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Plan for biggest solar project in the U.S.
Published: May 13, 2008 at 4:52 PM
ALLENTOWN, Pa., May 13 (UPI) -- PPL Renewable Energy announced plans for the largest U.S. rooftop solar installation. -
Brazil launches greenhouse gas program
Published: May 13, 2008 at 4:49 PM
BRASILIA, Brazil, May 13 (UPI) -- Brazil launched the Brazil Greenhouse Gas Protocol Program under which 12 corporate members have agreed to report their global-warming emissions. -
DoE: U.S. can hit 20 percent wind by 2030
Published: May 13, 2008 at 3:22 PM
WASHINGTON, May 13 (UPI) -- Wind power is capable of becoming a major contributor to America's electricity supply, a report released by the U.S. Department of Energy says.
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UPI Energy Watch
Published: May 13, 2008 at 7:32 PM
OPEC leaders claim no control over oil prices; China quake cuts oil demand temporarily; Kazakhs threaten to sanction Agip -
Oil and Gas Pipeline Watch
Published: May 13, 2008 at 8:48 AM
By DANIEL GRAEBER
UPI Correspondent
Leaders from the European Union met with Middle Eastern officials in Brussels to finalize details of the Trans-Arab gas pipeline. -
UPI Energy Watch
Published: May 12, 2008 at 1:58 PM
Oil, gas executives see sub-$100 prices by end of year; EnCana Corp. splits; Iran says South Stream projects will go ahead -
Analysis: Turks eye carrying Kazakh oil
Published: May 12, 2008 at 1:16 PM
By JOHN C.K. DALY
UPI International Correspondent
WASHINGTON, May 12 (UPI) -- As Kazakh oil exports continue to rise, Turkey is seeking to position itself as a major transit hub for Kazakh hydrocarbons. Despite Turkish aspirations, however, a number of obstacles exist to Kazakhstan diversifying its export routes to include Turkey. -
Analysis: China faces tanker shortage
Published: May 9, 2008 at 8:21 PM
By JOHN C.K. DALY
UPI International Correspondent
WASHINGTON , May 9 (UPI) -- China's rising energy demands will require Beijing to either build or lease ships to carry the oil needed for its industry. As domestic tanker production has failed to keep pace with rising demand, some Chinese maritime specialists see a shortage in carrying capacity for Chinese oil imports developing by 2015. -
Analysis: Russia squeezes Mongolia
Published: May 9, 2008 at 8:16 PM
By JOHN C.K. DALY
UPI International Correspondent
Record-high energy prices are increasingly dominating Russia's trade relations with Mongolia. As Mongolia imports nearly all of its oil from Russia, the country is feeling pressure from sharp Russian price increases, and the government is seeking legislative changes to ameliorate the effect of the price increases on the population.
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OPEC Chief: U.S. economy to blame for high oil prices
Published: May 8, 2008 at 6:09 PM
A new anti-OPEC energy bill on Capitol Hill won't help, OPEC president says, "Geopolitical events are still there."
By BEN LANDO
UPI Energy Editor
WASHINGTON, May 8 (UPI) -- Angry oil consumers taking aim at OPEC are looking at a "scapegoat" instead of a needed mirror, the head of the bloc of oil producers said during a visit to Washington Thursday.
Chakib Khelil, president of the Organization of Petroleum Exporting Countries, blamed the record high prices for oil on the hemorrhaging U.S. economy -- especially the downgrading dollar -- and panned new legislation by congressional Democrats aimed at lowering Americans' energy bills that has OPEC in its cross-hairs.
"OPEC will always be the scapegoat for all kinds of people," Khelil, also energy minister of Algeria, told reporters in a makeshift briefing room in the basement of the Washington Hilton on the sidelines of the U.S.-Arab Economic Forum. He hasn't read the bill, introduced with fanfare Wednesday, "but every time the oil prices increase we hear all kinds of legislation trying to be passed."
"There is a direct correlation between the decrease in the value of the dollar and the increase in oil prices," Khelil said. "A week ago the dollar improved by a few percent and we saw that directly expressed in the oil price. The oil price went down. Now prospects of not only the U.S. economy, the possibility of recession, possibility for continuing devaluation of the dollar, will have an important impact on the oil price in the future."
He said this is pushing commodity speculators' actions, thus further boosting the price of oil.
"The dollar is the currency of commerce; it's the currency of reserves, currency of payments in lots of commodities, including the oil. The impact is that when the currency loses its value then the investors will go into the paper oil market and invest where they can get better returns than they would get investing in normal stock operations or investments, because they're not really attractive opportunities there."
The Consumer-First Energy Act would grant the U.S. attorney general powers to "bring enforcement action against any country or company that is colluding to set the price of oil, natural gas, or any other petroleum product," according to a summary by Senate Majority Leader Harry Reid, D-Nev. "Enacting this provision will make it clear to nations that participate in the oil cartel that engaging in conduct designed to fix the price of oil is illegal under U.S. law. As such, nations concerned with maintaining good diplomatic relations with the U.S. will likely be reluctant to blatantly act in a way that is counter to U.S. law."
Khelil said this could prevent government officials from OPEC countries from obtaining entry to the United States. "It will make it difficult for dialogue. U.S. representatives will have to come to our countries," he said. "We shouldn't have a problem giving them visas to discuss the issues."
