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LINC ENERGY PRODUCES DIESEL FROM COAL GAS
By Dick Phelps
15 Oct 2008 at 03:14 PM
Linc Energy's demonstration plant in Queensland has paved the way for a full-scale $A1 billion project. This as it generated the first diesel fuel synthesized from coal gas. The company hopes to construct a facility to produce 20,000 barrels of diesel fuel daily. It expects the operating cost to be a mere $28/barrel.
In a similar development, few months ago the U.S. Air Force successfuly flew a B-52 bomber on jet fuel synthesized from coal.
Hamilton firm admits hydrogen tech 'a fraud'
Tuesday, 30 September 2008
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A Hamilton company which has spent a lot of money developing on-demand hydrogen generators today denounced the technology as a fraud.
Michael Fresnel, co-founder of OctaFuel New Zealand, made the admission in a statement today, two days before a Hamilton motoring writer, Eric Otoka, was planning to disclose results of his trial of the OctaFuel hydrogen fuel system designed to reduce petrol consumption.
Otoka was going to go public in his Loose Nut column in Waikato Times motoring section on Thursday, and say his trial found the generators did not work.
But Mr Fresnel said today his company now "believes the technology is a fraud, and advises New Zealanders to avoid spending money online buying on-board hydrogen generators and instruction manuals on how to build them".
He said OctaFuel had been persuaded the technology was genuine because of a number of international studies supporting it.
"It came as a shock to discover that the technology did not save fuel," he said. "No one likes getting the wool pulled over their eyes."
The experience had been humbling, but going public was the right thing to do, "despite the embarrassment factor", he said.
OctaFuel spent three months work and about $100,000 on the development of an on-demand hydrogen unit, contracting a mechanical engineer with more than 25 years' experience and a reputable electronics company to undertake the research, development and manufacture of the technology.
The OctaFuel equipment was professionally installed by mechanics and the unit was trialled in two customers' vehicles and by OctaFuel, Mr Fresnel said.
In addition to its own research and development, OctaFuel accepted participation in a Waikato Times trial over a five-week period, during which OctaFuel continued its own trials.
"OctaFuel's team of advisors were not sure the product had been tested thoroughly enough in-house, but the feedback seemed positive, with reports of between 20 per cent and 25 per cent fuel savings, so the decision was made to proceed with a public trial," he said.
But later installations in a number of customers' vehicles and the Waikato Times trials "showed that on-demand hydrogen technology is a fraud".
Mr Fresnel said the company would continue exploring hydrogen as a primary fuel for motor vehicles, including reforming of methane from rubbish dumps to hydrogen gas, which can be used to fuel cars.
- NZPA
~~ 911 ~~ de ja vu against "Energy Independence" by PALIN as it was with Lindsey Williams stating that US has enough oil in Alaska to last 200 years.
http://beta.investorshub.advfn.com/boards/read_msg.aspx?message_id=31943643
~ Energy Independence ~ PALIN, ALASKA Expert.
PALIN can help US to be energy independent.
We have enough oil to last 200 years in ALASKA.
Energy non-Crisis ~
http://one-nwo.blogspot.com/2008/05/lindsey-williams-energy-non-crisis-part.html
T. Boone Pickens proposes energy plan for America
A critical message from T. Boone Pickens: "America is in a hole and it's getting deeper every day. We import 70 percent of our oil at a cost of $700 billion a year - four times the annual cost of the Iraq war. I've been an oil man all my life, but this is one emergency we can't drill our way out of. But if we create a new renewable energy network, we can break our addiction to foreign oil. On January 20, 2009, a new President gets sworn in. If we're organized, we can convince Congress to make major changes toward cleaner, cheaper and domestic energy resources.To get this done, I need your help. Check out the plan. If you think it's worth fighting for, please join our effort, and encourage everyone you know to do the same."
Chuck Baldwin For President $1.50 Gallon Gas -
re: House rejects bill aimed at energy speculators
This is disturbing news as we saw the impact of repealing the Glass-Steagall act in November 12, 1999 which was replaced by Gramm-Leah-Bliley Act, the seed of the current Housing ARM crisis.
http://www.stopoilspeculationnow.com/
That didn't do much and again "Money" has spoken, unfortunately, and after Iran's M.A. comment!
http://beta.investorshub.advfn.com/boards/read_msg.aspx?message_id=31020956
~~~~~~~~~~~
By Rex Nutting
Last update: 3:24 p.m. EDT July 30, 2008
WASHINGTON (MarketWatch) -- A bill that would put new limits on speculative trading in energy commodities failed to get the required two-third majority of votes to pass the House on Wednesday. The vote was 276 to 151. The Commodity Markets Transparency and Accountability Act would boost staffing at the Commodity Futures Trading Commission and require the agency to limit the positions of speculators in energy and agricultural commodities. Most Republicans objected to the bill, preferring to pass legislation to open the outer continental shelf and other off-limits areas to energy exploration.
Browns gas?
Right now the scammers are ramping up the market for devices which make hydrogen for your car engine to improve its mileage.Basicaly they use spare current from your cars alternator and a couple of anodes in a container of water electrolising the water into oxygen and hydrogen for the engine to burn.
A local TV station had a mechanic check it out.He tried it this way and experimented that way and after a month he reported he could detect NO BENEFIT.
*NEW DATE & TIME*
Global Oil & Gas Industry - Quarterly Update
Standard & Poor's will hold a telephone conference call on Tuesday, July 29, 2008, at 11:00 a.m. Eastern Daylight Time. After a brief presentation by Standard & Poor’s analysts from the United States, Latin America, Canada and European offices, our global team of analysts will be available to answer questions on industry related matters, credit direction for the sectors, and rating methodology and criteria.
The Standard & Poor’s CreditMatters Special Edition released on July 8 includes several articles relating to rising energy costs. To view the report, click here.
Please note that Standard & Poor's offers all of its broadcast teleconference calls to all interested participants on a complimentary basis.
The call will begin promptly at the time indicated. Please call at least 15 minutes before the scheduled start of the call to complete the pre-call registration process.
--------------------------------------------------------------------------------
Live Dial-in Numbers:
US/All Others: 1-210-795-0624
UK: 44-20-7108-6390
Conference ID: 2616727 Passcode: SANDP
Replays: Recorded replays of the call are made available about an hour after the call concludes and are available until Tuesday, August 5, 2008.
Replay number: 1-402-344-6797.
Streaming Audio: The call will also be available live in listen-only mode at www.events.standardandpoors.com for listeners with the Real Player software, sound card, and speakers. The Streaming Audio playback is available until Tuesday, August 26, 2008.
If you have any questions about the conference call, please e-mail: eventsmarketing@standardandpoors.com.
Please send any address corrections via e-mail to eventsmarketing@standardandpoors.com.
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Expanding Domestic Oil And Natural Gas Exploration And Production
http://tinyurl.com/595nuk
http://www.johnmccain.com/Informing/Issues/17671aa4-2fe8-4008-859f-0ef1468e96f4.htm#2
John McCain Will Commit Our Country To Expanding Domestic Oil Exploration. The current federal moratorium on drilling in the Outer Continental Shelf stands in the way of energy exploration and production. John McCain believes it is time for the federal government to lift these restrictions and to put our own reserves to use. There is no easier or more direct way to prove to the world that we will no longer be subject to the whims of others than to expand our production capabilities. We have trillions of dollars worth of oil and gas reserves in the U.S. at a time we are exporting hundreds of billions of dollars a year overseas to buy energy. This is the largest transfer of wealth in the history of mankind. We should keep more of our dollars here in the U.S., lessen our foreign dependency, increase our domestic supplies, and reduce our trade deficit - 41% of which is due to oil imports. John McCain proposes to cooperate with the states and the Department of Defense in the decisions to develop these resources.
