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Global natural gas faces challenges from coal, pricing difficulties: IEA

Posted on 11 June 2014 by VRS  |  Email |Print

Despite its many advantages, natural gas is losing ground globally to its rivals while buyers and sellers struggle to agree on what constitutes a fair price, the International Energy Agency said in a report published Tuesday.
In its annual Medium-Term Gas Market Report, it said global gas demand grew less last year than did demand for competing fuels: estimated at 3.49 trillion cubic meters, it was up just 1.2% from 2012, while oil demand rose 1.4%, coal was up 3-4% and renewables were up more than 4%………………………………………..Full Article: Source

IEA outlook: ‘Golden Age’ of gas to extend to China

Posted on 11 June 2014 by VRS  |  Email |Print

The “Golden Age” of natural gas that has taken such a strong foothold in North America will extend to China over the next 5 years, driven by booming demand, according to the latest 5-year gas market outlook from the Paris-based International Energy Agency.
In its Medium-Term Gas Market Report 2014, IEA noted that a near-doubling of Chinese gas demand by 2019 will offset a slowdown in demand in other regions. The annual report sees global demand rising 2.2%/year by the end of the forecast period compared with the 2.4%/year rate projected in last year’s outlook………………………………………..Full Article: Source

IEA Investment Report: What is Right; What is Wrong

Posted on 11 June 2014 by VRS  |  Email |Print

Recently, the IEA published a “Special Report” called World Energy Investment Outlook. Lets’s start with things I agree with: 1. World needs $48 trillion in investment to meet its energy needs to 2035. This is certainly true, if we assume, as the IEA assumes, that world economic growth will actually improve a bit, from 3.3% per year in the 1990 to 2011 period to 3.6% per year in the 2011 to 2035 period. It is likely that the growth in investment needs will be even higher than the IEA indicates.
In my view, this is a CYA report. The IEA sees trouble ahead. There is no way that investment of the needed amount (which is likely far more than $48 trillion) can be met. With the publication of this report, the IEA can say, “We told you so. You didn’t invest enough. That is why energy supply ran into huge problems.”……………………………………….Full Article: Source

IEA warns of looming energy investment shortfall

Posted on 06 June 2014 by VRS  |  Email |Print

A looming energy investment shortfall risks derailing carbon-reduction targets the International Energy Agency (IEA) has warned. In a new report, World Energy Investment Outlook, the IEA said that to meet global energy demand, around $40 trillion will need to be invested by 2035, while a further $8 trillion will need to be spent on energy efficiency.
“The reliability and sustainability of our future energy system depends on investment,” IEA executive director Maria van der Hoeven said. “There is a real risk of shortfalls, with knock-on effects on regional or global energy security, as well as the risk that investments are misdirected because environmental impacts are not properly reflected in prices.”……………………………………….Full Article: Source

Unconventional Energy Can Change Global Geopolitical Balance

Posted on 06 June 2014 by VRS  |  Email |Print

A new paper led by the Smith School for Enterprise and the Environment at the University of Oxford examines the environmental, economic and political implications of unconventional fuel sources like shale gas and tight oil.
It suggests that these novel resources could be a “blessing for the global economy,” but also that the implications go far beyond the economic dimension—redrawing the global map in terms of trade balances, economic competitiveness and, most importantly, the geopolitical balance………………………………………..Full Article: Source

Europe at risk of blackouts, warns IEA

Posted on 04 June 2014 by VRS  |  Email |Print

International Energy Agency warns that the EU will lose a quarter of its electricity over the next decade as old power stations are shut down. Europe is at serious risk of power blackouts and may lose control of energy security without a radical overhaul of its shambolic policies, the world’s top energy watchdog has warned.
“In Europe we are facing the risk of the lights going off. This is not a joke,” said Fatih Birol, the International Energy Agency’s chief economist………………………………………..Full Article: Source

World not moving fast enough on renewable energy, says IEA

Posted on 04 June 2014 by VRS  |  Email |Print

Energy supply investement at $1.6trn annually but needs to rise to $2trn to stop dangerous global warming, energy thinktank finds. The world is not moving fast enough on investment in low carbon energy to tackle climate change, new research from the International Energy Agency has found.
About $1.6 trillion is invested annually in the global energy supply, but while that represents a doubling of investment since the turn of the century, the amount needs to rise to $2 trillion if the world is to limit global warming to no more than 2C of temperature rises, the energy thinktank said………………………………………..Full Article: Source

