$25b to be spent on new refinery

Juhel Browne jbrowne@trinidadexpress.com

Thursday, February 14th 2008

A new oil refinery carded for Pointe-a-Pierre is set to cost the State up to US$4 billion ($25 billion).

Energy Minister Conrad Enill made the announcement yesterday, three years after one of his predecessors in office, Eric Williams, had disclosed the Cabinet was looking at the establishment of a second oil refinery, as the existing State-owned Petrotrin complex was undergoing a $2 billion upgrade.

“A new refinery is estimated to cost US$3-4 billion and would be export oriented. This refinery is to be located at a site at the (Petrotrin) Pointe-a-Pierre refinery complex,” Enill said while delivering the feature address at the BG T&T and First Citizens Energy Luncheon Series at the Hyatt Regency Hotel at the Waterfront, Port of Spain.

Enill’s address yesterday was his first major speech since his appointment as Energy Minister after the November 5 general election.

It also marked the first time that Prime Minister Patrick Manning, who attended yesterday’s event, did not deliver the feature address at the Energy Luncheon Series, which suffered briefly from a power outage at the Hyatt. The power outage occurred about three minutes after Manning arrived, during the playing of the national anthem over loud speakers, but this did not stop the proceedings. Those in attendance sang the national anthem and both BG T&T president, Derek Hudson, and First Citizens chief executive officer, Larry Howai, delivered their addresses without the benefit of a sound system, until the electrical supply returned 10 minutes later.

The sound system was fully restored by the time Enill stood at the podium to deliver his address, as he said the Government had identified the need for new refining operations in Trinidad and Tobago, due to the strategic link in the energy value chain.

At present, Petrotrin does not have the capacity to refine the light-sweet crude extract from the oil reserves located off the East coast.

Saudi firm to build $3b refinery in Bangladesh

(MENAFN) Saudi Arabia’s Hi-Tech International Group (HTIG) and Cosmopolitan Oil Refinery Management Limited (CPORML) of Bangladesh signed a deal to set up a $3 billion oil refinery with a capacity to produce 300,000 barrels of oil products a day, Gulf News reported.

The plant will be set up with 100 percent foreign direct investment (FDI) and it will import more than five million tons of crude oil from Saudi Arabia, the companies said in a joint statement. The entire final product will be exported in neighboring counties, they added.

The production capacity of the proposed refinery will be more than three times of the state-run Bangladesh Eastern Refinery Limited (BERL), the lone refinery plant in the country, the statement said.

Bangladesh imports 3.8 million tons of fuel every year, including about 1.5 million tons of crude oil, officials said.

Dubai investor in Hambantota oil refinery

By Tharindri Rupesinghe Plans to build an oil refinery in Hambantota are to be finalized within the next fortnight, according to Dr. Sarath Amunugama, Minister of Enterprise Development and Investment Promotion. Speaking at Friday’s Imexpro 2008 Foreign Trade Promotion Exhibition, he confirmed that the oil refinery is to be a project of a Dubai-based private investor. He says that the initial discussions will result in them signing the agreement in two weeks time.

Elaborating on the project, Foreign Secretary Dr. Palitha Kohona (also present at the event) said that the oil will be brought in from the Middle East, refined in Hambantota and then re-exported. “This oil will not be for local consumption,” he said adding that the investors were “very enthusiastic” over the venture. According to Amunugama, the project will be a $1 billion investment that will be handled by the private firm.

OPEC not to blame for US recession

Sat, 19 Jan 2008 19:41:26
OPEC Secretary General Abdullah al-Badri has stressed that the economic crisis in the US is not the consequence of high oil prices.

In an interview with Der Spiegel, Libyan national al-Badri said the recession in the US economy was ‘home-made’, caused by the subprime mortgage crisis and other financial market problems as well as the lack of American refinery capacity.

In a Tuesday meeting with Saudi King Abdullah, President George W. Bush called on the Organization of Petroleum Exporting Countries (OPEC) to increase oil production.

Al-Badri said if there was a need for an increase in oil production, OPEC would not ‘hesitate’ to do so, as it has the capacity to raise output up to six million barrels per day by 2012, ‘but at present we see no need for this’.