John McCain Believes In Promoting And Expanding The Use Of Our Domestic Supplies Of Natural Gas. When people are hurting, and struggling to afford gasoline, food, and other necessities, common sense requires that we draw upon America's own vast reserves of oil and natural gas. Within the United States we have tremendous reserves of natural gas. The Outer Continental Shelf alone contains 77 trillion cubic feet of recoverable natural gas. It is time that we capitalize on these significant resources and build the infrastructure needed to transport this important component of electricity generation and transportation fuel around the country.
Back to top
Taking Action Now To Break Our Dependency On Foreign Oil By Reforming Our Transportation Sector
The Nation Cannot Reduce Its Dependency On Oil Unless We Change How We Power Our Transportation Sector.
John McCain's Clean Car Challenge. John McCain will issue a Clean Car Challenge to the automakers of America, in the form of a single and substantial tax credit for the consumer based on the reduction of carbon emissions. He will commit a $5,000 tax credit for each and every customer who buys a zero carbon emission t car, encouraging automakers to be first on the market with these cars in order to capitalize on the consumer incentives. For other vehicles, a graduated tax credit will apply so that the lower the carbon emissions, the higher the tax credit.
John McCain Will Propose A $300 Million Prize To Improve Battery Technology For Full Commercial Development Of Plug-In Hybrid And Fully Electric Automobiles. A $300 million prize should be awarded for the development of a battery package that has the size, capacity, cost and power to leapfrog the commercially available plug-in hybrids or electric cars. That battery should deliver a power source at 30 percent of the current costs. At $300 million, the prize is one dollar for every man, woman and child in this country - and a small price to pay for breaking our dependence on oil.
John McCain Supports Flex-Fuel Vehicles (FFVs) And Believes They Should Play A Greater Role In Our Transportation Sector. In just three years, Brazil went from new cars sales that were about 5 percent FFVs to over 70 percent of new vehicles that were FFVs. American automakers have committed to make 50 percent of their cars FFVs by 2012. John McCain calls on automakers to make a more rapid and complete switch to FFVs.
John McCain Believes Alcohol-Based Fuels Hold Great Promise As Both An Alternative To Gasoline And As A Means of Expanding Consumers' Choices. Some choices such as ethanol are on the market right now. The second generation of alcohol-based fuels like cellulosic ethanol, which won't compete with food crops, are showing great potential.
Today, Isolationist Tariffs And Wasteful Special Interest Subsidies Are Not Moving Us Toward An Energy Solution. We need to level the playing field and eliminate mandates, subsidies, tariffs and price supports that focus exclusively on corn-based ethanol and prevent the development of market-based solutions which would provide us with better options for our fuel needs.
John McCain Will Effectively Enforce Existing CAFE Standards. John McCain has long supported CAFE standards - the mileage requirements that automobile manufacturers' cars must meet. Some carmakers ignore these standards, pay a small financial penalty, and add it to the price of their cars. John McCain believes that the penalties for not following these standards must be effective enough to compel all carmakers to produce fuel-efficient vehicles.
Back to top
Investing In Clean, Alternative Sources Of Energy
John McCain Believes That The U.S. Must Become A Leader In A New International Green Economy. Green jobs and green technology will be vital to our economic future. There is no reason that the U.S. should not be a leader in developing and deploying these new technologies.
John McCain Will Commit $2 Billion Annually To Advancing Clean Coal Technologies. Coal produces the majority of our electricity today. Some believe that marketing viable clean coal technologies could be over 15 years away. John McCain believes that this is too long to wait, and we need to commit significant federal resources to the science, research and development that advance this critical technology. Once commercialized, the U.S. can then export these technologies to countries like China that are committed to using their coal - creating new American jobs and allowing the U.S. to play a greater role in the international green economy.
John McCain Will Put His Administration On Track To Construct 45 New Nuclear Power Plants By 2030 With The Ultimate Goal Of Eventually Constructing 100 New Plants. Nuclear power is a proven, zero-emission source of energy, and it is time we recommit to advancing our use of nuclear power. Currently, nuclear power produces 20% of our power, but the U.S. has not started construction on a new nuclear power plant in over 30 years. China, India and Russia have goals of building a combined total of over 100 new plants and we should be able to do the same. It is also critical that the U.S. be able to build the components for these plants and reactors within our country so that we are not dependent on foreign suppliers with long wait times to move forward with our nuclear plans.
John McCain Will Establish A Permanent Tax Credit Equal To 10 Percent Of Wages Spent On R&D. This reform will simplify the tax code, reward activity in the U.S., and make us more competitive with other countries. A permanent credit will provide an incentive to innovate and remove uncertainty. At a time when our companies need to be more competitive, we need to provide a permanent incentive to innovate, and remove the uncertainty now hanging over businesses as they make R&D investment decisions.
John McCain Will Encourage The Market For Alternative, Low Carbon Fuels Such As Wind, Hydro And Solar Power. According to the Department of Energy, wind could provide as much as one-fifth of electricity by 2030. The U.S. solar energy industry continued its double-digit annual growth rate in 2006. To develop these and other sources of renewable energy will require that we rationalize the current patchwork of temporary tax credits that provide commercial feasibility. John McCain believes in an even-handed system of tax credits that will remain in place until the market transforms sufficiently to the point where renewable energy no longer merits the taxpayers' dollars.
Back to top
Protecting Our Environment And Addressing Climate Change: A Sound Energy Strategy Must Include A Solid Environmental Foundation
John McCain Proposes A Cap-And-Trade System That Would Set Limits On Greenhouse Gas Emissions While Encouraging The Development Of Low-Cost Compliance Options. A climate cap-and-trade mechanism would set a limit on greenhouse gas emissions and allow entities to buy and sell rights to emit, similar to the successful acid rain trading program of the early 1990s. The key feature of this mechanism is that it allows the market to decide and encourage the lowest-cost compliance options.
How Does A Cap-And-Trade System Work? A cap-and-trade system harnesses human ingenuity in the pursuit of alternatives to carbon-based fuels. Market participants are allotted total permits equal to the cap on greenhouse gas emissions. If they can invent, improve, or acquire a way to reduce their emissions, they can sell their extra permits for cash. The profit motive will coordinate the efforts of venture capitalists, corporate planners, entrepreneurs, and environmentalists on the common motive of reducing emissions.
There will be no new refineries
http://www.oil-price.net/
There will be no new refineries
by Giuseppe Marconi
2008/07/23
Oil companies won't be building more refineries, because there won't be enough oil left to refine by the time new refineries could pay for themselves.
There hasn't been a new refinery built in the US since 1976. In 1982, there were 301 operable refineries in the U.S and they produced about 17.9 million barrels of oil per day. Today there are only 149 refineries, and they're producing 17.4 million barrels. This increase in efficiency is impressive but not a miracle. As with everything these outputs are carefully calculated to optimize profitability. Let me explain.
Truth be told, new refineries require tremendous financial commitments which take anywhere from 15 to 25 years to amortize. With record oil prices it would make perfect sense to invest in a few refineries today, except... for the lack of oil to be refined 20 years from now.
Trends have predicted that peak oil production, where the production of oil starts to decline, will be reached around 2007-2010. After that, there will be less and less oil to refine no matter where drillers look. In this context, building expensive new refineries does not make a lot of sense as existing ones will be sufficient to process whatever little oil is left. So forget about new refineries, except for a few in the northern midwest to process the heavy oil from Canada.
Crude oil is a finite resource more and more depleted. As such, an increasing demand put on this finite supply necessitates careful management in order to stretch its lifespan and profitability.
Oil Falls to 7-Week Low, Hovers Above $123
OIL, OIL PRICES, ENERGY, CRUDE, INVENTORIES, GASOLINE, ENERGY PRICES, EIA, OPEC, DEMAND, IRAN, HURRICANE, DOLLY
By Reuters
Reuters
| 25 Jul 2008 | 09:40 AM ET
Oil dropped almost $3 a barrel to a fresh seven-week low on Friday, extending a decline that has knocked more than $20 off prices in two weeks.