$48 trillion needed by 2035 to meet global energy needs: IEA

Posted on 03 June 2014 by VRS  |  Email |Print

More than $48 trillion must be invested by 2035 to meet global energy needs as current technologies go offline and demand rises in emerging nations, the International Energy Agency (IEA) said in a report launched in London on Tuesday.
The special report warns that the expansion of the global gas market, thanks largely to the improvements in unconventional extraction methods, will not reduce prices significantly due to high transportation and infrastructure costs………………………………………..Full Article: Source

IEA Expects World to Rely More on Middle East Oil

Posted on 03 June 2014 by VRS  |  Email |Print

A top energy watchdog said the world will need more Middle Eastern oil in the next decade, as the current U.S. boom wanes. But the International Energy Agency warned that Persian Gulf producers may still fail to fill the gap, risking higher oil prices.
In its first update to the agency’s energy investment outlook in more than a decade, the IEA—which represents some of the world’s largest consumer nations—said it sees “growth in oil demand [becoming] steadily more reliant on investment in the Middle East.”……………………………………….Full Article: Source

Ukraine: The real energy crisis starts in June

Posted on 30 May 2014 by VRS  |  Email |Print

On June 3, Russia plans to reduce the gas supply to Ukraine — and hence, to Europe — if Kiev has failed to pay in advance for next month’s gas deliveries, the price for which has been doubled as a result of the political crisis.
Interim Ukrainian Prime Minister Arseniy Yatsenyuk is trying to play hardball with Moscow, suggesting gas talks cannot move forward until Russia addresses the issue of the $1 billion in gas it stole when it annexed Crimea………………………………………..Full Article: Source

EU lays out energy plan, to reduce Russia dependence

Posted on 29 May 2014 by VRS  |  Email |Print

The European Commission laid out plans Wednesday to cut the EU’s costly reliance on energy imports, especially from Russia which has threatened to halt gas supplies to Ukraine, a key transit point for Europe.
A report prepared for European Union leaders recommended a broad series of measures to promote indigenous sources, including renewables and nuclear energy, and to make progress on a single energy market………………………………………..Full Article: Source

The coal industry and Asia in 2014

Posted on 29 May 2014 by VRS  |  Email |Print

New regulations and policy initiatives in China in 2014 can be expected to reflect the priorities set in China’s 12th Five-Year Plan, including “higher quality growth”, which includes a stronger focus on environmental protection, climate, and energy efficiency. However, despite stricter environmental standards, China’s coal demand is expected to increase by almost 20% over the next five years.
By the end of 2014, China is expected to finalise all of the seven pilot emission trading schemes it announced in 2011. Once finalised, China’s emissions trading schemes will cover about 7% of the country’s total greenhouse gas emissions in Shenzhen, Beijing, Shanghai, Tianjin and Chongqing, as well as in the Guangdong and Hubei Provinces………………………………………..Full Article: Source

Update On The Coal Sector

Posted on 29 May 2014 by VRS  |  Email |Print

We always try to keep an open mind to various types of investments; be they a type of technology, a certain company or a specific industry. Even when we form an opinion on an industry that is working, we constantly research to see whether we need to adjust our position to the opposite of where we are or move to a neutral posturing.
With that said, we have come across an interesting report on the coal sector, and we wanted to highlight that today based on the fact that we recently discussed the coal names mentioned in this report………………………………………..Full Article: Source

Europe’s energy policy: Just say no

Posted on 28 May 2014 by VRS  |  Email |Print

The EU’s energy policy is incoherent to the point of non-existence - but Russia knows exactly what it is doing. Europe has an energy policy - just say ‘no’. Germany’s Chancellor Merkel says nein to nuclear power. France’s President Hollande says non to shale gas.
Britain’s Prime Minister Cameron says no to wind power unless it is a few kilometres out to sea. Poland’s Prime Minister Tusk says nie to any limit on burning brown coal – lignite – the most polluting of any fossil fuel………………………………………..Full Article: Source

