Newman Energy

OXFORD COPYWRITER

2018-01-28T21:40:00.001+00:00

Welcome to Oxford Copywriter!

Nicholas Newman Oxford copywriter and editor

I am Nicholas Newman an Oxford-based freelance commercial copywriter.

I provide written content services to a range of business and public sector clients.

The benefits of you using my services for your business include:

Writing material that you simply don’t have the time or the expertise to do.
Enable you to be more productive by doing the writing tasks they need doing, without having to hire a full-time member of staff.
Help boost your bottom line by writing high-impact marketing materials

My services include producing on behalf of clients, both long, medium and short form content, such as:

Nicholas Newman Oxford copywriter and editor

Advertising
Advertorials
Press Releases & Public Relations
Web Copy
Content Strategy, Communication Plans, and Media Strategy
Blog Posts, Think Pieces & Articles
Newsletters And Tip Sheets
Social Media Profiles And Updates
Testimonials & Case Studies
Brochures, Leaflets, And Flyers
Sales Letters (On & Offline)
Direct Mail
Email Sequence
Stock Letters
Product Descriptions
Market Research
Event Organising and Blogging

Nicholas Newman Oxford copywriter and editor

How you can find out more about:

Me, my work as a copywriter, my services, continue reading
Clients
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You can hire me by ringing me on:

Tel: 01865762710
Mobile: 07580469514
Skype: oxfordprospect
Email: info(at)nicnewmanoxford.com
Web: www.nicnewmanoxford.com

European Shale Gas Challenges 2015

2015-01-11T22:10:00.001+00:00

Energy Journalism

2013-11-17T10:13:00.000+00:00

Energy Journalism

Nicholas is an Oxford based energy expert with many years experience in the topic providing serices as a freelance journalist, broadcaster, editor and copy writer.

I am a                          freelance energy journalist and member of the Energy Institute. My services include creating bespoke/dedicated/customised media plans                          for  energy companies... ie.  not an  off- the- shelf solution so typical                          of advertising and PR companies, write up advertorials/corporate story/project overviews                          etc.                 

I also provide primary and secondary research reports and writing for clients.

My writing and publications in the last decade have been focused on the energy sector, specifically power generation, oil and gas exploration and production, energy policy and related fiscal, market, risk and technology issues.

As you will see from my client list http://www.nicnewmanoxford.com/Clients.html , my clients include Hart Energy Exploration and Production, Power Engineering International, Cornerstone, energyrealities.org, datamonitor etc.

Customers include both corporate and media clients.
Available for commissions on a wide variety of work.
Also provides corporate journalism, copy writing and editorial services for business.
Oxford Copy writing


	My Energy Journalism Covers: Energy Leadership & Policy including issues of policy making, market issues and trading. Energy Leadership & Policy Oil Business both upstream and downstream aspects Oil Business Gas Business including pipeline, LNG and shale gas Gas Business Power generation including fueled by coal, gas, hydro, nuclear and renewables Power Generation Business Mining including coal and uranium and its use. Mining

Nicholas's energy journalism aids decision makers, readers and organizations navigate through the many challenges of the energy sector, it is concerned with the business, markets, risk management, technological, environmental issues, geopolitics and policies.
Main assets include Nicholas's ability to turn clients complex, technical and financial stories into compelling narratives.

Clients?

Clients include those in the press both print and online, business, broadcasters, lobby groups and public relations agencies.

For details of some of my customers
For details of copy writing services
For details of energy portfolio
For other topics portfolio

For contact details

Some thoughts on Middle East energy journalism
Responsible Energy Leadership Workshops Launched

The end of Gazprom monopoly?

2013-11-17T10:06:00.002+00:00

Russia v EU

"Oxford Institute For Energy Studies"

By: Nicholas Newman

Dr Andrey Konoplyanik presenting the Gazprom view about the future of the EU gas market.

Androulla Kaminara giving the European Commission's point of view.

Professor Alan Riley with others

Ashutosh Shastri Enerstrat Consulting and Nicholas Newman Nicnewmanoxford

At Oxford's St.Antony College a panel discussion took place about how the EU and Gazprom view the future development of the European gas market. One thing became clear the importance of European competition law was likely to affect the future of relations between Brussels and Moscow. Also, that hopes that Gazprom would loose its monopoly during the current political cycle in Russia, will have to wait for a decision after the next federal parliamentary elections.
Participants were:
Dr Andrey Konoplyanik, Adviser to Director General, Gazprom Export, Professor, Gubkin Russian State University of Oil and Gas, Russia’s former Deputy Energy Minister, former Deputy Secretary General, Energy Charter Secretariat. http://www.konoplyanik.ru/
Professor Alan Riley, City University, London, Chair of the European-wide Competition Law Scholars Forum, Co-editor of the Competition Law Review http://www.city.ac.uk/law/about/our-staff/academic-staff/alan-riley
Androulla Kaminara, St Antony’s College, Oxford, former Head of the European Commission Representation in Cyprus, former Director for Quality of Operations of the European Commission’s Directorate General - EuropeAid http://www.sant.ox.ac.uk/seesox/kaminara.html

Warsaw Climate Change Conference - November 2013

2013-11-17T10:04:00.000+00:00

The Warsaw Climate Change Conference officially opened on 11 November. ...
Korolec, Minister of the Environment of Poland

It is clear that there are high hopes for the UN conference Cop 19 in Warsaw this November. The question facing many onlookers is will this conference turn into just another talking shop. Past climate change talks from Rio onwards, have been hailed as successes, even though they have produced little in the way of visible results. From a climate change point of view, Oxford Economics Professor Dieter Helm regards the past three decades up to 2020 as a ‘waste of time’. Many of the same argument s have been in play, including complaints about the lack of western ambition to cut emissions and aid adaption in the third world, the cost of climate change and the price tag for taking action.

Developing world wants more money.

Many emerging countries have made known their disquiet at the lack of ambition of rich nations to aid poor countries in adapting to climate change. The concern, no one is sure how much aid is necessary. The UNFCCC expected that by 2030 deprived nations would require between $28 billion and $59 billion a year to adapt. However, the World Bank recommended between $20 billion and $100 billion; the European Union Commission advocated between $10 billion and $24 billion a year by 2020. Nevertheless, despite climate aid growing, a recent World Bank report suggested it only met 5% of current requirements. http://unfccc.int/meetings/warsaw_nov_2013/meeting/7649.php

Nevertheless, providing more cash is not without its problems for developed countries. Due to the world recession, many advanced economies do not have the spare resources available to meet third world countries requirements. In addition, “many developing countries have poor track records in using external assistance funds in transparent, efficient and non-corrupt ways," commented a 2012 paper, Financing Urgent Adaptation by the Geneva-based Global Humanitarian Forum, a non-profit foundation.

As for lack of motivation in cutting emissions, for many rich economies, making adjustments is, a difficult and complex task during a period of economic recession for many rich economies. Part of the problem that developed countries like Britain face is that of inertia, once you have built a coal power station, it is very difficult to close such facility down early, before the end of its operational lifespan. In addition, new energy generating technology often takes at least 50 years before it becomes economically viable.

Cost of climate change

Approximating the cost of climate change is a difficult and complex undertaking, and the assumptions the underlying figures are based are open to interpretation and subsequent dispute. However, according to a study by a European-based NGO called DARA 12^th of September 2012, current failures to act on climate change are damaging global economic growth. DARA puts the cost of climate change at some 1.6% of global GDP, this amount to approximately $1.2 trillion in foregone prosperity per annum. Unless action is taken, it is forecast that the economic damage climate change will have on the global economy could increase to 3.2% of world GDP by 2030. In terms that are, more specific climate change is costing both China and the United States over 2% each of their individual potential GDP and India 5% of its GDP. EU Climate Commissioner Connie Hedegaard has said, “Climate change is not a distant threat, but a present danger!”

In 2012, the major weather disasters, including floods, droughts, hurricanes and tornadoes cost the United States over US$110 billion, according to the US National Climate Data Centre. During 2012, this meant a typical major weather disaster was costing the American economy over $1 billion. This compares with the period between 2000 and 2011, when the average yearly cost of such disasters was around US$27 billion. Transport costs using barges have increased by 22% because of draughts affecting US navigable waterways.

Cost of taking action

Determining whether taking action on climate change is viable will depend in part, on how you view the value of currency over time. In other words, what discount rate will you use in your calculations. Bangladesh Prime Minister Sheikh Hasina Wajed said. For instance, if you use a discount rate of just 1% €1000 today is worth €368 in 100 years’ time, whilst making use of a 4% discount rate with me that the same €1000 today would be worth just €18 in 100 years. So as Bangladesh Prime Minister Sheikh Hasina Wajed said, “What is possible with $100 billion today will cost ten times more in 2030,” reports Bloomberg 13 February 2013.

