result in GHG emission reductions, and most biofuels produced through new processes (also called advanced biofuels or next generation biofuels) could provide higher GHG mitigation. The GHG balance may be affected by land use changes and corresponding emissions and removals. Bioenergy can lead to avoided GHG emissions from residues and wastes in landfill disposals and co-products; the combination of bioenergy with CCS may provide for further reductions.

The GHG implications related to land management and land use changes in carbon stocks have considerable uncertainties. The sustainability of bioenergy, in particular in terms of life cycle GHG emissions, is influenced by land and biomass resource management practices. Changes in land and forest use or management that, according to a considerable number of studies, could be brought about directly or indirectly by biomass production for use as fuels, power or heat, can decrease or increase terrestrial carbon stocks. The same studies also show that indirect changes in terrestrial carbon stocks have considerable uncertainties, are not directly observable, are complex to model and difficult to attribute to a single cause. Proper governance of land use, zoning, and choice of biomass production systems are key considerations for policy makers.

Policies are in place that aim to ensure that the benefits from bioenergy, such as rural development, overall improvement of agricultural management and the contribution to climate change mitigation, are realized; their effectiveness has not been assessed.

Source: http://www.evwind.es/noticias.php?id_not=11539

Japan to scrap plan to boost nuke energy to 50 pct

2011-05-10T11:52:00.000-07:00

(AP) – 9 hours ago

TOKYO (AP) — Japan's prime minister says the country will scrap a plan calling for increasing the share of nuclear power as an energy source to 50 percent from the current 30 percent.

Naoto Kan told a news conference Tuesday that Japan needs to "start from scratch" on its long-term energy policy after the Fukushima Dai-ichi nuclear power plant was damaged by the March 11 earthquake and tsunami.

Kan also said he would take a pay cut beginning in June until the Fukushima nuclear crisis is resolved to take responsibility as part of the government that has promoted nuclear energy.

US coal consumption slumped by 2pct - Genscape

2011-05-10T11:48:00.000-07:00

Tuesday, 10 May 2011

According to Genscape Inc, coal consumption in the US decreased 2.5% in the week ended May 6th 2010 from the previous seven day period, with losses in both the East and West.

The data provider said that Western power plant use fell 1.2% while demand in the East slipped 3.4%. Overall coal demand was down 9.8% from a year earlier.

Genscape said that it monitors coal use in real time at US power producers with a device that’s installed at the plants. The company uses different models to reach its consumption figures, making it possible for regional data to conflict with national totals.

The US which holds the world's largest reserves of coal, relies on the fuel for about 47% of its power generation, compared with about 23% for natural gas.

(Sourced from Bloomberg)

Natural gas is essential for Europe’s energy mix

2011-05-10T11:42:00.000-07:00

10/05/2011 05:11

The FINANCIAL -- At a time when governments in Europe are rethinking their energy policies, it is important that the industry collaborate in promoting natural gas as essential for Europe’s energy future.

“Only together we can ensure that gas receives the attention and the role it deserves, being a secure, cost efficient and relatively clean source of energy,” said Rune Bjørnson, Statoil’s senior vice president for Natural gas at the Flame gas conference in Amsterdam today, where over 650 industry delegates attend.

By increasing the share of natural gas in the European energy mix, being the cleanest fossil fuel, Europe will be well position towards reaching its 2050 climate goal.

Replacing existing coal power plants with new gas power plants can reduce CO2-emissions by up to 70%.

Statoil is currently running a gas marketing campaign in Europe, profiling natural gas as a fuel for the future.

“I am convinced that a combination of natural gas, renewable energy such as offshore wind, and in the long term carbon capture and storage, will allow Europe to meet its environmental targets in an efficient and affordable way,” said Bjørnson.

Referring to EU’s 2050 process and the tragic nuclear events in Japan, Statoil’s head of natural gas business asserted that 2011 may be a critical year for the future composition of energy use in Europe.

“In that context my main message to the politicians is that they should start trusting the carbon market that they have invested so much prestige and efforts in, and therefore let the market pick the winning fuels in reaching the 2050 ambition,“ said Bjørnson adding:

“Further, we as an industry – both customers and gas producers - must pull together to achieve a clear and coherent regulatory framework, securing a levelled playing field between all the energy carriers.”

