by Conglin Xu, OGJ, June 12, 2013
The US recorded the largest single-year increase in oil production in 2012, according to the BP Statistical Review of World Energy. The review, released June 12 [2013], was the company’s 62nd annual report.
Backed by increasing production of unconventional oil and gas, the US recorded the highest growth in both oil and natural gas output in 2012, BP said. Meanwhile, coal consumption in the US experienced the largest decline in 2012 as it was displaced by less-expensive natural gas in electric power generation.
According to BP, world nuclear output recorded the largest annual decline in 2012. After 2011’s Fukushima accident, “higher imports of fossil fuels including [LNG] kept the lights on” in Japan. Due to higher natural gas prices in Europe, power generators substituted coal for gas—an opposite course from the US. [...]
World [primary - D.R.] energy consumption also dropped to 1.8% in 2012, down from 2.4% the previous year, BP reported. The decline was attributable to the economic slowdown as well as improved energy consumption efficiency due to high prices. As the major source of demand growth, emerging countries accounted for 56% of global consumption, up from 42% just 20 years ago.
Global oil consumption increased by 890,000 b/d, 0.9% below the historical average. OECD consumption declined by 1.3% (530,000 b/d) and non-OECD consumption grew by 3.3% (1.4 million b/d).
Global oil production climbed by 1.9 million b/d. Despite a decline in Iranian output due to international sanctions, OPEC contributed to about three quarters of the global increase. [Libyan production recovered strongly after the sharp drop in output in 2011, and Saudi Arabia, the UAE, and Qatar all produced at record levels - D.R.]. Non-OPEC production grew by 490,000 b/d [revised figure 440,000 b/d, according to BP data - D.R.] with increases in the US, Canada, Russia, and China.
BP’s review also stated that world natural gas consumption grew by 2.2%, below the historical average of 2.7%. [Read more]
(Please see BP Statistical Review of World Energy June 2013 - D.R.)
Showing posts with label Electricity. Show all posts
Showing posts with label Electricity. Show all posts
Wednesday, June 19, 2013
Wednesday, December 28, 2011
Platts Top 250 Global Energy Company Rankings 2011
Platts, Nov 2, 2011
The Platts Top 250 recognizes outstanding financial performance for the previous fiscal year. Each company listed in the Platts Top 250 has distinguished itself through its remarkable performance and the outstanding efforts and dedication of its team. [...]
Top Ten
The Platts Top 250 recognizes outstanding financial performance for the previous fiscal year. Each company listed in the Platts Top 250 has distinguished itself through its remarkable performance and the outstanding efforts and dedication of its team. [...]
Top Ten
The entry of German multi-utility E.ON AG to the top ten in 2009— the only non-Integrated Oil and Gas (IOG) company to do so in the last five years—proved fleeting [please see remarks below -- D.R.]. The oil and gas giants reasserted their dominance of the top ten rankings, taking all ten spots despite a stricken BP dropping far from sight. On the back of higher oil prices, the top ten companies brought in a combined $178.874 billion in profits, a 20.4% increase from 2009, but still down from the bumper year of 2008, when profits hit an all-time high of $214.042 billion.
US giant Exxon Mobil Corp retained the top spot in 2010, while Chevron Corp moved up from ninth in 2009 to second place as it boosted its return on invested capital (ROIC) to 16% from 10.2% in the previous year. Gazprom OAO, PetroChina Co Ltd, Total SA and the China Petroleum & Chemical Corp took third, fourth, fifth and eighth places, respectively, while Royal Dutch Shell climbed from tenth to sixth.
Three re-entrants to the top ten in 2010 included ConocoPhillips—now the subject of an innovative demerger into upstream and downstream businesses— which moved up from 24th place to seventh. Meanwhile Russia’s OJSC Rosneft Oil Company and Lukoil Oil Company rose from 14th and 11th places, respectively to take the ninth and tenth spots.
E.ON dropped back to 13th from sixth, and Brazil’s Petrobras-Petroleo Brasilier fell from fourth in 2009 to 12th in 2010. But the biggest omission from the top ten was UK major BP. Ranked second in 2009, BP dropped to 118th on account of the cost of the Macondo oil spill in the US Gulf of Mexico. Although in dollar terms its asset base expanded, as did its revenues, BP’s profits were wiped out. The company posted a loss for 2010 of $3.719 billion.
Here Come the Russians
Here Come the Russians
Although the year-to-year changes in the top ten companies can be small, the big trends can be seen from longerterm comparisons. In 2006, the top ten consisted of five west European integrated oil and gas companies, three US majors, PetroChina and Petrobras. In 2010, there were still three US majors but now two Chinese and three Russian companies, with only two European companies remaining. [...]
The entry of Russian companies into the ranks of the world’s top energy enterprises is a striking feature of the 2010 list, and features not only oil and gas, but also electricity industry companies as a result of privatization in the sector. Of the top ten fastest-growing companies, three are Russian: RusHydro JSC, Bashneft OJSC and Moscow United Electric Grid OJSC, with RusHydro recording a giant three-year CGR of 106.1%. There are now 15 Russian companies in the top 250, compared with 11 in 2009 and nine in 2006.
Mighty Gazprom’s position remains pre-eminent in natural gas, based on its huge production volumes and monopoly grip on Russia’s gas pipelines and exports. However, it may one day have a challenger in the form of private gas company Novatek OAO, which is operator of the planned Yamal LNG project. Novatek has moved up from 126th position in 2009 to 104th in 2010. Profits rose from $854 million to $1,358 million with an impressive ROIC of 19% in 2010—the twelfth-highest ROIC out of the entire top 250. It is also the 34th fastest-growing company based on its three-year CGR. Including AK Transneft OAO, the country’s oil pipeline monopoly, Russia now has eight companies primarily focused on oil in the top 250 as well as two gas and five power sector companies. [...]
Asian Leaders
The number of Asian companies in the top 250 continues to rise, reaching 70 in 2010, up from 67 in 2009 and 56 in 2006. In addition, despite having more companies represented, the average ranking of Asian companies has also improved from 135.2 in 2006 to 134.9 in 2009 and 131.3 in 2010 (a lower number denotes a higher ranking). Asian companies are not just increasing in number, but are increasing their rankings relative to their international peers.
Within Asia, the average ranking of Japanese companies overall has improved from 145.9 to 132.1. This partly reflects the Japan Petroleum Exploration company dropping out of the top 250, but the improvement is notable given the sharp fall in the ranking of the Tokyo Electric Power Co (Tepco) which was ranked 54th in 2009, but 131st in 2010.
This is the result of the financial impact of the Fukushima nuclear disaster in March 2011 and Japanese reporting of financial data based on fiscal years running from April-March. Tepco recorded a loss of $14,881 billion in fiscal 2010. Other Japanese companies dropping down the rankings include Tohoku Electric Power Co, which fell from 119th to 156th and Chugoku Electric Power Co, which dropped from 134th to 178th.
By contrast, Japan’s oil and gas companies performed well. JX Holdings was the shining star, rising from 129th in 2009 to 18th in 2010. Idemitsu Kosan Co Ltd increased its ranking from 144th to 70th. Tokyo Gas Company Ltd upped its place in the list from 108th to 74th. For China, most change was seen within the power sector. The number of Chinese companies in the top 250 was the same in 2010 as in 2009, but the Shenzhen Energy Group, Huadian Power Intl Corp and Shenergy Co. Ltd were displaced by Shanxi Lu’an Environmental Energy Development Co., Shanxi Xishan Coal and Electricity Power Co. and China Longyuan Power Group. In the oil sector, PetroChina moved up from seventh in the rankings to fourth, and CNOOC from 29th to 15th. The biggest mover, however, was China Yangtze Power Co., which jumped from 163rd in 2009 to 112th in 2010.
By contrast, India saw three new companies join the top 250 list—the newlylisted Coal India, oil and gas producer Cairn India Ltd and the IPP company NHPC Ltd. As in Japan, the oil sector also gave India its strongest movers. The Indian Oil Corp Ltd jumped from 78th in 2009 to 42nd in 2010, while the Hindustan Petroleum Corp Ltd rose from 174th to 142nd. [...]
(Please see my post "Platts Top 250 Global Energy Company Rankings 2010." Separately, please watch "Top 250 Energy Company Rankings [2011] analysis: 'Big Oil' dominates, but Asia steals the show," Platts, Nov 2, 2011 and see Platts 2011 rankings for 2010, pdf file. Update: It’s all eyes on China, India and the wider Asia-Pacific region when it comes to rapid financial growth and fast-rising energy companies. Seventy companies from the region were in the spotlight tonight when the 2012 Platts Top 250 Global Energy Company Rankings were unveiled at an awards dinner in Singapore. The 2012 rankings reflect fiscal 2011 financial performance in four key areas: asset value, revenues, profits and return on invested capital/ROIC. ... In an East-West energy showdown, Western majors still dominated. Western integrated oil and gas/IOG and exploration and production/E&P companies took all of the Top 10 spots on the 2012 list, except for one – ninth place – which went to PetroChina Co. Ltd. ExxonMobil reigned supreme in the number one spot of the Top 250 roster for the eighth consecutive year. Anglo-Dutch major Royal Dutch Shell plc moved up from sixth position to second, displacing U.S. major Chevron to third. ConocoPhillips dropped one place from seventh to eighth. Although French major Total slipped from fifth position to seventh, other European majors saw improvements. Like Shell, Norway’s Statoil also ascended, climbing from 11th place to sixth between the 2011 and 2012 rosters. One of the standout movers among the Top 10 and the overall rankings was BP. The U.K. oil major took fourth position on this year’s list, after having plummeted from second place in 2010 to 118th place last year after more than $38 billion in losses from the Macondo oil spill in the Gulf of Mexico. Other majors, including Russian oil and gas giants, held on to their relatively high global rankings, despite slipping in the standings. Gazprom/Open Joint Stock Company – OJSC Gazprom dropped to fifth place this year from third place, while Rosneft dipped from ninth to 10th. OJSC LUKOIL slipped out of the Top 10 this year to 11th place---please see Platts, press release, Oct 23, 2012. -- D.R.)
Wednesday, June 8, 2011
Manifa to Yield 500,000 b/d by 2013 and 900,000 b/d by 2014 -- Aramco
by David Rachovich
Source: Saudi Aramco via EIA, here.
"Significant progress was achieved in 2010 on Manifa, the giant Arabian Gulf offshore field under development [emphasis mine and please see map and images above -- D.R.]," Saudi Aramco said in its 2010 annual review, published on Monday (June 6).
"Project elements completed during the year included all drilling islands, as well as the main and lateral causeways. Construction of the Manifa Central Processing complex has begun, with the main spine and process area pipe rack completed. The Manifa development will accommodate a Central Processing Facility with gas-oil separation, wet crude handling, crude stabilization, gas gathering and compression, produced water disposal, water injection and other related facilities. Field development includes 41 km [25 mi] of causeways and 3 km [1.9 mi] of bridges to support 27 [man-made] drilling islands for the shallow water wells, and 13 offshore platforms for deeper water producing and water injection wells. Onshore facilities include 15 drill sites, a Central Oil and Gas Processing Facility, water supply wells and injection facilities, and multiple gathering, water injection, and product transportation pipelines," it added.
"Manifa is designed to produce in staged increments --- 500,000 [barrels per day] bpd of Arabian Heavy crude oil by 2013 and 900,000 bpd by 2014," the report said. And output "will be used as feedstock for planned refineries in the Kingdom [i.e., for two new deep-conversion refineries at Jubail and Yanbu -- D.R.]."
The Manifa Drilling Team set a new record in December 2010 when it finished drilling the longest well in Saudi Arabia to a total depth of 32,136 ft (± 9.8 km) and completed a horizontal power water injector across the Lower Ratawi reservoir. Calgary Precision Drilling rig did the work on the Manifa well. The same drilling team set an earlier record while working on the 30,850 ft (+9.4 km) Manifa well.
Discovered in 1957, Manifa field is in shallow waters southeast of Tanajib, about 200 km (124 mi) northwest of Dhahran. The oil production started when the C reservoir came on stream in 1964, and the B reservoir was brought on production in 1974. Manifa produced heavy crude oil with about 27° API gravity. The field was shut in during January 1984, due to low demand with less than 1% of the reserves produced (Saudi Aramco Journal of Technology, Summer 2009).
Development strategy of Manifa, the world's fifth-largest oil field, is based on optimum use of onshore drilling. Instead of developing Manifa completely from offshore platforms, it is developed from 27 offshore man-made drilling islands connected by a causeway, in addition to onshore drill sites and offshore platforms. Extended-reach wells such as the two mentioned above are required for optimum field coverage. "Manifa field is located in shallow and environmentally sensitive waters, necessitating maximizing drilling from onshore sites while minimizing offshore platforms," the report argued. Actually, the state-of-the art extended reach drilling (ERD) technology reduces the high capital and operating costs of large offshore structures (jackup rigs or shallow water rigs, with legs that reach the bottom of the sea floor) and at the same time minimizes the environmental impact in this sensitive near-shore area.
"The Kingdom's longer-term concern is over whether it needs to increase oil production capacity to meet likely future demand. The Saudi view on oil markets has altered sharply from where it was a year ago, when a battered global economy was still limping out of recession. Riyadh thinks medium- to long-term oil demand growth may be higher than it had previously anticipated, driven by China, India and also Middle East itself, and discussions are now taking place on whether the Kingdom should raise oil output capacity beyond its current 12.5 million b/d," Petroleum Intelligence Weekly (PIW) said in its article "Saudis Consider Need to Raise Output Capacity." "Now, while no decisions have yet been made and while work is unlikely to start this year, expansions at Shaybah, Manifa and Khurais are back on the table," it maintained. "Aramco has already decided to bring forward the 10 billion- 14 billion bbl Manifa project, and could now expand its capacity from 900,000 b/d to 1.2 million b/d," the article said.
During the May 2010 Offshore Technology Conference, Zuhair Al-Hussain, Aramco vice-president, drilling and workovers, said production from Manifa will start in mid-2013 but will not ramp up quickly to the original target of 900,000 b/d of Arab heavy crude (Oil & Gas Journal via my post).