The United Kingdom Parliament Committee on Climate Change report in 2012, known as “statutory advice on inclusion of aviation and shipping,” reported that by 2050, UK emission reductions would cost up to 2% of UK GDP. At present, UK climate policies currently cost 1% of UK GDP. This is the equivalent to the UK’s budget on new social housing and community amenities. In 2010, the British government spent nearly 10% of the U.K.’s GDP on the National Health Service reports the Guardian newspaper second of May 2012.

On a world scale, according to Nicholas Stern, the British economist, author of the 2006 Stern Review on the Economics of Climate Change, he projected that preventing climate change would cost the world economy, the equivalent of just 2% of global GDP per annum. Gross World Product was $69.99 trillion in 2011.

Conclusion

It is clear that Cop 19 is part of the World’s on-going debate to tackle climate change.

Why is British Energy Policy led by a bunch of Amateurs?

2013-11-17T09:47:00.003+00:00

"Energy comment"

By: Nicholas Newman Energy Journalism

Energy has been much in the news recently, including threatened closure of an oil refinery, high energy bills etc. What we are seeing are symptoms of chaos and confusion in British energy policy and markets. The Grangemouth refinery story for instance has been treated in the media as a simple industrial relations story. However, what is being ignored is the larger story, that the European refinery industry is in trouble, due to competition from abroad caused in part by the US shale gas and oil revolution, construction of new refineries in the Middle East and China, falling demand, high energy costs and productivity issues caused by failures to invest in new technology.

Whilst, the current controversy over high domestic energy prices, is not only about supernormal profits being achieved by the energy companies, but also the failure of government to actively encourage significant new entrants into the UK energy market. Think tank IPPR said Ofgem's data on customer bills shows that profits in 2013 are 6% and operating costs make up 9% of bills. In a competitive market, it should be about 2%, the norm for supermarkets. In addition, European electricity prices have dropped by a third. Similarly, European spot market prices for gas have made similar declines. See table below, indicates that wholesal costs have increased, while customer bills have increased in the UK.

Because of America dumping its cheap coal on the European market, we have seen utilities switch off their gas power stations and instead increased their use of more profitable coal power generation. [i] Europe is planning 69 new coal power plants with a capacity of 60 GW over the next decade.[ii] In addition, UK utilities have made deals with American shale gas producers to deliver cheap shale gas to meet customers heating and power needs, thus helping to improve profit margins further.[iii]

Government policy failure to proactively direct investment in sufficient new generating and distribution capacity has also not helped; it means we could be facing third world energy shortages in the coming years.

The high cost to the taxpayer of energy subsidies is an urgent problem that also needs tackling and reform. Much is made about Green subsidies and taxes; little is made of taxes and subsidies on fossil fuels. The whole system of energy subsidies and taxes needs reform as it distorts the market and is not meeting its objectives. Generating technologies are still getting help even when there is no longer the economic or the technological case to do so.

Another area for reform is government policy on energy saving and efficiency. Government policy is a mess; many new house owners will be surprised that current building standards on energy conservation are at least 20 years behind that of Scandinavia. Vested interests have resisted lobbied against the introduction of the latest in mainland Europe standards. [iv]

In addition, for those in the Government to blame Europe is not justified, however, certainly political expedient to do so. The real question that needs to be asked, is why the government has shown little real energy leadership. [v]It has played a passive rather than proactive role in attempts to reform the European energy sector. I suspect it is because energy is not a politically popular topic for MPs aiming to make a name for themselves in politics. In addition, the issues are very complex and very challenging in terms of decision-making. [vi]Perhaps, this explains why we have had over 10 energy ministers in past 10 years. The trouble is the energy sector is a complex and very difficult topic to manage; the current amateur approach is not in the national interest. [vii]We need politicians able to take a more professional approach, this means a minister for energy needs time to learn about the job and be effective by staying in the job for the life of a parliament, just as the European Commission does for its Commissioners. Until we have expert professional energy ministers, we will continue to have a set of dysfunctional energy policies that fail the interest of both business, hard pressed consumers and tax payers.

[i] http://www.oxfordprospect.co.uk/Are-Europes-gas-power-generators-turning-into-zombie-companies.html

[ii] http://cornerstonemag.net/the-challenges-of-european-energy-infrastructure-finance/

[iii] http://shalegas.cleantechpoland.com/?page=edition&id=4&id_article=22#page_top

[iv] http://www.oxfordprospect.co.uk/Green-Deal-and-Energy-Companies-Obligation.html

[v] http://www.oxfordprospect.co.uk/Is-Britain's-energy-leadership-failing.html

[vi] http://www.energyrealities.org/content/energy-20-the-art-of-the-possible/erp191852011CC6AB134

[vii] http://oxfordprospect.wordpress.com/2012/02/25/black-swans-bring-new-challenges-to-energy-leadership/

Is Britain’s energy leadership failing?

2012-08-02T21:55:00.000+00:00

"National energy leadership requires clear policy around investment to manage risk and investment, and a healthy balance between the market, and the consumer (taxpayer)?"

By: Nicholas Newman

National energy leadership requires clear policy around encouraging investment to manage risk and development, and a healthy balance between the market, and the consumer (taxpayer)?

The question of energy and especially its price has always been a politically sensitive issue. The question, is whether Britain's energy policy is failing? Many would suggest that significant parts of it already have. In fact, until recently, the United Kingdom did not enjoy an overarching energy policy framework; instead it depended on guidance from European energy policies for much of the day-to-day implementation of operational issues. In a sense, what there was of a discernible British energy policy was merely an incomplete jigsaw. What is certainly clear is that successive British governments have failed to demonstrate “responsible” energy leadership.

Some successes

Britain can certainly be proud of its successes largely due to the result of responsible leadership back in Brussels and not here in the UK. Such successes include the ban on old-style light bulbs, the backing of the use of biofuels in petrol, the introduction of carbon trading, the scrapping of ageing coal power stations, together with the introduction of smart meters in homes and energy-efficiency labels on domestic electrical goods. In addition, the introduction of more energy efficient domestic goods has certainly benefited the consumer’s pocket and in the case of cars, has reduced pollution in our cities.

Some disappointments

However, despite these advances there are still grumbles, not only from consumers, but major players in the energy market. From an energy security perspective, the actions taken to encourage investment in renewables, has only had a marginal impact on slowing down the UK’s reliance on imported fossil fuels such as coal, oil and gas . [1] [i] In 2010, the cost of energy imports contributed to around 15% of the UK's then trade deficit. University of Lancaster’s environmental researcher Oluwabamise Afolabi, reports that the DTI in 2007 projected that UK natural gas imports will increase to 70% by 2017 and imported coal could be meeting up to 75% of the UK coal needs by 2020.

Certainly part of the reason is that the EU energy policies have not gone far enough in the implementation of its ambitions for a single energy market for the continent, whilst we do have a single market for bananas! A single market for energy would certainly help meet many of Europe's energy security concerns and hopefully facilitate greater competition Europe-wide. In the UK, there is a serious need for more energy suppliers actively competing in the market. At present, for instance the gas and electricity market is dominated by six major players, so it is not surprising we suffer high power prices.

Lack of leadership?

Nevertheless, the current government has preserved the vacuum in clear policy ownership and focused leadership left by its Labour government predecessor. This is demonstrated by the recent fiasco of the U-turn over feed-in tariffs [1] [ii] for solar power [1] [iii] and the failure to encourage investment in insulation for buildings with solid walls. The government’s decisions over feed-in tariffs plunged the rapidly growing job-creating solar power installation industry into crisis at a time of high unemployment. It is clear that senior policymakers made a decision without clearly understanding the full impact it would have on Britain's solar power sector.

There seems to be a lack of leadership being exhibited by ministers on energy policy by many in the governing coalition. We are seeing, increasing opposition in Parliament by Conservative MPs, but also by members of the public towards the government’s ambitious support for new wind power projects throughout the country. In January, 101 Tory MPs wrote to Mr Cameron, calling for onshore wind farms subsidies to be “dramatically cut” – well beyond the 10 per cent reductions already in the pipeline. In addition, there have been protests about new renewable energy projects across the UK, together with concerns about the increasing number of people being plunged into energy poverty due to the shambolic energy taxes and subsidy system. Overall, current subsidies paid out to renewable energy producer’s amounted to some Â£1.5 billion a year, of which Â£400 million was given to companies operating onshore wind farms, reports the Telegraph in June 2012. However, DECC reports that renewable energy subsidies are costing each British household around Â£103 per year and between 2004 and 2010 electricity prices rose by 60% and gas bills by 90%, noted DECC.