Source: http://finchannel.com/news_flash/Oil_%26_Auto/86469_Natural_gas_is_essential_for_Europe%E2%80%99s_energy_mix_/

Saudi keeps oil supply steady ahead of OPEC meeting

2011-05-10T11:37:00.000-07:00

Tue, May 10, 2011 at 09:10 | Source : Reuters

Saudi Arabia will keep crude oil supplies in June unchanged from May, trade sources said on Monday, amid volatile prices and ahead of an OPEC meeting in June to review the producer group's supply policy.

"They gave us what we asked for, and they always give us the same," one European term customer said.

The oil market often uses supply allocations of Saudi Arabia, the world's top oil exporter with significant spare capacity, to gauge a move by OPEC when the producer group's meeting is imminent.

Early in May, an OPEC delegate said the group might raise supply limit at the June meeting to convince the oil market it wants to bring crude prices down to reverse the impact of fuel inflation on economic growth.

The chief executive of state oil firm Saudi Aramco said late last month it was uneasy with high oil prices and was concerned about their impact on the global economy.

However, a sharp sell off in global commodities markets knocked off Brent crude futures prices by more than USD 16 per barrel last week.

OPEC delegates said they welcomed the slide in prices because high prices may hurt the world economy and in the longer term accelerate the use of alternative fuels.

OPEC, which produces about a third of global crude oil, has left its formal output target unchanged since the pledged ceiling effective January 2009.

Brent was trading around USD 112 a barrel on Monday. US crude was below USD 100. It had been above USD 120 for most of the time since early April, briefly topping USD 127, the highest price since July 2008.

Asia demand on rise

At least six Asian refiners had been told by Aramco they would receive full contracted volumes, trade sources said.

Demand from Asia, where the bulk of Saudi crude is sold, is rising as a peak maintenance season ends in the region while Japanese refineries ramp up output after a massive earthquake and tsunami in March.

JX Nippon Oil and Energy Corp, Japan's top refiner, expects to resume refining operations at its quake-hit 252,500-barrel-per-day Kashima refinery by the end of June. Others have boosted output to fill in supply shortages caused by the natural disaster.

Saudi's crude oil production was 8.5 million barrels per day in April.

A seventh refiner in Asia said it would receive more Arab Light and less Arab Heavy in June, similar to the previous month.

Last week, Saudi Arabia raised the price for Arab Light crude for June to Asian customers more sharply than to European and US buyers.

The Arab Light price, which is expressed in differential to the average of Oman and Dubai crude prices, has been set at the highest premium to be benchmark since 2007, not far from record levels.

Source: http://www.moneycontrol.com/news/world-news/saudi-keeps-oil-supply-steady-aheadopec-meeting_541770.html

Water for Elephants

Gasoline prices climb in California and the nation.

2011-04-19T13:13:00.000-07:00

Costs at the pump are getting closer to record levels. The state's average over the last week for a gallon of regular gasoline is up 4.4 cents to $4.205. The U.S. has seen a 5.3-cent rise to $3.844.

By Ronald D. White, Los Angeles Times

April 19, 2011

The relentless rise in retail gasoline prices continued over the last week, the U.S. Energy Department said, with some analysts predicting that fuel prices could test record highs.

In California, the average price for a gallon of regular gasoline climbed 4.4 cents to $4.205. That was $1.115 a gallon higher than a year earlier, but still considerably short of the record $4.588 set in June 2008, according to the Energy Department's weekly survey of fuel retailers, which was released Monday.

The national average climbed 5.3 cents to $3.844 a gallon. That was up 98.4 cents from the year-earlier price. The record high was $4.114 in July 2008.

Pump prices are close enough to record levels to make some analysts edgy about the possibility of new high marks.

"A lot of people are saying that it feels like we're back in 2008. But this is different," said Phil Flynn, an analyst at PFGBest Research. "Now, we see oil doesn't have to be near the high mark of $147 or $148 a barrel for gasoline to be closing in on a new record, and we're going to come close to new records."

In six states, gasoline prices are averaging more than $4 a gallon, according to a daily fuel price survey for AAA compiled by the Oil Price Information Service and Wright Express. They are Hawaii ($4.484), California ($4.203), Alaska ($4.179), Illinois ($4.073), Connecticut ($4.068) and New York ($4.018).