Concern high prices and the slowing U.S. economy will undermine demand have helped oil fall from a record $147.27 on July 11. Technical trading and a short-covering bounce had buoyed prices earlier.
"Potentially, there are some people selling off after a weak bounce," said Harry Tchilinguirian, oil analyst at BNP Paribas.
U.S. crude traded as low as $122.50, the lowest since June 5. Brent crude was also down.
Some analysts said oil could be headed lower still.
Jim Ritterbusch, president of Ritterbusch & Associates, said crude could drop to as low as $117 within about a week, while Barclays Capital said it expected trading within a $115-$140 range during the quarter.
Even so, concern about oil supplies given a threat this week from rebels in Nigeria to attack oil installations and relatively strong economies in some regions was expected to give oil some support.
The International Monetary Fund earlier this month slightly revised up growth forecasts in 2008 for emerging and developing economies, home to most if not all of the current growth in world oil demand.
"Nothing in the fundamental drivers has changed -- supply constraints are still with us, and the latest IMF views confirm emerging market economic growth," Tchilinguirian said.
Even after the recent price fall, oil has risen by almost 30 percent in 2008 and is up from below $20 in early 2002 due to rising demand from fast-growing economies such as China.
Oil's rally, which the OPEC exporter group has blamed on factors beyond supply and demand, has led to pressure on politicians to take action to help consumers paying higher fuel prices.
The U.S. Senate will vote on Friday on a Democratic bill that seeks to curb excessive speculation in the energy markets, but Republicans said they had the votes to block its passage.
Copyright 2008 Reuters. Click for restrictions.
URL: http://www.cnbc.com/id/25839874/
CFTC Charges Optiver Holding BV with manipulation of Energy Market
7/24/2008 12:21 PM ET
Thursday morning, the U.S. Commodity Futures Trading Commission, or CFTC, charged Optiver Holding BV and two of its subsidiaries of manipulating energy futures contracts.
The CFTC revealed it had filed the civil enforcement action in the United States District Court for the Southern District of New York.
The complaint alleges that Optiver Holding BV, a global proprietary trading fund headquartered in the Netherlands, and two subsidiaries - Optiver US, LLC, a Chicago-based corporation, and Optiver VOF, a Dutch company stage-managed the energy futures contracts of New York Mercantile Exchange, or NYMEX Light Sweet Crude Oil, New York Harbor Heating Oil, and New York Harbor Gasoline during March 2007.
Commenting on the case, CFTC Acting Chairman Walt Lukken said, "These charges go to the heart of the CFTC's core mission of detecting and rooting out illegal manipulation of the markets."
Optiver and its subsidiaries have been charged with 19 separate instances of attempted manipulation including 5 attempts where energy contracts were successfully manipulated leading to artificial price hikes and declines enabling the illegally profiteering approximately $1 million by the defendants.
According to the complaint, the defendants employed a manipulative scheme commonly known as "banging" or "marking" the close. "Banging the close" refers to the practice of acquiring a substantial position leading up to the closing period, followed by offsetting the position before the end of the close of trading for the purpose of attempting to manipulate prices.
The complaint also names defendants Christopher Dowson, head trader of Optiver US, Randal Meijer, head of trading and supervisor of Optiver US and Optiver VOF and Bastiaan van Kempen, Chief Executive Officer of Optiver, US.
The CFTC has also charged Optiver and van Kempen with concealing the manipulative scheme and making false statements in response to an inquiry from NYMEX.
"Although this alleged energy trading scheme lasted only several days in March 2007, even short-term distortions of prices will not be tolerated by the Commission," Lukken added.
The scheme allegedly involved trading a significant volume of energy futures contracts in the opposite direction of the associated Trading at Settlement, or TAS position, before and during the close of the contracts, thus benefiting the company regardless of its TAS position accumulated during the trading day.
http://www.rttnews.com/ArticleView.aspx?Id=663785
~~ 1st hearing ~~ CFTC testimony is straight forward!! Excellent!
Fed's Geithner & SEC's Cox
Testify on Financial Regulation
http://www.cnbc.com/id/24596546
Fed's Geithner: Better Banking Rules Needed
FEDERAL RESERVE, FED, BEIGE BOOK, ECONOMY, CPI, PPI, CREDIT CRUNCH
By Reuters
Reuters
| 24 Jul 2008 | 10:15 AM ET
It is critical for policy-makers to help the U.S. financial system adjust during a difficult time, but substantial regulatory reforms are needed to make institutions and markets more resilient, a top Federal Reserve official said on Thursday.
Federal Reserve Bank of New York President Timothy Geithner said in prepared testimony to the House Financial Services Committee that the financial crisis of the past year has underscored the need to change an outdated patchwork of financial regulators.
"The critical imperative today is to help facilitate that adjustment and to cushion its impact on the broader economy," Geithner said. "The forces that made the system vulnerable to this crisis took a long time to build up and the system will need some time to work through their aftermath."
"I believe the most important imperative is to build a financial system that is more robust to very bad outcomes and more resilient to shocks," Geithner said.
Major institutions would have to become less vulnerable to shocks, and the system would need to be less vulnerable to pull-backs in liquidity and be able to withstand the failures of a major financial firm.
The financial system needs better "shock absorbers," such as stronger capital reserves and risk management among institutions, and simplifying and consolidating the regulatory architecture to reduce opportunities for regulatory "arbitrage," he said.
The use of government backstops such as central bank liquidity tools and other emergency powers requires stronger oversight to limit the "moral hazard" that they create by encouraging riskier behavior among institutions.
"To mitigate this effect on risk-taking, strong supervisory authority is required over the consolidated financial entities that are critical to a well-functioning financial system," he said.
Copyright 2008 Reuters. Click for restrictions.
URL: http://www.cnbc.com/id/25829544/
Pickens airs oil import threats in Congressional testimony
By Steve Gelsi
Last update: 10:07 a.m. EDT July 22, 2008
NEW YORK (MarketWatch) -- Texas billionaire T. Boone Pickens aired his Pickens Plan to the U.S. Senate Homeland Security and Government Affairs Committee on Tuesday, as he continued his effort to tout the threat posed by $700 billion a year moving overseas to buy imported oil. Pickens argued that the national security of the United States is in its greatest jeopardy and peril since World War II due to its "dangerous dependence on foreign oil." He repeated his call for more wind power to generate electrcity. Instead of fueling electric power plants, the natural gas could be used to power vehicles and reduce oil imports to make gasoline
http://www.ases.org/
Dear Solar Supporter,
Want to learn the latest developments in solar energy and the solar tax credits in Congress?
Thought you'd be interested in knowing that Brad Collins of the American Solar Energy Society will be a panelist on NPR's Science Friday radio show today at 2pm ET / 11am PT as part of a 'solar energy roundup'.
He will be joined by other insightful industry leaders from the Solar Energy Industry Association and Abengoa Solar. Hope you can listen in. Click here to find a public radio station near you or listen online.
Best regards,
Neal Lurie
Director of Marketing & Communications
American Solar Energy Society
www.ases.org
Dr. Hirsch was commissioned by the DoE 4 years ago to do a comprehensive study on the time required to mitigate rising oil prices by e.g., coal to liquids, better fuel efficiency of the vehicles on the road and so on. His talk at the 2005 ASPO meeting in Lisbon was one of the best at that meeting.
So this guy is not a flake, he is one of the planet's few real experts on oil. On CNBC he said that he believed that in 3-5 years oil would reach $500 a barrel. This is in broad agreement with Jeffrey Brown's prediction at theoildrum.com that oil would about double in price every year. And Matt Simmons has recently given a roughly equivalent forecast.
Why will energy definitly be a problem in the next few years?