3 Reasons Putin’s Nat Gas Deal Is A Big Deal

Posted on 26 May 2014 by VRS  |  Email |Print

It’s not just because it took 10 years to negotiate with China or is worth $400 billion, but the new deal Gazprom signed to supply 38 billion cubic meters (bcm), which is about the amount NY state uses annually, of natural gas to China each year for the next 30 years may be a major game changer for 3 big reasons.
The first big reason is that this deal may reduce air pollution in China. That may not only clean the air for breathing but may reduce the erratic weather causing global warming that is spiking agriculture prices and now possibly food prices………………………………………..Full Article: Source

Czechs oppose single EU body for gas, oil purchases

Posted on 22 May 2014 by VRS  |  Email |Print

The Czech Republic opposes a Polish proposal to create a single body to buy gas for the European Union but could support private groups voluntarily joining up for purchases, according to a position document approved by the government on Wednesday.
Central European countries are vulnerable to any interruption in supplies because they take most of their natural gas from Russia, mainly via Ukraine. Polish Prime Minister Donald Tusk has called for the EU to create an energy union because the current dependence on Russian energy makes Europe weak………………………………………Full Article: Source

Energy sanctions aim to hurt Russia more than the west

Posted on 15 May 2014 by VRS  |  Email |Print

As the US looks for levers to exert influence over Russia, energy is an obvious choice. Oil and gas generate more than 50 per cent of Russian federal government revenues, and Rosneft and Gazprom, the country’s two largest energy companies, are both state controlled.
The problem is that energy binds Russia to the rest of the world in a codependent relationship. Consumers – especially in Europe – need Russian oil and gas as much as Russia needs the revenue they bring in………………………………………..Full Article: Source

The World Needs More Clean Coal, or We’re Screwed

Posted on 14 May 2014 by VRS  |  Email |Print

Environmentalists have celebrated the rapid growth of renewable power. But a new International Energy Agency report makes clear that coal is still a major, and growing source of electricity. Unless we spend more time developing carbon-free coal technologies, there’s little hope of holding back global temperature increases
The growth of renewable energy has gotten a lot of attention recently — and with good reason. Buoyed by falling costs, wind and solar PV electricity generation has experienced double-digit growth globally in recent years. In the U.S. alone, demand for solar power increased by 41% in 2013………………………………………..Full Article: Source

IEA says extra $44 tn needed for clean energy future

Posted on 13 May 2014 by VRS  |  Email |Print

The global cost of securing a clean energy future is rising by the year, the International Energy Agency (IEA) warned Monday, estimating that an additional $44 trillion of investment was needed to meet 2050 carbon reduction targets. Releasing its biennial “Energy Technology Perspectives” report in Seoul, the agency said electricity would increasingly power the world’s economies in the decades to come, rivalling oil as the dominant energy carrier.
Surging electricity demand posed serious challenges, said IEA executive director Maria van der Hoeven. “We must get it right, but we’re on the wrong path at the moment,” Van der Hoeven told reporters in the South Korean capital………………………………………..Full Article: Source

IEA: Coal use is spiking climate mitigation costs

Posted on 13 May 2014 by VRS  |  Email |Print

The global cost of pegging global warming to 2 degrees Celsius has risen by $8 trillion in the last two years, due to soaring coal use which has eclipsed the roll-out of renewable energies, according to a new International Energy Agency (IEA) report released on 12 May.
A top IEA official told EurActiv that there should be a halt to the commissioning of sub-critical coal plants with no potential for retroactive fitting of carbon, capture and storage technology (CCS) that may one day pipe CO2 emissions for storage in geological formations………………………………………..Full Article: Source

IEA terms India’s plan to become energy independent as ambitious

Posted on 12 May 2014 by VRS  |  Email |Print

The International Energy Agency (IEA) has termed India’s plan to become energy independent by 2030 as a “very ambitious” and an “idealistic challenge”. This comes in the backdrop of oil minister M. Veerappa Moily’s plan of achieving the target by 2030, even as India, the world’s fourth largest energy-consuming nation, imports 80% of its crude oil and 25% of its natural gas requirements.
“Where 300 million Indians are lacking access to electricity and where per-capita electricity consumption is one-fourth of the world’s average, this is a very, very ambitious and huge challenge. It is not easy………………………………………..Full Article: Source