Oil futures fell Monday on concerns that high prices could hurt the economic rebound around the world and dampen demand for petroleum. The U.S. benchmark futures contract, West Texas Intermediate crude, fell $2.54, or 2.3%, to $107.12 a barrel on the New York Mercantile Exchange. In London, Brent crude lost $1.84 to $121.61 a barrel on the ICE Futures exchange.

Speaking in Kuwait, Saudi Oil Minister Ali Ibrahim Naimi said that the global economic recovery "remains patchy; in many countries unemployment remains at unacceptable levels." Kuwait Oil Minister Sheik Ahmed Fahd al Ahmed al Sabah said: "At these high price levels, spending on oil imports could represent a significant economic burden."

The London-based Center for Global Energy Studies said in a report that OPEC has failed to replace all the oil lost from Libya in the continuing fight between rebels and supporters of longtime Libyan leader Moammar Kadafi "leaving supplies down by 1 million barrels a day." The Center said that oil producers were risking a repeat of the spike in oil prices in 2008, which helped worsen the global recession.

Source: http://www.latimes.com/business/la-fi-gas-prices-20110419,0,2916785.story

Offshore wind turbines with much larger blades could cut the cost of generating offshore wind energy by 30%

2011-04-19T13:04:00.000-07:00

april 19, 2011

There is huge potential for offshore wind farm to reduce carbon emissions. Offshore wind energy could be competitive with onshore wind power by 2020.

Offshore wind turbines with much larger blades could cut the cost of generating offshore wind power by 30%, resulting in cheaper electricity, according to a study published by the Energy Technologies Institute (ETI).

“There is huge potential for offshore wind farm to reduce carbon emissions and create economic prosperity, as well as increasing energy security of supply,” the ETI said.

To achieve this, wind turbine technology should be specifically developed for the offshore environment, rather than adapting onshore wind turbines for use at sea – which is current practice, the ETI claimed. The study, released today, found that offshore wind farm could be competitive with onshore wind power by 2020 if specific technologies were developed, including bigger blades and locating wind farms further out to sea where the strongest winds blow.

The ETI’s conclusions echo a study published earlier this month by European Wind Energy Association which found that developing 20 MW turbines with rotor diameters of around 200 metres could be a solution for expanding Europe’s offshore wind capacity, leading to greater quantities of offshore wind power at lower costs than today’s turbines.

Source: http://www.evwind.es/noticias.php?id_not=11249

Italy Shelving Nuclear Means Fiat to Keep Paying Most for Power in Europe

2011-04-19T12:56:00.000-07:00

By Alessandra Migliaccio - Apr 18, 2011 6:01 PM GMT-0500

Italy’s decision to shelve an 18 billion euro ($26 billion) reactor-building program after Japan’s nuclear crisis means companies from Fiat SpA (F) to Parmalat SpA (PLT) will keep paying Europe’s highest power prices.

Italy, the only major world economy without atomic power, had planned to build its first four reactors by 2020. The government ordered a one-year moratorium after radiation leaked from Fukushima, jeopardizing Prime Minister Silvio Berlusconi’s goal of curbing dependence on energy imports.

Fiat and Parmalat, Italy’s biggest carmaker and dairy producer, will probably continue to pay more for energy. Italian companies paid twice as much for power in 2010 as their French counterparts, 40 percent more than in the U.K. and 27 percent more than German rivals, according to Eurostat, the region’s official provider of statistics.

“With everything blocked and no near-term solutions, prices will stay high,” said Edoardo Liuni an analyst at IlNuovoMercato.it in Rome. “Unfortunately, Italian companies will continue to pay the price for immobility.”

Fiat highlighted rising energy costs among factors that could potentially have a “material adverse” effect on earnings in its 2010 annual report. The carmaker said it’s continually working to find more energy-efficient production processes to reduce costs.
Overturned Ban

Berlusconi’s centre-right coalition government in 2008 overturned a ban on nuclear energy imposed following the 1986 Chernobyl disaster. Enel SpA (ENEL), the country’s biggest utility, and Electricite de France SA drew up plans to build new reactors to supply 25 percent of the country’s energy needs. That would have implied an installed nuclear base of 8 gigawatts, according to UBS AG. Given the events in Japan, the government may lose a planned referendum in June.