Saudi Aramco Annual Review 2010 is available for download on the Saudi Aramco website at: http://www.saudiaramco.com/content/www/en/home.html#news%257C%252Fen%252Fhome%252Fnews%252Fpublications-and-reports%252Fcorporate-reports0%252FAnnualreview.baseajax.html
(Update 1: Saudi Oil Minister Ali al-Naimi, chairman of the board of directors at Saudi Aramco toured oil and natural gas installations in the country on October 16, 2012, as part of a review of the country's long-term energy prospects. During the tour with the Board members, HE Naimi launched the Manifa Field’s reservoir water injection operations in preparation for first phase production of Arabian Heavy crude oil at an initial capacity of 500,000 barrels per day (bpd) in the first half of 2013, and which will gradually increase to 900,000 bpd by 2014. The crude oil from Manifa will feed local refineries that are currently under construction, namely the 400,000 b/d SATORP refinery in the easterm Saudi Arabian city of Jubail with France’s Total, and the 400,000 b/d YASREF in Yanbu' on the Red Sea, the joint venture with Sinopec of China (Aramco has said the new Yanbu refinery, which joins two existing refineries at Yanbu, will produce 90,000 b/d of gasoline, 263,000 b/d of ultralow sulfur diesel, and 6,300 tonnes/day (tpd) of petcoke as well as 1,200 tpd of sulfur--see OGJ Online, Dec 3, 2012), and the upcoming Jazan refinery, which has received Board approval for financing, and the project’s contracts are expected to be awarded in the coming weeks---please see Saudi Aramco website/Latest news, Dhahran, Oct 16, 2012 Update 2: Saudi Aramco has let a contract to Houston-based KBR for front-end engineering and design of an integrated gasification combined-cycle power plant in conjunction with a 400,000 bpd refinery under development at Jazan Economic City, Saudi Arabia, according to OGJ Online, Oct. 22, 2012. The IGCC plant, which KBR says will be the world’s largest such facility, will gasify vacuum residue to supply electricity to the refinery and make 2.4 Gw available to Jazan and the surrounding region---please OGJ Online, Nov 13, 2012. Update 3: Production has begun from the first phase of development of Manifa oil field offshore Saudi Arabia and is expected to reach 500,000 bpd by July [2013]. The start-up was 3 months ahead of schedule, according to Saudi Aramco---please see "Manifa oil flow starts offshore Saudi Arabia," OGJ Online, April 15, 2013 -- D.R.)
Source: Saudi Aramco via OffshoreEnergyToday.com Feb 23, 2011
Source: Saudi Aramco website
[Click on map to enlarge]
"Significant progress was achieved in 2010 on Manifa, the giant Arabian Gulf offshore field under development [emphasis mine and please see map and images above -- D.R.]," Saudi Aramco said in its 2010 annual review, published on Monday (June 6).
"Project elements completed during the year included all drilling islands, as well as the main and lateral causeways. Construction of the Manifa Central Processing complex has begun, with the main spine and process area pipe rack completed. The Manifa development will accommodate a Central Processing Facility with gas-oil separation, wet crude handling, crude stabilization, gas gathering and compression, produced water disposal, water injection and other related facilities. Field development includes 41 km [25 mi] of causeways and 3 km [1.9 mi] of bridges to support 27 [man-made] drilling islands for the shallow water wells, and 13 offshore platforms for deeper water producing and water injection wells. Onshore facilities include 15 drill sites, a Central Oil and Gas Processing Facility, water supply wells and injection facilities, and multiple gathering, water injection, and product transportation pipelines," it added.
"Manifa is designed to produce in staged increments --- 500,000 [barrels per day] bpd of Arabian Heavy crude oil by 2013 and 900,000 bpd by 2014," the report said. And output "will be used as feedstock for planned refineries in the Kingdom [i.e., for two new deep-conversion refineries at Jubail and Yanbu -- D.R.]."
The Manifa Drilling Team set a new record in December 2010 when it finished drilling the longest well in Saudi Arabia to a total depth of 32,136 ft (± 9.8 km) and completed a horizontal power water injector across the Lower Ratawi reservoir. Calgary Precision Drilling rig did the work on the Manifa well. The same drilling team set an earlier record while working on the 30,850 ft (+9.4 km) Manifa well.
Discovered in 1957, Manifa field is in shallow waters southeast of Tanajib, about 200 km (124 mi) northwest of Dhahran. The oil production started when the C reservoir came on stream in 1964, and the B reservoir was brought on production in 1974. Manifa produced heavy crude oil with about 27° API gravity. The field was shut in during January 1984, due to low demand with less than 1% of the reserves produced (Saudi Aramco Journal of Technology, Summer 2009).
Development strategy of Manifa, the world's fifth-largest oil field, is based on optimum use of onshore drilling. Instead of developing Manifa completely from offshore platforms, it is developed from 27 offshore man-made drilling islands connected by a causeway, in addition to onshore drill sites and offshore platforms. Extended-reach wells such as the two mentioned above are required for optimum field coverage. "Manifa field is located in shallow and environmentally sensitive waters, necessitating maximizing drilling from onshore sites while minimizing offshore platforms," the report argued. Actually, the state-of-the art extended reach drilling (ERD) technology reduces the high capital and operating costs of large offshore structures (jackup rigs or shallow water rigs, with legs that reach the bottom of the sea floor) and at the same time minimizes the environmental impact in this sensitive near-shore area.
"The Kingdom's longer-term concern is over whether it needs to increase oil production capacity to meet likely future demand. The Saudi view on oil markets has altered sharply from where it was a year ago, when a battered global economy was still limping out of recession. Riyadh thinks medium- to long-term oil demand growth may be higher than it had previously anticipated, driven by China, India and also Middle East itself, and discussions are now taking place on whether the Kingdom should raise oil output capacity beyond its current 12.5 million b/d," Petroleum Intelligence Weekly (PIW) said in its article "Saudis Consider Need to Raise Output Capacity." "Now, while no decisions have yet been made and while work is unlikely to start this year, expansions at Shaybah, Manifa and Khurais are back on the table," it maintained. "Aramco has already decided to bring forward the 10 billion- 14 billion bbl Manifa project, and could now expand its capacity from 900,000 b/d to 1.2 million b/d," the article said.
During the May 2010 Offshore Technology Conference, Zuhair Al-Hussain, Aramco vice-president, drilling and workovers, said production from Manifa will start in mid-2013 but will not ramp up quickly to the original target of 900,000 b/d of Arab heavy crude (Oil & Gas Journal via my post).
Saudi Aramco Annual Review 2010 is available for download on the Saudi Aramco website at: http://www.saudiaramco.com/content/www/en/home.html#news%257C%252Fen%252Fhome%252Fnews%252Fpublications-and-reports%252Fcorporate-reports0%252FAnnualreview.baseajax.html
(Update 1: Saudi Oil Minister Ali al-Naimi, chairman of the board of directors at Saudi Aramco toured oil and natural gas installations in the country on October 16, 2012, as part of a review of the country's long-term energy prospects. During the tour with the Board members, HE Naimi launched the Manifa Field’s reservoir water injection operations in preparation for first phase production of Arabian Heavy crude oil at an initial capacity of 500,000 barrels per day (bpd) in the first half of 2013, and which will gradually increase to 900,000 bpd by 2014. The crude oil from Manifa will feed local refineries that are currently under construction, namely the 400,000 b/d SATORP refinery in the easterm Saudi Arabian city of Jubail with France’s Total, and the 400,000 b/d YASREF in Yanbu' on the Red Sea, the joint venture with Sinopec of China (Aramco has said the new Yanbu refinery, which joins two existing refineries at Yanbu, will produce 90,000 b/d of gasoline, 263,000 b/d of ultralow sulfur diesel, and 6,300 tonnes/day (tpd) of petcoke as well as 1,200 tpd of sulfur--see OGJ Online, Dec 3, 2012), and the upcoming Jazan refinery, which has received Board approval for financing, and the project’s contracts are expected to be awarded in the coming weeks---please see Saudi Aramco website/Latest news, Dhahran, Oct 16, 2012 Update 2: Saudi Aramco has let a contract to Houston-based KBR for front-end engineering and design of an integrated gasification combined-cycle power plant in conjunction with a 400,000 bpd refinery under development at Jazan Economic City, Saudi Arabia, according to OGJ Online, Oct. 22, 2012. The IGCC plant, which KBR says will be the world’s largest such facility, will gasify vacuum residue to supply electricity to the refinery and make 2.4 Gw available to Jazan and the surrounding region---please OGJ Online, Nov 13, 2012. Update 3: Production has begun from the first phase of development of Manifa oil field offshore Saudi Arabia and is expected to reach 500,000 bpd by July [2013]. The start-up was 3 months ahead of schedule, according to Saudi Aramco---please see "Manifa oil flow starts offshore Saudi Arabia," OGJ Online, April 15, 2013 -- D.R.)
Tuesday, May 31, 2011
German Government Plans Total Nuclear Shutdown by 2022
Deutsche Welle, May 30, 2011
As public opposition to nuclear power remains high, the German government has announced new plans to phase it out completely in the next 11 years. And the proposal may have a chance at support from the center-left.
The German government on Monday announced plans to completely phase out nuclear energy by 2022, a 14-year acceleration of its previous plans.
Environment Minister Norbert Röttgen announced the proposal in the early hours of Monday, after a 12-hour marathon meeting between Chancellor Angela Merkel's Christian Democrats (CDU) and the junior coalition partners, the Free Democrats (FDP).
"It's definite: the latest end of the last three nuclear power plants is 2022," Röttgen told reporters. "There will be no clause for revision."
Last October, the German parliament voted in favor of a much slower nuclear shutdown, lasting until 2036. The government said that it was necessary to ensure the supply of Germany's energy needs.
After the nuclear disaster at the Fukushima nuclear power plant in Japan [please see my March blog posts under the category/label "Japan." -- D.R.], public opposition to nuclear energy sharply increased. In March, Merkel announced a temporary shutdown of seven older nuclear plants [Chancellor Angela Merkel decreed that the country's nuclear power reactors which began operation in 1980 or earlier, i.e., Biblis-A, Neckarwestheim 1, Brunsbüttel, Biblis-B, Isar 1, Unterweser, Phillipsburg 1, should be immediately shut down---please see my post/remarks, here. Those units then closed and were joined by another unit/Krümmel already in long-term shutdown, despite having started up in 1984, making a total of 8336 MWe offline under her direction, about 6.4% of the country's generating capacity. -- D.R.]
The new timeline would keep those [...] [eight] plants offline permanently. Six more would be shut down in 2021, and three would stay on until 2022 to ensure no disruption to power supply [Thus, all 17 of the country's nuclear plants will be shut by 2022 -- D.R.]. [Read more]
(Before March's moratorium on the older power plants, nuclear power supplied 23% of Germany's electricity. The United States is the world's biggest nuclear-electricity producer, followed by France, Japan, Russia, South Korea and Germany, according to the 2009 data---please see here. -- D.R.)
As public opposition to nuclear power remains high, the German government has announced new plans to phase it out completely in the next 11 years. And the proposal may have a chance at support from the center-left.
The German government on Monday announced plans to completely phase out nuclear energy by 2022, a 14-year acceleration of its previous plans.
Environment Minister Norbert Röttgen announced the proposal in the early hours of Monday, after a 12-hour marathon meeting between Chancellor Angela Merkel's Christian Democrats (CDU) and the junior coalition partners, the Free Democrats (FDP).
"It's definite: the latest end of the last three nuclear power plants is 2022," Röttgen told reporters. "There will be no clause for revision."
Last October, the German parliament voted in favor of a much slower nuclear shutdown, lasting until 2036. The government said that it was necessary to ensure the supply of Germany's energy needs.
After the nuclear disaster at the Fukushima nuclear power plant in Japan [please see my March blog posts under the category/label "Japan." -- D.R.], public opposition to nuclear energy sharply increased. In March, Merkel announced a temporary shutdown of seven older nuclear plants [Chancellor Angela Merkel decreed that the country's nuclear power reactors which began operation in 1980 or earlier, i.e., Biblis-A, Neckarwestheim 1, Brunsbüttel, Biblis-B, Isar 1, Unterweser, Phillipsburg 1, should be immediately shut down---please see my post/remarks, here. Those units then closed and were joined by another unit/Krümmel already in long-term shutdown, despite having started up in 1984, making a total of 8336 MWe offline under her direction, about 6.4% of the country's generating capacity. -- D.R.]
The new timeline would keep those [...] [eight] plants offline permanently. Six more would be shut down in 2021, and three would stay on until 2022 to ensure no disruption to power supply [Thus, all 17 of the country's nuclear plants will be shut by 2022 -- D.R.]. [Read more]
(Before March's moratorium on the older power plants, nuclear power supplied 23% of Germany's electricity. The United States is the world's biggest nuclear-electricity producer, followed by France, Japan, Russia, South Korea and Germany, according to the 2009 data---please see here. -- D.R.)
Wednesday, April 27, 2011
EMG's Gas Supply to Israel Interrupted Due to EGAS Mandatory Shut Down Procedure after an Explosion in the Egyptian National Grid in the Sinai
Ampal website, Apr 27, 2011
Ampal-American Israel Corporation (Nasdaq: AMPL), a holding company in the business of acquiring and managing interests in various businesses, announced today that it has been advised byEast Mediterranean Gas Co. ("EMG"), in which Ampal has a 12.5% interest, that shortly after 03:30 last night there was an explosion at a gas metering station 2 Km [1.2 Miles] from Al Arish, Egypt and some 30 Km [nearly 19 Miles] from the EMG terminal. The station is owned and operated by Gasco , the Egyptian gas transport company, which is a subsidiary of EGAS, the Egyptian national gas company (EMG's gas supplier). Following the explosion EGAS has initiated its standard shut down procedure affecting gas transportation throughout the Sinai Peninsula and gas supply to Jordan , Lebanon , Syria [i.e., Arab Gas Pipeline/AGP network, please see remarks below -- D.R.] ; to major Egyptian industries and gas consumers in the Sinai; and to EMG [i.e., Egypt's gas exporting company via the 100-kilometer/62-mile El Arish-Ashkelon submarine pipeline -- D.R.].