At a strategic level investors are increasingly concerned about the sense of drift on energy policy towards new investment by the current government towards various types of generating technology, many large-scale investors are complaining that they are not getting sufficient encouragement to move ahead on meeting the government's ambitious programme to replace time-expired coal and nuclear power stations with new generating capacity from both traditional and new generating technologies.

Failing to identify risks

It also appears that the government appears to be failing to identify and manage risks and plan for such unforeseen events as natural disasters, supply disruptions and wars. There appears to be a lack of long term preparation against supply disruption, this can be seen from the following issues. At present, we have limited interconnector capacity amounting to just under 5% of UK generating capacity, is made up of high voltage undersea power cables linking Britain with France, Belgium and Holland. For energy security reasons the UK needs to double such capacity. Once completed Britain will be better able to balance shortfalls in renewable generation here with imports from elsewhere in Europe.

Then there is the question of gas security, Britain only has 3.3 bcm, equivant to 14 days of gas storage capacity available in theory, reports DECC, and much of that is reserved for storage capacity for other nations in Europe. Unfortunately, there are no reciprocity agreements to such storage capacity that is located in the UK with foreign owned companies at present; I was surprised to learn from an energy trader recently. Though there are ambitious proposals to increase gas storage capacity, given sufficient government support. Unlike France and Germany, which have at least one month gas storage capacity? Currently Britain imports 24% of its gas from Qatar. This apparent lack of direction and foresight can also be seen in the relatively low large-scale electricity storage capacity of only 20 GW hours: perhaps sufficient to replace current UK wind generating capacity for just two hours if the wind failed to blow.

In addition, unlike several other European countries Britain has failed to move ahead with pilot carbon capture projects. The realisation of carbon capture technology could aid Britain in its ambitions to further diversify its current sources energy, as coal is available worldwide in easy to reach commercial quantities including Poland, USA , South Africa and Australia.

There are increasing fears that Britain could face power shortages by end of the decade, unless urgent action is taken to construct sufficient new generating capacity to meet growing demand. I would hate to think Britain consumers will face in the future the prospect of regular power cuts, as is the case of Nigeria today.

We are also seeing a lack of realism, amongst policymakers into the impact of their policies. One of Europe's and U.K.'s ambitions is to reduce reliance on gas imports. Unfortunately, the government’s neglect of creating a proper framework for reducing gas usage for power generation purposes is encouraging a reliance on this fuel source to back up for the variability of renewables. Which could raise interesting energy supply and security concerns for large scale consumers such as hospitals and railways that rely on 24/7 energy supplies.

Since 2004, the UK has been a net importer of gas, as domestic production has declined and the country’s power sector has switched to gas for power generation purposes [1] . Since the winter of 2009, the UK has depended for half its gas needs on imports. Current government policy neglect is encouraging reliance on imported gas to remain at present levels whether imported from Norway, Russia, Nigeria or Qatar. As Britain's reliance on renewables increases we are going to see imported gas-for-power generation purposes providing a backup to wind energy projects when the wind fails to blow, because Britain has not invested enough in sufficient gas and electricity storage capacity and expansion of its interconnection links with the rest of Europe.

Danger of short term thinking

Overall, Britain's energy policy is in danger of suffering from short term thinking, which might be building up new problems for the future that might prove expensive to solve. In other areas, there is much to be proud of, but it is clear much more needs to be done. In addition, there has to be greater dialogue between all stakeholders involved in energy policy so that Britain develops an affordable, reliable and secure energy sector that meets our economic ambitions for growth.

Conclusion

However, the government needs to demonstrate responsible energy leadership and move actively forward on implementing many of its ambitions quickly, such as starting construction on new nuclear power stations, stop dithering on proposed coal and carbon capture projects and encourage investment in new energy storage capacity. Nevertheless, the emphasis on energy policy should be rebalanced more in favour of the consumer and taxpayer, by enabling users near such projects to directly benefit from the profits of such schemes.

[1] [i] DECC aims for at least 15% of UK energy mix to come from renewable sources by 2020 if current levels of investment are maintained.

[1] [ii] A feed-in tariff (FIT, standard offer contract or renewable energy payments) is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, such as home owners, it is typically based on the cost of generation of each technology. Technologies such as wind power, for instance, are awarded a lower per-kWh price, while technologies such as solar PV and tidal power are offered a higher price, reflecting higher costs.

[1] [iii] Solar power is the conversion of sunlight into electricity, either directly using photovoltaic (PV), or indirectly using concentrated solar power (CSP).

[1] In 2010, 34 per cent of natural gas demand (371 TWh) was for electricity generation reports the DTI.

Dziennikarz Specjalizujący Się W Energii

2012-08-02T21:36:00.000+00:00

Dziennikarz Specjalizujący Się W Energii

Jestem dziennikarzem z Oksfordu, specjalizującym się w energii. Piszę o wszystkich aspektach biznesu energetycznego, tj. wydobyciu, produkcji, inwestycjach, rynkach, technologii, regulacjach prawnych i rynkowych, tworzeniu zasad jego działalności, kierownictwie i zarządzaniu.

Specjalizuję się w dziedzinie energii ropy i gazu na lądzie i w wodach przybrzeżnych. Dodatkowo, dla moich klientów korporacyjnych, dostarczam kopie na piśmie. Jestem do dyspozycji (wg prowizji) do wielu różnorodnych prac dziennikarskich. Od 2000 r. jestem wydawcą „Oksfordprospect magazine”, regionalnego miesięcznika biznesowego, gdzie można znaleźć aktualności z dziedziny energetyki oraz przykłady moich prac dziennikarskich na inne tematy. http://www.nicnewmanoxford.com/Dziennikarz-Energii.html

NICHOLAS NEWMAN Energy Journalist

2012-05-19T11:59:00.000+00:00

I am an international energy journalist located in Oxford, England with a comprehensive contacts-book of leading energy industry professionals and academics to draw upon. I specialise in the following topics: oil and gas exploration and production together with power generation, including renewables and nuclear.

Much of my energy writing is concerned with trends in policies, risks, exploration and production technologies as well as trading in energy resources. This includes, for instance in the gas sector, all aspects of current market policy, political and technological trends and developments that may affect the exploration, production and trading in natural gas, shale gas, CSG and LNG.

In addition, I often have to examine and analyse shifts in the terms of trade between coal, gas and oil as they are affected by structural market changes or opportunities and policy developments. For instance, there is the move towards deeper waters for offshore oil and gas production which is turning countries like Brazil and Angola into energy giants.

A unique contribution of my writing is to provide a geopolitical insight into the emerging energy challenges that face investors, consumers and decision makers. My main asset is my ability to turn clients’ complex and technical and financial stories into compelling narratives. My writing provides a gateway for investors and decision makers to comprehend the often complex issues that face the energy sector in a given part of the world, for example, the recent developments in Kazakhstan.

I regularly investigate emerging market demand and supply and how different solutions are being applied to common problems such as, adoption of environmental regulations and laws by Arctic nations’ following Norway’s lead in exploiting the Arctic Ocean oil and gas resources sustainably. I am well versed in researching, analysing, and sourcing my publications from a broad range of international, national, local and online business press and corporate clients. I am available for both short pieces of 750 to 1000 words and long pieces up to 5,000.

In addition, I have undertaken technology reviews and assessments. Most recently , I have supplied analysis about the viability of Russian government innovation policies for Engineering and Technology Magazine, a survey and assessment of exploration technologies for Petroleum Review and an investigation of Australian clean coal carbon capture technology for Power Engineering International.

Furthermore, I have conducted market analysis for investors seeking to participate in the Indonesian and Italian energy markets for Power Engineering International and Oxford Prospect. I have also written promotional material for such companies and organisations as NES Global Talent, Primafila AG, Centrica, Media Consulta, Net Resources International, Siemens AG and the European Commission. One of my most recent clients has been international engineering recruitment consultants NES Global Talent for whom I produced a set of innovative case studies for their corporate web site.

Currently, I am investigating the reasons for the spectacular failures that the global energy sector seems to experience on a recurring basis. For instance, there are such tactical failures as occurred with BP's Deep-Water Horizon and Japan's Fukushima Daiichi nuclear crisis, as well as strategic policy failures such as the UK’s Green Deal Initiative and the first phase of Europe's Emissions Trading Scheme. I am planning a series of “responsible energy leadership” Workshops which are to be held in Oxford, London and Dubai with the co-operation of London's Energy Institute. These three hour workshops will be attended by industry professionals, academics, regulators and policymakers, who will come together to explore the requirements of “Energy Leadership” in situations of crisis and chronic failure. To contact Nicholas Newman

A crisis in leadership in Japan's nuclear industry.

2012-04-30T09:25:00.000+00:00

By:Nicholas Newman

Failing to make the right decision is easy to do. Regrettably, despite years of technological progress and experience, governments and energy companies continue to make such mistakes. Nevertheless, due to the increasing scale of investment and environmental hazards that the industry faces, the world energy leadership needs to do better than it has in the past.