He said OPEC favored ’stable prices’ in the market and added that it was ‘highly unlikely’ that oil would reach USD 200.00 per barrel.

Al-Badri also noted that there had been a ‘lively discussion’ in the November OPEC summit about switching to the euro from the dollar for oil trading. “Such a switch in the main currency could be made, but it will need time,” he said.

The OPEC chief did not comment on a suggestion that Russia could join the organization and said Russian President Vladimir Putin’s proposal to Algeria, Iran and Qatar to form a separate organization had long-term prospects, as gas suppliers were generally tied into contracts for as long as 30 years.

EU to set Finland 38 pct renewables goal-report

* Reuters
* Saturday January 19 2008

HELSINKI, Jan 19 (Reuters) – The European Commission will ask Finland to increase its renewable energy output by around a third to 38 percent in draft proposals to be unveiled next week, Finnish public broadcaster YLE said on Saturday. The Commission is due to spell out on Wednesday how it intends to cut greenhouse gas emissions responsible for climate change, share out the burden of cuts in carbon dioxide (CO2) and increase the use of renewable energy sources.

“According to information obtained by YLE from sources at the negotiations, Finland should produce 38 percent of its energy from renewable energy sources by 2020,” YLE said.
The commission is also set to propose Finland cut its CO2 emissions from transport and agriculture by 16 percent compared to levels in 2005. YLE said the figures were draft numbers that were still under discussion. YLE quoted Finland’s energy minister Mauri Pekkarinen as saying Finland could live with the numbers, but last week the minister said in a speech the EU targets were too ambitious.

The Finnish news agency STT, citing unofficial information, said the Commission would ask Sweden — the EU’s best renewable energy performer — to increase to 50 percent from 39.8 percent the proportion of its energy produced from renewable sources.EU leaders agreed last March to cut greenhouse gas emissions by 20 percent in 2020 from 1990 levels, as well as use renewable sources for 20 percent of power production and biofuels for 10 percent of transport fuel by the same date. (Reporting by Sami Torma; Editing by Jon Boyle)

Oil demand to peak before supply: BP

17 Jan 2008, 1900 hrs IST

LONDON: World oil production may peak in the coming years, but it will be because of a decline in demand for petroleum rather than constraint on supply, a BP economist said.

The comments come in the wake of remarks from other industry officials who in recent months have questioned mainstream supply forecasts, suggesting a peak in output may be closer than the industry has previously admitted.

“I believe there is a realistic possibility that world oil production will peak within the next generation as a result of peaking demand,” BP Special Economic Advisor Peter Davies told a meeting at parliament organized by a group of lawmakers looking into peak oil.

A rally in oil prices, which hit a record high above $100 a barrel earlier this month, is leading to growing interest in peak oil — the view that supply has reached, or will soon reach, a high point and then fall.

London-based BP, the world’s third-largest fully publicly traded oil company by market value, dismisses the view that there is a problem with the amount of oil left in the ground.

Statistics complied by BP show the world has proven oil reserves of 1.2 trillion barrels, enough to sustain current output for 40 years.

Rather, Davies said environmental regulations, including efforts to reduce greenhouse gas emissions, could cause consumers to move away from oil.

“I think we will run out of demand before we run out of supply,” he said. “There’s a distinct possibility that global oil consumption could peak as a result of climate policies.

The BP economist said there were also concerns whether there is enough investment. Many major producing countries ban foreign investment in their oilfields or allow it on terms the oil firms deem uncompetitive.

“An imminent peak in oil production is not likely,” Davies said. “Valid concerns remain over investment, especially in resource-rich regions.”

Davies said it was possible to boost world oil production to 100 million barrels per day, a rate senior figures, such as the chief executive of French oil company Total, have questioned in recent months.

The world is expected to need more than 100 million bpd of oil later this century, according to forecasts from the International Energy Agency and others, up from around 86 million bpd now.

“I believe 100 million barrels per day is achievable,” Davies said. “This is achievable in resource terms but it does come down to how much investment is going to take place.”