The extent of the damage to Gasco's metering station and the estimated repair period is unknown at this point. [Full story]
(The interruption of gas supplies is the second in almost three months to the pipeline network that sends gas to Jordan, Syria, Lebanon and Israel. On Feb 5, a fire and explosion at a gas metering station forced Gasco to cut off supplies to the Arab Gas Pipeline/AGP linking Egypt to Jordan, Syria and Lebanon, as well as the pipeline supplying Egyptian gas to Israel---please see my post, including remarks, here. Also, please see my post here. According to the Oil and Gas Journal, Egypt’s estimated proven gas reserves stand at 77.2 trillion cubic feet/tcf as of January 1, 2011, an increase from January 1, 2010 estimates of 58.5 tcf and the third highest in Africa after Nigeria (about 187 tcf) and Algeria (159 tcf)---please see Aaron and David Rachovich, "World's Top 22 Natural Gas Proven Reserve Holders," here. Egypt's natural gas sector is expanding rapidly with production quadrupling between 1998 and 2009. In 2009, Egypt produced roughly 2.3 tcf and consumed 1.6 tcf. Egypt's gas production totaled around 66 billion cubic meters/bcm or c. 2.3 tcf in 2010 too. With the ongoing expansion of the AGP and LNG facilities, Egypt will continue to be an important supplier of natural gas to Europe and the Mediterranean region. According to Cedigaz, in 2009 the Egyptian electricity sector accounted for the largest share of natural gas consumption (54 percent) followed by industrial sector (29 percent). While still a relatively small share, Egypt is beginning to incorporate natural gas into the transport sector through the use and development of compressed natural gas vehicles and fueling stations. Egypt began exporting natural gas in the mid-2000s with the completion of the two segments of the AGP in 2003-2006 and the startup of the first three LNG trains at Damietta in 2005. In 2009, Egypt exported close to 650 billion cubic feet/bcf of natural gas, around 70 percent of which was exported in the form of LNG and the remaining 30 percent via pipelines. Egyptian pipeline exports travel through the AGP that provides gas to Jordan, Syria and Lebanon with further additions being planned. The El Arish-Ashkelon pipeline addition, which branches away from the AGP in the Sinai Peninsula and connects to Ashkelon, Israel, began operations in 2008---please see EIA, Egypt Country Analysis Brief, Feb 2011, here. Egypt’s main focus is to increase gas production and to raise its profile as a regional gas and LNG exporter. But its ambitions for increasing exports have been hampered by rising internal gas demand. The need to alleviate domestic shortages has caused a drop in Egypt’s LNG exports, which fell last year to 9 bcm or 6.7 million tons from 13 bcm or 459 bcf in 2009---please see PIW, Apr 11, 2011, here. UPDATE: Egyptian gas exports to Israel resumed on Friday June 10, 2011. -- D.R.)
Ampal-American Israel Corporation (Nasdaq: AMPL), a holding company in the business of acquiring and managing interests in various businesses, announced today that it has been advised by
The extent of the damage to Gasco's metering station and the estimated repair period is unknown at this point. [Full story]
(The interruption of gas supplies is the second in almost three months to the pipeline network that sends gas to Jordan, Syria, Lebanon and Israel. On Feb 5, a fire and explosion at a gas metering station forced Gasco to cut off supplies to the Arab Gas Pipeline/AGP linking Egypt to Jordan, Syria and Lebanon, as well as the pipeline supplying Egyptian gas to Israel---please see my post, including remarks, here. Also, please see my post here. According to the Oil and Gas Journal, Egypt’s estimated proven gas reserves stand at 77.2 trillion cubic feet/tcf as of January 1, 2011, an increase from January 1, 2010 estimates of 58.5 tcf and the third highest in Africa after Nigeria (about 187 tcf) and Algeria (159 tcf)---please see Aaron and David Rachovich, "World's Top 22 Natural Gas Proven Reserve Holders," here. Egypt's natural gas sector is expanding rapidly with production quadrupling between 1998 and 2009. In 2009, Egypt produced roughly 2.3 tcf and consumed 1.6 tcf. Egypt's gas production totaled around 66 billion cubic meters/bcm or c. 2.3 tcf in 2010 too. With the ongoing expansion of the AGP and LNG facilities, Egypt will continue to be an important supplier of natural gas to Europe and the Mediterranean region. According to Cedigaz, in 2009 the Egyptian electricity sector accounted for the largest share of natural gas consumption (54 percent) followed by industrial sector (29 percent). While still a relatively small share, Egypt is beginning to incorporate natural gas into the transport sector through the use and development of compressed natural gas vehicles and fueling stations. Egypt began exporting natural gas in the mid-2000s with the completion of the two segments of the AGP in 2003-2006 and the startup of the first three LNG trains at Damietta in 2005. In 2009, Egypt exported close to 650 billion cubic feet/bcf of natural gas, around 70 percent of which was exported in the form of LNG and the remaining 30 percent via pipelines. Egyptian pipeline exports travel through the AGP that provides gas to Jordan, Syria and Lebanon with further additions being planned. The El Arish-Ashkelon pipeline addition, which branches away from the AGP in the Sinai Peninsula and connects to Ashkelon, Israel, began operations in 2008---please see EIA, Egypt Country Analysis Brief, Feb 2011, here. Egypt’s main focus is to increase gas production and to raise its profile as a regional gas and LNG exporter. But its ambitions for increasing exports have been hampered by rising internal gas demand. The need to alleviate domestic shortages has caused a drop in Egypt’s LNG exports, which fell last year to 9 bcm or 6.7 million tons from 13 bcm or 459 bcf in 2009---please see PIW, Apr 11, 2011, here. UPDATE: Egyptian gas exports to Israel resumed on Friday June 10, 2011. -- D.R.)
[United States:] Natural Gas Production/Consumption Retrospective 2010
EIA, Today in Energy, Apr 25, 2011
In 2010, the natural gas industry saw an abundance of production and strong consumption. On an average annual basis, marketed production of natural gas grew to 61.8 billion cubic feet (Bcf) per day, an increase of about 4% from 2009, despite relatively low prices. Natural gas consumption in 2010 rose to a record level of 66.1 Bcf per day, up from 62.6 Bcf per day in 2009.
In 2010, the average annual spot natural gas price at the Henry Hub increased 12% to $4.37 per million British thermal units, but remained significantly lower than average annual prices at Henry Hub for any year between 2003 and 2008.
Overall, 2010 may turn out to be an important bellwether for the industry. It represents the natural gas industry's first year without major economic upheaval since shale gas rose to prominence. Key points:
Production:
Consumption:
In 2010, the natural gas industry saw an abundance of production and strong consumption. On an average annual basis, marketed production of natural gas grew to 61.8 billion cubic feet (Bcf) per day, an increase of about 4% from 2009, despite relatively low prices. Natural gas consumption in 2010 rose to a record level of 66.1 Bcf per day, up from 62.6 Bcf per day in 2009.
In 2010, the average annual spot natural gas price at the Henry Hub increased 12% to $4.37 per million British thermal units, but remained significantly lower than average annual prices at Henry Hub for any year between 2003 and 2008.
Overall, 2010 may turn out to be an important bellwether for the industry. It represents the natural gas industry's first year without major economic upheaval since shale gas rose to prominence. Key points:
Production:
- Marketed production of natural gas grew about 4% to 61.8 billion cubic feet (Bcf) per day, and reached its highest recorded level in the lower 48 States. The production gains in the lower 48 States more than offset declines in the Gulf of Mexico, where production continued a long-term decline.
- Net imports of natural gas to the United States in 2010 were at the lowest level since 1994. This was a result of decreases in deliveries of liquefied natural gas from a variety of countries and increases in exports from the United States. Net imports of natural gas represented nearly 11% of total U.S. consumption, the lowest proportion since 1991.
Consumption:
- Consumption of natural gas for electric power generation accounted for about 31% of the total annual natural gas consumed. Natural gas-fired power generation continues to displace coal-fired generation in some regions, when delivered spot prices for natural gas approach those for Appalachian coal (after accounting for the differences in gas and coal plant efficiencies).
- Industrial use of natural gas increased 7% to 18.1 Bcf per day in 2010. Relatively low prices and an improving economy led to increase in production by gas-using industries. [Full text but please see the interactive bar chart of natural gas production, consumption and net imports -- D.R.]
Sunday, April 3, 2011
ExxonMobil Fuel Supply up 140 Percent into Area Devastated by Earthquake
ExxonMobil website, news releases, Tokyo, Business Wire, Mar 28, 2011
In an ongoing effort to quickly and safely supply much needed fuel to the areas in Japan hardest hit by the earthquake, ExxonMobil Group Japan has increased fuel supply into its Tohoku region dealer service station network by 140 percent above pre-earthquake levels.
Since the March 11 earthquake and tsunami, ExxonMobil has moved more than 24 million liters of fuel, including gasoline, diesel, and kerosene, into the Tohoku region in northeast Japan, enough to fill 1,200 tank trucks.
“We are acutely aware of the suffering and anxiety of the many people affected by the earthquake,” said Philippe Ducom, president of ExxonMobil Group Japan. “The top priority of our 2,900 employees in Japan is to work together to continue to build a stable supply chain and help restore operations at our dealer services stations so that people in the most affected areas can get much-needed fuel.”
“The rapid and safe restoration of our Esso, Mobil, and General service station network is a result of the tremendous effort of our supply business partners, fuels marketing local representatives, and service station dealers in Tohoku,” added Ducom. “It is through their strong commitment and dedication that more than 60 percent of our dealer sites are back in operation and more are being added every day [compared with just 31 percent on Mar 19 -- D.R.]. Yet there is still much work ahead to get fuel to people in Tohoku.”
ExxonMobil dealers have a network of 360 Esso, Mobil, and General service stations in the Tohoku region. [...]
All [four] of ExxonMobil’s refineries in Japan [i.e., TonenGeneral Sekiyu’s 335,000 b/d Kawasaki, 156,000 b/d Sakai, 170,000 b/d Wakayama and Kyokuto Petroleum Industries/KPI’s 175,000 b/d Chiba -- D.R.] are running at higher than normal rates, continuing increased supply to stock devastated areas. In addition, the reopening of ExxonMobil’s Shiogama Terminal in Sendai continues to boost fuel supplies into the Tohoku region. [Read more]
(ExxonMobil is the world's largest refiner---please see my post "World's Top 25 Largest Refining Companies, Jan 1, 2011 -- OGJ," here. According to Oil & Gas Journal via the EIA's Japan Country Analysis Brief, Mar 2011, Japan had 4.7 million bbl/d of oil refining capacity as of January 2011, and has the second-largest refining capacity in the Asia-Pacific region after China. According to Wood Mackenzie, Japan is the second largest refining base in the Asia-Pacific region (after China) with crude distillation capacity of 4.4 million bbl/d. The devastating 9-magnitude earthquake which struck Japan's northeast March 11 had in its immediate aftermath shut almost 1.4 million bbl/d or some 30% of refining capacity because of either physical damage, loss of power or as a safety precaution. All or parts of the refinery units were shut down after the earthquake at Exxon's Kawasaki refinery and the Chiba refinery. Exxon's other two refineries---the Wakayama refinery and the Sakai refinery---were not affected by the disaster in Japan. Also, the Kawasaki refinery cogeneration unit is now maximizing electrical generation to provide power to the electricity grid, which is under supplied following the tragedy. About 33 megawatts of power is currently---as of Mar 23---being transmitted to the grid, which is enough electricity for about 10,000 Japanese households. ExxonMobil typically sends 10-15 megawatts/month of surplus power from an in-house power generator at the Kawasaki refinery to Tokyo Electric Power Co./Tepco prior to the earthquake. Kyokuto Petroleum Industries Ltd., i.e. KPI, is a 50-50 joint venture of Exxon Mobil and Mitsui Oil Co. Also, ExxonMobil holds a 50.02 percent stake in TonenGeneral Sekiyu. For information on Japan's nuclear crisis and its impact, please see my posts under the category/label "Japan." -- D.R.)
In an ongoing effort to quickly and safely supply much needed fuel to the areas in Japan hardest hit by the earthquake, ExxonMobil Group Japan has increased fuel supply into its Tohoku region dealer service station network by 140 percent above pre-earthquake levels.
Since the March 11 earthquake and tsunami, ExxonMobil has moved more than 24 million liters of fuel, including gasoline, diesel, and kerosene, into the Tohoku region in northeast Japan, enough to fill 1,200 tank trucks.
“We are acutely aware of the suffering and anxiety of the many people affected by the earthquake,” said Philippe Ducom, president of ExxonMobil Group Japan. “The top priority of our 2,900 employees in Japan is to work together to continue to build a stable supply chain and help restore operations at our dealer services stations so that people in the most affected areas can get much-needed fuel.”
“The rapid and safe restoration of our Esso, Mobil, and General service station network is a result of the tremendous effort of our supply business partners, fuels marketing local representatives, and service station dealers in Tohoku,” added Ducom. “It is through their strong commitment and dedication that more than 60 percent of our dealer sites are back in operation and more are being added every day [compared with just 31 percent on Mar 19 -- D.R.]. Yet there is still much work ahead to get fuel to people in Tohoku.”
ExxonMobil dealers have a network of 360 Esso, Mobil, and General service stations in the Tohoku region. [...]
