OilPrice.com Daily News Update

Solar Trade Wars: Victory for US Manufacturers, Loss for Solar Overall?

corporate@oilprice.com (Jen Alic) — Wed, 23 May 2012 22:36:17 GMT

Solar manufacturing lobbyists have won the latest round of a trade war with China, but the entire solar industry could pay dearly for a victory that could see heavy US tariffs on Chinese solar panels make solar pricing inaccessible and lead to a significant loss of industry jobs.In the end, it comes down to the fact that solar power is finally becoming affordable and widely accessible, which is good news for green energy ambitions; but that good news is coming at the expense of US manufacturers. The tariffs may turn the tables in favor of the manufacturers…

Megrahi's Death Only Beginning in Libyan Oil Saga

dg@oilprice.com (Daniel J. Graeber) — Wed, 23 May 2012 22:33:54 GMT

Scottish authorities this week said the death of convicted Lockerbie bomber Abdelbaset al-Megrahi puts an end to conspiracy theories surrounding his controversial release in 2009. Scottish authorities insisted his release was on compassionate grounds because of a terminal prostate cancer diagnosis. Megrahi died this week at his home in Tripoli of cancer. Given the series of suspicions surrounding not only former Libyan officials, but also the role of European energy countries in Libya, Megrahi may have taken a few national secrets with him to the…

OPEC's View of the World Oil Market

summersd@oilprice.com (Dave Summers) — Wed, 23 May 2012 22:29:50 GMT

It is interesting to read the viewpoint of OPEC each month, as it relates to global oil supply, and the numbers that they rely on to estimate how much production that will be required. For 2012, for example, they now see no need to increase production above 30 mbd, (though it averaged 31.62 mbd in April, when NGL and non-conventional sources are included) with adequate production growth to meet demand (some 0.6 mbd) coming from non-OPEC sources that are anticipated to average 53 mbd this year. At present supply is seen as exceeding demand,…

The Facts about Fracking Fluid and its Disposal

stevensba@oilprice.com (Barry Stevens) — Wed, 23 May 2012 22:12:32 GMT

At a recent shale gas symposium in South Africa a question was asked “if hydraulic fracturing is so safe, why do drilling operators working in Pennsylvania’s Marcellus Shale Play dispose the backflow out of state in Ohio.” The question was satirically proposed by a rather uninformed anti-fracking environmentalist. His point was to show that even a natural gas producing state wants nothing to do with the disposal of the hydraulic fluid’s flowback (chemical-laced wastewater).This discussion addresses the attendees question…

Iran Oil Sanctions After the Baghdad Talks

corporate@oilprice.com (Jen Alic) — Wed, 23 May 2012 22:07:54 GMT

SituationIran tentatively agreed on 22 May to allow the UN’s nuclear watchdog, the International Atomic Energy Agency (IAEA), to launch inspections of nuclear facilities, while Iran and P5+1 countries began negotiations in Baghdad over Iran’s nuclear program on 23 May, where the West put forward a new proposal for Iran’s consideration. DynamicsThe current heavy-handed US-led sanctions are taking their toll on Iran. Sources on the ground in Iran tell Oilprice.com that the situation is not as grim as US media is depicting it; however,…

Pakistan's Abundance in Renewable Energy

scidev@oilprice.com (SciDev SciDev) — Wed, 23 May 2012 22:05:51 GMT

Pakistan's vast renewable energy potential remains largely untapped for a mix of reasons, twin analyses show.The analyses, to be published in the June 2012 issue of Renewable and Sustainable Energy Reviews, say exploiting Pakistan’s massive, unexploited renewable energy sources, particularly hydroelectric and solar, can help plug its widening energy deficit and improve livelihoods.The studies focus on solar energy, particularly in the Thar and Cholistan deserts and also river waters, that could be channelled into small hydropower plants of…

Libya in Dire Straits Ahead of Parliamentary Elections

corporate@oilprice.com (Jen Alic) — Wed, 23 May 2012 22:02:47 GMT

SituationLibya’s crude oil output allegedly rises to close to 1.6 billion bpd, but security remains a very fluid thing. Sporadic fighting is taking place throughout the country, including in Tripoli and Benghazi, as the national army faces a challenge in exerting its authority. In the ongoing chaos, oil executive Abdul Majeed Shiha, a director of Akakus Oil Operations, was kidnapped in Tripoli last week by an unidentified armed group. He was released hours later without ransom, though his vehicle and mobile phone were confiscated. The motive…

Report Proves that Large Amounts of Methane are Released as the Arctic Ice Melts

burgessj@oilprice.com (James Burgess) — Wed, 23 May 2012 21:59:37 GMT

Greenhouse gases are changing the atmosphere and causing more energy from the sun to be trapped here upon earth, which results in the phenomena known as global warming. CO2 is probably the most famous of the greenhouse gases, but methane is also one of the largest contributors to climate change. A new report in the journal Nature Geoscience offers some of the strongest proof that large amounts of methane are escaping from the Arctic as the ice melts.It is generally accepted that old organic material, from as far back as the last ice age, is trapped…

Yemen Set to Implode as AQAP Steps Up Offensive Amid Struggle to Control Oil

corporate@oilprice.com (Jen Alic) — Wed, 23 May 2012 21:58:09 GMT

Situation Violent conflict engulfing Yemen moves to the capital city, Sana’a, with a 21 May suicide bombing that killed more than 90 people and wounded well over 200 others during a military parade rehearsal. Al-Qaeda in the Arabian Peninsula (AQAP) claimed responsibility for the parade bombing in apparent retaliation for the government’s attempt to recapture cities lost to al-Qaeda forces, particularly in Abyan province. In the meantime, attacks on the country’s main oil pipeline have generated at least $2.5 billion in oil revenue…

New Analysis proves Keystone XL will Increase Gasoline Prices in the US

peixej@oilprice.com (Joao Peixe) — Wed, 23 May 2012 21:55:57 GMT

A new analysis by the Natural Resources Defence Council (NRDC) has found evidence that the Keystone XL pipeline would actually increase the gasoline prices paid by US customers as opposed to reduce the prices as TransCanada, the company looking to build the pipeline, would have us believe.Anthony Swift, an attorney for the NRDC, said that, “the pipeline’s proponents say it’s the solution to high gas prices. The truth is exactly the opposite —the pipeline would raise gas prices. This is one of the most misunderstood issues…