* We have accelerating declines in base production of oil. This means that we need more and more new oil every year just to keep production at the same level.
* We know how much oil is going to be available to the market over the next 7 - 10 years.
From the Mega Projects database (Volumes shown are in thousand barrels per day.)
Year 1000 BPD The bulge is now. We are probably never going to have as much new oil coming onto the market as we do this year.
It drops by almost ONE MILLION barrels next year, and the 2010 value is HALF that of 2008. Yes, there is a minor rally over the next two years, and then it's all downhill.
We WILL almost certainly see rationing by the end of 2010. Our only real hope of avoiding it is an industry-stopping recession. Gee, doesn't that sound like fun.
So, in the meantime...
* Get out of debt.
* Don't take on extra debt.
* Get used to eating from your own garden.
* Will your livlihood be at risk? Teaching? OK. Police? OK. Dairy farming? Maybe OK... Tourism? Uhmmm. Car sales? Uhmmm. Real Estate? Uhmmm.
2003 3172
2004 2747
2005 3776
2006 3855
2007 3314
2008 6912
2009 6146
2010 3770
2011 4563
2012 5111
2013 1237
2014 680
2015 672
2016 30
2017 162
2018 130
2019 50
Meanwhile, in another part of the galaxy, the Reserve Bank Of Scotland issues a global stock and credit crash alert. Are they right? Probably not. But they don't issue this sort of warning just for fun. There are major challenges facing our globalised economy that are going to be playing out over the next few years.
By 2050 we may all be riding hydrogen-powered motorbikes and holidaying on the moon. Or not. But between now and then we may just miss a few meals.
I hope your school is preparing your children for "Tomorrow's World."
Drilling in the Offshore
Unleashing the oil companies.
By Mark Hemingway
After trading at a record high of $147 a barrel Friday, the price of oil saw its largest one-day drop since the 2003 beginning of the Iraq war on Tuesday, falling $6.44 a barrel. Wednesday, it fell another $3.71, to $135.03, and at one point was trading as low as $132.
So what happened? As is usually the case with markets, a variety of factors caused this dramatic drop. According to the Associated Press, the Energy Information Administration announced that U.S. crude-oil supplies rose by 3 million barrels; beleaguered banks have been selling off valuable energy contracts to pay for other debts; and there’s even some speculation that computer programs used by Wall Street may create a “cascading effect” once prices start to drop.
But bizarrely, the AP didn’t mention that on Monday — again, the day of the single biggest one-day drop in oil prices in five years — President Bush removed the executive order imposing a moratorium on offshore drilling in the United States.
To think that this dramatic and unexpected move by the Bush administration didn’t have a significant effect on oil prices is folly. Even Democrats admit that relatively small margins in oil production could have a huge impact on prices.
“If they [Saudi Arabia] produced half a million barrels more oil a day the price would come down a very significant amount and, at the same time, it would stop the speculation that keeps driving up the price of oil,” Sen. Charles Schumer (D., N.Y.) said on the Senate floor Wednesday.
But if half a million barrels a day is all that’s needed to get the price of oil down, why, pray tell, are we at the mercy of the Saudis?
Last December, at the behest (and expense) of the American Petroleum Institute and Shell oil, I flew down to the Gulf Coast to visit an offshore oil platform. They helicoptered me 165 miles out into the gulf and I stepped onto Brutus, a tension-linked platform anchored to the seafloor 3,000 feet below. It would be an understatement to say I was in awe. Until you’re actually standing on one you can’t begin to appreciate the sheer size and complexity of such a thing.
The platform is the size of a few football fields jammed together, and the top of the derrick was easily a few hundred feet off the water. Dozens of people lived on board, and everything — from the computer systems to the actual drilling rig — was state of the art. Brutus produced over 100,000 barrels of oil a day — down from over 300,000 at its peak capacity.
That sounds impressive. But here’s what truly floored me: Shell decided Brutus’s location in the gulf would be profitable for drilling in April 1999. The company then built the massive oil platform, transported it to the right location in the gulf, anchored the floating leviathan onto the seafloor 3,000 feet below, drilled 17,000 feet below that, and began producing oil in July 2001. It took only two years to get Brutus online.
Of course, it helps that the oil companies have plenty of money to throw at the problem. Constructing oil platforms can cost in the billions of dollars. A few new oil platforms equivalent to Brutus off-shore in the U.S. could easily account for the half a million barrels Senator Schumer claims are driving prices up.
Of course, it’s not as simple as saying that, if we allow more offshore drilling, the oil companies will have America’s energy problems solved in a mere two years. It takes time to discover oil, for one thing. But they’re getting much better at finding it. The technology for oil prospecting has improved dramatically. At Shell’s headquarters in New Orleans, I visited their conference room where geologists, engineers, and executives gather to make decisions about where to drill. Suffice to say, it involves looking at scarily accurate maps and computer-generated images of cross sections of the earth’s crust on a 10-foot-high screen the width of the room. And it’s all in 3-D.
But due to restrictions on drilling, much of America’s coastline has never been fully explored, let alone with the latest technologies. Just a few months ago, an oil find was made off the coast of Brazil that might contain 33 billion barrels of oil. Now imagine what a similar find off the coast of America would do for oil prices.
Again, there’s no guarantee that oil will be up and pumping in just a few years. But given the price of oil, and the fact that oil companies have an obscene amount of cash sitting in the bank to throw at prospecting and construction of new facilities, oil companies are highly motivated. There’s an excellent chance they’ll start producing oil much faster than naysaying politicians would have you believe.
It’s also worth noting that existing oil production in America is declining, particularly in the Gulf Coast. The long-term path to energy independence can’t focus exclusively on offshore drilling at the expense of other forms of energy and new technologies.
California governor Arnold Schwarzenegger recently said that the idea that more offshore drilling would bring down gas prices amounted to “blowing smoke.” The cigar enthusiast might want to reconsider that statement—as should Obama, who also opposes more drilling. It’s a losing political issue. With gas $4 a gallon, a June Gallup survey found that 57 percent of Americans support drilling off-shore and in wilderness areas.
Saying offshore drilling won’t bring down gas prices is demonstrably wrong. The price of gas dropped significantly upon Bush’s word that more domestic offshore drilling was one small step closer to becoming a reality. How much more will it drop if we actually start drilling and producing oil?
— Mark Hemingway
Drill Responsibly in Leased Lands Act of 2008 (Introduced in House)
HR 6515 IH
110th CONGRESS
2d Session
H. R. 6515
To amend the Naval Petroleum Reserves Production Act of 1976 to require the Secretary of the Interior to conduct an expeditious environmentally responsible program of competitive leasing of oil and gas in the National Petroleum Reserve in Alaska, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
July 16, 2008
Mr. RAHALL (for himself, Mr. WELCH of Vermont, Ms. SUTTON, Ms. CASTOR, Mr. CARSON, Mrs. BOYDA of Kansas, Mr. WALZ of Minnesota, Ms. GIFFORDS, Mrs. GILLIBRAND, Mr. HODES, Mr. HALL of New York, Mr. SPACE, Mr. SIRES, Mr. WILSON of Ohio, Mr. YARMUTH, Mr. COURTNEY, Mr. MCNERNEY, Mr. FALEOMAVAEGA, and Mr. FOSTER) introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on Foreign Affairs and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Naval Petroleum Reserves Production Act of 1976 to require the Secretary of the Interior to conduct an expeditious environmentally responsible program of competitive leasing of oil and gas in the National Petroleum Reserve in Alaska, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Drill Responsibly in Leased Lands Act of 2008'.
SEC. 2. NATIONAL PETROLEUM RESERVE IN ALASKA: LEASE SALES.