All [four] of ExxonMobil’s refineries in Japan [i.e., TonenGeneral Sekiyu’s 335,000 b/d Kawasaki, 156,000 b/d Sakai, 170,000 b/d Wakayama and Kyokuto Petroleum Industries/KPI’s 175,000 b/d Chiba -- D.R.] are running at higher than normal rates, continuing increased supply to stock devastated areas. In addition, the reopening of ExxonMobil’s Shiogama Terminal in Sendai continues to boost fuel supplies into the Tohoku region. [Read more]
(ExxonMobil is the world's largest refiner---please see my post "World's Top 25 Largest Refining Companies, Jan 1, 2011 -- OGJ," here. According to Oil & Gas Journal via the EIA's Japan Country Analysis Brief, Mar 2011, Japan had 4.7 million bbl/d of oil refining capacity as of January 2011, and has the second-largest refining capacity in the Asia-Pacific region after China. According to Wood Mackenzie, Japan is the second largest refining base in the Asia-Pacific region (after China) with crude distillation capacity of 4.4 million bbl/d. The devastating 9-magnitude earthquake which struck Japan's northeast March 11 had in its immediate aftermath shut almost 1.4 million bbl/d or some 30% of refining capacity because of either physical damage, loss of power or as a safety precaution. All or parts of the refinery units were shut down after the earthquake at Exxon's Kawasaki refinery and the Chiba refinery. Exxon's other two refineries---the Wakayama refinery and the Sakai refinery---were not affected by the disaster in Japan. Also, the Kawasaki refinery cogeneration unit is now maximizing electrical generation to provide power to the electricity grid, which is under supplied following the tragedy. About 33 megawatts of power is currently---as of Mar 23---being transmitted to the grid, which is enough electricity for about 10,000 Japanese households. ExxonMobil typically sends 10-15 megawatts/month of surplus power from an in-house power generator at the Kawasaki refinery to Tokyo Electric Power Co./Tepco prior to the earthquake. Kyokuto Petroleum Industries Ltd., i.e. KPI, is a 50-50 joint venture of Exxon Mobil and Mitsui Oil Co. Also, ExxonMobil holds a 50.02 percent stake in TonenGeneral Sekiyu. For information on Japan's nuclear crisis and its impact, please see my posts under the category/label "Japan." -- D.R.)
Friday, April 1, 2011
US to Find 'More Oil at Home,' While Cutting Consumption: President Obama
Platts, Washington, Mar 30, 2011
US President Barack Obama on Wednesday called for the country to reduce oil imports by one-third within the next decade, warning that the US cannot "afford to bet our long-term prosperity and security on a resource that will eventually run out."
In a speech at Georgetown University in Washington, the president presented a "Blueprint for a Secure Energy Future" that would reduce US oil imports by increasing the use of domestic natural gas, promoting advanced biofuels, boosting vehicle fuel efficiency and increasing US oil output.
The president said that while gasoline price increases have historically been temporary, the long-term trend suggests "there will be more ups than downs. That's because countries like India and China are growing at a rapid clip. And as 2 billion more people start consuming more goods, driving more cars and using more energy, it's certain that demand will go up a lot faster than supply."
But Obama warned that "there are no quick fixes, and we will keep being a victim to shifts in the oil market until we get serious about a long-term policy for secure, affordable energy."
"Meeting this new goal of cutting our oil dependence depends largely on two things -- finding and producing more oil at home and reducing our dependence on oil with cleaner alternative fuels and greater efficiency," he said.
The US currently relies heavily on imported oil. In 2010, it imported 9.163 million b/d of crude and nearly 2.6 million b/d of refined products, according to data from the Energy Information Administration, the statistical arm of the Department of Energy. US crude production last year averaged 5.512 million b/d [please see my post "U.S. Crude Oil Production/Table," here -- D.R.].
Neighboring Canada and Mexico were top crude suppliers with 1.972 million b/d and 1.14 million b/d, respectively [please see my post "U.S. Crude Oil Imports from Top 15 Countries, Dec 2010 and Full Year 2010 -- EIA," here -- D.R.].
International crude prices climbed above $100/barrel early this year as unrest spread across North Africa and the Middle East, with North Sea Brent trading close to $120/b in the latter part of February as the unrest spread to Libya and reduced oil production there [please see my post/remarks here].
To spur an increase in US production, Obama said the White House is developing "incentives" for oil companies to speed up development in areas already open to drilling. Although Obama did not provide details, a White House fact sheet issued Wednesday said the US Department of Interior is already shortening some lease terms and requiring drilling to begin before granting lease extensions. DOI is also studying a graduated royalty rate structure to reward faster development.
Obama set a goal of building four commercial-scale biofuels refineries in the next two years and pledged that the US government would buy only low-emissions vehicles by 2015.
"The fleet of cars and trucks we use in the federal government is one of the largest in the country," Obama said. "That's why we've already doubled the number of alternative vehicles in the federal fleet, and that's why, today, I am directing agencies to purchase 100% alternative fuel, hybrid or electric vehicles by 2015."
"We've known about the dangers of our oil dependence for decades," the president said. "Presidents and politicians of every stripe have promised energy independence, but that promise has so far gone unmet.
"I've pledged to reduce America's dependence on oil too, and I'm proud of the historic progress we've made over the last two years towards that goal. But we've also run into the same political gridlock and inertia that's held us back for decades.
"That has to change. We cannot keep going from shock, when gas prices go up, to trance on the issue of energy security, rushing to propose action when gas prices rise, then hitting the snooze button when they fall again."
Reaction to Obama's speech was mixed, with oil producers saying the president's criticism was misguided and some green groups taking issue with his proposed solutions.
The president of the Independent Petroleum Producers [/Association] of America [i.e., IPAA -- D.R.], Barry Russell, said slow permitting by the federal government is partially to blame for the slow development that Obama cited.
"Leases can't be developed if companies don't have the permits necessary to proceed with exploration and production activities, which take several years and billions of dollars to develop," Russell said. "There is also no guarantee that oil and natural gas will be found on all of the land that is leased."
Democrats and environmental groups had a largely positive reaction, to the speech, although Friends of the Earth criticized Obama for relying too heavily on nuclear and natural gas power.
Frances Beinecke, president of environmental group the Natural Resources Defense Council, said Obama's goal of cutting oil imports is achievable.
"We can get there by driving higher-gas-mileage vehicles, expanding mass transit systems, using more wind and solar, and building more efficiency into the products we use and the buildings we live and work in," Beinecke said. [Full story]
(In a speech at Georgetown University in Washington, March 30th, President Obama also said, "Last year, American oil production reached its highest level since 2003, and for the first time in more than a decade [last time 1997 - 49% -- D.R.], oil we imported [net imports] accounted for less than half the liquid fuel we consumed [i.e., 49% -- D.R.]."---please see my post, including remarks, here. Please watch President Obama's speech, here. In his State of the Union address in January, President Obama set a goal of generating 80% of US electricity from clean energy sources by 2035. -- D.R.)
US President Barack Obama on Wednesday called for the country to reduce oil imports by one-third within the next decade, warning that the US cannot "afford to bet our long-term prosperity and security on a resource that will eventually run out."
In a speech at Georgetown University in Washington, the president presented a "Blueprint for a Secure Energy Future" that would reduce US oil imports by increasing the use of domestic natural gas, promoting advanced biofuels, boosting vehicle fuel efficiency and increasing US oil output.
The president said that while gasoline price increases have historically been temporary, the long-term trend suggests "there will be more ups than downs. That's because countries like India and China are growing at a rapid clip. And as 2 billion more people start consuming more goods, driving more cars and using more energy, it's certain that demand will go up a lot faster than supply."
But Obama warned that "there are no quick fixes, and we will keep being a victim to shifts in the oil market until we get serious about a long-term policy for secure, affordable energy."
"Meeting this new goal of cutting our oil dependence depends largely on two things -- finding and producing more oil at home and reducing our dependence on oil with cleaner alternative fuels and greater efficiency," he said.
The US currently relies heavily on imported oil. In 2010, it imported 9.163 million b/d of crude and nearly 2.6 million b/d of refined products, according to data from the Energy Information Administration, the statistical arm of the Department of Energy. US crude production last year averaged 5.512 million b/d [please see my post "U.S. Crude Oil Production/Table," here -- D.R.].
Neighboring Canada and Mexico were top crude suppliers with 1.972 million b/d and 1.14 million b/d, respectively [please see my post "U.S. Crude Oil Imports from Top 15 Countries, Dec 2010 and Full Year 2010 -- EIA," here -- D.R.].
International crude prices climbed above $100/barrel early this year as unrest spread across North Africa and the Middle East, with North Sea Brent trading close to $120/b in the latter part of February as the unrest spread to Libya and reduced oil production there [please see my post/remarks here].
To spur an increase in US production, Obama said the White House is developing "incentives" for oil companies to speed up development in areas already open to drilling. Although Obama did not provide details, a White House fact sheet issued Wednesday said the US Department of Interior is already shortening some lease terms and requiring drilling to begin before granting lease extensions. DOI is also studying a graduated royalty rate structure to reward faster development.
Obama set a goal of building four commercial-scale biofuels refineries in the next two years and pledged that the US government would buy only low-emissions vehicles by 2015.
"The fleet of cars and trucks we use in the federal government is one of the largest in the country," Obama said. "That's why we've already doubled the number of alternative vehicles in the federal fleet, and that's why, today, I am directing agencies to purchase 100% alternative fuel, hybrid or electric vehicles by 2015."
"We've known about the dangers of our oil dependence for decades," the president said. "Presidents and politicians of every stripe have promised energy independence, but that promise has so far gone unmet.
"I've pledged to reduce America's dependence on oil too, and I'm proud of the historic progress we've made over the last two years towards that goal. But we've also run into the same political gridlock and inertia that's held us back for decades.
"That has to change. We cannot keep going from shock, when gas prices go up, to trance on the issue of energy security, rushing to propose action when gas prices rise, then hitting the snooze button when they fall again."
Reaction to Obama's speech was mixed, with oil producers saying the president's criticism was misguided and some green groups taking issue with his proposed solutions.
The president of the Independent Petroleum Producers [/Association] of America [i.e., IPAA -- D.R.], Barry Russell, said slow permitting by the federal government is partially to blame for the slow development that Obama cited.
"Leases can't be developed if companies don't have the permits necessary to proceed with exploration and production activities, which take several years and billions of dollars to develop," Russell said. "There is also no guarantee that oil and natural gas will be found on all of the land that is leased."
Democrats and environmental groups had a largely positive reaction, to the speech, although Friends of the Earth criticized Obama for relying too heavily on nuclear and natural gas power.
Frances Beinecke, president of environmental group the Natural Resources Defense Council, said Obama's goal of cutting oil imports is achievable.
"We can get there by driving higher-gas-mileage vehicles, expanding mass transit systems, using more wind and solar, and building more efficiency into the products we use and the buildings we live and work in," Beinecke said. [Full story]
(In a speech at Georgetown University in Washington, March 30th, President Obama also said, "Last year, American oil production reached its highest level since 2003, and for the first time in more than a decade [last time 1997 - 49% -- D.R.], oil we imported [net imports] accounted for less than half the liquid fuel we consumed [i.e., 49% -- D.R.]."---please see my post, including remarks, here. Please watch President Obama's speech, here. In his State of the Union address in January, President Obama set a goal of generating 80% of US electricity from clean energy sources by 2035. -- D.R.)
Wednesday, March 30, 2011
Is There Any Alternative to Nuclear Power?
The nuclear disaster at the Fukushima No. 1 power plant has shaken the foundation of Japan's energy policy.
No alternative source of energy to nuclear power generation appears to be on the horizon, and the power cuts that Tokyo Electric Power Co. is resorting to in the capital and other cities are likely to continue for sometime to come.
The power shortage is not only disrupting the daily lives of the people, it will probably seriously affect the entire economy as many businesses are struggling to cope with the situation.
The government must come up with plans to find the power needed to grease the wheels of the country.
It is now forced to choose between two courses of action: Restore public confidence in nuclear power generation or find alternative energy sources.
Japan depends on other countries for most of its fuel, such as oil and liquefied natural gas. Crude oil and LNG are used for thermal power generation.
However, Japan will be in a bind if countries exporting fuel to this country are destabilized politically.
To ensure energy security, this country has to increase, even gradually, its sources of energy without relying too much on other countries.
Before the earthquake and tsunami disaster, the government came up with a plan to double the ratio of energy sources by nuclear power stations and renewable energy, including solar power, from about 35 percent in fiscal 2007 to 70 percent in fiscal 2030.
The government placed its hopes on nuclear power as a "semi-domestic energy source" because of its efficiency and because the amount of fuel required is small.
However, the crisis at the Fukushima No. 1 plant, which stretches over the borders of Okumamachi and Futabamachi in Fukushima Prefecture, has forced the government to think twice about allowing construction of new nuclear power stations.
Already there are moves to suspend construction of nuclear power plants, such as Chugoku Electric Power Co.'s Kaminoseki plant in Kaminosekicho in Yamaguchi Prefecture and TEPCO's reactors at the Higashidori power plant in Higashidorimura in Aomori Prefecture.
The Higashidori plant is shared by [Sendai-based] Tohoku Electric Power Co. and TEPCO. Tohoku Electric has already started operating its No. 1 reactor and another is in the works, while TEPCO started construction of its No. 1 reactor in January and plans to build a second one.
Operations at TEPCO's Kashiwazaki-Kariwa nuclear power station in Kashiwazaki and Kariwamura in Niigata Prefecture stopped in 2007 following the Niigata Prefecture Chuetsu Offshore Earthquake.
The company has had great difficulty trying to win the understanding of local residents and governments toward fully restarting it. The plant is partially operating now.
As a stopgap measure, TEPCO plans to increase the operation rates of thermal power plants, but fuel costs for these power plants have increased sharply.
The political situations in Middle Eastern countries, which supply 90 percent of Japan's oil imports, are unstable and fuel imports therefore are unreliable.
Renewable energy sources, on which great expectations rest, still provide a relatively small amount of energy.
In addition, many technological problems must be solved before supplies can be increased in this field.
When Japan was adversely affected by two energy crises in the 1970s, the government and the private sector cooperated to make this country an "energy-saving society."
There is no other way to cope with the current situation than to conserve energy as much as possible.
However, a ranking Economy, Trade and Industry Ministry official issued a warning about summer shortages.
"Even if we engage in energy conservation, there'll be a shortage of electricity in the middle of summer. We need a plan to fundamentally solve the situation," the official said.