Fracking: EU red tape threat to energy boom

Posted on 05 May 2014 by VRS  |  Email |Print

Britain will be told to get fracking faster for shale gas when the House of Lords economy committee publishes its report this week. Britain’s fracking industry is being held back by environmental regulations drawn up in Brussels, a senior committee of the House of Lords is expected to say this week.
In a major report, the Lords are expected to call for permits to be granted more quickly to drilling companies to allow them to test the potential of newly drilled shale gas wells………………………………………..Full Article: Source

German energy: Unsustainable eco-suicide

Posted on 05 May 2014 by VRS  |  Email |Print

The renewable energy bandwagon looks increasingly likely to deliver the German economy all the way back to the dark ages. Amongst the more ludicrous acts of lazy journalism political pundits practice, is the conceit that Angela Merkel is somehow akin to Margaret Thatcher.
Aside from being women, it is challenging to compare the Iron Lady with the dismally spineless stasis monger of Berlin. Whereas Thatcher combined vision, strategy and a strong belief, Merkel bends with the wind - or even without it. Thus her energy policy has become such a fiasco as to risk undermining the entire German economy………………………………………..Full Article: Source

Asian coal demand is set for robust revival, study says Add to …

Posted on 05 May 2014 by VRS  |  Email |Print

Global coal markets are depressed amid a supply glut, but reports of the commodity’s demise have been greatly exaggerated, a new study says.
Prices for thermal coal, a commodity used by power plants to generate electricity, fell recently to less than $75 (U.S.) a tonne, compared with $190 in mid-2008. And prices for metallurgical (or coking) coal, a key ingredient used in the production of steel, have tumbled to $120 a tonne, from $300 in late 2011………………………………………..Full Article: Source

Secretive Swiss commodities giants are buying big chunks of US energy

Posted on 02 May 2014 by VRS  |  Email |Print

Some of the world’s biggest commodities traders are buying up key pieces of the infrastructure that’s driving the US energy production boom. Secretive commodities investors like Vitol Group, Trafigura Beheer B.V. and Mercuria Energy Group are among the firms amassing physical assets like shale oil wells, oil and gas pipelines and offshore drilling projects in the US, Bloomberg reports.
Why? The controversial fracking boom, which has driven US energy production sharply higher in recent years. Commodities firms want to get a piece of that production. They also see opportunities for arbitrage—that is profiting from price discrepancies—in the sometimes inefficient US oil and gas transport system………………………………………..Full Article: Source

Global Fossil Fuels Face A Loss Of $30 Trillion

Posted on 02 May 2014 by VRS  |  Email |Print

The global fossil fuel industry faces a loss of $US28 trillion ($A30.2 trillion) in revenues over the next two decades, if the world takes action to address climate change, cleans up pollution and moves to decarbonise the global energy system.
The assessment, made by leading European broking house Kepler Chevreux, underlines what’s at stake for the fossil fuel industry from a push to cleaner fuels and concerted efforts to reduce emissions, and helps explain the enormous push back from the oil and coal industries in particular against such policies………………………………………..Full Article: Source

Eight energy myths explained

Posted on 28 April 2014 by VRS  |  Email |Print

Republicans, Democrats, and environmentalists all have favorite energy myths. Even Peak Oil believers have favorite energy myths. The following are a few common mis-beliefs, coming from a variety of energy perspectives. I will start with a recent myth, and then discuss some longer-standing ones.
Myth 1. The fact that oil producers are talking about wanting to export crude oil means that the US has more than enough crude oil for its own needs. The real story is that producers want to sell their crude oil at as high a price as possible. If they have a choice of refineries A, B, and C in this country to sell their crude oil to, the maximum amount they can receive for their oil is limited by the price the price these refineries are paying, less the cost of shipping the oil to these refineries………………………………………..Full Article: Source

A united Europe can end Russia’s energy stranglehold

Posted on 22 April 2014 by VRS  |  Email |Print

Regardless of how the stand-off over Ukraine develops, one lesson is clear: excessive dependence on Russian energy makes Europe weak. And Russia does not sell its resources cheap – at least, not to everyone.
This, of course, is basic economics. A dominant supplier has the power to raise prices and reduce supply. The way to correct this market distortion is simple. Europe should confront Russia’s monopolistic position with a single European body charged with buying its gas………………………………………..Full Article: Source

Energy ETFs surge on higher commodity prices

Posted on 22 April 2014 by VRS  |  Email |Print

The energy sector has been trading sharply higher, as rising oil and natural gas prices create a sturdy tailwind for many of these integrated service and exploration companies.
After a frightening dip in January, that tested the 200-day moving average, the Energy Select Sector SPDR (XLE) has rocketed to new all-time highs. In fact, XLE has now gained over four percent in the month of April and more than 13 percent since its February low………………………………………..Full Article: Source

Is natural gas no better than coal?