Section 107(a) of the Naval Petroleum Reserves Production Act of 1976 is amended to read as follows:
`(a) In General- The Secretary shall conduct an expeditious environmentally responsible program of competitive leasing of oil and gas in the National Petroleum Reserve in Alaska in accordance with this Act. Such program shall include no fewer than one lease sale in the Reserve each year during the period 2009 through 2013.'.
SEC. 3. NATIONAL PETROLEUM RESERVE IN ALASKA: PIPELINE CONSTRUCTION.
The Secretary of Transportation shall facilitate, in an environmentally responsible manner and in coordination with the Secretary of the Interior, the construction of pipelines necessary to transport oil and gas from or through the National Petroleum Reserve in Alaska to existing transportation or processing infrastructure on the North Slope of Alaska.
SEC. 4. ALASKA NATURAL GAS PIPELINE PROJECT FACILITATION.
(a) Findings- The Congress finds the following:
(1) Over 35 trillion cubic feet of natural gas reserves have been discovered on Federal and State lands currently open to oil and gas leasing on the North Slope of Alaska.
(2) These gas supplies could make a significant contribution to meeting the energy needs of the United States, but the lack of a natural gas transportation system has prevented these gas reserves from reaching markets in the lower 48 States.
(b) Facilitation by President- The President shall, pursuant to the Alaska Natural Gas Pipeline Act (division C of Public Law 108-324; 15 U.S.C. 720 et seq.) and other applicable law, coordinate with producers of oil and natural gas on the North Slope of Alaska, Federal agencies, the State of Alaska, Canadian authorities, and other interested persons in order to facilitate construction of a natural gas pipeline from Alaska to United States markets as expeditiously as possible.
SEC. 5. PROJECT LABOR AGREEMENTS AND OTHER PIPELINE REQUIREMENTS.
(a) Project Labor Agreements- The President, as a term and condition of any permit required under Federal law for the pipelines referred to in section 3 and section 4, and in recognizing the Government's interest in labor stability and in the ability of construction labor and management to meet the particular needs and conditions of such pipelines to be developed under such permits and the special concerns of the holders of such permits, shall require that the operators of such pipelines and their agents and contractors negotiate to obtain a project labor agreement for the employment of laborers and mechanics on production, maintenance, and construction for such pipelines.
(b) Pipeline Maintenance- The Secretary of Transportation shall require every pipeline operator authorized to transport oil and gas produced under Federal oil and gas leases in Alaska through the Trans-Alaska Pipeline, any pipeline constructed pursuant to section 3 or 4 of this Act, or any other federally approved pipeline transporting oil and gas from the North Slope of Alaska, to certify to the Secretary of Transportation annually that such pipeline is being fully maintained and operated in an efficient manner. The Secretary of Transportation shall assess appropriate civil penalties for violations of this requirement in the same manner as civil penalties are assessed for violations under section 60122(a)(1) of title 49, United States Code.
SEC. 6. BAN ON EXPORT OF ALASKAN OIL.
(a) Repeal of Provision Authorizing Exports- Section 28(s) of the Mineral Leasing Act (30 U.S.C. 185(s)) is repealed.
(b) Reimposition of Prohibition on Crude Oil Exports- Upon the effective date of this Act, subsection (d) of section 7 of the Export Administration Act of 1979 (50 U.S.C. App. 2406(d)), shall be effective, and any other provision of that Act (including sections 11 and 12) shall be effective to the extent necessary to carry out such section 7(d), notwithstanding section 20 of that Act or any other provision of law that would otherwise allow exports of oil to which such section 7(d) applies.
SEC. 7. ISSUANCE OF NEW LEASES.
(a) In General- After the date of the issuance of regulations under subsection (b), the Secretary of the Interior shall not issue to a person any new lease that authorizes the exploration for or production of oil or natural gas, under section 17 of the Mineral Leasing Act (33 U.S.C. 226), the Mineral Leasing Act for Acquired Lands Act (30 U.S.C. 351 et seq.), the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), or any other law authorizing the issuance of oil and gas leases on Federal lands or submerged lands, unless--
(1) the person certifies for each existing lease under such Acts for the production of oil or gas with respect to which the person is a lessee, that the person is diligently developing the Federal lands that are subject to the lease in order to produce oil or natural gas or is producing oil or natural gas from such land; or
(2) the person has relinquished all ownership interest in all Federal oil and gas leases under which oil and gas is not being diligently developed.
(b) Diligent Development- The Secretary shall issue regulations within 180 days after the date of enactment of this Act that establish what constitutes `diligently developing' for purposes of this Act.
(c) Failure To Comply With Requirements- Any person who fails to comply with the requirements of this section or any regulation or order issued to implement this section shall be liable for a civil penalty under section 109 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1719).
(d) Lessee Defined- In this section the term `lessee'--
(1) includes any person or other entity that controls, is controlled by, or is in or under common control with, a lessee; and
(2) does not include any person who does not hold more than a minority ownership interest in a lease under an Act referred to in subsection (a) authorizing the exploration for or production of oil or natural gas.
SEC. 8. FAIR RETURN ON PRODUCTION OF FEDERAL OIL AND GAS RESOURCES.
(a) Royalty Payments- The Secretary of the Interior shall take all steps necessary to ensure that lessees under leases for exploration, development, and production of oil and natural gas on Federal lands, including leases under the Mineral Leasing Act (30 U.S.C. 181 et seq.), the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), the Outer Continental Shelf Lands Act (30 U.S.C. 1331 et seq.), and all other mineral leasing laws, are making prompt, transparent, and accurate royalty payments under such leases.
(b) Recommendations for Legislative Action- In order to facilitate implementation of subsection (a), the Secretary of the Interior shall, within 180 days after the date of the enactment of this Act and in consultation with the affected States, prepare and transmit to Congress recommendations for legislative action to improve the accurate collection of Federal oil and gas royalties.
http://thomas.loc.gov/cgi-bin/query/D?c110:2:./temp/~c110neVzOQ::
Excellent making progress ~ Reid, Dorgan introduce oil speculation bill
The Stop Excessive Energy Speculation Act of 2008
By Laura Mandaro
Last update: 3:28 p.m. EDT July 16, 2008Comments: 6
SAN FRANCISCO (MarketWatch) --
A group of Democratic senators said Wednesday they had introduced a bill targeting speculation in oil markets. Among other measures, it would require the U.S. futures regulator to allow only those companies that buy or produce petroleum to be considered legitimate hedgers, a distinction that could cut into the ability of large investment banks to use exchange-traded futures to offset swaps with financial investors such as pension funds. The Stop Excessive Energy Speculation Act of 2008, introduced late Tuesday by Sen. Majority Leader Harry Reid, D-Nevada, Sen. Charles Schumer, D-N.Y., Sen. Byron Dorgan, D-N.D., and Sen. Patty Murray, D-Wash., would also give the Commodities Futures Trading Commission more resources and authority to demand data from large traders. Reid, speaking from the floor of the U.S. Senate, said he had spoken to UAL Corp. CEO Glenn Tilton several times about the need for such changes. On July 15, 2008, Senators Reid, Durbin, Schumer, Dorgan, and Murray introduced S. 3268, the Stop Excessive Energy Speculation Act of 2008. This legislation, developed after consultation with consumer advocates, oil market analysts, and experts from the financial and airline industries, seeks to reduce the amount of excessive speculation in the oil markets. Specifically, the legislation would increase the resources and authority needed by the Commodities Futures Trading Commission (CFTC) to detect, prevent, and punish price manipulation and excessive speculation and give the CFTC emergency authority needed to rapidly implement the legislation. S. 3268 would also strengthen the amount and quality of information available to the CFTC so that the Commission can better regulate all aspects of the energy futures markets. In addition, the Stop Excessive Energy Speculation Act of 2008 would provide better transparency in the trading of energy derivatives by closing the "London Loophole" so that oil traders using a foreign exchange cannot manipulate the price of oil in the United States. Finally, the legislation would require the CFTC to implement position limits to restrict excessive speculation that would still allow for reasonable trading for price discovery, liquidity, and legitimate hedging purposes.
re: Oil Slumps Below $134 on Crude Stockpile Gain
Fast it goes up, fast it comes down.
