OilPrice.com Daily News Update

Why Shale Gas is the Best Hope for Our Energy Future

stevensba@oilprice.com (Barry Stevens) — Wed, 22 Feb 2012 18:48:12 GMT

Citizens of the world, consumers of energy and environmental stewards, our mission is to build a sustainable, environmentally friendly and economically viable energy source. By design, few of us are in love with fossil fuels. But what we must be; are realists. As the search for the best energy solution(s) today continues, time-and-time again the compass points north to Natural Gas. Why, because, key industrial centres are sitting on vast shale gas energy opportunities. This is no longer a fantasy but a vision that can benefit the world today,…

Green Australia Still Experiencing Massive Coal Boom

admin@namecake.com (John Daly) — Tue, 21 Feb 2012 23:23:09 GMT

Australia, despite being deeply committed to curbing greenhouse gas emissions GGEs, is nonetheless experiencing a fossil fuel surge. The growth comes despite a carbon tax, due to be implemented later this year, which is deeply unpopular with the country’s mining industry. According to the government agency Geoscience Australia, in fiscal year 2011 coal exploration spending in Australia surged by 62 percent, with investment in exploration for new coal deposits reaching $520 million, with spending on exploration surging faster than any…

How Closely are Oil Prices Tied to Economic Activity?

tol@oilprice.com (The Oil Drum) — Tue, 21 Feb 2012 23:19:08 GMT

Recent developments in oil markets and the global economy have, once again, triggered concerns about the impact of oil price shocks around the world. This column wonders whether the fuss is really necessary. It presents evidence of relatively small negative effects of oil price increases. Increases in international oil prices over the past couple years, explained partly by strong growth in large emerging and developing economies, have raised concerns that high oil prices could endanger the shaky recovery in advanced economies and small oil-importing…

On Oil, Iraq Gets in its Own Way

dg@oilprice.com (Daniel J. Graeber) — Tue, 21 Feb 2012 23:09:57 GMT

The International Energy Agency announced it was set to review Iraq's energy sector as part of its World Energy Outlook for 2012. Last year, the IEA said Iraq was on pace to provide the largest single increase to global oil production in the coming years. In December, however, the agency warned that domestic politics could get in the way of energy developments. Given Iraq's post-war political track record, it might be awhile before Iraq realizes its full oil potential. Iraqi officials had said they hoped the IEA's assessment would give them…

Following Keystone Rejection Canada's Oil Sands Headed to China

admin@namecake.com (John Daly) — Tue, 21 Feb 2012 23:07:05 GMT

Beginning in 2005, Congressional Republicans and the oil industry touted the 2,147 mile-long Keystone XL 830,000 barrel per day (bpd) pipeline, running from Canada’s Hardisty, Alberta oil sands to U.S. refineries on the Gulf of Mexico. But last month, in an attempt to force a decision from the Obama administration on the pipeline, congressional Republicans tacked a rider onto legislation extending the payroll tax cut by requiring the government to decide within 60 days on the issue, which was rejected for the foreseeable future. Furious…

Why the Peak Oil Debate is Almost Over

cobbi@oilprice.com (Kurt Cobb) — Tue, 21 Feb 2012 23:04:08 GMT

Protestations in the mainstream media that we need not worry about a peak in the rate of world oil production anytime soon are suddenly coming fast and furious. As a result, I was reminded both of Shakespeare and Gandhi. "The media doth protest too much," I thought (with apologies to Queen Gertrude in Hamlet). As for Gandhi, a quote commonly attributed to him may shed light on where we are in the peak oil debate: "First they ignore you. Then they laugh at you. Then they attack you. Then you win." So, it appears that we are now in stage three of…

Japan Starts to Invest in Tsunami-Proof, Floating Wind Farms

burgessj@oilprice.com (James Burgess) — Tue, 21 Feb 2012 22:26:54 GMT

Following the earthquake and tsunami that hit Japan in 2011 causing one of the world’s worst nuclear disasters since Chernobyl at the Fukushima nuclear power plant, the Ministry of Trade and Industry (MITI) announced its plans to develop more floating offshore wind farms. The floating Kamisu wind farm just off the coast of the Ibaraki prefecture comprises of just seven 2 megawatt wind turbines, but was able to withstand the tsunami and provided vital electricity in the wake of the disaster. Using as much as ¥20 billion ($260 million)…

Canada Threatens EU with Trade War over Oil Sands Ban

kennedyc@oilprice.com (Charles Kennedy) — Tue, 21 Feb 2012 22:24:42 GMT

The European vote on the 23rd February which could potentially classify Canada’s oil sands as highly polluting and effectively ban their trade with the EU, has attracted angry retaliations from Canadian officials. Canada fears that the EU Fuel Quality Directive (FQD) could set a precedent to other countries around the world, affecting the exports of its tar sands. Canada’s oil minister, and David Plunkett, ambassador to the EU, sent some letters to the European Commission threatening, "Canada will not hesitate to defend its interests,…

Energy Crisis in the Gaza Strip Threatens Hospitals

burgessj@oilprice.com (James Burgess) — Tue, 21 Feb 2012 22:22:46 GMT

The Gaza Strip is in the middle of an energy crisis that is close to developing into a full blown humanitarian crisis as their only power plant was forced to shut down operations on 14th February due to a lack of fuel. “The current crisis is a political problem that started six years ago. The Israeli occupation, the Palestinian Authority's refusal to provide the Gaza Strip with funds, and the policy of Egypt which is dealing with Gaza out of security calculations, have all contributed to the current situation,” said Hamas government…

Middle East to Spend 180 Billion Dollars on New Energy Projects

peixej@oilprice.com (Joao Peixe) — Tue, 21 Feb 2012 22:20:58 GMT

A new report by the market researchers Venture Middle East has announced that the Middle East is due to spend a combined $180 billion on new water and power projects during the next few years. During this period the demand for power is expected to increase by 10 percent. Anita Mathews, director of the Middle East Electricity Exhibition, which took place in Dubai for focussed consideration of the power, nuclear, renewable and water sectors, has said that, “According to the World Energy Council, the GCC will require 100 GW of additional power…