Economy, Trade and Industry Minister Banri Kaieda said Friday that his ministry would compile as early as the end of the month guidelines to restart operations at nuclear power stations after inspections are completed.
But will the government throw itself wholeheartedly behind the nuclear option? [Full story]
(Japan is the world's third biggest nuclear-electricity producer, after the United States and France--please see bar chart below, sorry for the blurriness. For information on Japan's nuclear crisis and its impact, please see my posts under the category/label "Japan." Clearer signals on incremental LNG demand are emerging from the two heaviest-hit Japanese power utilities: Together, Tokyo Electric Power Co. (Tepco) and Tohoku Electric will need roughly 485,000 tons per month of extra LNG to offset nuclear and thermal capacity lost as a result of the Mar. 11 earthquake and tsunami. Other Japaneses utilities may also need more LNG, as safety concerns have led them to delay restarting nuclear reactors closed for maintenance---please see: "Tepco, Tohoku Outline Summer LNG Needs," World Gas Intelligence, Mar 30, 2011, here. -- D.R.)
[Click on bar chart to enlarge]
Source: World Nuclear Association via The Economist, here
No alternative source of energy to nuclear power generation appears to be on the horizon, and the power cuts that Tokyo Electric Power Co. is resorting to in the capital and other cities are likely to continue for sometime to come.
The power shortage is not only disrupting the daily lives of the people, it will probably seriously affect the entire economy as many businesses are struggling to cope with the situation.
The government must come up with plans to find the power needed to grease the wheels of the country.
It is now forced to choose between two courses of action: Restore public confidence in nuclear power generation or find alternative energy sources.
Japan depends on other countries for most of its fuel, such as oil and liquefied natural gas. Crude oil and LNG are used for thermal power generation.
However, Japan will be in a bind if countries exporting fuel to this country are destabilized politically.
To ensure energy security, this country has to increase, even gradually, its sources of energy without relying too much on other countries.
Before the earthquake and tsunami disaster, the government came up with a plan to double the ratio of energy sources by nuclear power stations and renewable energy, including solar power, from about 35 percent in fiscal 2007 to 70 percent in fiscal 2030.
The government placed its hopes on nuclear power as a "semi-domestic energy source" because of its efficiency and because the amount of fuel required is small.
However, the crisis at the Fukushima No. 1 plant, which stretches over the borders of Okumamachi and Futabamachi in Fukushima Prefecture, has forced the government to think twice about allowing construction of new nuclear power stations.
Already there are moves to suspend construction of nuclear power plants, such as Chugoku Electric Power Co.'s Kaminoseki plant in Kaminosekicho in Yamaguchi Prefecture and TEPCO's reactors at the Higashidori power plant in Higashidorimura in Aomori Prefecture.
The Higashidori plant is shared by [Sendai-based] Tohoku Electric Power Co. and TEPCO. Tohoku Electric has already started operating its No. 1 reactor and another is in the works, while TEPCO started construction of its No. 1 reactor in January and plans to build a second one.
Operations at TEPCO's Kashiwazaki-Kariwa nuclear power station in Kashiwazaki and Kariwamura in Niigata Prefecture stopped in 2007 following the Niigata Prefecture Chuetsu Offshore Earthquake.
The company has had great difficulty trying to win the understanding of local residents and governments toward fully restarting it. The plant is partially operating now.
As a stopgap measure, TEPCO plans to increase the operation rates of thermal power plants, but fuel costs for these power plants have increased sharply.
The political situations in Middle Eastern countries, which supply 90 percent of Japan's oil imports, are unstable and fuel imports therefore are unreliable.
Renewable energy sources, on which great expectations rest, still provide a relatively small amount of energy.
In addition, many technological problems must be solved before supplies can be increased in this field.
When Japan was adversely affected by two energy crises in the 1970s, the government and the private sector cooperated to make this country an "energy-saving society."
There is no other way to cope with the current situation than to conserve energy as much as possible.
However, a ranking Economy, Trade and Industry Ministry official issued a warning about summer shortages.
"Even if we engage in energy conservation, there'll be a shortage of electricity in the middle of summer. We need a plan to fundamentally solve the situation," the official said.
Economy, Trade and Industry Minister Banri Kaieda said Friday that his ministry would compile as early as the end of the month guidelines to restart operations at nuclear power stations after inspections are completed.
But will the government throw itself wholeheartedly behind the nuclear option? [Full story]
(Japan is the world's third biggest nuclear-electricity producer, after the United States and France--please see bar chart below, sorry for the blurriness. For information on Japan's nuclear crisis and its impact, please see my posts under the category/label "Japan." Clearer signals on incremental LNG demand are emerging from the two heaviest-hit Japanese power utilities: Together, Tokyo Electric Power Co. (Tepco) and Tohoku Electric will need roughly 485,000 tons per month of extra LNG to offset nuclear and thermal capacity lost as a result of the Mar. 11 earthquake and tsunami. Other Japaneses utilities may also need more LNG, as safety concerns have led them to delay restarting nuclear reactors closed for maintenance---please see: "Tepco, Tohoku Outline Summer LNG Needs," World Gas Intelligence, Mar 30, 2011, here. -- D.R.)
[Click on bar chart to enlarge]
Monday, March 28, 2011
Global Demand Pumps Up Australia's LNG Production
by Sarah-Jane Tasker, The Australian, Mar 9, 2011
AUSTRALIA'S liquefied natural gas production jumped 6.1 per cent [sic] last year, on the back of increasing global demand, which saw the value of exports hit a record $9.5 billion.
LNG production reached 19.8 million tonnes a year, compared with the previous year's 18.6 million tonnes, and the export value rose 24 per cent from $7.6bn, a report by energy economics group EnergyQuest revealed.
"The LNG momentum looks set to continue in 2011," EnergyQuest chief executive Graeme Bethune said.
"So far this year we have already seen another Gladstone LNG project, GLNG, in central Queensland, reaching sanction and the ConocoPhillips/Origin Energy APLNG project, also situated at Gladstone, reaching major milestones.
"Altogether, there are seven Australasian LNG projects aiming for final investment decisions in 2011, with combined capacity of around 40 million tonnes per annum." [...]
The report revealed that Australian natural gas production reached a record 1999 petajoules [some 1.8 tcf] last year [2010], up 5.1 per cent from the previous year's 1902PJ [1.7 tcf -- D.R.].
Australian domestic gas production increased 2.7 per cent to a record 1060PJ [nearly 1 tcf]. Despite the increases in production, the government's carbon tax proposal is set to have an impact on gas-fired electricity generation projects, with the uncertainty stalling the final go-ahead on plans. [...]
The results from last year also saw a turnaround in the nation's oil production, which reach 116 million barrels for the year [This was primarily owing to production from the Pyrenees, Van Gogh and Vincent oil fields, all situated off the northwest Western Australian coast -- D.R]. [Read more]
(Please see the latest EnergyQuest report here. Australia is the world's biggest coal exporter, and black coal is Australia's largest export, worth more than $A50 billion in 2008-09/year ending Jun 30. Also, Australia was the world’s fourth largest exporter of liquefied natural gas---LNG---in 2009, after Qatar, Malaysia, and Indonesia. Australia's LNG exports are expected to more than double by 2015-16, with the start-up of several major LNG projects, the Australian Bureau of Agricultural and Resource Economics and Sciences/ABARES, said in a report on Mar 1. Higher demand from consuming countries, especially China and India, in addition to Japan, South Korea, and Southeast Asian countries will also boost Australia's LNG export growth. Australia plans to export more than 60 million mt of LNG by 2020, to become the world's second-biggest LNG supplier behind Qatar. On Mar 29, 2011, Australian coal seam and shale gas explorer Icon Energy signed a binding agreement to supply China's Shantou Sinogas Energy Co., Ltd with 40 million mt of LNG over 20 years from mid-2016. Australia, with its 110 trillion cubic feet---tcf---of proved gas reserves, is the twelfth largest holder of natural gas reserves in the world, as of Jan 1, 2011---please see my post "World's Top 22 Natural Gas Proven Reserve Holders, Jan 1, 2011 -- OGJ," here. Moreover, according to The Oil and Gas Journal, Australia had 110 tcf of proven natural gas reserves as of Jan 1, 2010, triple OGJ's 2009 reserves estimate of 30 tcf. The upgrade is largely a result of increased exploration and development of its unconventional as well as conventional gas sources. It has been reported that unconventional gas deposits, i.e., coal seam and shale gas deposits, have become an increasingly larger component of gas reserves due to technological advances---please see EIA's analysis here. Japan is the primary destination of Australia's LNG. Japan accounted for 65% of Australian LNG exports in 2009. Fitch Ratings says the accident at the Fukushima nuclear power plant could lead to a boost in Japanese demand for Australian thermal coal. An international credit-reporting agency also says increased Japanese demand for LNG could support additional LNG trains at the Browse and Pluto Basins, both offshore from northwest Western Australia. Australia was Japan's second-largest LNG supplier in 2010, after Malaysia---please see bar chart and pie chart below. Australian LNG shipments accounted for 19% of Japan's total LNG imports in 2010. For Japan's LNG imports in 2010, please see my posts here and here -- D.R.)
[Click on bar chart to enlarge]
Source: Flower LNG via Reuters -- Reuters graphic/Stephen Culp, here. Notes: Obviously, Malaysia also includes East Malaysia/Malaysian Borneo (not indicated above). Also, the Musandam peninsula is an exclave of Oman (not indicated). Furthermore, publication date is incorrect. -- D.R.
Source: U.S. EIA, Japan Country Analysis Brief, March 2011, here
AUSTRALIA'S liquefied natural gas production jumped 6.1 per cent [sic] last year, on the back of increasing global demand, which saw the value of exports hit a record $9.5 billion.
LNG production reached 19.8 million tonnes a year, compared with the previous year's 18.6 million tonnes, and the export value rose 24 per cent from $7.6bn, a report by energy economics group EnergyQuest revealed.
"The LNG momentum looks set to continue in 2011," EnergyQuest chief executive Graeme Bethune said.
"So far this year we have already seen another Gladstone LNG project, GLNG, in central Queensland, reaching sanction and the ConocoPhillips/Origin Energy APLNG project, also situated at Gladstone, reaching major milestones.
"Altogether, there are seven Australasian LNG projects aiming for final investment decisions in 2011, with combined capacity of around 40 million tonnes per annum." [...]
The report revealed that Australian natural gas production reached a record 1999 petajoules [some 1.8 tcf] last year [2010], up 5.1 per cent from the previous year's 1902PJ [1.7 tcf -- D.R.].
Australian domestic gas production increased 2.7 per cent to a record 1060PJ [nearly 1 tcf]. Despite the increases in production, the government's carbon tax proposal is set to have an impact on gas-fired electricity generation projects, with the uncertainty stalling the final go-ahead on plans. [...]
The results from last year also saw a turnaround in the nation's oil production, which reach 116 million barrels for the year [This was primarily owing to production from the Pyrenees, Van Gogh and Vincent oil fields, all situated off the northwest Western Australian coast -- D.R]. [Read more]
(Please see the latest EnergyQuest report here. Australia is the world's biggest coal exporter, and black coal is Australia's largest export, worth more than $A50 billion in 2008-09/year ending Jun 30. Also, Australia was the world’s fourth largest exporter of liquefied natural gas---LNG---in 2009, after Qatar, Malaysia, and Indonesia. Australia's LNG exports are expected to more than double by 2015-16, with the start-up of several major LNG projects, the Australian Bureau of Agricultural and Resource Economics and Sciences/ABARES, said in a report on Mar 1. Higher demand from consuming countries, especially China and India, in addition to Japan, South Korea, and Southeast Asian countries will also boost Australia's LNG export growth. Australia plans to export more than 60 million mt of LNG by 2020, to become the world's second-biggest LNG supplier behind Qatar. On Mar 29, 2011, Australian coal seam and shale gas explorer Icon Energy signed a binding agreement to supply China's Shantou Sinogas Energy Co., Ltd with 40 million mt of LNG over 20 years from mid-2016. Australia, with its 110 trillion cubic feet---tcf---of proved gas reserves, is the twelfth largest holder of natural gas reserves in the world, as of Jan 1, 2011---please see my post "World's Top 22 Natural Gas Proven Reserve Holders, Jan 1, 2011 -- OGJ," here. Moreover, according to The Oil and Gas Journal, Australia had 110 tcf of proven natural gas reserves as of Jan 1, 2010, triple OGJ's 2009 reserves estimate of 30 tcf. The upgrade is largely a result of increased exploration and development of its unconventional as well as conventional gas sources. It has been reported that unconventional gas deposits, i.e., coal seam and shale gas deposits, have become an increasingly larger component of gas reserves due to technological advances---please see EIA's analysis here. Japan is the primary destination of Australia's LNG. Japan accounted for 65% of Australian LNG exports in 2009. Fitch Ratings says the accident at the Fukushima nuclear power plant could lead to a boost in Japanese demand for Australian thermal coal. An international credit-reporting agency also says increased Japanese demand for LNG could support additional LNG trains at the Browse and Pluto Basins, both offshore from northwest Western Australia. Australia was Japan's second-largest LNG supplier in 2010, after Malaysia---please see bar chart and pie chart below. Australian LNG shipments accounted for 19% of Japan's total LNG imports in 2010. For Japan's LNG imports in 2010, please see my posts here and here -- D.R.)
[Click on bar chart to enlarge]
Sunday, March 20, 2011
Kogas to Send Up to 500,000 Tonnes of LNG to Japan
LNG World News, Mar 18, 2011
South Korea said on Friday Korea Gas Corp (KOGAS), the world’s top corporate buyer of liquefied natural gas (LNG), would supply 400,000-500,000 tonnes of LNG to quake-hit Japan, as requested by Japanese utilities.
South Korea’s economy ministry said in a statement that the state-run entity’s gas supply on a swap basis would be made from late March through April, following a government announcement on the supply plan on Sunday.
Global LNG prices jumped about 10 percent this week after Friday’s earthquake shut nuclear power plants in the world’s third-largest economy [after the U.S. and China], prompting increased demand for LNG.