Posted on 16 April 2014 by VRS  |  Email |Print

A new study by scientists from Purdue and Cornell suggests that the methane emissions from shale gas could be much higher than previously thought. The study, published in the Proceedings of the National Academy of Sciences, looked at fugitive methane emissions in Pennsylvania by flying an airplane over drilling sites and collecting samples. What they found was a bit unnerving.
“It is particularly noteworthy that large emissions were measured for wells in the drilling phase — in some cases 100 to 1,000 times greater than the inventory estimates,” said Purdue chemistry professor Paul Shepson………………………………………..Full Article: Source

Global coal demand growth slows slightly: IEA

Posted on 15 April 2014 by VRS  |  Email |Print

Tougher Chinese policies aimed at reducing dependency on coal will help restrain global coal demand growth over the next five years, the International Energy Agency (IEA) says in its annual Medium-Term Coal Market Report.
Despite the slightly slower pace of growth, however, coal will meet more of the increase in global primary energy than oil or gas – continuing a trend that has been in place for more than a decade………………………………………..Full Article: Source

Coal gasification: The clean energy of the future?

Posted on 14 April 2014 by VRS  |  Email |Print

For this simple reason, it remains the world’s main source of power, providing a quarter of our primary energy and more than 40% of our electricity. And it will continue to do so for many years to come.
The challenge, then, is how to harness coal’s energy more cleanly. While global attempts to develop carbon capture and storage (CCS) have stalled, a number of countries are looking at different ways to exploit their abundant coal reserves. Not all are motivated by environmental concerns, but are driven instead by economics and a desire for energy independence………………………………………..Full Article: Source

EU, Germany forge deal on energy price breaks for business

Posted on 09 April 2014 by VRS  |  Email |Print

Germany’s multi-billion-euro exemption of heavy industry from green energy charges does not violate EU rules on industry rebates. Berlin and Brussels have agreed to keep the energy price breaks, but on a smaller scale.
After months of wrangling, the German government and the European Commission had reached an agreement on the country’s industry exemptions to renewable energy surcharges, German media reported Tuesday, quoting sources close to the talks………………………………………..Full Article: Source

In defense of coal

Posted on 09 April 2014 by VRS  |  Email |Print

The coal industry has a public-relations problem: Although coal remains the biggest source of fuel for generating electricity in the U.S., its adversaries say it’s just too dirty and just too damaging to the environment.
Peabody Energy Corp.’s Gregory Boyce, chief executive of the largest U.S. coal producer, sees things differently. In an interview with Wall Street Journal Assistant Managing Editor John Bussey, Mr. Boyce argued that reducing emissions isn’t the only thing the world should be worrying about………………………………………..Full Article: Source

Coal is rallying, is now the time to buy?

Posted on 09 April 2014 by VRS  |  Email |Print

Ukraine has announced that they have taken back control of the facilities which were overrun by the pro-Russian forces recently. There are still those calling for Russia to send the troops into eastern Ukraine, but after the annexation of Crimea we have to imagine that Russia has very little political capital left to use for another deployment into Ukraine.
It made some sense to annex Crimea, however the argument to annex other areas of Ukraine is much weaker and would surely draw the ire of Europe and its allies. The tensions in Ukraine continue to buoy the gold market with the precious metal rising back above the $1,300/ounce level………………………………………..Full Article: Source

EU energy strategy must counter Putin’s fossil fuel-fed autocracy

Posted on 08 April 2014 by VRS  |  Email |Print

The role of climate and energy policy in the ‘long game’ that will play out between Russia and the west has been overlooked. Vladimir Putin’s land grab in Crimea has shocked the west into rethinking security strategy on the continent.
Michael McFaul, former US ambassador to Moscow, has rightly argued in the New York Times that Putin has made a strategic pivot, and has abandoned reform and partnership with the west for a campaign to consolidate autocratic power at home and erect an alternative to western liberal democracy for the nations in its “near abroad”………………………………………..Full Article: Source