If it is clear those events at Japan’s Fukushima Daiichi nuclear plant have as much to do with bad decision-making by the country's energy leadership as it has to do with the massive sea quake that caused a tidal wave to hit the doomed nuclear power station. Examining the factors that contributed to the poor decision-making that led to disaster in Japan last year, one comes to the conclusion that the events transpired could have been substantially mitigated or even avoided by the country’s energy leadership.

Here are some of the reasons that contributed to Japan's unpreparedness for such a nuclear crisis and surprising negligence of nuclear power plant safety standards. These factors that contributed to the Fukushima incident range from internee sign fighting between the country’s government agencies (Ministry of Environment and its two regulatory agencies the Nuclear Safety Commission and Nuclear and Industrial Safety Agency) as well as the plant’s owners Tokyo Electric Power Co. Nor did it help that the power plant's operator had been found to have ignored safety advice on several occasion from both domestic and international nuclear professionals such as the International Atomic Energy Agency (IAEA).

It is clear from government reports that the leaderships of various stakeholders in the industry, including Japan's regulatory agencies and nuclear power station operator TEPCO made serious errors which would have been avoided if the organisational culture was more accountable and open to inspection to not only Japan's voters, but also the international community at large.

For instance, there are several documented examples of the national regulatory agencies ignoring the advice of such world agencies such as the IAEA. Reports suggest that the regulatory system was suffering from turf wars and intra-agency rivalries between regulatory agencies and departments of government ministries.

Nor did it help that TEPCO falsified safety records and ignored the advice given to it by both the domestic regulators and the International energy agency revealed in a report by Japan's Independent Investigation Commission. In this report, it was revealed that Japanese electric power companies had since 1980, been unwilling to cooperate with the IAEA 's operational safety review of the country’s power plants. This review known as the Operational Safety Review Team (OSART), is where a team of experts conduct an in-depth review of operational safety performance at a nuclear power plant by checking the factors affecting safety management and personal performance.

In 1992, this operational safety review of Fukushima made a number of recommendations which Tokyo Electric Power Co, subsequently dismissed. In 2002, it was revealed that TEPC had falsified 29 cases of safety repair records regarding cracks found at several of its nuclear reactors, including those at Fukushima Daiichi in the late 1980s and 90s. Despite this, the power company declined the offer by the IAEA to institute a fact-finding process to improve safety at the plant concerned. It was announced by the Chief Executive at TEPCO, that the proposed regulations were unrealistically strict and not in accordance with actual operational requirements.

Nor did it help that the entire nuclear community of the country was suffering from isolationist and secrecy tendencies, which were not helped by delusions that the country's nuclear power sector was the best regulated, most advanced and managed industry in the world. The perception amongst many Japanese nuclear professionals was there was no need for Japan to learn from the rest of the world. In a sense Japan's nuclear community was suffering from classic Galapagos Island syndrome symptoms.

Much to the surprise of these professionals the events at Fukushima were a wake-up call; it became clear from various investigations that Japan's nuclear power sector was rotten to the core. It became clear that the industry was totally unprepared for the crisis when it occurred and was not able to provide solutions to such a crisis. It did not help that many of those civil servants working in nuclear regulation and safety management, did not have the opportunity to develop long-term expertise in the subject, because of the practice of regularly rotating civil servants to other government ministries. In addition, it did not help that findings found that the regulators were not truly independent of the power companies they were supervising.

Unfortunately, breaking out of the Galapagos syndrome for Japan's nuclear sector is going to prove hard task. Japan will need the help of the international community to create a new decision making energy leadership culture so that it equips it with the tools to avoid such complacency and a repeat of such disastrous mistakes. There are plans to establish a new, powerful nuclear safety agency this summer that will replace the old agencies and ministerial departments. Unfortunately, many of the new staff for this new agency will come from the failed organisations that contributed to Japan's nuclear disaster.

However, perhaps the best way to revolutionise Japan’s nuclear community is if it imports new leadership and experts from abroad, until Japan has trained up the necessary recruits in the standards of the world nuclear community. Unfortunately, foreign CEOS leading Japanese companies are rare and tend only to stay a short time due to inherent organisational resistance to change. In addition, Japan, the country finds very difficult to change its organisational culture, given the extremely conservative, traditional nature of its society. This is despite its appearance as one of the world's most technologically advanced nations. This can be seen by its failure to implement the radical changes required to break the country out of economic stagnation in recent years.

Japan's government wants to restart two nuclear plants to avert summer power shortages this summer, but public skepticism of nuclear safety and the industry remains high. Before March 2011, Japan depended for 30% of its power from nuclear power plants. Unless Japan can make the necessary changes it is unlikely there will be public support for the country’s nuclear power stations to start operating again. Instead the country’s energy leadership will have to continue to depend on expensive renewables and imports of gas from Australia to fuel its power sector in order to maintain energy security.

See also East Asia - a nuclear hotspot?

Japan's natural disaster will boost demand for LNG imports.

Power Sector Troubles in Southern Europe!

2012-04-26T11:12:00.000+00:00

Times are tough for the power sector in Portugal, Spain, Italy and Greece. Troubles with the euro are forcing governments to cut back on investment and subsidies for power generation and increase power prices in Southern Europe. As a result, dreams to achieve energy security are increasingly a more distant prospect as the investment climate becomes more difficult for investors to achieve such ambitions. In Spain we have seen the government look with more interest at the possibility of shale gas in the Basque country and offshore drilling for gas in the Canary Islands, providing a new solution for its power sector. However, in Italy, the failure of Berlusconi's dreams for a nuclear Italy mean that, renewables will play a greater role in fulfilling Italy's energy security prospects. However, in all the countries concerned energy policies will be limited by fiscal constraints and political uncertainties.

http://www.oxfordprospect.co.uk/Italy-Power-Review.html

Latin America and uncertain place for investors despite its economic growth.

2012-04-26T11:03:00.003+00:00

Last week was bad news for foreign investors in Argentina; the question is, will investors in other Latin American countries face similar uncertainties. Currently, countries such as Brazil, Chile and Colombia are experiencing rapid growth, which is viewed with envy by many Western governments. However, like in other prosperous countries throughout the world, the problem of providing secure and affordable, sustainable power supplies is never-ending.

Many countries in the region have opted for Hydro solutions which have met with opposition from environmentalists; others are looking at traditional solutions such as coal and gas. However, some countries have begun to take a late interest in exploiting none Hydro renewable technologies such as solar, geothermal, wave, tidal and wind. Already we've seen Brazil rapidly turned round its power sector so it is no longer the region’s Nigeria when it comes to affordable power supplies.

In Argentina, we are likely to see the countries desperate need for power to be solved in part by the recent discovery of shale gas deposits in the north-west of the country. However, how rapidly it can utilise such discoveries will depend on how all Argentina is viewed by foreign investors, as a result of the recent partial nationalisation of Spain's Repsol. This feature will look at the activities of investors such as International Power and technology providers such as Siemens in providing solutions to meeting the regions power sector needs.
Contact www.nicnewmanoxford.com

Do you need an energy journalist with an excellent track record of providing copy for the energy sector?

2012-02-23T21:28:00.001+00:00

Do you need an energy journalist with an excellent track record of providing copy for the energy sector? Do you need relevant and engaging copy for your website, newsletters, features, whitepaper, reports, press releases and other related copy? Nicholas Newman is an energy journalist with a thorough grounding in energy writing and a sound understanding of the current energy markets.

For the latest example of my published work see http://www.mydigitalpublication.com/publication/?i=100971&p=38 and other work see http://www.oxfordprospect.co.uk/Portfolio.html

To find out more about me http://www.oxfordprospect.co.uk/Energy-Journalist.html

To contact me https://www.linkedin.com/e/fpf/23902607

http://www.journalistdirectory.com/journalist/iLET/Nicholas-Newman

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Tel: +44 (0)758 046 9514

Skype: oxfordprospect

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E-Mail: nicnewman@btinternet.com

Regards

Nicholas Newman

Forecasting the future of UK gas supplies

2012-02-11T22:58:00.000+00:00

"A concern for gas security "

By: Nicholas Newman
Forecasting the future is always full of uncertainties, there are too many doubts such as Black Swan's, banana skins and acts of God that can make a forecast disastrously wide of the mark. Well despite all these afford mentioned uncertainties, a group of Britain’s leading industry gas experts were precisely trying to predict the future of gas supplies for the UK at the behest of OFGEM, at a seminar held on 2 February 2012 at London’s Institute of Mechanical Engineering. Amongst the questions asked were the following:

· Where will future gas supplies come from?

· Will there be sufficient gas around and how much will it cost?

· Does Britain need more gas storage capacity?