Analysts reckon the world’s top LNG buyer may import about an extra 1 billion cubic feet per day to make up for the 9 gigawatts of nuclear power lost.
“We will continue to discuss with Japan possible further supplies if needed, while we maintain sufficient inventory levels,” said a government source with direct knowledge of the matter, who declined to be identified. [...]
South Korea’s current LNG inventory stands at 1.5 million tonnes, adding that supply to Japan would come from incoming shipments, not current inventory, the source said.
The ministry also noted South Korea’s emergency oil product and boron supply to Japan, referring to about 4.5 million barrels of shipments by four Korean refiners, as Japanese refiners grapple with the loss of about a third of their 4.5 million barrel-per-day refining capacity [sic].
Japan’s worst quake on record, which sparked a nuclear crisis, has caused the loss of around 9,700 megawatts (MW) of nuclear and 10,831 MW of thermal power generation.
To help stop fission nuclear reactions, South Korea said on Wednesday it would send some of its reserve boron to Japan after a request from Tokyo for the metalloid, which is being mixed with seawater to limit damage to Japan’s crippled nuclear reactors. [Read full]
(Japan is the third largest oil consumer in the world behind the United States and China and the third-largest net importer of crude oil. It is the world's largest importer of both LNG and coal---please see Japan Energy Profile, prepared by the U.S. EIA, here. For information on Japan's nuclear crisis and its impact, please see also my posts under the category/label "Japan." South Korea is the world's second largest importer of LNG. For Asian LNG market, please see my posts here and here. -- D.R.)
South Korea said on Friday Korea Gas Corp (KOGAS), the world’s top corporate buyer of liquefied natural gas (LNG), would supply 400,000-500,000 tonnes of LNG to quake-hit Japan, as requested by Japanese utilities.
South Korea’s economy ministry said in a statement that the state-run entity’s gas supply on a swap basis would be made from late March through April, following a government announcement on the supply plan on Sunday.
Global LNG prices jumped about 10 percent this week after Friday’s earthquake shut nuclear power plants in the world’s third-largest economy [after the U.S. and China], prompting increased demand for LNG.
Analysts reckon the world’s top LNG buyer may import about an extra 1 billion cubic feet per day to make up for the 9 gigawatts of nuclear power lost.
“We will continue to discuss with Japan possible further supplies if needed, while we maintain sufficient inventory levels,” said a government source with direct knowledge of the matter, who declined to be identified. [...]
South Korea’s current LNG inventory stands at 1.5 million tonnes, adding that supply to Japan would come from incoming shipments, not current inventory, the source said.
The ministry also noted South Korea’s emergency oil product and boron supply to Japan, referring to about 4.5 million barrels of shipments by four Korean refiners, as Japanese refiners grapple with the loss of about a third of their 4.5 million barrel-per-day refining capacity [sic].
Japan’s worst quake on record, which sparked a nuclear crisis, has caused the loss of around 9,700 megawatts (MW) of nuclear and 10,831 MW of thermal power generation.
To help stop fission nuclear reactions, South Korea said on Wednesday it would send some of its reserve boron to Japan after a request from Tokyo for the metalloid, which is being mixed with seawater to limit damage to Japan’s crippled nuclear reactors. [Read full]
(Japan is the third largest oil consumer in the world behind the United States and China and the third-largest net importer of crude oil. It is the world's largest importer of both LNG and coal---please see Japan Energy Profile, prepared by the U.S. EIA, here. For information on Japan's nuclear crisis and its impact, please see also my posts under the category/label "Japan." South Korea is the world's second largest importer of LNG. For Asian LNG market, please see my posts here and here. -- D.R.)
Wednesday, March 16, 2011
Japan May Need 200,000 Extra Barrels of Oil Daily, IEA Says
By
Oil demand in Japan may climb by about 200,000 barrels a day if the country makes up the shortfall in nuclear power with crude-fired generation, the International Energy Agency said.
Japan shut 11 atomic reactors totaling about 9.7 gigawatts of capacity [or some 20% of Japan’s total nuclear power generation capacity] after being struck on March 11 by its largest recorded earthquake. [For Japan's nuclear crisis, please see my posts here and here. -- D.R.]. The country has enough spare oil-fired plants to make up the loss, using only 30 percent of the crude generation units in 2009, the IEA said in its monthly Oil Market Report today.
Increasing the country’s natural gas-fired generation may also replace the lost nuclear plants, the agency said. Japan’s gas plants are currently running at only 55 percent of capacity.
“If the shortfall were met entirely by oil, consumption would increase by roughly 200,000 barrels a day on an annual basis,” the report said. “The generation of an extra 60 terawatt-hours using only gas would require plants to operate at near 70 percent of capacity, implying an additional 12 billion cubic meters of liquefied natural gas a year.” [Full story]
Oil demand in Japan may climb by about 200,000 barrels a day if the country makes up the shortfall in nuclear power with crude-fired generation, the International Energy Agency said.
Japan shut 11 atomic reactors totaling about 9.7 gigawatts of capacity [or some 20% of Japan’s total nuclear power generation capacity] after being struck on March 11 by its largest recorded earthquake. [For Japan's nuclear crisis, please see my posts here and here. -- D.R.]. The country has enough spare oil-fired plants to make up the loss, using only 30 percent of the crude generation units in 2009, the IEA said in its monthly Oil Market Report today.
Increasing the country’s natural gas-fired generation may also replace the lost nuclear plants, the agency said. Japan’s gas plants are currently running at only 55 percent of capacity.
“If the shortfall were met entirely by oil, consumption would increase by roughly 200,000 barrels a day on an annual basis,” the report said. “The generation of an extra 60 terawatt-hours using only gas would require plants to operate at near 70 percent of capacity, implying an additional 12 billion cubic meters of liquefied natural gas a year.” [Full story]
Tuesday, March 15, 2011
EU to Сheck Safety of All Its 143 Nuclear Reactors
Kyodo News, Brussels, Mar 15, 2011
The European Union agreed Tuesday to check the safety of all 143 nuclear reactors operating in its 14 member countries [please see my remarks below -- D.R.] in the wake of a nuclear crisis at the quake-hit Fukushima nuclear plant in northeastern Japan.
The European Union made the decision at an emergency meeting of energy ministers of its 27 member countries. Several reactors in the EU region have a structure similar to that of reactors at the Fukushima No. 1 [Daiichi] nuclear power plant, the European Commission said.
As serious accidents hit reactors in Japan, a country deemed to have some of the world's highest safety standards, the European Union is under pressure to review the safety of nuclear power generation, which it has billed as a source of safe and clean energy not emitting global warming gases.
EU Energy Commissioner Günther Oettinger said at a press conference that the nuclear safety checks will address all possible threats, including earthquakes, tsunami and terrorist attacks.
The European Union will also test the durability of a cooling system of those nuclear reactors in view of cooling system problems experienced at the Fukushima nuclear power plant. It will also check a backup power supply system taking lessons from Japan, where electricity shortage is becoming serious with the suspension of nuclear power plant operations.
The commission said Tuesday it is extremely unlikely that Europe will experience an earthquake similar in size to the one that hit northeastern Japan, apparently in an effort to allay fears over its nuclear reactors.
Also at the emergency meeting were officials from nuclear watchdog authorities and power companies from member countries. They will work out details for safety checks in cooperation with the European Union and member state governments. [Full story]
(Also, German Chancellor Angela Merkel said that seven reactors that went into operation before 1980 would be offline for three months while Europe's biggest economy reconsiders its plans to extend the life of its atomic power plants in the wake of events in Japan---please see my posts here and here. One of them, the 840MW Neckarwestheim I reactor, would remain shut down for good. A previous government decided a decade ago to shut all 17 German nuclear reactors by 2021, but Merkel's administration last year moved to extend their lives by an average 12 years. That decision was suspended for three months on Monday. Energy policies in the EU are still driven independently by member nations and vary hugely. For example, France gets about 75% of its energy from nuclear power, while Poland relies mostly on coal and solid fuels. France's 58 nuclear reactors make France the second-biggest user of nuclear power in the world after the United States, where 104 reactors deliver 20% of the country's electricity. In the EU 143 nuclear power plants are in use: Belgium (7), Bulgaria (2), Czech Republic (6), Finland (4), France (58), Germany (17), Hungary (4), Netherlands (1), Romania (2), Slovakia (4), Slovenia (1), Spain (8), Sweden (10), and UK (19). Before the Fukushima disaster, Italy and Poland planned to built nuclear power plants. Switzerland, which is not in the EU, on Monday suspended plans to replace and build new nuclear plants pending a review of the tsunami-stricken reactors in Japan. -- D.R.)
The European Union agreed Tuesday to check the safety of all 143 nuclear reactors operating in its 14 member countries [please see my remarks below -- D.R.] in the wake of a nuclear crisis at the quake-hit Fukushima nuclear plant in northeastern Japan.
The European Union made the decision at an emergency meeting of energy ministers of its 27 member countries. Several reactors in the EU region have a structure similar to that of reactors at the Fukushima No. 1 [Daiichi] nuclear power plant, the European Commission said.
As serious accidents hit reactors in Japan, a country deemed to have some of the world's highest safety standards, the European Union is under pressure to review the safety of nuclear power generation, which it has billed as a source of safe and clean energy not emitting global warming gases.
EU Energy Commissioner Günther Oettinger said at a press conference that the nuclear safety checks will address all possible threats, including earthquakes, tsunami and terrorist attacks.
The European Union will also test the durability of a cooling system of those nuclear reactors in view of cooling system problems experienced at the Fukushima nuclear power plant. It will also check a backup power supply system taking lessons from Japan, where electricity shortage is becoming serious with the suspension of nuclear power plant operations.
The commission said Tuesday it is extremely unlikely that Europe will experience an earthquake similar in size to the one that hit northeastern Japan, apparently in an effort to allay fears over its nuclear reactors.
Also at the emergency meeting were officials from nuclear watchdog authorities and power companies from member countries. They will work out details for safety checks in cooperation with the European Union and member state governments. [Full story]
(Also, German Chancellor Angela Merkel said that seven reactors that went into operation before 1980 would be offline for three months while Europe's biggest economy reconsiders its plans to extend the life of its atomic power plants in the wake of events in Japan---please see my posts here and here. One of them, the 840MW Neckarwestheim I reactor, would remain shut down for good. A previous government decided a decade ago to shut all 17 German nuclear reactors by 2021, but Merkel's administration last year moved to extend their lives by an average 12 years. That decision was suspended for three months on Monday. Energy policies in the EU are still driven independently by member nations and vary hugely. For example, France gets about 75% of its energy from nuclear power, while Poland relies mostly on coal and solid fuels. France's 58 nuclear reactors make France the second-biggest user of nuclear power in the world after the United States, where 104 reactors deliver 20% of the country's electricity. In the EU 143 nuclear power plants are in use: Belgium (7), Bulgaria (2), Czech Republic (6), Finland (4), France (58), Germany (17), Hungary (4), Netherlands (1), Romania (2), Slovakia (4), Slovenia (1), Spain (8), Sweden (10), and UK (19). Before the Fukushima disaster, Italy and Poland planned to built nuclear power plants. Switzerland, which is not in the EU, on Monday suspended plans to replace and build new nuclear plants pending a review of the tsunami-stricken reactors in Japan. -- D.R.)
Monday, March 14, 2011
Water Injected into Troubled Nuclear Power Plant to Avert Disaster
Kyodo News, Tokyo, Mar 14, 2011
Japanese authorities scrambled Sunday to avert a nuclear disaster, injecting seawater into overheating reactors and relieving the pressure inside a nuclear power plant in Fukushima Prefecture that was hit and shut down as a result of Friday's devastating earthquake.
While acknowledging that fuel rods of the No. 3 reactor at the Fukushima No. 1 [Daiichi] plant [150 miles---240km---north of Tokyo] may have been deformed due to excessive heat, Chief Cabinet Secretary Yukio Edano denied it has led to a ''meltdown,'' a critical situation where fuel rods have melted and been destroyed.
Hidehiko Nishiyama, a senior official of the Economy, Trade and Industry Ministry indicated, however, that the reactor core has melted partially, telling a news conference, ''I don't think the fuel rods themselves have been spared damage.''
Cooling failure led the fuel rods at another reactor at the same plant to partially melt Saturday, and an ensuing explosion that blew away part of a building housing the reactor triggered fears of a nuclear disaster.
Edano, the top government spokesman, warned that a hydrogen explosion similar to one that hit the No. 1 reactor could occur at the No. 3 reactor.
Large amounts of hydrogen were formed when the water injection procedure temporarily ran into trouble and hydrogen may have filled the upper part of a building housing the No. 3 reactor, Edano said at a separate news conference.
The developments came after the cooling systems for some of the plant's reactors failed following the magnitude 9.0 earthquake and tsunami caused by it hit northeastern and eastern Japan on Friday.
The plant operator, Tokyo Electric Power Co., commonly known as TEPCO, began injecting fresh water into the No. 3 reactor on Sunday after coolant water levels fell, while letting out radioactive steam to relieve pressure that had built up inside.
But after trouble developed with a fresh water pump, the company was forced to pour seawater into it to avoid a meltdown, a step that will eventually lead to the reactor's dismantlement. As a result, water levels rose but the water-level gauge has stopped indicating a rise, Edano said.
An official of the government's Nuclear and Industrial Safety Agency said half of the roughly 4-meter rods were still exposed late Sunday, but that seawater kept being pumped into the reactor vessel.
The procedure temporarily exposed the top parts of MOX fuel rods above coolant water by nearly 3 meters. MOX fuel refers to plutonium-uranium mixed oxide fuel, used for so-called ''pluthermal'' power generation.
Radiation around the reactor rose three times the benchmark limit to 1,557 micro sievert per hour at 1:52 p.m. Sunday, but the figure went down to 184 about 50 minutes later. Given the radiation level, Edano said a hydrogen explosion is unlikely to affect human health even if one occurred.
Meanwhile, radiation monitored at the Onagawa nuclear power plant in Miyagi Prefecture on the Pacific coast shot up from late Saturday through early Sunday, Tohoku Electric Power Co. said, adding that radiation levels were low but about 700 times as high as normal.