“It’s a pity, people were slowly coming round to nuclear since we have it all around our borders and now we’re back into paranoia,” said Giuseppe Zollino, a nuclear engineer and professor of energy economics at the University of Padua in northern Italy. “The maddening thing is there is no plan, just to keep paying more for energy.”

Other European countries have put their nuclear plans on hold following the accident at Japan’s Fukushima Dai-Ichi plant arising from the March 11 earthquake and tsunami. Germany halted 25 percent of its nuclear capacity and may close its oldest plants for good. Switzerland deferred plans for new reactors and the U.K. said it may delay its program.
‘No-Win Scenario’

Europe has become more hesitant about nuclear energy at a time when countries face difficulties in reducing any of the factors that drive up power prices, said Tatjana Eifrig, an energy analyst at Banca Finnat Euramerica in Rome.

“It’s a no-win scenario for energy buyers,” said Eifrig. “You can’t cut taxes at a time of budget problems, renewables involve large investments, and substituting nuclear with traditional fuels tends to increase prices and forces companies to pay emissions permits.”

Parmalat declined to comment on the impact of energy prices on its operations, as did Fiat.

Italy’s nuclear blueprint formed the center of an energy strategy aimed at reducing its dependence on fossil fuels from 80 percent to 50 percent.

Italy currently gets 60 percent of its electricity from gas, mainly from Algeria and Russia, according to data from grid operator Terna SpA. The country obtains 12 percent of its electricity from coal, 8 percent from oil and 20 percent from hydroelectric and other renewable sources.
Increase Share

By 2020, Italy had planned to produce 50 percent of its electricity from fossil fuels and the remaining 50 percent equally divided between nuclear and renewable energy, Environment Minister Stefania Prestigiacomo said last year.

Enel Green Power SpA (EGPW), the renewable-energy arm of Enel which listed in Milan last year, surged to a record 2.048 euros earlier this month on speculation the halt in Italy’s nuclear plans would spur greater investment.

“I don’t believe nuclear lowers electricity costs because modern plants, which is what Italy would be building, have huge initial costs that companies recover through bills later on,” said Salvatore Barbera, a nuclear physicist and head of Greenpeace Italy’s anti-nuclear campaign. “Renewable energy which is becoming less expensive as we develop it makes much more sense, is safe, and provides more jobs.”
Clean Energy Incentives

While the Italian government has announced plans to reduce clean energy incentives, they currently remain the highest in continental Europe for onshore wind, biomass, and hydro, and among the highest for offshore wind and solar energy, according to Brussels-based research firm Europe’s Energy Portal.

Italian utilities pay 30 euro cents a kilowatt-hour for onshore wind power, more than triple the equivalent rates in France and Germany. They also pay three times French and German rates for biomass and triple French rates for hydropower.

Yet renewable energy remains a limited part of the country’s energy mix and doesn’t produce enough to supply power for large industries. That means countries like Italy will have to find ways to use traditional energy in more efficient ways.

“Near-term policies are likely to favor gas and energy efficiency and to a lesser extent coal,” according to an April 4 report by UBS. “Undersupply will put upward pressure on energy prices.”

Source: http://www.bloomberg.com/news/2011-04-18/italy-shelving-nuclear-means-no-end-to-eu-s-highest-power-price.html

U.K. Coal Slumps Most Since July After Reporting Third Loss

2011-04-19T12:50:00.000-07:00

By Amanda Jordan - Apr 19, 2011 11:45 AM GMT-0500

U.K. Coal Plc, Britain’s biggest producer of the fuel, fell the most in nine months in London trading after reporting a third full-year loss in a row.

U.K. Coal slumped 11 percent, the most since July 19, to 34.5 pence at the 4:30 p.m. close of trade. The stock led declines in the 624-company FTSE All-Share Index. (ASX)

The net loss for the year ended Dec. 25 came to 125.1 million pounds, compared with a year-earlier loss of 127.5 million pounds, Doncaster, England-based U.K. Coal said today in a statement.

“The board is in the course of a strategic recovery review to tackle the deep-rooted problems in U.K. Coal,” Chairman Jonson Cox said in the statement. “Success for U.K. Coal will need difficult changes.”