· How stable will gas prices be and how secure will gas supplies be?

· Is the UK becoming dangerously vulnerable to the dependence on imports of gas supplies from Qatar?

· Will America start export gas from 2014 onwards?

In the past the main concerns for Western Europe were doubts about the price, availability and security of supplies of Russian gas to the European Union. In the future, Howard Rogers at the Oxford Institute of Energy Studies suggested that other factors including:

· Future developments in American gas production, especially the growth in shale gas production,

· Asian and European competition for Qatari LNG gas deliveries, especially as Britain becomes increasingly reliant on gas shipped from Qatar.

· The timing of the start of US gas exports to Europe. Already, traders have factored the arrival of forward European gas prices, which at least in the short term should depress the cost of wholesale gas prices for a short while. Alistair Buchanan Chief Executive of OFGEM has suggested that by 2014, the United States will be ready to export its surplus shale gas production to Europe, once it's LNG import terminals on the East Coast and Gulf of Mexico have been converted to LNG export terminals, which include the proposed plants at Corpus Christi Texas and the Cove Point unit in Maryland. However, the prospect of US gas exports to Europe is still not yet a done deal with the current Obama administration, due to the American government’s own concerns to achieve long-term energy independence.

· However, Alistair Buchanan, noted that America’s ability to export gas, will also depends on how quickly U.S. regulators push for a switch from coal to gas power for electricity generation and how quickly its economy grows in the coming years.

While Anne-Sophie Corbeau at the International energy agency suggested other factors will have to be added into Britain's gas supply equation. These include:

· The security of gas supplies from the world's leading LNG gas exporter Qatar, given that its northern neighbour is Iran. The latest UK government figures suggests that Qatari LNG imports amounted to 52% of the total gas consumed in the first nine months of 2011; this is up from 11% in 2009 as a whole. The trouble Britain is that Qatar not only exports to Britain and other European states, but also to Asian states such as China, South Korea and Japan. We've already seen as a result the closure of several Japanese nuclear power plants a spike in the price of gas has as Japanese power produces and switched to imported gas to make up for the loss of nuclear power generating capacity. In future years we're likely to see growth in gas prices due to the increasing demand for gas Asian power generators as their economies continue to grow. This will mean Qatari gas become an increasingly expensive proposition for European gas consumers.

· The growth in Asian demand for gas imports and the impact that nuclear power station building programs such as in China are likely to have on the growth of demand for gas.

It is not surprising that Britain is looking desperately for alternative gas supplies, such as American shale gas exports, development of shale gas in Europe and even by the end of the decade imports of gas from Australia.

In addition, Poyry energy consultant and expert on shale gas Lucy Fields has pointed out that due to various difficult environmental, legal and geological factors, Europe is unlikely to experience a repeat of the American shale gas revolution. Instead, the arrival of shale gas production is likely to be more modest in impact. In addition, some expressed that once Australia's supergiant offshore gas fields become fully operational such as Wheatstone and Gorgan, Britain will be able to import LNG gas from there.

Lastly, this seminar total to the issue of what is energy security, Pierre Noël from Cambridge University’s Electrical Policy Research Group, defines energy supply security as the ability of the energy system to meet contracted final energy demand under a gas supply disruption, at peak time. However, risk adverse politicians tend to not trust the ability of the international markets to top up supplies as required. Also, for political and economic reasons, they are against sudden price spikes caused by disruption to supplies, even though economists will regard such market developments as an efficient method of rationing gas supplies. Instead, our political energy leaderships will seek methods to reduce the potential for such disruptions will have on gas supply availability. As a result, of the disruptions caused by though Russian Ukrainian gas disputes, European Union member states adjusted the market conditions in Europe to encourage greater cooperation between operators and increased capacity for storage, in order to insulate europe’s gas market against such emergencies. Such proactive action was much to the annoyance of Europe's gas suppliers such as Gazprom and Sonatrach, since such developments weakened such producer’s ability to influence the market.

In Britain, there has been much political concern that Britain has insufficient gas storage capacity. Though, many market operators would disagree. The UK’s current storage capacity amounts to only 14 days’ worth of gas supply—a dangerously low level compared with France which has 87 days’ worth of gas storage, Germany 69 and Italy 59, according to last December’s report by MPs on the Energy and Climate Change Committee. However, the reality is not as clear-cut as it initially appears. It has been argued by some energy analysts that the reason gas storage capacity has not been significantly increased in recent times are because of the following factors:

· Britain has massive gas import capacity, via its interconnector’s with the continent, especially the Norwegian gas fields.

· Also, due to developments at Milford Haven in Wales and, the United Kingdom has significant LNG import capacity.

· Further, there is sufficient capacity to cope with most peak time disruption scenarios in the years ahead.

· UK security of supply relies on its ability produce some gas itself and its ability to import gas from both European and global markets.

Unfortunately, in Europe's efforts to increase gas price competition by weakening the influence that oil price indexation has on Europe's wholesale gas prices. Europe is likely to face increased price and supply volatility as increasingly gas supplies will be obtained on the spot markets rather than through long-term contracts.

In order to improve their U.K.'s ability to withstand gas supply disruption the government has given the go-ahead for Gateway Storage Company to construct a new offshore gas storage facility, not far from Barrow in Furness in Lancashire. Once completed, the undersea caverns will have a working gas storage capacity of 1.52 billion standard cubic metres (~562 million therms), adding nearly 30% to the current UK gas storage capacity. Once this facility is completed in 2014, the United Kingdom should have a similar storage capacity for gas equal to that of Holland and in the longer term investors have plans to double the U.K.'s current storage capacity, equally that of either France or Germany.

This seminar was part of OFGEM's first major effort to gather industry views on the UK's gas supply prospects following the DECC request last year, an OFGEM spokesman said. However, what this seminar revealed was the major differences between gas producers, traders, consumers and regulators about the future course of UK gas supplies. It also revealed how black swans such as the arrival of the American shale gas revolution was unforeseen by many experts just a couple of years ago. Though, I suspect a future black swan will be the impact that the Arab Spring will have on Europe’s future gas supplies.In addition, the debate in the question-and-answer sessions revealed how successful acts of God such as European energy policy has been on affecting the growth in demand for gas and how the market can be made to operate to meet the greater good of the economy. As for banana skins, the un-intended consequences of the drive to the index gas prices from oil prices is a good example. In the long term, it looks like European gas prices will continue to increase, due to increased demand by European, Asian and American power generators. However, the real question is, where will Europe be obtaining its future gas supplies. I would not be surprised that the European Union will be developing new gas fields in the Arctic regions in the long term.

For details of the slides used in seminar see:

http://www.ofgem.gov.uk/About%20us/PwringEnergyDeb/Pages/PwringEnergyDeb.aspx

The World Is Not Desperate For Energy in 2012!

2011-12-18T21:12:00.000+00:00

Current forecasts suggest that global energy consumption will only increase by 3% in 2012, not much different from 2011. This is not surprising given the state of the world economy. Current market figures suggest that like in 2011, the world will enjoy a net surplus of energy capacity.

Take oil, production is likely to again to outpace global demand; such a prospect will once more disappoint peak oil Cassandras. There are several reasons for this; the first is the coming on stream world wide of a number of new offshore projects in Nigerian, Angolan, Brazilian and Gulf of Mexican waters. In addition, increased Libyan and Iraqi oil production coming on stream in 2012 will add significantly to global oil supplies. However, will this be sufficient to reduce current oil prices from around $90 a barrel today to what they were in 2009 when it was $60 a barrel, is anyone’s guess. Yet, such a drop in price would give a welcome boost to the world economy.

Nevertheless, despite investment by many countries in renewables, decision makers are still investing in new cleaner coal based power, which is pushing up coal’s share in the global energy mix. Already, both China and India have placed their faith in increased coal use, this is not surprising given its strategic, economic and energy security advantages. After all coal provides a cheap source of fuel to power all those new laptops, televisions and air-conditioning units that increasing numbers of their fortunate citizens can afford to use.

Yet, the big winner in 2012 is forecast to be gas. During 2012, new commercially significant natural gas supplies are due to come on line in Qatar and Australia. Already, it is fortunate for Japan due to its on-going nuclear outages that such additional LNG supplies are available during its current power shortages, which are likely to last for several years. In addition, unconventional gas will increasingly play its part; already Australia and the United States have well advanced plans to export unconventional gas as LNG to markets in North Asia and Europe. In fact some market makers in Europe are complaining that Europe from too much gas and competition being available in the market. As for elsewhere in the world, there are less advanced plans to exploit unconventional gas for regional markets in Argentina, Poland, South Africa and China. Such developments are likely to change the shape of energy geopolitics in the near future.

Though the future progress of unconventional gas is likely to be affected by the results of reports, due out in early 2012, by the Environmental Agencies of the EU and US into the impact that fracking has on the water table.