The government agency said it was likely caused by radioactive substances that scattered when a hydrogen explosion hit the troubled Fukushima plant, about 120 kilometers south.
The No. 3 reactor was the sixth reactor overall at the Fukushima No. 1 and No. 2 plants, which are located about 11 km apart, to experience cooling failure since the massive earthquake and ensuing tsunami struck the power facilities.
The nuclear crisis has raised fears of radiation exposure.
Nineteen people who had evacuated from an area within 3 km of the No. 1 plant were found exposed to radiation, joining three others already confirmed to have been exposed, the Fukushima prefectural government said Sunday.
In addition, about 160 people are feared to have been exposed to radiation, according to the government agency.
The Fire and Disaster Management Agency said 15 people were found to have been contaminated with radioactive material at a hospital located within 10 km of the reactor.
To measure radiation for residents who may have been exposed to it and determine whether they need emergency treatment, the National Institute of Radiological Sciences sent 17 doctors and experts to the city of Fukushima on Sunday.
Edano, the chief Cabinet secretary, said there is little likelihood that radiation to which some residents have been exposed was serious enough to cause health damage.
Meanwhile, electric power companies in other regions and Japan Nuclear Fuel Ltd. have dispatched a total of 48 people to help TEPCO deal with the crisis at the two nuclear power plants in Fukushima.
Late Sunday, Masataka Shimizu, president of TEPCO, apologized for causing the leaks of radioactive substances, while blaming tsunami beyond their projections for the reactor failures.
''The tsunami was greater than we had projected,'' he said at a news conference. ''The largest factor was that we lost function due to equipment failure (caused by the tsunami).''
An explosion Saturday at the No. 1 plant blew away the roof and part of the walls of the building housing its No. 1 reactor's container.
The government and nuclear authorities said there was no damage to a steel container housing the reactor, noting that the blast occurred as vapor from the container turned into hydrogen and mixed with oxygen outside.
On Sunday, TEPCO continued new cooling operations to fill the troubled No. 1 reactor with seawater and pour in boric acid to prevent an occurrence of criticality.
The country's first partial melting of a reactor core was confirmed Saturday through the detection near the facility of radioactive cesium and iodine -- materials created following atomic fission.
Coolant water had been being pumped into the No. 3 reactor through supply equipment since the reactor shut down automatically following the quake, but the supply stopped on Sunday morning, making it necessary to pump seawater into the facility.
Following the explosion, the authorities expanded from 10 km to 20 km [12 miles] the radius of the evacuation area for residents living in the vicinity of the Fukushima plants. [Full story]
(Japan's nuclear safety agency rated the No. 1 reactor explosion at four on the international scale of zero to seven. The 1979 Three Mile Island accident in the United States was rated five, while the 1986 Chernobyl disaster was a seven. Russia is boosting LNG supplies to Japan, which is facing electric power shortages after Friday's massive earthquake shut nuclear reactors located in the worst affected areas. TEPCO said Monday it will start an unprecedented rationing of power at 10 a.m. or later rather than 6:20 a.m. as initially planned in the wake of Friday's powerful earthquake that hit Japan and crippled some nuclear power plants. Japan gets about 30% of its electricity from nuclear power. A hydrogen explosion occurred Monday morning at the quake-hit Fukushima No. 1 nuclear power plant's troubled No. 3 reactor, injuring three workers, but the reactor's container was not damaged, the government's nuclear safety agency and the plant's operator said. ''We judge that the possibility of a large amount of radioactive materials flying off from there is low,'' Chief Cabinet Secretary Yukio Edano told a news conference, adding that the injection of seawater to cool down the No. 3 reactor is continuing. -- D.R.)
Japanese authorities scrambled Sunday to avert a nuclear disaster, injecting seawater into overheating reactors and relieving the pressure inside a nuclear power plant in Fukushima Prefecture that was hit and shut down as a result of Friday's devastating earthquake.
While acknowledging that fuel rods of the No. 3 reactor at the Fukushima No. 1 [Daiichi] plant [150 miles---240km---north of Tokyo] may have been deformed due to excessive heat, Chief Cabinet Secretary Yukio Edano denied it has led to a ''meltdown,'' a critical situation where fuel rods have melted and been destroyed.
Hidehiko Nishiyama, a senior official of the Economy, Trade and Industry Ministry indicated, however, that the reactor core has melted partially, telling a news conference, ''I don't think the fuel rods themselves have been spared damage.''
Cooling failure led the fuel rods at another reactor at the same plant to partially melt Saturday, and an ensuing explosion that blew away part of a building housing the reactor triggered fears of a nuclear disaster.
Edano, the top government spokesman, warned that a hydrogen explosion similar to one that hit the No. 1 reactor could occur at the No. 3 reactor.
Large amounts of hydrogen were formed when the water injection procedure temporarily ran into trouble and hydrogen may have filled the upper part of a building housing the No. 3 reactor, Edano said at a separate news conference.
The developments came after the cooling systems for some of the plant's reactors failed following the magnitude 9.0 earthquake and tsunami caused by it hit northeastern and eastern Japan on Friday.
The plant operator, Tokyo Electric Power Co., commonly known as TEPCO, began injecting fresh water into the No. 3 reactor on Sunday after coolant water levels fell, while letting out radioactive steam to relieve pressure that had built up inside.
But after trouble developed with a fresh water pump, the company was forced to pour seawater into it to avoid a meltdown, a step that will eventually lead to the reactor's dismantlement. As a result, water levels rose but the water-level gauge has stopped indicating a rise, Edano said.
An official of the government's Nuclear and Industrial Safety Agency said half of the roughly 4-meter rods were still exposed late Sunday, but that seawater kept being pumped into the reactor vessel.
The procedure temporarily exposed the top parts of MOX fuel rods above coolant water by nearly 3 meters. MOX fuel refers to plutonium-uranium mixed oxide fuel, used for so-called ''pluthermal'' power generation.
Radiation around the reactor rose three times the benchmark limit to 1,557 micro sievert per hour at 1:52 p.m. Sunday, but the figure went down to 184 about 50 minutes later. Given the radiation level, Edano said a hydrogen explosion is unlikely to affect human health even if one occurred.
Meanwhile, radiation monitored at the Onagawa nuclear power plant in Miyagi Prefecture on the Pacific coast shot up from late Saturday through early Sunday, Tohoku Electric Power Co. said, adding that radiation levels were low but about 700 times as high as normal.
The government agency said it was likely caused by radioactive substances that scattered when a hydrogen explosion hit the troubled Fukushima plant, about 120 kilometers south.
The No. 3 reactor was the sixth reactor overall at the Fukushima No. 1 and No. 2 plants, which are located about 11 km apart, to experience cooling failure since the massive earthquake and ensuing tsunami struck the power facilities.
The nuclear crisis has raised fears of radiation exposure.
Nineteen people who had evacuated from an area within 3 km of the No. 1 plant were found exposed to radiation, joining three others already confirmed to have been exposed, the Fukushima prefectural government said Sunday.
In addition, about 160 people are feared to have been exposed to radiation, according to the government agency.
The Fire and Disaster Management Agency said 15 people were found to have been contaminated with radioactive material at a hospital located within 10 km of the reactor.
To measure radiation for residents who may have been exposed to it and determine whether they need emergency treatment, the National Institute of Radiological Sciences sent 17 doctors and experts to the city of Fukushima on Sunday.
Edano, the chief Cabinet secretary, said there is little likelihood that radiation to which some residents have been exposed was serious enough to cause health damage.
Meanwhile, electric power companies in other regions and Japan Nuclear Fuel Ltd. have dispatched a total of 48 people to help TEPCO deal with the crisis at the two nuclear power plants in Fukushima.
Late Sunday, Masataka Shimizu, president of TEPCO, apologized for causing the leaks of radioactive substances, while blaming tsunami beyond their projections for the reactor failures.
''The tsunami was greater than we had projected,'' he said at a news conference. ''The largest factor was that we lost function due to equipment failure (caused by the tsunami).''
An explosion Saturday at the No. 1 plant blew away the roof and part of the walls of the building housing its No. 1 reactor's container.
The government and nuclear authorities said there was no damage to a steel container housing the reactor, noting that the blast occurred as vapor from the container turned into hydrogen and mixed with oxygen outside.
On Sunday, TEPCO continued new cooling operations to fill the troubled No. 1 reactor with seawater and pour in boric acid to prevent an occurrence of criticality.
The country's first partial melting of a reactor core was confirmed Saturday through the detection near the facility of radioactive cesium and iodine -- materials created following atomic fission.
Coolant water had been being pumped into the No. 3 reactor through supply equipment since the reactor shut down automatically following the quake, but the supply stopped on Sunday morning, making it necessary to pump seawater into the facility.
Following the explosion, the authorities expanded from 10 km to 20 km [12 miles] the radius of the evacuation area for residents living in the vicinity of the Fukushima plants. [Full story]
(Japan's nuclear safety agency rated the No. 1 reactor explosion at four on the international scale of zero to seven. The 1979 Three Mile Island accident in the United States was rated five, while the 1986 Chernobyl disaster was a seven. Russia is boosting LNG supplies to Japan, which is facing electric power shortages after Friday's massive earthquake shut nuclear reactors located in the worst affected areas. TEPCO said Monday it will start an unprecedented rationing of power at 10 a.m. or later rather than 6:20 a.m. as initially planned in the wake of Friday's powerful earthquake that hit Japan and crippled some nuclear power plants. Japan gets about 30% of its electricity from nuclear power. A hydrogen explosion occurred Monday morning at the quake-hit Fukushima No. 1 nuclear power plant's troubled No. 3 reactor, injuring three workers, but the reactor's container was not damaged, the government's nuclear safety agency and the plant's operator said. ''We judge that the possibility of a large amount of radioactive materials flying off from there is low,'' Chief Cabinet Secretary Yukio Edano told a news conference, adding that the injection of seawater to cool down the No. 3 reactor is continuing. -- D.R.)
Friday, March 11, 2011
Estonian Company Plans Utah Oil Shale Development
by OGJ editors, OGJ, Mar 10, 2011
After completing the purchase of the shares of Oil Shale Exploration Co. (OSEC), the Estonian company Eesti Energia (Enefit) plans to construct in Utah a plant for producing 57,000 b/d of shale oil.
The stock purchase is pending approval from the Committee on Foreign Investment in the US (CFIUS).
OSEC has been involved in oil shale oil development since 2005 and was awarded by the US Bureau of Land Management the only oil shale research, development, and demonstration lease in Utah.
Also OSEC holds the largest nongovernmentally owned oil shale leases in Utah. Enefit estimates that the leases contain 3.1 billion tons of oil shale resource in place and have a potential from recovering about 2.1 billion bbl of shale oil.
In Estonia, since the 1980s, Enefit produces in two Enefit-140 plants about 1.3 million bbl/year of shale oil. In addition to oil production, Eesti Energia owns in Estonia 2,400-Mw oil shale-fired power plants.
Enefit currently also has under development oil shale projects in Estonia and Jordan.
In Jordan, Enefit's two oil shale projects are in cooperation with [Malaysia's] YTL Power International (YTLPI) and [Jordanian partner] Near East Investment (NEI). One project includes an oil shale fired power plant of up to 900 Mw [at Attarat um Ghudrun/Ghudran -- D.R.] and the other is a 38,000 b/d shale oil plant.
Enefit describes its Jordan concession as part of the largest oil shale deposit in Jordan with more than 2 billion tons of oil shale in place and containing about 1 billion bbl of shale oil.
Enefit may also expand its Jordan concession [...].
In Estonia, Enefit, through its joint venture with the [Finland-based] international engineering company Outotec, has designed and is currently building a new generation shale oil plant, the Enefit-280. The plant will use oil shale mined in Estonia and at full capacity will process 2.3 million tons/year of oil shale to produce 2.1 million bbl/year of shale oil, more than 75 million cu m[/year] of high-calorific retort gas for use in power or hydrogen production, and 35 Mw/day of electricity. The generated power will provide all of the plant’s electricity needs, and the surplus will be sold to the local electrical grid.
Enefit said construction of the plant in Estonia is on track and is scheduled for completion in 2012. [Read full]
(More than 90% of the electricity produced in Estonia comes from oil shale, with the balance coming from natural gas, wind, water and biofuels. The town of Narva gets its district heating from oil shale. For Estonia's natural gas consumption covered via imports, please see Eurogas latest report Natural Gas Consumption in the EU27 via my post here -- D.R.)
After completing the purchase of the shares of Oil Shale Exploration Co. (OSEC), the Estonian company Eesti Energia (Enefit) plans to construct in Utah a plant for producing 57,000 b/d of shale oil.
The stock purchase is pending approval from the Committee on Foreign Investment in the US (CFIUS).
OSEC has been involved in oil shale oil development since 2005 and was awarded by the US Bureau of Land Management the only oil shale research, development, and demonstration lease in Utah.
Also OSEC holds the largest nongovernmentally owned oil shale leases in Utah. Enefit estimates that the leases contain 3.1 billion tons of oil shale resource in place and have a potential from recovering about 2.1 billion bbl of shale oil.
In Estonia, since the 1980s, Enefit produces in two Enefit-140 plants about 1.3 million bbl/year of shale oil. In addition to oil production, Eesti Energia owns in Estonia 2,400-Mw oil shale-fired power plants.
Enefit currently also has under development oil shale projects in Estonia and Jordan.
In Jordan, Enefit's two oil shale projects are in cooperation with [Malaysia's] YTL Power International (YTLPI) and [Jordanian partner] Near East Investment (NEI). One project includes an oil shale fired power plant of up to 900 Mw [at Attarat um Ghudrun/Ghudran -- D.R.] and the other is a 38,000 b/d shale oil plant.
Enefit describes its Jordan concession as part of the largest oil shale deposit in Jordan with more than 2 billion tons of oil shale in place and containing about 1 billion bbl of shale oil.
Enefit may also expand its Jordan concession [...].