An inventing effective alternative energy car such as Toyota hybrid will push down oil price as it went up in faster pace because tech progress is far advanced than the pace of nature resources.
The recent publicity which oil has gotten, consumers know better about the destiny of hyped oil price.
When advanced technology cars replace old technology, it does not regress, but further progress.
~~~
OIL, OIL PRICES, CRUDE, INVENTORIES, GASOLINE, ENERGY PRICES, EIA, OPEC, DEMAND, SAUDI ARABIA, OPEC, CHINA, ISRAEL, IRAN, NIGERIA, GM, PETROBRAS,
By CNBC.com
CNBC.com
| 16 Jul 2008 | 10:43 AM ET
Oil prices fell over $5 to below $134 a barrel Wednesday following official government data that showed a surprise rise in crude and gasoline stockpiles last week.
U.S. light, sweet crude was sharply lower following the data.
On Tuesday the market saw its biggest one-day fall in dollar terms since 1991, when prices tumbled after the U.S. began bombing Iraq in the first Gulf War.
London Brent crude followed the move.
U.S. commercial crude oil inventories increased by 3.0 million barrels for the week ended July 11, compared to the previous week, according to the Energy Information Administration. That's in contrast to the 1.6 million barrel decrease expected by analysts surveyed by CNBC and Dow Jones.
Total motor gasoline inventories increased by 2.4 million barrels, compared to the 200,000 barrel fall expected by analysts. And distillate fuel inventories increased by 3.2 million barrels, while analysts had expected an increase of 1.5 million barrels.
© 2008 CNBC.com
URL: http://www.cnbc.com/id/25694961/
Just got back from New Orleans and coming through south Arkansas I was reminded of all the oil that is pumped there along with the recent extraction of natural gas in the northwest area called the Fayetteville shell, just a little northwest of where I live.
The argument from Pelosi's group that there is only 10 years of oil there pales compared to the crap we are having to take from the Saudis. I say keep your oil and try eating it.
I remember Jerry Clower's story of hunting raccoons in the Mississippi night. They are hunting racoon's in the Mississippi woods near Yazoo city and the dog's tree one. Jerry climbs the tree to get a better shot and discovers it's not a raccoon but what they call a souped up wildcat (panther). Jerry and the Panther are now going at it when the ground man yells up to Jerry if he wants him to chance a shot at the panther. Jerry yells back down and says "just shoot up here amongst us, because one of us has got to have some relief".
We need some relief from foreign oil. We're burning it we ought to supply it since we have it. If it gives us another 10 year window for better technology I say so be it.
Mike
Arkansas TV poll on Bush lifting the ban as of 10:15Pm 7/14/08:
86% For
14% Against
Mike
We vote them in.
Henceforth I am voting against the incumbant in every national election.
Bush to Lift Executive Ban on Offshore Oil Drilling
Monday, July 14, 2008
E-Mail Respond Print Share:
WASHINGTON — President Bush will lift an executive ban on offshore oil drilling, although new oil exploration on the Outer Continental Shelf will remain off limits until Congress also takes action.
The president will make a Rose Garden statement on Monday, where he is expected to announce his lifting of the ban.
Watch President Bush speak Live at 1:30 p.m. ET on FOX News Channel.
White House press secretary Dana Perino says Bush is acting now in hopes of spurring Congress to act. So far, lawmakers have shown no interest in doing so.
Bush and a growing number of lawmakers have been calling for broader options in dealing with rising energy costs, including $4 per gallon gasoline.
The Outer Continental Shelf has been a particularly hot debate, with the Bush administration saying new drilling technology would make U.S. shores safe from environmental disaster while helping to drive down prices with greater supplies.
Democrats say energy companies already have plenty of space to look for oil and have stalled on investing in more oil production while reaping record profits.
American Solar Energy Society ~ http://www.ases.org/
SEI Solar Energy International ~ http://www.solarenergy.org/
A full of deceptive news and manipulation.
Posted by: Bruce A Thompson Date: Friday, July 11, 2008 4:06:39 PM
In reply to: None Post # of 594592
It's all avout the oil
IRAN MISSILE TEST BIG BLUFF: OLD ROCKETS, BOGUS VIDEO
Fri Jul 11 2008 15:18:02 ET
Many of Iran's claims related to missile tests during "Great Prophet III" war games -- appear to be smoke and mirrors!
The missiles tested DID NOT not have 2,000-kilometer range, the NEW YORK TIMES is planning to report on Saturday.
Iran DID NOT launch a Shahab-3 missile, able to reach Israel.
It was an older missile that was out of production, newsroom sources tell DRUDGE.
And a video showing what appeared to be many missiles being fired -- is actually one missile, filmed from different angles!
NYT's Bill Broad is planning to quote Pentagon officials and military insiders.
Developing...http://www.drudgereport.com/flashim.htm
yeah, don't we all know that..
Doesn't take much these days to maintain the volatility of oil prices.
and though it wouldn't be permanent, you can bet that oil prices would skyrocket even further if they did..
yeah I guess, though if Iran plants mines all over the place there, I know I wouldn't want to be piloting a supertanker through there..lol
Totally agree with you on Hormuz, although I have a hard time believing that the blockade would last very long with the US military presence in the region, not to mention OPEC interests.
true, though if Iran were to blockade the straits of Hormuz, we would be in some deep doo doo.
I have a hard time taking OPEC predictions seriously, as for the most part they are self-serving.
jmo
ou
OPEC Warns War With Iran Would Cause 'Unlimited' Oil Price Hike
Friday, July 11, 2008
VIENNA, Austria — World energy needs will spike by more than 50 percent by 2030 but adequate oil reserves, conservation and new methods of recovery mean supply will keep pace with demand, the Organization of Petroleum Exporting Countries said Thursday.
Still, OPEC's secretary general acknowledged that dangers to steady supply exist. Addressing one — the threat of a U.S. or Israeli attack on Iran because of its nuclear defiance — he warned that his organization was unprepared — and unable — to make up for resulting oil shortfalls.
"It is impossible to replace the production of Iran," OPEC's No. 2 producer, Abdalla Salem El-Badri told reporters at the presentation of the organization's long term oil market outlook. “The prices would go unlimited ... I can’t give you a number.”
The United States and Israel have not ruled out a military strike on Iran as a last option if it does not give up uranium enrichment and heed other U.N. Security Council demands meant to dispel the fear Tehran wants to make nuclear arms.
Tehran produced just over 4 million barrels of crude a day last year — more than 10 percent of OPEC's total production.
In its report, "World Look Outlook for 2008," OPEC took issue with critics blaming present skyrocketing prices on the refusal of the organization to increase output, asserting that the weak U.S. dollar and market speculators were at least partly to blame.
And it suggested that decades of low prices led to under-investment, leaving the industry ill-prepared to sate the increased hunger for crude generated by strong economic growth.
Past "low prices were bad for the oil industry, and in the longer term they were also bad for consumer," said the summary of the 214-page report. At the same time, despite delivery bottlenecks, "there is enough oil to meet the world's needs for the foreseeable future," it added.
El-Badri made the same point.
"Today, what is apparent is that oil supply and demand fundamentals are healthy," he wrote. "There is, and has been, more than enough supply to meet demand, and oil stocks in major consuming countries are at comfortable levels," he said, in a foreword to the report. "This should point away from the direction of current price levels."
Later, he said there was no reason for present prices because there was "plenty of oil in the market (and) plenty of oil in ... stocks."
The report projected oil demand to rise by 29 million barrels a day from 2006 through 2030 to reach a daily 113 million barrels a day — a drop of 4 million barrels a day over its predictions last year, "due in part to the higher oil price assumption" — expectations that pricey petroleum is here to stay.