As for nuclear, after events at Japan’s Fukushima Daiichi nuclear plant, one would have thought we had seen the end of nuclear power. Certainly, Germany thought so when it pulled the plug on its nuclear power programme. Well, in fact forecasters are suggesting the future looks bright in many countries, whilst in America and Japan these countries have dithered about a nuclear future. Other countries like Britain, France, China, Russia and South Korea have improved their designs and moved ahead with their programs. In fact, it is likely that half the world’s new nuclear power plants will be completed in such countries as China, Taiwan, Thailand, Indonesia, Vietnam and South Korea by 2050. It is forecasted that by 2020, China is expected to increase its nuclear generating capacity seven fold and South Korea to double its nuclear power capacity.

Over all the future looks bright especially for gas; however, the world will continue to experience at regional level problems providing sufficient capacity to turn raw energy into a useful power source.
Nicholas

GARRIGILL NAMED BRITAIN’S SOLAR PANEL CAPITAL

2011-12-07T14:33:00.001+00:00

A tiny village in Cumbria is laying claim to be Britain’s solar panel capital.

At least half a dozen residents out of just 200 in Garrigill have had panels installed – beating by days the Government’s controversial reduction in Feed-in-Tariff subsidies.

And other residents and potentially even the village hall are expected to go ahead with installations next year. All of the installations have been carried out by leading renewable energy company Eco Environments.

One villager, Fiona Gifford, who has had a 12-panel Sanyo system fitted, said: “A few of us had been talking about having solar panels installed for a while.

“As soon as the Government announced it was cutting the Feed-in-Tariff subsidies available, we decided we had better get a move on.

“By getting in ahead of December 12, when the reduction is due to come into force, the financial returns are extremely attractive. I expect my system to have paid for itself in about eight years. With electricity prices only set to go up, installing solar panels made total sense.

“Although we have been able to get our panels installed before the deadline, we believe the Government should have allowed a longer consultation period. The villagers felt so angry we wrote to our local MP Rory Stewart to protest.”

Other villagers who have gone ahead with installations are Tim Haldon and Jules Cadie, who have had 18-panel Sungrid systems installed, Paul Lincoln, an 18-panel Hyundai system, Laurie MacDonald, a 10-panel Hyundai array and Janette Thorley a 14-panel Sungrid system.

David Hunt, a director with Eco Environments, said: “For a village as small as Garrigill, the interest and uptake has been phenomenal. The village may even be Britain’s solar panel capital!

“We have worked round-the-clock to ensure that all of the current installations are up and running before December 12, but we are hopeful that as the word spreads, more of the villagers will want to install their own arrays next year.

“While the current subsidies are incredibly attractive, the post-December 12 tariff levels are still excellent especially when allied to the anticipated reduction in the cost of the panels.”

Eco Environments, which has its head office in Liverpool and regional offices across the UK, took three months’ orders in just two weeks following the news that the cuts would kick-in from December 12.

As of next week, the tariff for Solar PV schemes up to 4kW will be cut from 43.3/kWh to 21p/kWh.

Eco Environments is led by its three directors, Mike Clarke, David Hunt and Mark Buchanan, and employs 46 people compared to 11 at the same time last year. It is on course to increase turnover from £1.4million to £5million during the current financial year.

Eco Environments designs, installs and commissions renewable energy solutions for the domestic, commercial and construction sectors. It offers a comprehensive range of technologies including Solar Photovoltaic (PV), wind turbines, solar thermal and air source heat pumps. It is one of only a small number of companies to have successfully secured Microgeneration Certification Scheme (MCS) accreditations for all four of its specialist areas.

Apart from its new head office in Liverpool, Eco Environments has regional offices in Carlisle, Newcastle, Manchester, Leeds, Birmingham and North Wales. During the next few months, further offices will open in the south of England. Staff numbers will also rise to approximately 60 during the current financial year.

· www.eco-environments.co.uk

WiseEnergy Africa awarded 500MW facilities management deal

2011-12-07T10:43:00.001+00:00

WiseEnergy Africa awarded 500MW facilities management deal by ix:Africa fund

WiseEnergy Group now managing €2bn renewable energy assets worldwide

London – 7th December 2011: WiseEnergy Group, a leader in the complete management of renewable energy generation assets, with €2 billion under control, will manage up to 500MW of solar and wind power projects in South Africa on behalf of ix:Africa, a new impact investment fund seeking to raise €400m to dedicate to renewable energy projects in Africa.

Already present in the UK and Italy, the world’s largest market for solar energy, WiseEnergy will operate in Africa as WiseEnergy Africa. Its local team is already working with the ix:Africa fund and the South African Government to review the potential for major solar and wind projects in the country, ahead of the next round of government project auctions in March 2012.

WiseEnergy Africa offers investors seeking to enter the South African market a full suite of services, from project design and consent, to management of construction and operation of the plant.

"Africa is one of the most promising markets for the development of renewable energy projects and South Africa acts as a true gateway”’said Aldo Beolchini, Director at WiseEnergy. “Having expanded into the UK and South Africa, two attractive markets for renewable energy, we seek to replicate our success in the Italian market where we are the largest operator in the sector.”

“In emerging nations such as South Africa, there is an enormous appetite for energy and a requirement to double generation capacity in a very short space of time. Only renewable energy projects can meet this demand. Last year, Italy and Germany alone installed solar power equivalent to ten new nuclear power plants. Combined with high solar radiation and a willing Government, South Africa’s hunger for the swift development of new generation capacity makes it an attractive, low risk market for renewable energy investment.”

Earlier this year, WiseEnergy passed the milestone of managing €2bn of renewable energy assets worldwide, having taken on the management of its first solar energy development in the UK – a 2MW facility in Trevemper, Cornwall, owned by NextEnergy Capital and with an expansion capacity of up to 5MW.

WiseEnergy UK is now in talks to take on comprehensive management and operation responsibilities for a string of other utility-scale UK solar developments owned by third parties. Aldo Beolchini explains: “There are over twenty professional solar project owners in the City that have been impacted by changes to UK solar subsidy and policy. Similar to NextEnergy Capital, these investors had no choice but to complete the construction of their most advanced developments and shelve plans for a much bigger portfolio of UK assets.

“It no longer makes sense for these owners to invest in their own in-house asset management teams. The solution is outsourcing. We have brought WiseEnergy to the UK to fill this gap in the market. Asset management is a fundamental requirement in the solar sector, where people underestimate the potential for performance optimisation and the need to ensure professional technical management.

“There is a common misconception that PV stands for “Plain Vanilla” and that these assets can be left to operate on their own following grid connection; this is far from true and our experience demonstrates that with active management these plants can perform better than expected, with exponential impact on their financial returns. With over fifty years’ combined solar management experience, our team is well placed to offer the UK market the independent asset management it now clearly needs.”

About WiseEnergy:

WiseEnergy is a subsidiary of NextEnergy Capital, a London-based merchant bank focused on the renewable energy sector in Europe and South Africa.

In the field of private equity, NextEnergy Capital promotes, co-finances and manages funds whose objectives are to identify, acquire, realise and manage investment platforms in the renewable energy sector. These include power plants implementing different technologies (mainly photovoltaic, thermodynamic, biomass from algae and biofuel for aircrafts) in Europe, with the brand name NextPower.

NextEnergy Capital launched NextPower development, the largest development company in Italy, and WiseEnergy, the firstEuropean company specialised in solar asset management. In the field of Financial Advisory, NextEnergy Capital undertakes mandates involving M&A and capital market transactions for clients wishing to expand their presence in the renewable energy market. Over the past 18 months, NextEnergy Capital has arranged investments for €100m in the renewable market. www.nextenergycapital.com

www.oxfordprospect.co.uk

Striking it lucky

2011-12-04T22:41:00.001+00:00

2 December 2011

Covering every corner of the globe, we profile the most promising offshore oil discoveries. Nicholas Newman charts a course, covering finds in the Beaufort Sea off Alaska's North shore, The Levant Basin, The Sea of Okhotsk, a treacherous find offshore of Angola and news of a massive find in Brazil's Santos Basin. http://www.offshore-technology.com/features/featurestriking-it-lucky---most-promising-new-offshore-oil-discoveries/

East Asia a nuclear hotspot?

2011-12-04T21:38:00.001+00:00

By Nicholas Newman

Over the next few decades, at least half the world’s new nuclear power plants are likely to be built in in East Asia. Most of these new plants will be built in China, Taiwan and South Korea. However, there are tentative proposals planned for the region, including Vietnam and Indonesia. However, one thing for certain, Australia will be supplying the uranium to these countries. It funny that Australia is happy to mine uranium sell it for export, but not use it itself.