Source: http://www.bloomberg.com/news/2011-04-19/u-k-coal-slumps-most-since-july-after-reporting-third-loss.html

India in talks with Indonesia, Kuwait for LNG supply

2011-04-19T12:42:00.000-07:00

19 Apr, 2011, 08.06AM IST,ET Bureau

NEW DELHI: India is in talks with Indonesia, Kuwait and Brunei for long-term import of liquefied natural gas (LNG) to feed its rapidly growing energy demand, which has attracted global energy giants such as BP .

"Oil ministers of Kuwait, Brunei and Indonesia have given positive indications for supplying LNG to an Indian delegation in separate bilateral meetings in Kuwait," a petroleum ministry spokesman said. An Indian delegation, led by minister of state for petroleum & natural gas RPN Singh, was in the oil-rich Middle East nation to attend the 4th Asian energy ministerial round table on sustainable growth and energy interdependence on Monday.

At the bilateral meeting with Indonesian oil minister Darwin Zahedy Saleh, Singh asked for 5 million tonnes of annual LNG supply from Indonesia. "The supply can start from 2012 when the requisite LNG handling infrastructure would be ready," the spokesman said. Singh also expressed India's interest to replicate Indonesia's success in converting kerosene users to LPG that would save the environment besides curbing menace of adulteration of kerosene with diesel due to huge price difference, he said.

India expressed its keenness to import LNG from Brunei, for which state-run Gail is willing to invest in the country's upstream sector, he said. Singh has invited strategic investment from oil and gasrich Kuwait in petrochemicals projects promoted by state-run companies at Dahej and Mangalore, while talking to country's oil minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah on the sidelines of the ministerial roundtable.

He asked Kuwait, India's fourth biggest crude oil supplier, to increase the quantum. Saudi Arabia is India's largest crude oil supplier followed by Iran and Iraq. "The minister urged the Kuwaiti side to increase crude oil supplies in the coming years in view of the significant increase in the country's refining capacity, with the Bhatinda, Bina and Paradip refineries expected to be commissioned by March 2012," he said.

Country's crude oil demand will soot up by 30 million tonnes after the three refineries are commissioned and running at their name-plate capacities.

Source: http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/india-in-talks-with-indonesia-kuwait-for-lng-supply/articleshow/8023387.cms

Iran sees further rise in oil prices by end 2011

2011-04-19T12:34:00.000-07:00

By Farhad Pouladi (AFP) – 10 hours ago

TEHRAN — Iran, which chairs the oil producers' cartel OPEC, said on Tuesday it expects global crude prices to further rise by the end of 2011 while the secretary-general urged wealthy G8 countries to cut fuel taxes.

"The price of oil depends on two things. First, the fundamentals, including supply and demand and then the political, psychological and unforseen elements. Based on these factors, oil prices should increase again by end of the year," Iran's representative to OPEC, Mohammad Ali Khatibi, told reporters in Tehran.

He said oil demand in 2001 will be high, between 1.3 million barrels per day to 1.6 mbpd.

"What is certain is that we will see a rise in demand," he said.

On Monday, the secretary general of OPEC, Abdullah El-Badri had expressed concern over the high price of oil but added the market had adequate supplies of the commodity.

"We see that there is a 15-20 dollar premium risk at this time," Badri told reporters in Kuwait.

On Tuesday, he was in Tehran for the 50th anniversary of the founding of OPEC, and reiterated that the market was adequately supplied with crude oil.

He said there was "no shortage" of oil in the market. "OPEC has said repeatedly there is no shortage of oil anywhere in the world and stocks are high," El-Badri told reporters.

"OPEC has done its part to ensure that the market is adequately supplied with crude and it will be useful in this challenging time if consuming countries, who impose high taxes on oil, revise it temporarily because we are in an exceptional circumstance that needs exceptional solution."

"We ask the governments of the G8, which have more taxes and are making more money from taxes than the producing nations from selling ... we urge them to reduce the taxes," El-Badri said.

"I think the market is comfortable and we (OPEC) already have 4.5 million barrels per day that we can send to market ... (there is) no shortage in market and stocks are high," he added.

El-Badri said that crude prices will remain above 100 dollars per barrel for the rest of the year when asked if prices would fall below that level.

Oil fell in Asian trade Tuesday after a bearish Standard and Poor's report on the United States, but geopolitical risks in the Arab world will continue to drive prices higher, analysts said.