A large part of that projected demand will be met by new recovery and production procedures, meaning total demand for "conventional crude" — oil pumped from wells and other methods using present day technology — will not exceed 82 million barrels a day by 2030, said OPEC.
In comparison OPEC last month said it expects oil consumption this year to amount to an average of 86.9 million barrels per day.
"Oil has been in the leading position in supplying the world's growing energy needs for the past four decades, and there is a clear expectation that this will continue," said the report, estimating that crude and other fossil fuels will make up 85 percent of the world's energy mix in 2030. "Gas is expected to grow at fast rates, while coal retains its importance in the energy mix."
The generally optimistic tone of the report contrasted sharply with forecasts published last week by the International Energy Agency.
That report by the energy watchdog of the world's top industrialized nations predicted that oil supplies will remain tight at least for the next five years, despite record prices that have reduced demand. And IEA Executive Director Nobuo Tanaka said the world was in the grip of an "oil shock," similar to once in the 1970s and then the 1980s — but with no simple fix this time.
In its monthly forecast Thursday, the IEA slightly raised its forecast for global oil demand this year and said growth would continue in 2009 thanks to demand in developing countries.
Light, sweet crude for August delivery rose $1.80 to $137.85 on the New York Mercantile Exchange. That is still below last week's record high of almost $146 a barrel.
Part of the OPEC report's upbeat tone appeared to be based on the belief that new discoveries will make up for increased demand.
"The level of ultimately recoverable reserves is clearly more than sufficient to supply the amount of crude oil and NGLs (natural gas liquids) that will be needed," it said, saying new estimates of additional reserves make figures on which present estimates are based outdated.
Publicly, Western leaders and the Organization of Petroleum Exporting Countries are split over the cause of record oil prices. OPEC blames the weak U.S. currency and speculators. The West says it is a supply issue.
In the report, OPEC again blamed "the fall in the value of the dollar in relation to other currencies" for driving investors to buy oil every time the dollar falters.
And it noted the trade in "paper barrels" — oil futures that are bought and then quickly sold to lock in profits on each price spike — has risen to more than 18 barrels to each "physical barrel" traded, a threefold increase to just five years ago.
"Many believe that the proper functioning of futures markets has been altered by the various loopholes that effectively allow unlimited and undetected speculation, far beyond the limits of healthy liquidity-providing levels towards damaging price-distorting ones." said the report.
Booming economic growth in China, India and other developing nations has added to the demand that has seen prices triple over the past three years, and the OPEC report said that trend will continue into its forecast period— even though per capita consumption will remain substantially below that of the United States and other industrialized countries.
Citizens of developing nations "will consume, on average, approximately five times less oil per person" than their counterparts in developed nations, it said.
Man, how do we keep getting stuck with these idiots.
Pelosi: Drilling in protected areas ‘a hoax’
By Jared Allen
Posted: 07/10/08 01:28 PM [ET]
House Speaker Nancy Pelosi (D-Calif.) on Thursday shut the door on expanding oil and gas drilling beyond areas that have already been approved for energy exploration, drawing a clear distinction from her counterparts in charge of the Senate.
“This call for drilling in areas that are protected is a hoax, it’s an absolute hoax on the part of the Republicans and this administration” Pelosi said at her weekly press conference. “It’s a decoy to punt your attention away from the fact that their policies have produced $4-a-gallon gasoline.”
Pelosi’s stand may put her at odds with a growing number of members of the Democratic Caucus who have been moving toward possible compromises with Republicans on ways to expand domestic energy production.
Senate Majority Leader Harry Reid (D-Nev.) on Wednesday told reporters that expanded offshore drilling is not off the table, and that Democrats will take a look at whether states should be able to choose to drill off their coasts. “I’m not knee-jerk-opposed to anything,” Reid said.
Pelosi and other Democratic leaders also unveiled another series of proposals to deal with the energy and gas price crisis, and renewed their calls for immediate drilling on nearly 100 million domestic acres already approved for exploration. They also called for Bush to release oil from the Strategic Petroleum Reserve.
Democrats are renewing their push for energy companies to “use or lose” the lands they already have leased. New proposals include requiring the Bureau of Land Management to speed up the leasing of approved areas; to reconstitute the ban on the export of American oil; and to urge the completion of the Alaskan oil and gas pipelines.
Pelosi and Majority Leader Steny Hoyer (D-Md.) also said committee work is being completed on bills to curtail excessive speculation in the oil commodity markets.
Democrats would not say when these bills would be ready for floor consideration.
Within minutes of the completion of the press conference, House Republican Leader John Boehner (R-Ohio) took to the floor to again criticize Democrats for dodging votes on energy bills, charging that Democrats are avoiding votes on the opening up of the Artic National Wildlife Refuge and the OCS.
Hoyer soon followed to retort, saying he and Democratic leaders have for weeks been urging for drilling on approved acres, only to have those efforts blocked by Republicans.
He blamed Bush, Vice President Dick Cheney – the “two oil men in the White House” – and Republicans for setting an energy policy that has driven up gas prices and steered record profits to the energy companies.
Republicans accused the Democrats of playing a political game.
“As every serious person who has studied this issue knows, the proposals that Democrats are producing are shams and hoaxes designed to provide political cover and not to produce more American energy and lower gas prices,” Boehner spokesman Michael Steel said.
http://thehill.com/leading-the-news/pelosi-drilling-in-protected-areas-a-hoax-2008-07-10.html
Oil demand and supply will soar: OPEC
Cartel blames speculators and weak U.S. dollar for recent price runup.
VIENNA (AP) -- World energy needs will spike by more than 50% by 2030 but adequate oil reserves, conservation and new methods of recovery mean supply will keep pace with demand, the Organization of Petroleum Exporting Countries said Thursday.
In its "World Look Outlook for 2008," OPEC also took issue with critics blaming present skyrocketing prices on the refusal of the organization to increase output, asserting that the weak U.S. dollar and market speculators were at least partly to blame.
And it suggested that decades of low prices led to under-investment, leaving the industry ill-prepared to sate the increased hunger for crude generated by strong economic growth.
Past "low prices were bad for the oil industry, and in the longer term they were also bad for consumer," said the summary of the 214-page report. At the same time, despite delivery bottlenecks, "there is enough oil to meet the world's needs for the foreseeable future," it added.
OPEC Secretary-General Abdalla Salem El-Badri made the same point, in his foreword.
"Today, what is apparent is that oil supply and demand fundamentals are healthy," he wrote. "There is, and has been, more than enough supply to meet demand, and oil stocks in major consuming countries are at comfortable levels. This should point away from the direction of current price levels."
The report projected oil demand to rise by 29 million barrels a day from 2006 through 2030 to reach a daily 113 million barrels a day - a drop of 4 million barrels a day over its predictions last year, "due in part to the higher oil price assumption" - expectations that pricey petroleum is here to stay.
New recovery methods to boost supply
A large part of that projected demand will be met by new recovery and production procedures, meaning total demand for "conventional crude" - oil pumped from wells and other methods using present day technology - will not exceed 82 million barrels a day by 2030, said OPEC.
In comparison OPEC last month said it expects oil consumption this year to amount to an average of 86.9 million barrels per day.
"Oil has been in the leading position in supplying the world's growing energy needs for the past four decades, and there is a clear expectation that this will continue," said the report, estimating that crude and other fossil fuels will make up 85% of the world's energy mix in 2030. "Gas is expected to grow at fast rates, while coal retains its importance in the energy mix."
The generally optimistic tone of the report contrasted sharply with forecasts published last week by the International Energy Agency.
That report by the energy watchdog of the world's top industrialized nations predicted that oil supplies will remain tight at least for the next five years, despite record prices that have reduced demand. And IEA Executive Director Nobuo Tanaka said the world was in the grip of an "oil shock," similar to once in the 1970s and then the 1980s - but with no simple fix this time.