EIA: Iran’s oil output at 3.2 mbpd in 2013

Posted on 07 April 2014 by VRS  |  Email |Print

US Energy Information Administration (EIA) announced that Iran produced 3.2 million barrels per day (mbpd) of oil in 2013 maintaining its 2nd rank in the Organization of Petroleum Exporting Countries (OPEC).
According to EIA’s latest Monthly Energy Review, Iran’s oil output shrank by 167,000 bpd in 2013, compared with that of last year, Tasnim News Agency reported. Iran’s crude oil production dropped by 687,000 bpd in 2012, which was the first year in which Western sanctions against Iran were enforced………………………………………..Full Article: Source

Natural Gas production to witness continued production growth

Posted on 07 April 2014 by VRS  |  Email |Print

Natural gas production in 2014 is expected to witness continued growth and the pace of growth will accelerate compared with last year, according to Barclays. This week the Energy Information Administration (EIA) reported that January Lower-48 natural gas production growth was significantly above expectations.
January gross withdrawals in the Lower-48 increased 0.35 Bcf/d, to 75.29 Bcf/d, in January 2014, according to the latest EIA Monthly Natural Gas Gross Production Report………………………………………..Full Article: Source

Investor risk rises as energy partnership world gets crowded

Posted on 07 April 2014 by VRS  |  Email |Print

High-yielding energy partnerships have lured billions in capital from investors in the past few years and the returns have often matched or beaten expectations.
But as riskier kinds of businesses adopt the Master Limited Partnership (MLP) structure, and as interest rates rise, investors are getting a wake-up call about some of the scary stuff lurking in the sector………………………………………..Full Article: Source

Energy industry told to face reality of global warming

Posted on 04 April 2014 by VRS  |  Email |Print

The UN’s top climate change official has issued an unusually blunt message to the oil and gas industry that it must radically overhaul its business model to meet the realities of global warming.
Three quarters of fossil fuel reserves need to stay in the ground if the world is to stop global temperatures rising beyond the internationally agreed limit of 2 degree Celsius, said Christiana Figueres, executive secretary of the UN Framework Convention on Climate Change………………………………Full Article: Source

Commodities today: Geopolitics pushing energy names higher

Posted on 04 April 2014 by VRS  |  Email |Print

Russia continues to use their natural gas to bully Ukraine, and this has to worry the rest of Europe, especially Western Europe, which has shied away from developing their own production to instead rely on Russian natural gas delivered over pipelines. Pipelines which travel through the Ukraine and could be cut off due to tensions.
We are not trying to be alarmists here, but these are important facts to understand in this high-stakes game of chicken. With Russia raising natural gas prices for Ukraine, we could see the situation escalate, as it has in the past, with supplies to Europe basically cut off………………………………Full Article: Source

World’s biggest coal terminal to review 2015 goal on power cut

Posted on 04 April 2014 by VRS  |  Email |Print

South Africa’s Richards Bay Coal Terminal is reviewing export targets for 2015 after a power cut in February forced it to reduce this year’s goal, the head of the world’s largest standalone export facility for the fuel said.
RBCT trimmed its forecast for shipments this year to 73 million metric tons from 75 million tons after it had to halt operations for almost 10 days in February because of faults on municipal power cables that cut supply, Chief Executive Officer Nosipho Siwisa-Damasane said. While it cleared the backlog by March 31, the facility, together with exporters and Transnet SOC Ltd., the state-owned ports and rail utility, faces losses of about 2.1 billion rand ($197 million)………………………………Full Article: Source

How American energy independence could change the world

Posted on 03 April 2014 by VRS  |  Email |Print

If the bookies are to be believed, Chelsea Clinton could turn out to be luckiest US president in history. The holy grail of American leaders over the past four decades, from Richard Nixon to Barack Obama, has been energy independence, and thanks to shale oil and gas, the dream could soon become reality.
The International Energy Agency (IEA) and oil giant BP certainly think so - they believe the US will be energy independent by 2035. As Mr Obama said in his State of the Union address last year: “After years of talking about it, we are finally poised to control our own energy future.”………………………………..Full Article: Source