Elsewhere in the region, the events at Japan's Fukushima Daiichi nuclear plant have caused countries to pause and reflect about their nuclear power programs. As a result, new design and regulatory standards have been put in place. However, it has stopped China, Taiwan and South Korea from continuing with its plans to expand its nuclear sector. Already, South Korean has announced plans to increase the number of nuclear power plants it operates from 21 today to 40 units by 2030. This will mean nuclear contribution to Korea’s electricity market will increase from 31% to 56% by 2020. Because of its lengthy experience of operating foreign technology, mainly Westinghouse for some time, Korea itself has now developed its own commercial design the OPR-1000. Korea plans to export at least 80 units by 2080, supplying perhaps 20% of the world market, bring new competition to suppliers in the US, France and Russia. Already, Korea has won an order to build four large reactors in UAE. In addition, it is seeking orders in Jordan, Turkey, Rumania, Vietnam, Indonesia and the Ukraine.

China has similar on-going plans to expand its nuclear power capacity from 10 GW today to 70 GW by 2020. It is currently building six new nuclear plants each year which could mean that by 2050 nuclear power will supply 400 GW of China’s needs. Again, like South Korea, China has evolved its own independent designs the CAP1000 AND CAP1400 based mainly on earlier imported Westinghouse designs. However, Western designs such as from the US and Europe are being built, including two 1650 MW European Pressurised Reactors on the coast near Shanghai at Sanmen.

Taiwan currently operates 5 nuclear power plants using the latest in Westinghouse and General Electric technology, at present two new plants are being constructed, with the first one due for completion in 2013. At present nuclear capacity provides 11% of total national generating capacity, which will increase once the new plants are in operation.

However, one thing is certain the future is bright for nuclear power in the East Asian region. Because of the entrants of new designs from this region, being developed should help make investment in nuclear power a more attractive commercial proposition than before.

For further information:

http://www.westinghouse.com/

http://www.ge.com/

http://www.areva.com/FR/activites-57/index.html

http://www.snptc.com.cn/en/index.aspx

http://www.opr1000.com/

International Power Chile Plants Inaugurated

2011-11-29T17:18:00.001+00:00

29 November 2011

Inauguration of two 150MW power plants in Chile

29 November 2011 ‐ GDF SUEZ and International Power (70% owned by GDF SUEZ) are pleased to announce that the 150MW Andina Thermal Power Plant (CTA) and the 150MW Hornitos Thermal Power Plant (CTH), located in the north of Chile, were officially inaugurated today.
Together the two thermal power plants will supply 300MW to Chile's Norte Grande Interconnected Power System (SING), which mainly supplies power to the Esperanza and Gaby mines located in the north of the country. Chile is an attractive market with demand for power forecast to grow at an annual rate of around 6%. CTA and CTH represent a total investment of around US$900 million, including the cost of building a new 144km transmission line and substation.
The CTA and CTH plants feature state of the art technology, known as "circulating fluidized bed", which allows them to use a range of solid fuels, including up to 10% biomass. This technology helps both to improve the efficiency of the combustion process and reduces emissions.
The two power plants are operated by E-CL, a Chilean power generation company, which is 52.77% owned by International Power. E-CL owns 100% of CTA and 60% of CTH.
Gérard Mestrallet, Chairman and CEO of GDF SUEZ, said: "Our Group is constantly investing in the research and development of new, highly efficient and innovative technologies. Combined with our broad geographic reach and a diversified energy portfolio, this allows us to offer a variety of solutions depending on the conditions of the country where we operate. Chile is an important country for GDF SUEZ in Latin America and this new development shows the Group's commitment to this growing region."
Philip Cox, CEO of International Power, commented: "CTA and CTH are modern, efficient facilities that will help to meet Chile's fast growing demand for power. Both projects are supported by long-term offtake contracts."
Activities in Chile
In Chile, in addition to CTA and CTH, IPR–GDF SUEZ Latin America also has a 63% stake in the LNG receiving and regasification terminal GNL Mejillones and Monte Redondo, a 48MW wind farm which is part of the country's central grid. It is also constructing the 34MW hydroelectric plant Laja I.
About International Power
International Power plc is a leading independent electricity generating company operating across 30 countries with 72,360MW (gross) (42,225MW net) in operation and a significant programme of 15,503MW (gross) (6,561MW net) projects under construction as at 30 June 2011. International Power is listed on the London Stock Exchange with ticker symbol IPR. GDF SUEZ holds a 70% interest in International Power plc.
About GDF SUEZ
GDF SUEZ develops its businesses around a model based on responsible growth to take up today's major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gassupply sources, flexible and low‐emission power generation as well as unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production and environmental services. GDF SUEZ employs 218,350 people worldwide and achieved revenues of €84.5 billion in 2010. The Group is listed on the Brussels, Luxembourg and Paris stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone and ECPI Ethical Index EMU.

A look at the impact that LNG and unconventional gas could affect the future of the EU gas market.

2011-11-24T12:55:00.001+00:00

Nicholas Newman 24 November 2012

In recent years, Europe has experienced a gas glut caused by the US becoming self-sufficient in gas (mainly due to unconventional gas production), which has also caused traditional US suppliers to divert exports to the European Market. However, there have been acts of god, banana skins and black swan events that have affected in recent times the EU gas market. These have included Japan’s massive emergency imports of gas and the Libyan war that halted gas exports to Europe, although Libyan gas exports are beginning to recover.

We are in the midst of on-going changes in the European gas market framework, in part due to European Commission intervention, but also due to the development of alternative gas import sources both domestic and foreign. We have seen the rise in the use of hub pricing, as there has been a decline in the dominance of oil indexed long-term gas contracts and a greater range of contracts made available. The trouble is the market is asking will the new trading environment depress prices or maintain Gazprom’s ability to influence the market. It is also being asked is too much world gas production capacity coming on stream too soon.

As for shale, America is not the only source for shale gas E&P so is UK, Poland, China, India, Australia and Argentina. Nevertheless, for the EU shale E&P is at a much earlier stage of development than in the US. There are fears that US shale gas could flood the EU gas market, thus delaying development of EU domestic production for years. In addition, there are fears that Europe is still not ready to fully exploit shale gas production on a large scale.

Factors affecting the EU gas market include developments in Asian pipeline gas and LNG demand. The black swan in the market could be China, Beijing could insist that the Central Asian gas resources it has been developing should be paid for at below market prices or even in kind. Or even that it will replace gas imports with its own massive reserves of unexploited unconventional gas, which it could switch too, instead of importing from Central Asia, Gulf States, South East Asia and Australia.

In addition, the timing and slippage of North American shale gas projects. Also the future pricing and production policies of gas producers together with market developments, including how soon will Europe’s economy recover and the impact of rival fuel sources on gas demand. However, forecasting about the future depends on how many acts of god, banana skins and black swans will occur to affect the European gas market.

Loosely based on notes of a seminar given by Howard V. Rogers Senior Research Fellow OIES on

16 November 2011

http://www.oxfordprospect.co.uk/

Discovery of good quality oil in south Santos Basin

2011-11-24T00:06:00.001+00:00

November 23, 2011

Discovery of good quality oil in south Santos Basin

Petrobras has confirmed the presence of good quality oil in well 4-SPS-91 (4-BRSA-1002-SPS),

in south Santos Basin, in an area known as Tiro and Sidon.

The new well, informally known as Patola, is located at a water depth of 299 meters,

some 200 km off the coast of São Paulo State and 3.8 km from discovery well

1-SPS-57 (1-BRSA-658-SPS), in the Evaluation Plan area containing wells 1-SPS-56

and 1-SPS-57 (1-BRSA-607 / 1-BRSA-658), former block BM-S-40.

Preliminary analyses indicate that this oil is of the same quality as the oil found in

wild cat wells, around 36o API. The discovery confirms the potential for good quality

oil in the shallow waters of south Santos Basin.

The discovery was confirmed by cable test oil samples taken from the post-salt sandstone.

The reservoir is approximately 2,160 meters deep.

Petrobras will now go ahead with the activities and investments set forth in the

Evaluation Plan, including drilling other wells in the area, and will proceed with

an Extended Well Test (EWT). EWTs are currently in progress on wells 1-SPS-56

and 1-SPS-57.

Click here to see the map

Dragons’ Deborah and Theo commit to solar industry

2011-11-21T19:47:00.000+00:00

Tomorrow afternoon there is going to be a big solar rally and lobbying of Parliament by the solar industry to demonstrate the sector's anger over the government's proposal to cut the all important Feed-in-Tariff by 50%. On 31 October the coalition announced that they plan to bring in this drastic cut which could damage the solar industry and discourage British homeowners from investing in solar panels on their home.