In Estonia, Enefit, through its joint venture with the [Finland-based] international engineering company Outotec, has designed and is currently building a new generation shale oil plant, the Enefit-280. The plant will use oil shale mined in Estonia and at full capacity will process 2.3 million tons/year of oil shale to produce 2.1 million bbl/year of shale oil, more than 75 million cu m[/year] of high-calorific retort gas for use in power or hydrogen production, and 35 Mw/day of electricity. The generated power will provide all of the plant’s electricity needs, and the surplus will be sold to the local electrical grid.
Enefit said construction of the plant in Estonia is on track and is scheduled for completion in 2012. [Read full]
(More than 90% of the electricity produced in Estonia comes from oil shale, with the balance coming from natural gas, wind, water and biofuels. The town of Narva gets its district heating from oil shale. For Estonia's natural gas consumption covered via imports, please see Eurogas latest report Natural Gas Consumption in the EU27 via my post here -- D.R.)
Tuesday, February 22, 2011
IEA Facts in Brief: Libya
IEA website, Feb 21, 2011
A look at the supply of oil and gas from the North African nation.
Libya is a net exporter of oil, having sent abroad some 1.49 million barrels per day (mb/d) in January 2011. Europe receives more than 85 percent of Libya’s crude exports, while about 13 percent heads east of Suez. Libya also produces some 15 bcm/y of gas, a third of which is domestically consumed. Roughly 45% of domestic electricity is generated by natural gas. In 2010, Libya exported 1.2 mb/d of crude oil to IEA countries, of which 376,000 b/d or more than 30% went to Italy. France, Germany and Spain are also significant buyers.
Click here to see the Facts on Libya: oil and gas
(Libya's proven oil reserves of 46.4 billion barrels, the biggest in Africa, are the ninth largest in the world, as of Jan 1, 2011---please see my post "World's Top 22 Oil Reserves Holders, Jan 1, 2011," here. However, with its proven natural gas reserves of 54.68 trillion cubic feet (tcf), Libya ranks only 22nd---using OGJ data---among the world's largest proven gas reserves holders, as of Jan 1, 2011---please see my post "World's Top 22 Natural Gas Proven Reserve Holders, Jan 1, 2011," here. For information on Libya's oil and gas, please see also Economist Intelligence Unit---EIU---"Libya Economy: Oil Trouble," Feb 22, 2011, here. -- D.R.)
A look at the supply of oil and gas from the North African nation.
Libya is a net exporter of oil, having sent abroad some 1.49 million barrels per day (mb/d) in January 2011. Europe receives more than 85 percent of Libya’s crude exports, while about 13 percent heads east of Suez. Libya also produces some 15 bcm/y of gas, a third of which is domestically consumed. Roughly 45% of domestic electricity is generated by natural gas. In 2010, Libya exported 1.2 mb/d of crude oil to IEA countries, of which 376,000 b/d or more than 30% went to Italy. France, Germany and Spain are also significant buyers.
Click here to see the Facts on Libya: oil and gas
(Libya's proven oil reserves of 46.4 billion barrels, the biggest in Africa, are the ninth largest in the world, as of Jan 1, 2011---please see my post "World's Top 22 Oil Reserves Holders, Jan 1, 2011," here. However, with its proven natural gas reserves of 54.68 trillion cubic feet (tcf), Libya ranks only 22nd---using OGJ data---among the world's largest proven gas reserves holders, as of Jan 1, 2011---please see my post "World's Top 22 Natural Gas Proven Reserve Holders, Jan 1, 2011," here. For information on Libya's oil and gas, please see also Economist Intelligence Unit---EIU---"Libya Economy: Oil Trouble," Feb 22, 2011, here. -- D.R.)
Sunday, February 13, 2011
East Asian LNG Imports in 2010
Compiled from two sources: World Gas Intelligence and Fairplay 24, Feb 9, 2011
Full-year 2010 LNG import data for East Asia are now in (the World Gas Intelligence report), and they confirm early indications of a surge that left regional LNG imports of 123 million tons (167 bcm) up 17.5% from 2009 and more than 14% from the previous peak of 107.8 million tons recorded in 2008.
Leading the rise was China, whose LNG imports shot up by 68% to 9.3 million tons. Japan, which has a much larger intake of LNG, had an 8.4% rise, but to 69.95 million tons, to marginally exceed its 2008 record high. South Korea closed out the year with 25.6% growth to 32.47 million tons, down from a year-to-date increase of 30% for the first 11 months, reflecting a 5.4% slide in December imports. "This is an astounding performance for LNG in the face of an 11% increase in the average ex-ship price paid in the region over the course of last year to $10.16 per million BTU," a WGI analyst said. The figures showed an increase in gas use in East Asia, not merely a rapid recovery from the 2008-9 financial crisis and ensuing recession, the analyst added.
By comparison, oil demand grew by 9.4% in China in 2010 and by just 1.1% in Japan.
(Japan is the world's largest importer of liquefied natural gas---LNG---followed by South Korea and Spain, according to the 2010 data. LNG demand in Japan was buoyed by increased power generation to meet higher air-conditioning demand during hot summer weather last year that saw temperatures soar. A series of technical problems at Japanese nuclear reactors also helped to push up spot LNG demand, with utilities forced to raise their thermal power generation levels to make up for the nuclear power disruptions. For major LNG exporters to Japan in 2010, please see bar chart here. Concerning the South Korea's imports of LNG, please read also my post remarks, in round brackets, here. For South Korea's 2010 LNG imports, please see also my post "Asian LNG Outlook ...," here. -- D.R.)
Full-year 2010 LNG import data for East Asia are now in (the World Gas Intelligence report), and they confirm early indications of a surge that left regional LNG imports of 123 million tons (167 bcm) up 17.5% from 2009 and more than 14% from the previous peak of 107.8 million tons recorded in 2008.
Leading the rise was China, whose LNG imports shot up by 68% to 9.3 million tons. Japan, which has a much larger intake of LNG, had an 8.4% rise, but to 69.95 million tons, to marginally exceed its 2008 record high. South Korea closed out the year with 25.6% growth to 32.47 million tons, down from a year-to-date increase of 30% for the first 11 months, reflecting a 5.4% slide in December imports. "This is an astounding performance for LNG in the face of an 11% increase in the average ex-ship price paid in the region over the course of last year to $10.16 per million BTU," a WGI analyst said. The figures showed an increase in gas use in East Asia, not merely a rapid recovery from the 2008-9 financial crisis and ensuing recession, the analyst added.
By comparison, oil demand grew by 9.4% in China in 2010 and by just 1.1% in Japan.
(Japan is the world's largest importer of liquefied natural gas---LNG---followed by South Korea and Spain, according to the 2010 data. LNG demand in Japan was buoyed by increased power generation to meet higher air-conditioning demand during hot summer weather last year that saw temperatures soar. A series of technical problems at Japanese nuclear reactors also helped to push up spot LNG demand, with utilities forced to raise their thermal power generation levels to make up for the nuclear power disruptions. For major LNG exporters to Japan in 2010, please see bar chart here. Concerning the South Korea's imports of LNG, please read also my post remarks, in round brackets, here. For South Korea's 2010 LNG imports, please see also my post "Asian LNG Outlook ...," here. -- D.R.)
Sunday, February 6, 2011
Egypt Pipeline Explosion Cuts Gas Supply to Israel
by Christopher Helman, Forbes (blog), Feb 5, 2011
An explosion today [Feb 5] on the Arab Gas Pipeline [AGP] forced Egypt to shut off natural gas supplies to Israel and Jordan. [...] [Egyptian] Oil Minister Sameh Fahmy reportedly said it could take up to two weeks to repair the damage.
The pipeline is the third most strategically important piece of energy infrastructure in Egypt after the Suez Canal and the Sumed Pipeline. But it [its El Arish-Ashkelon branch] is the most important one to Israel, delivering 40% of Israeli natural gas supplies. [Total gas consumption in Israel stood at around 5.2 bcm in 2010, of which 2.1 bcm were imported from Egypt -- D.R.]. The Israeli government said this afternoon that it did not expect any interruption of electricity supplies as the country has gas in storage and can also switch to other fuels like [fuel] oil and diesel. Israel started receiving gas from the [El Arish-Ashkelon submarine] pipeline in 2008. [...]
One thing is for sure. Faced with insecure gas supplies from Egypt, Israel must now move with haste to develop the massive reserves of natural gas recently discovered offshore. You can read about them here (Leviathan Oil Field Could Supply Israel For Decades) and here (Israel Confirms Leviathan Gas Find). [Please read also my post here]. Read more
(The branch of the pipeline that carries natural gas into Israel wasn’t directly damaged in the incident, as the Sinai incident occurred on a part of the natural-gas network before it divides into branches serving Jordan, Syria and Lebanon, via Jordan, and Israel, via El Arish-Ashkelon branch. The blast occurred at around 7 a.m. (0500 GMT) on Saturday at a gas terminal, three km from the El Arish airport, North Sinai governor Abdel Wahab Mabrouk told reporters. He said the fire was brought under control by mid-morning, after valves allowing the flow of gas from the terminal into pipelines were shut off. Actually a fire and explosion at a gas metering station forced Egypt's gas transport company/Egyptian Natural Gas Company---GASCO---to cut off supplies to the Arab Gas Pipeline/AGP linking Egypt to Jordan, Syria, etc., as well as the pipeline supplying Egyptian gas to Israel. Egypt is an important gas producer of 64 bcm/y, of which some 45 bcm/y is consumed domestically and some 19 bcm/y is exported, mostly as LNG, according to the International Energy Agency. Gas demand has been increasing very fast over the past decade at 8%/year. Due to this growth, gas exports have been limited to one third of the reserve base. Liquefaction capacity stands at 16 bcm and exports averaged 14 bcm over 2007-09. The LNG produced in Egypt is going to Spain (4.3), U.S. (4.5), UK (0.5), South Korea (1.9) and France (1.4). Some 5 bcm/y is exported by pipeline, mostly to Jordan, Israel and Syria. Both Jordan and Israel’s power sectors are dependent on gas. See also my remarks here. Furthermore, Israel's Yam Thetis field---a major supplier of gas to Israel---off coastal Ashkelon was prepared to help compensate for the loss of Egyptian gas. The halt in Egyptian supplies also triggered a request for faster development of a floating LNG import terminal project. The planned location for the LNG import facility/floating platform/offshore LNG buoy is just off Israel's central Mediterranean coast at Hadera. For Egypt's East Mediterranean Gas Supply Corp, i.e. EMG, the gas exporting company via the 100-kilometer (62-mile) El Arish-Ashkelon submarine pipeline, please read my blog posts under the category/label "Israel." UPDATE: For the resumption of Egyptian gas supply to Israel, please see my post here. -- D.R.)
An explosion today [Feb 5] on the Arab Gas Pipeline [AGP] forced Egypt to shut off natural gas supplies to Israel and Jordan. [...] [Egyptian] Oil Minister Sameh Fahmy reportedly said it could take up to two weeks to repair the damage.
The pipeline is the third most strategically important piece of energy infrastructure in Egypt after the Suez Canal and the Sumed Pipeline. But it [its El Arish-Ashkelon branch] is the most important one to Israel, delivering 40% of Israeli natural gas supplies. [Total gas consumption in Israel stood at around 5.2 bcm in 2010, of which 2.1 bcm were imported from Egypt -- D.R.]. The Israeli government said this afternoon that it did not expect any interruption of electricity supplies as the country has gas in storage and can also switch to other fuels like [fuel] oil and diesel. Israel started receiving gas from the [El Arish-Ashkelon submarine] pipeline in 2008. [...]
One thing is for sure. Faced with insecure gas supplies from Egypt, Israel must now move with haste to develop the massive reserves of natural gas recently discovered offshore. You can read about them here (Leviathan Oil Field Could Supply Israel For Decades) and here (Israel Confirms Leviathan Gas Find). [Please read also my post here]. Read more
(The branch of the pipeline that carries natural gas into Israel wasn’t directly damaged in the incident, as the Sinai incident occurred on a part of the natural-gas network before it divides into branches serving Jordan, Syria and Lebanon, via Jordan, and Israel, via El Arish-Ashkelon branch. The blast occurred at around 7 a.m. (0500 GMT) on Saturday at a gas terminal, three km from the El Arish airport, North Sinai governor Abdel Wahab Mabrouk told reporters. He said the fire was brought under control by mid-morning, after valves allowing the flow of gas from the terminal into pipelines were shut off. Actually a fire and explosion at a gas metering station forced Egypt's gas transport company/Egyptian Natural Gas Company---GASCO---to cut off supplies to the Arab Gas Pipeline/AGP linking Egypt to Jordan, Syria, etc., as well as the pipeline supplying Egyptian gas to Israel. Egypt is an important gas producer of 64 bcm/y, of which some 45 bcm/y is consumed domestically and some 19 bcm/y is exported, mostly as LNG, according to the International Energy Agency. Gas demand has been increasing very fast over the past decade at 8%/year. Due to this growth, gas exports have been limited to one third of the reserve base. Liquefaction capacity stands at 16 bcm and exports averaged 14 bcm over 2007-09. The LNG produced in Egypt is going to Spain (4.3), U.S. (4.5), UK (0.5), South Korea (1.9) and France (1.4). Some 5 bcm/y is exported by pipeline, mostly to Jordan, Israel and Syria. Both Jordan and Israel’s power sectors are dependent on gas. See also my remarks here. Furthermore, Israel's Yam Thetis field---a major supplier of gas to Israel---off coastal Ashkelon was prepared to help compensate for the loss of Egyptian gas. The halt in Egyptian supplies also triggered a request for faster development of a floating LNG import terminal project. The planned location for the LNG import facility/floating platform/offshore LNG buoy is just off Israel's central Mediterranean coast at Hadera. For Egypt's East Mediterranean Gas Supply Corp, i.e. EMG, the gas exporting company via the 100-kilometer (62-mile) El Arish-Ashkelon submarine pipeline, please read my blog posts under the category/label "Israel." UPDATE: For the resumption of Egyptian gas supply to Israel, please see my post here. -- D.R.)
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