New York's main contract, light sweet crude for delivery in May dipped 27 cents to 106.85 dollars a barrel, while Brent North Sea crude for June eased 35 cents to 121.26 dollars in the afternoon.

Source: http://www.google.com/hostednews/afp/article/ALeqM5i_AWFkoVQ44BSTR8EpuYeFOF5M4A?docId=CNG.f09b5bcb8f2589bf1d9e406f9e336450.171

Urging Clean-Energy Investment, Obama Cites High Gas Prices

2011-04-19T12:24:00.000-07:00

By Rebecca Kaplan
Tuesday, April 19, 2011 | 12:27 p.m.

President Obama is trying to ward off the inevitable political backlash that accompanies high gasoline prices by turning pain at the pump into an argument for clean-energy investment.

Speaking from Northern Virginia Community College in Annandale on Tuesday, Obama told an audience of students and faculty that continuing to spend money on developing and implementing clean-energy technology is the only way to bring down gas prices in the long run--something he presented as a feasible goal.

“Folks are out there dealing with gas that's 4 bucks a gallon,” Obama said. “Now whenever this happens, just like clockwork, you see politicians going in front of the cameras, and they say they have a three-point plan for 2-buck-a-gallon gas. The truth is, the only real solution to helping families at the pump in the medium and long term is clean energy. That's how we'll save families money. That's how we'll reduce our dependence on foreign oil.”

foreign oil, which is what causes price fluctuations--not an actual shortage in supply, he said. “The truth is that it’s a world commodity, and when world prices spike up like this, there aren’t a lot of short-term solutions. We have a medium- and long-term solution. One solution is to make sure we’re increasing production of U.S. oil.”

For some politicians, that means offshore drilling. For Obama, it means developing more-efficient biofuels, creating more demand for electric cars so that prices drop, and finding better, cheaper methods for extracting resources like natural gas.

“There’s not going to be a single silver bullet,” Obama said. “All of them are going to require investment.” He argued for government to lead the way in financing, as it did in developing the Internet, GPS, and bar codes, projects that are too costly for one company to shoulder alone.

The evolving oil argument is vintage Obama: tackle a problem when it’s at its worst and hope to avoid the fallout. He’s calling on politicians--and asking help from citizens--to deal with the problem of high gas prices instead of forgetting about it once they fall back to $2 a gallon.

He tried to remind the crowd that he still feels their pain.

“I’ll admit to you, it's been a while since I filled up at the pump,” Obama joked. “Secret Service doesn’t let me get out, and they don’t let me drive anymore. But it wasn’t that long ago that I did have to fill up my gas tank, and I know that if you got a limited budget, and you just watch that hard-earned money going away to oil companies that will once again probably make record profits this quarter, it’s pretty frustrating.”

Source: http://www.nationaljournal.com/whitehouse/urging-clean-energy-investment-obama-cites-high-gas-prices-20110419

S Africa's Richards Bay Coal Terminal prepares for railway shutdown

2011-04-18T10:37:00.000-07:00

Johannesburg (Platts)--18Apr2011/533 am EDT/933 GMT

Workers at South Africa's Richards Bay Coal Terminal will spend the next month building up stockpiles in an attempt to keep the wheels turning at the world's largest single coal terminal throughout a long railway shutdown.

The national freight carrier, Transnet, confirmed to Platts it is shutting down the 600 km coal line, which runs from the heart of the Mpumalanga coalfield to the coast, for maintenance from May 23 to June 11.

The line, which is already struggling to ship enough coal for export, is closed regularly for routine repairs.

Zama Luthuli, a spokeswoman for RBCT, said the terminal needed to build stockpiles of more than 4 million mt to have a chance of working through the shutdown.

Luthuli said: "We are preparing for this; we usually try to build up our stocks so we can keep going during the shutdown."

Sandile Simelane, a spokesman for Transnet, said railway workers were planning to repair everything from the track to network signals.

Simelane said: "This is a planned shutdown. We have to do the maintenance work, we need to replenish the railway, and otherwise we could be plagued by derailments. This is a planned shutdown and it should have given RBCT and mining companies enough time to plan around it."

RBCT shipped 5.36 million mt of coal during March and 4.57 million mt in February.

--Chris Bishop, newsdesk@platts.com

Source: http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Coal/8805626