Petronas to start work in south Sudan oil block

• Reuters
• Friday January 18 2008

By Skye Wheeler

JUBA, Sudan, Jan 18 (Reuters) – Malaysia’s Petronas got permission from south Sudan’s government on Friday to begin oil exploration in block 5B, after agreeing to let Moldova’s Ascom Group keep part of the concession, an official said.”Petronas from tomorrow will move into the location 5B,” the south’s minister for industry and mining, John Luk, said. He is also a member of Sudan’s National Petroleum Commission (NPC), the country’s top decision-making body on oil matters.

During decades of civil war in Sudan’s south, oil contracts signed with the northern government were declared void by the southern rebels, who entered deals with smaller companies like Ascom to begin oil exploration in their areas.Following a 2005 peace deal, the NPC mediated the conflicts of interest and in July last year agreed Petronas could keep its share in Block 5B provided it allowed Ascom, already working in the area, a share in the venture.

Block 5B lies partly in the swampy Jonglei state. Jonglei governor Kuol Manyang Juuk told Petronas, at a Friday meeting in the south’s capital Juba, that he would allow it access for the first time.It was not immediately clear what percentage of the concession Ascom would take. “We have a committee to assess… They will come up with Ascom’s investment so that is taken into consideration when determining that share,” Luk said.

Block 5B, covering more than 20,000 square km (7,723 sq miles), is operated by the consortium WNPOC (White Nile Petroleum Operating Company) led by Petronas and including India’s ONGC Videsh, Sudan’s state-owned Sudapet and Nilepet and Sweden’s Lundin Petroleum.”It was a compromise between the two levels of government (state and national) that Ascom will join the consortium. Ascom will be a part of you, whatever,” Luk told WNPC members. He said Petronas equipment to conduct seismic testing in the area is already on the River Nile in vessels that would be unloaded in the 5B area on Saturday.

Luk said all petroleum companies should work more closely with the semi-autonomous southern government. “They must have presence in Juba and in the state capitals…for all the companies but starting with WNPOC,” he said.Around 2 million people died in the north-south conflict that analysts say was partly fuelled by the discovery of oil. Under the peace deal, south Sudan receives 50 percent of revenues generated from wells in the south.Another company also signed by the former southern rebels, Britain’s White Nile lost its right to part of the massive Block Ba to Khartoum-signed French giant Total in an NPC ruling last year. (Editing by Opheera McDoom and Anthony Barker)

World’s ‘greenest city’

MANILA, Philippines–WHAT DOES it take to be named, or become, a “green” city?

Recently, the World Wildlife Fund (WWF) and the government of Abu Dhabi launched a “sustainability strategy” to create the “world’s greenest city.” Known as Masdar City, it will be the world’s “first zero-carbon, zero-waste, car-free city,” according to the master plan, the “One Planet Living” program, a global initiative launched by WWF and environmental consultancy BioRegional. According to a news release, WWF will work with officials of Masdar to “ensure the city meets standards of sustainability which include specific targets for the city’s ecological footprint.”

Electricity for the planned city, occupying a 6 square-kilometer area, will be generated by photovoltaic panels, while cooling will be provided via concentrated solar power. Water will be provided through a solar-powered desalination plant. Landscaping within the city and crops grown outside the city will be irrigated with “grey water” and treated waste water produced by the city’s water treatment plant. Construction of Masdar City is slated to start early this year.

The city is part of the Masdar Initiative, Abu Dhabi’s “multi-faceted investment in the exploration, development and commercialization of future energy sources and clean technology solutions.” A model of Masdar City will be unveiled on Jan. 21 at the World Future Energy Summit in Abu Dhabi.

* * *

THIS early, Masdar City has already gained adherents, including no less than US President George Bush, who was briefed on the government’s plans for the city during a visit. Gulf News reports that Bush was “impressed” by plans for the “world’s greenest city.” “I was amazed at the advanced state of the UAE and how the country is using its resources to develop alternative energy,” the American president said, adding that “the whole world can learn what works and what does not in (Masdar).”