The most profitable gas in the world

Posted on 03 April 2014 by VRS  |  Email |Print

There is only one certainty in Ukraine: The energy sector must and will be transformed, and how long this takes will depend on who ends up in the driver’s seat and how serious they are about becoming a part of Europe and reducing dependence on Russia. But by then, investors will have missed the boat.
The driving factor for any energy investor in Ukraine is the pricing environment. There is nowhere else in Europe—or some would even argue in the world—where you are going to get significant access to resources and potential resources for the price. Gas is selling at $13.66/Mcf, while it costs $4-$5 to produce and operate. That means producers are netting anywhere between $8 and $9/Mcf…………………………………Full Article: Source

Global energy thirst threatens water supplies, UN says

Posted on 24 March 2014 by VRS  |  Email |Print

Energy production will increasingly strain water resources in the coming decades even as more than 1 billion of the planet’s 7 billion people already lack access to both, according to a United Nations report.
“There is an increasing potential for serious conflict between power generation, other water users and environmental considerations,” said the UN World Water Development Report published today that focused on water and energy. Ninety percent of power generation is “water-intensive,” it said………………………………………..Full Article: Source

ETFs to help quench your thirst for water

Posted on 24 March 2014 by VRS  |  Email |Print

As energy production puts a strain on water resources in the coming decades, usable water will become an increasingly limited commodity. Investors can capitalize on the global thirst for water with exchange traded funds that focus on conservation and purifying potable water.
“There is an increasing potential for serious conflict between power generation, other water users and environmental considerations,” according to the UN World Water Development Report, Bloomberg reports………………………………………..Full Article: Source

How Obama could beat Putin playing energy geopolitics: Gas and oil are at the center of the struggle

Posted on 21 March 2014 by VRS  |  Email |Print

The White House’s first round of “sanctions” announced Monday against 11 individuals involved in Russia’s recent actions in Ukraine and Crimea evoked gales of laughter in Moscow, according to news reports. An embarrassed President Obama made a second try with additional penalties on Thursday.
Of course, President Obama’s defenders are quick to point out that our options in this case are limited. Certainly that is true of potential military steps. There is one alternative that could be a game changer, though: wielding the energy weapon against Russia, a country that has not hesitated to use that weapon to advance its own interests………………………………………..Full Article: Source

Global LNG demand set to tumble from April, China Coal demand weak: PIRA Energy

Posted on 21 March 2014 by VRS  |  Email |Print

NYC-based PIRA Energy Group believes that global LNG demand is set to tumble. In the U.S., Thursday’s EIA report highlighted the market’s continued above-normal reliance on inventories. In Europe, PIRA remains relatively unconcerned about a cut-off in gas flows through Ukraine. Specifically, PIRA’s analysis of natural gas market fundamentals has revealed the following:
Global demand is set to tumble starting next month and weak signals from key counter-seasonal markets like Brazil and India are emerging too. Spot price floors will be kept by a strong round of seasonal maintenance in Qatar in particular………………………………………..Full Article: Source

UK urges EU to cut energy reliance on Russia

Posted on 20 March 2014 by VRS  |  Email |Print

The British government is pushing EU leaders to back a new energy security plan to wean Europe off Russian energy over the next 25 years by ramping up imports from new sources, including shale gas from the US and natural gas from Iraq.
The proposal, distributed to European capitals ahead of a summit in Brussels beginning on Thursday, also calls for speeding up development of a pipeline route through Azerbaijan and Turkey that would bring gas to Europe from the Caspian Sea, avoiding Russian territory………………………………………..Full Article: Source

Oil and natural gas as weapon of war

Posted on 11 March 2014 by VRS  |  Email |Print

With Russia’s invasion of Crimea, the threat is greater than Vladimir Putin’s ambitions, the real danger to the world is that oil and natural gas are once again being used as a weapon of war. This isn’t the first time. When Russia cut off natural gas supplies in 2009 to Ukraine and six other countries in the middle of winter, millions were left in the cold until they paid Russia’s ransom in the form of higher prices.
It was a stark example how vulnerable Europe had become to Russia’s control over energy resources. I said at the time it should be a wake-up call to an America confronting its own foreign oil dependence issue and the national security and economic threats that come with it………………………………………..Full Article: Source

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