In its monthly forecast Thursday, the IEA slightly raised its forecast for global oil demand this year and said growth would continue in 2009 thanks to demand in developing countries.
The report came as the benchmark contract for crude was trading at above $136 a barrel but about 6.4% below last week's record high.
First Published: July 10, 2008: 9:48 AM EDT
Iran holds key to rebound
~~~ Energy ETF ~~~ Go Boone! PWND
http://www.cnbc.com/id/25627323
Global Nuclear Energy
Global Wind
Global Clean Energy
~ Go Boeing Solar ~~ forecasts a $3.2 trillion market for new commercial airplanes over the next two decades, driven by an increasing demand for airplanes to replace older, less efficient aircraft.
The Boeing 2008 outlook calls for a market of 29,400 new commercial airplanes (passenger and freighter) by 2027, with a balanced demand in aircraft by region.
Boeing added that 43% of the new planes would be used as replacements, an increase from previous forecast of 36%, reflecting due to the loss of economic viability of older aircraft in light of higher fuel costs.
by RTT Staff Writer
~~~
BA does not reflect irrational pessimism ~ those planes need to be completely made by efficient and effective solar cells covered the outer body structure.
Solar energy ~
OK, why are oil prices going through the roof, and what can or should be done about it? Feel free to post articles, debate, and/or get political, as this topic is sure to be key in the upcoming POTUS '08 election.
Please feel free to express varying viewpoints, but please no personal attacks.
International Energy Outlook 2008
http://www.eia.doe.gov/oiaf/ieo/oil.html
Pricing Differences Among Various Types of Crude Oil
According to The International Crude Oil Market Handbook, 2004,1 published by the Energy Intelligence Group, there are about 161 different internationally traded crude oils. They vary in terms of characteristics, quality, and market penetration. Two crude oils which are either traded themselves or whose prices are reflected in other types of crude oil include West Texas Intermediate and Brent. Comparing these two crude oils with EIA's Imported Refiner Acquisition Cost (IRAC), the OPEC Basket, and NYMEX futures is important to understand the differences among the various types of crude oil that are often referred to in the press and by analysts. Generally, differences in the prices of these various crude oils are related to quality differences, but other factors can also influence the price relationships between each other.
West Texas Intermediate
West Texas Intermediate (WTI) crude oil is of very high quality and is excellent for refining a larger portion of gasoline. Its API gravity is 39.6 degrees (making it a “light” crude oil), and it contains only about 0.24 percent of sulfur (making a “sweet” crude oil). This combination of characteristics, combined with its location, makes it an ideal crude oil to be refined in the United States, the largest gasoline consuming country in the world. Most WTI crude oil gets refined in the Midwest region of the country, with some more refined within the Gulf Coast region. Although the production of WTI crude oil is on the decline, it still is the major benchmark of crude oil in the Americas. WTI is generally priced at about a $5 to $6 per-barrel premium to the OPEC Basket price and about $1 to $2 per-barrel premium to Brent, although on a daily basis the pricing relationships between these can vary greatly.
Brent
Brent Blend is actually a combination of crude oil from 15 different oil fields in the Brent and Ninian systems located in the North Sea. Its API gravity is 38.3 degrees (making it a “light” crude oil, but not quite as “light” as WTI), while it contains about 0.37 percent of sulfur (making it a “sweet” crude oil, but again slightly less “sweet” than WTI). Brent blend is ideal for making gasoline and middle distillates, both of which are consumed in large quantities in Northwest Europe, where Brent blend crude oil is typically refined. However, if the arbitrage between Brent and other crude oils, including WTI, is favorable for export, Brent has been known to be refined in the United States (typically the East Coast or the Gulf Coast) or the Mediterranean region. Brent blend, like WTI, production is also on the decline, but it remains the major benchmark for other crude oils in Europe or Africa. For example, prices for other crude oils in these two continents are often priced as a differential to Brent, i.e., Brent minus $0.50. Brent blend is generally priced at about a $4 per-barrel premium to the OPEC Basket price or about a $1 to $2 per-barrel discount to WTI, although on a daily basis the pricing relationships can vary greatly.
NYMEX Futures
The NYMEX futures price for crude oil, which is reported in almost every major newspaper in the United States, represents (on a per-barrel basis) the market-determined value of a futures contract to either buy or sell 1,000 barrels of WTI or some other light, sweet crude oil at a specified time. Relatively few NYMEX crude oil contracts are actually executed for physical delivery. The NYMEX market, however, provides important price information to buyers and sellers of crude oil in the United States (and around the world), making WTI the benchmark for many different crude oils, especially in the Americas. Typically, the NYMEX futures prices tracks within pennies of the WTI spot price described above, although since the NYMEX futures contract for a given month expires 3 days before WTI spot trading for the same month ceases, there may be a few days in which the difference between the NYMEX futures price and the WTI spot price widens noticeably.
OPEC Basket Price
For a discussion of crude oil pricing in general, and of the OPEC Basket price in particular, see EIA's OPEC Fact Sheet. OPEC collects pricing data on a "basket" of seven crude oils, including: Algeria's Saharan Blend, Indonesia's Minas, Nigeria's Bonny Light, Saudi Arabia's Arab Light, Dubai's Fateh, Venezuela's Tia Juana Light, and Mexico's Isthmus (a non-OPEC crude oil). OPEC uses the price of this basket to monitor world oil market conditions. As mentioned above, because WTI crude oil is a very light, sweet (low sulfur content) crude, it is generally more expensive than the OPEC basket, which is an average of light sweet crude oils such as Algeria's Saharan Blend and heavier sour crude oils (with high sulfur content) such as Dubai's Fateh. Brent is also lighter, sweeter, and more expensive than the OPEC basket, although less so than WTI.
Imported Refiner Acquisition Cost
The Imported Refiner Acquisition Cost (IRAC) is a volume-weighted average price of all crude oils imported into the United States over a specified period. Because the United States imports more types of crude oil than any other country, it may represent the truest “world oil price” among all published crude oil prices. The IRAC is also usually similar to the OPEC Basket price, so it too is typically about $6 to $8 per barrel less than the WTI spot price and about $5 to $6 per barrel less than the Brent price. However, because the IRAC is not reported by EIA until nearly 2 months after the end of the month in question, i.e., the August IRAC average price would be reported sometime in late October, the IRAC is not a particularly timely measure of a “world oil price”. Although EIA is generally the only organization that uses the IRAC, it is used by EIA as the “world oil price” in all of its forecast publications, including the Short-Term Energy Outlook, released monthly, as well as the Annual Energy Outlook and International Energy Outlook, both of which are released annually and provide an annual forecast looking out approximately 20 years in the future.
http://tonto.eia.doe.gov/dnav/pet/hist/r0000____3m.htm
1Energy Intelligence Group, The International Crude Oil Market Handbook, 2004, pp. E1, E287 and E313.
http://tonto.eia.doe.gov/ask/crude_types1.html
How dependent is the U.S. on foreign oil?
In 2007, about 58% of the petroleum consumed in the U.S. was imported from foreign countries. Crude oil accounted for 83% of net petroleum imports and about 66% of the crude oil processed in U.S. refineries was imported.
The top five source countries and their percent share of U.S. total net petroleum imports were:
Canada (18%)
Saudia Arabia (12%)
Venezuela (11%)
Mexico (10%)
Nigeria (9%)
Learn More: Read Overview of U.S. Petroleum Trade, Petroleum Supply and Disposition, Crude Oil Supply and Disposition, and U.S. Net Imports by Country, EIA statistics on U.S. petroleum and crude oil imports, exports and consumption. (PDF)
Last updated: April 11, 2008
http://tonto.eia.doe.gov/ask/crudeoil_faqs.asp#foreign_oil
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