It would also target the speculation in commodities trading, cut tax breaks for oil companies and force them to pay more taxes, freeze government purchases of oil for a strategic reserve and target so-called gas price gouging.
"I wish people would pass the same legislation when the oil price goes down to $6 and $8 (per barrel). I never heard anybody passing legislation in 1988 or 1998," Khelil said. "At that time when OPEC members raised the issue of inequitable price the answer was 'this is the market price.' So I think this is the market price, whether we like it or not."
Oil closed at more than $122 per barrel Thursday -- about double the price of one year ago. The world purchases 84 million barrels per day, of which OPEC supplies 40 percent.
"There is nobody asking for oil that has not been supplied oil right now," Khelil said, calling it a "dichotomy" in the market.
"Normally we shouldn't see those prices. Now we go to the prices and we see those high, very high prices and those don't reflect at tall what's happening in the market," he said, "geopolitical uncertainties in various regions … that may or may not affect supply, and those affect the price because the market responds to prospects for supply disruptions coming from those geopolitical issues."
President Bush will stop in Saudi Arabia next week as part of a Middle East tour. He's expected to push oil producers to increase supply.
Khelil maintains it won't affect the price. "Geopolitical events are still there. Is that going to change the tensions with Iraq? Is that going to change the tension in the Middle East? Is that going to change the problems in Nigeria? It's not. Is that going to change the devaluation of the dollar? It's not. If it's not, then increasing supply is not going to have any effect. Psychologically it might have, maybe a small bump, and then it's going to pick up again."
--
(e-mail: blando@upi.com)
UPI Energy Editor
WASHINGTON, May 8 (UPI) -- Angry oil consumers taking aim at OPEC are looking at a "scapegoat" instead of a needed mirror, the head of the bloc of oil producers said during a visit to Washington Thursday.
Chakib Khelil, president of the Organization of Petroleum Exporting Countries, blamed the record high prices for oil on the hemorrhaging U.S. economy -- especially the downgrading dollar -- and panned new legislation by congressional Democrats aimed at lowering Americans' energy bills that has OPEC in its cross-hairs.
"OPEC will always be the scapegoat for all kinds of people," Khelil, also energy minister of Algeria, told reporters in a makeshift briefing room in the basement of the Washington Hilton on the sidelines of the U.S.-Arab Economic Forum. He hasn't read the bill, introduced with fanfare Wednesday, "but every time the oil prices increase we hear all kinds of legislation trying to be passed."
"There is a direct correlation between the decrease in the value of the dollar and the increase in oil prices," Khelil said. "A week ago the dollar improved by a few percent and we saw that directly expressed in the oil price. The oil price went down. Now prospects of not only the U.S. economy, the possibility of recession, possibility for continuing devaluation of the dollar, will have an important impact on the oil price in the future."
He said this is pushing commodity speculators' actions, thus further boosting the price of oil.
"The dollar is the currency of commerce; it's the currency of reserves, currency of payments in lots of commodities, including the oil. The impact is that when the currency loses its value then the investors will go into the paper oil market and invest where they can get better returns than they would get investing in normal stock operations or investments, because they're not really attractive opportunities there."
The Consumer-First Energy Act would grant the U.S. attorney general powers to "bring enforcement action against any country or company that is colluding to set the price of oil, natural gas, or any other petroleum product," according to a summary by Senate Majority Leader Harry Reid, D-Nev. "Enacting this provision will make it clear to nations that participate in the oil cartel that engaging in conduct designed to fix the price of oil is illegal under U.S. law. As such, nations concerned with maintaining good diplomatic relations with the U.S. will likely be reluctant to blatantly act in a way that is counter to U.S. law."
Khelil said this could prevent government officials from OPEC countries from obtaining entry to the United States. "It will make it difficult for dialogue. U.S. representatives will have to come to our countries," he said. "We shouldn't have a problem giving them visas to discuss the issues."
It would also target the speculation in commodities trading, cut tax breaks for oil companies and force them to pay more taxes, freeze government purchases of oil for a strategic reserve and target so-called gas price gouging.
"I wish people would pass the same legislation when the oil price goes down to $6 and $8 (per barrel). I never heard anybody passing legislation in 1988 or 1998," Khelil said. "At that time when OPEC members raised the issue of inequitable price the answer was 'this is the market price.' So I think this is the market price, whether we like it or not."
Oil closed at more than $122 per barrel Thursday -- about double the price of one year ago. The world purchases 84 million barrels per day, of which OPEC supplies 40 percent.
"There is nobody asking for oil that has not been supplied oil right now," Khelil said, calling it a "dichotomy" in the market.
"Normally we shouldn't see those prices. Now we go to the prices and we see those high, very high prices and those don't reflect at tall what's happening in the market," he said, "geopolitical uncertainties in various regions … that may or may not affect supply, and those affect the price because the market responds to prospects for supply disruptions coming from those geopolitical issues."
President Bush will stop in Saudi Arabia next week as part of a Middle East tour. He's expected to push oil producers to increase supply.
Khelil maintains it won't affect the price. "Geopolitical events are still there. Is that going to change the tensions with Iraq? Is that going to change the tension in the Middle East? Is that going to change the problems in Nigeria? It's not. Is that going to change the devaluation of the dollar? It's not. If it's not, then increasing supply is not going to have any effect. Psychologically it might have, maybe a small bump, and then it's going to pick up again."
--
(e-mail: blando@upi.com)
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