Deborah Meaden and Theo Paphitis from the Dragons’ Den have just signed the deal today to invest in a solar company. I know this in itself isn't necessarily worthy of an interview, but given the fact that the Dragons have decided to invest in the solar industry despite the current troubles shows that they believe there is a strong future for the solar sector. Chris Hopkins, the founder and MD of Ploughcroft Solar who appeared on the Dragons' Den is available for interviews tomorrow if you would be interested in getting a local solar firm's point of view on what is happening in London.

Chris Hopkins, the founder and MD of Ploughcroft Solar who appeared on the Dragons' Den is available for interviews tomorrow if you would be interested in getting a solar firm's point of view on what is happening in London. And we can also offer Deborah Meaden to give her views as to why solar remains a strong investment opportunity for the British consumer.

Dragons’ Deborah and Theo commit to solar industry

Dragons’ Den investors Deborah Meaden and Theo Paphitis have today shown their commitment to the distressed British solar sector by signing a deal with Yorkshire-based Ploughcroft Solar, one of the UK’s leading solar PV panel installers.

With a solar rally and lobby of Parliament planned for tomorrow afternoon (Tuesday 22 November), the solar industry and green organisations are up in arms over the government’s plans to halve the all important Feed-in-Tariff (FIT) which has encouraged tens of thousands of British homeowners to turn to solar.

Demonstrating that they believe there is still a bright future for solar in this country, Deborah and Theo have invested in Ploughcroft Solar as a result of MD Chris Hopkins’ pitch on the Dragons’ Den programme this summer.

Said Deborah: “In our lifetime, a switch towards renewable energy is not an option – it has to happen. Consumers need help to make the right choices as there are many conflicting messages being issued to the public. A review of the FIT is the right thing to do, although the scope, timing and conflicting messages have not been helpful.

“Although the government’s proposals to reduce the FIT from 43p/KWh to 21p/KWh are drastic, we believe that even if this new tariff is introduced solar is still an attractive option to homeowners. As energy bills continue to rise consumers will be looking for ways of lowering their energy costs and going green. With the 21p/KWh FIT solar photovoltaic (PV) panel homeowners will get a sensible return on their investment, as well as seeing lower electricity bills and helping the environment.

“Theo and I are both 100% committed to the growth and stability of Ploughcroft, which is leading by example within the solar industry. The government’s proposals haven’t scared us off and should not discourage the British public from investing in solar and other renewable energies. Our job is to make sure people still understand there is a good reason to commit to renewable energy, both financially and ethically. Once the government’s final decision on the new FIT has been made the solid, forward thinking renewable industry can continue to grow.”

Chris Hopkins, who has been at the forefront of the solar industry for six years and is also a member of the newly formed Green Construction Board for the Department of Business, Innovation & Skills added: “Since the government made its FIT reduction announcement on 31 October we have seen a 50% increase in enquiries compared with the previous month. We have already secured sales on systems that we will be installing in January and February 2012 on the new tariff. This indicates that homeowners remain keen to reduce their electricity bills whilst doing their bit to help the environment.”

The expertise of Deborah Meaden and Theo Paphitis will help Ploughcroft Solar expand into new areas of renewable energy throughout 2012, and support the company’s mission to become the name for renewable energy for homeowners across Britain.

Members of the public and businesses can email fits@decc.gsi.gov.uk or telephone 0300 068 5733 to register their comment on the proposed policies.

For further information visit www.ploughcroft.co.uk

The World is Desperate for Energy Engineers

2011-11-18T20:28:00.001+00:00

By Nicholas Newman 18 November 2011

It’s not a scarcity of oil the world should be worried about but more importantly a desperate skills shortage of engineers. This is especially so for the global energy industry. For many jobs, the number of vacancies exceeds the number of skilled experienced engineers that are available. Already, such shortages are causing significant delays and costs for major projects including development of offshore oil fields off Angola. Whilst in Brazil, the home of samba, tropical rainforests and traffic jams, this developed county is in a desperate search for engineers to construct 12 super tanker sized FPSO’s over the next decade. Such skills deficiencies are harming energy security, harming economic recovery and the ability of the world to meet its ambitious CO2 targets.

The only solution the energy industry has is to pay higher salaries and offer better conditions. Already, in Australia many engineers with energy related expertise are starting on salaries of AUS$20,000 a month. Even in the remotest desert locations of Australia or Iraq, the camps offer the best in accommodation and food. Ironically, subsea engineers are the amongst those in greatest demand. As to why there is a shortage of energy engineers, in part, it is due to lack of sufficient support governments, universities and industry to ensure adequate levels of people are trained every year. It is also due demographics, as the workforce ages and to the cyclical nature of the industry. Today, it is not helped that the sheer number of new projects worldwide that are being developed and coming on stream. In Australia, for instance the boom in mining of coal, iron ore and uranium is taking place at the same time there is also a boom in oil, gas, solar, power and unconventional gas projects. Because of poaching between the different energy sectors, pay and conditions have had to be drastically improved, in a desperate attempt to overcome such work force shortages.

Due to it being a sellers’ market for engineers, energy companies are having to becoming more sophisticated in recruitment practices. Increasingly they are relying on experts talent scouts to find, identify and select as well as maintain the loyalty of the engineers in this very competitive global market. In addition, many such recruitment agencies such as Hays, NES Global are working on behalf of their clients Total, Shell, ENI to co-ordinate the development of the skilled candidates in their studies at universities around the world. In many new energy producers, governments are encouraging local content polices to ensure that the energy industry makes sufficient investment in overcoming the global energy sectors current labour shortages.
http://www.oxfordprospect.co.uk/Energy-Features.html

World Energy Market Prospects 2012

2011-11-02T11:24:00.000+00:00

Nicholas Newman 24 Oct 2011

A quick look at various aspects that make up the global power generation sector, including wind, solar, nuclear, hydro and coal power station prospects.

Despite the popularity of renewable technology, development of conventional power plants continues to grow a pace.

This year is likely to see the end of the feather bedding of renewables in many countries, due to budgetary constraints in numerous countries. Given these new market conditions both investors and operators are being faced with harder often politically unpopular choices to make in their investment strategies. This article gives an overview of the picture facing investors in various parts of the world.

Tough times ahead for renewables?

Renewables have been doing well in recent years. However, due to budgetary constraints in many countries, governments are cutting back on subsidies for the renewables' sector. Which means there are tough times ahead for wind, solar, geothermal and wave power schemes.

From my experience, renewables need to make greater strides before they no longer have to depend on government subsidises and other policies to distort the market in its favour. At present, more money is to be made in the companies servicing renewable installations than investing in them, so have a look at consultancies.

Why hydro has a future?

I think the hydro sector has great possibilities, which in Europe will mean upgrading generating capacity at hydro station dams along major rivers, such as the Danube. Similar potential exists in the United States to upgrade existing facilities in an environmentally friendly manner. However, the main obstacle is the anti-hydro ideology among some environmentalists in North America. In addition, new hydro power schemes both large and small are likely to be constructed in Russia, South-East Asia and South America in the next few years.

Wind prospects look good in the Arctic!

As for wind, I think the proposed North African Desertec scheme has its financial, market and political problems. I think a better bet for investors will be the so-called Arctec scheme proposed for the Northern Scandinavian coast, because of its more favourable business climate and ease of access to Northern European markets such as the Germany.

Why pulling the plug on nuclear means more coal and gas power stations?

However, just because Germany and Italy have said no to a new phase of nuclear does not mean, this is the end for atomic power in Europe, there are too many national, strategic, environmental and economic reasons for building new atomic plants.

In fact, both countries will continue to enjoy the benefits of nuclear power. They will be importing it from neighbouring countries, such as France, which have nuclear-power programs. In fact, many of the investors in such plants will include German and Italian power generating companies as partners.

Already, both the United Kingdom and France have announced a new phase of nuclear power station building. In addition, the pulling of the plug on atomic in those countries has seen power companies reactivate coal power stations, and Europe’s orders for coal have increased as a result. This will mean europe will find it harder to meet its carbon emmission targets.

However, various power generation companies have annouced plans for speeding up proposals to extend the life of existing plants and schemes for new gas and coal power plants. As the new gas plants come on stream, it has been estimated that by 2014, Europe will be seeking additional gas imports. One potential source is the Nordstream gas pipeline project linking Siberian gas fields with Germany via the Baltic Sea. It should be operational by 2012, just in time to give a boost to EU gas supplies as Europe's economy begins to recover.

A possible golden future for Australian renewables.

For investors in the energy sector, current trends are suggesting Australia is a great investment given its proximity to North Asian markets for its coal and gas exports. However, there has also been a recent change of fortune for the county’s renewables sector, due to the latest announcements made by Australia’s Prime Minister Julia Eileen Gillard to rig in favour of renewable power generators the country’s power market. See also Australian PM faces stiff opposition against her radical carbon polices!

As an energy expert, I expect to find the next few years very interesting!