This is an irregular report on energy issues and energy news from around the world. There is more data and posts filed in the Energy and Peak Oil Category.
Thoughts from the Pit of NYMEX
China to Raise Energy Prices
China said this week that it would raise fuel and electricity prices, a move that could add to the nation’s already high inflation rate but cut consumer demand and thus help lower global crude oil prices. From the Los Angeles Times:
China, which has been keeping fuel costs for consumers below market rates with billions of dollars in subsidies, said retail gasoline prices as of today would rise more than 16% and diesel prices would jump 18%. Many analysts have criticized the subsidies, saying they distorted the market and discouraged consumers and industries from conserving energy.
The announcement, made through the official New China News Agency, appeared to have an immediate effect in global markets, as crude prices for July delivery fell $4.75, or 3.5%, to settle at $131.93 a barrel in New York futures trading.
Saudi Arabian Oil Production: Can the Saudi Open the Tap?
The Oil Drum looks at the feasibility of Saudi Arabia’s recent decision to increase production. How realistic is it to expect Saudi oil fields to increase production? Saudi Arabia accounts for about 11% of US Imports. Canada and Mexico supply more.
Below the fold stories on Dutch Natural Gas Production, Natural Gas Prices in Europe, Electricity Prices in Europe, Iraqi Exports of Natural Gas, Nigerian Delta Insecurity and India blames oil speculation for the rise in global oil prices.
The Dutch and Peak Gas
The Netherlands is Western Europe’s second largest natural gas producer after Norway. The Dutch government acknowledged in its new energy strategy that Dutch natural gas production has passed its peak. Stating that the peak occurred in 2007/2008 and that the Netherlands will have become a net importer of natural gas by 2025. The Oil Drum looks at Dutch gas and its implications for Europe’s energy security. Any fall-out in Dutch natural gas would have to met by increased imports from Russia.
Iraq May Supply Europe with Natural Gas
From Qatar’s Al-Jazeera:
Iraqi energy experts have told Al Jazeera that oil and gas fields in the western Anbar province may soon begin pumping gas to European markets.
Mukhtar al-Ani, an Iraqi oil consultant, said: “In early January, the Ministry of Oil held talks with a number of potential companies regarding development of the huge Akkas gas field in the north-western desert of Anbar province.”
According to the ministry, Akkas, which lies 40km from the Syrian border, is believed to contain up to seven trillion cubic feet of gas, which accounts for six per cent of Iraq’s estimated total of 112 trillion cubic feet. The field is capable of producing up to 500 million cubic feet per day if fully developed.The Iraqi government is also keen to get the field operational as quickly as possible, using nearby Syria as an export route to Europe. Earlier this year, the oil ministry asked international energy giant Shell to undertake “a long-term production test” in the Akkas sector.
Assem Jehad, a ministry spokesman confirmed that an agreement has been signed between the EU and Baghdad to provide European countries with natural gas from the Akkas fields.
He said: “Akkas will be opened for investment bids to the global oil companies throughout June 2008. In the final stage of bidding, the government will negotiate with five oil companies.”
He explained that 35 or a prospective 120 major oil companies had qualified to work in the Iraqi oil block fields from north to south of Iraq.
“Shell is likely to be a top candidate for a deal to develop Akkas field. Shell has been active in Syria for 25 years and operates a joint venture with the Syrian Government with Chinese and Indian partners,” al-Ani told Al Jazeera.
Natural Gas prices for consumers in Europe, 1 January 2007
Despite the second largest reserves of natural gas in Europe, the price of natural gas in the Netherlands is one of the highest in Europe. The average Dutch consumer paid 0.65 euro for a cubic metre of gas on 1 January 2007. Within the EU only the Danes, Swedes and Germans pay more for natural gas. Germany primarily sources its gas from Russia.
Electricity prices for consumers in Europe, 1 January 2007
In 2007, electricity costs were highest in Denmark, Italy and the Netherlands. Consumers in the ten new member states pay less for their electricity on average than those in the EU 15 countries. Bulgaria, Latvia and Greece have the cheapest. In Denmark, taxes make up half of the cost per kilowatt/hour of electricity.
Nigerian Delta Instability
One of the reason for the volatility in global oil markets has been the uncertainty in Nigeria’s oil-producting Delta. Last week there was an attack on the Bonga oil field. Now, Nigeria’s President Umaru Yar’Adua on Friday in Abuja ordered an offensive on the militants in the Niger Delta, warning them to get ready to face the full consequences of taking up arms against the Federal Republic of Nigeria. More from Xinhua Net News.
India Blames Oil Speculation for Rise in Prices
India on Sunday advocated for a price band for crude oil and blamed the speculators for the surge in global crude prices saying this is threatening to ‘wipe out’ economic gains of developing countries. More from >a href=”http://www.hindu.com/thehindu/holnus/000200806221442.htm”> The Hindu.