Praising the city as a model society powered by clean technology, Bush said the city is “an opportunity to share this [clean] technology with the UAE,” adding that he hoped his visit “will be an opportunity to work constructively with the UAE in all fields.” Dr. Sultan Al Jaber, CEO of Masdar, said Bush was especially interested in the partnerships the UAE had developed with businesses and academic institutions in the US.

Jean-Paul Jeanrenaud, director of WWF International’s “One Planet Living initiative,” noted: “Today Abu Dhabi is embarking on a journey to become the global capital of the renewable energy revolution. Abu Dhabi is the first hydrocarbon-producing nation to have taken such a significant step towards sustainable living.

“Masdar is an example of the paradigm shift that is needed and the strategic vision of the Abu Dhabi government is a case study in global leadership. We hope that Masdar City will prove that sustainable living can be affordable and attractive in all aspects of human living–from businesses and manufacturing facilities to universities and private homes.”

Al Jaber added: “Masdar City will question conventional patterns of urban development, and set new benchmarks for sustainability and environmentally friendly design–the students, faculty and businesses located in Masdar City will not only be able to witness innovation first-hand, but they will also participate in its development.”

* * *

MEANWHILE, even as the Abu Dhabi government is well on its way to creating “the world’s greenest city,” this country is still doing its best mitigating the damage wrought on the environment. A recent study found the Philippines to be among the “most harmed” countries in the world with respect to environmental degradation.

Perhaps in response to this news, the Supreme Court recently designated 117 “environmental courts” to try and decide on cases involving the violation of environmental laws, in a bid to speed up the resolution of such cases.

Von Hernandez, Greenpeace Southeast Asia campaigns director, welcomed the establishment of the environmental courts, saying he hoped these would “not only expedite the resolution of pending and future environmental cases, but also enhance the enforcement of existing environmental laws.”

Hernandez added that laws and policies already exist to address the many environmental challenges confronting the Philippines, but that “inconsistent and half-hearted enforcement of these laws has always been the bane of our environmental protection strategies.” Such a cavalier attitude toward the enforcement of environmental laws, said Hernandez, “has led to the severe pollution and despoliation of the air we breathe, the water we use for sustenance, and the forests needed to ensure the integrity of our various life-support systems.”

* * *

INDEED, the country already enjoys such groundbreaking laws like the Clean Air Act and the Ecological Waste Management Act. But despite the existence of such laws, said Hernandez, “illegal dumpsites keep on proliferating across the country and the ban on the open burning of waste continues to be violated with wild abandon. Because they know they can get away with it, abusive corporations treat our mountains and rivers as their private storehouses and repositories of their toxic waste.”

Before we can even dream, then, of creating “green cities” around the country, perhaps we should begin with enforcing our laws and preserving and protecting what remains of our unspoilt environment. The environmental courts can only hear cases of individuals and companies caught violating our laws. The rest of us can ensure that our laws are followed, starting with our own backyards, our own environmental practices.

Powered by ScribeFire.

EU nations chafe as the climate change bill comes in

BRUSSELS (AFP) — Less than a year after challenging the world to a race to stop global warming, European Union nations are bickering over who should carry the biggest burden in the EU’s push to cut greenhouse gases.

Now starkly aware of the cost their commitments could imply, the 27 nations have been lobbying the European Commission hard as it prepares to unveil Wednesday a package of measures meant to achieve Europe’s climate goals.

Whether it is Germany with its auto industry, nuclear minded France, coal-dependent central Europe or the environment-friendly Nordic nations, all know they will struggle to meet targets the Commission is ready to impose.

Just nine months ago, EU leaders agreed with great fanfare to cut carbon dioxide emissions by 20 percent by 2020, against 1990 levels, which they judged to be the best way to stop the planet heating by two degrees Celsius.

As an incentive to the world’s major polluters, they offered to go 10 percent better, cutting emissions by 30 percent over the same period if others were prepared to match it.

The leaders also set a binding target for renewable energy to provide 20 percent of Europe’s needs by 2020, compared to 8.5 percent currently, and agreed that this should be achieved by some countries doing more than others.

“The specialities and peculiarities of each country will have to be taken into consideration,” warned German Chancellor Angela Merkel, whose country held the EU presidency.

In the run up to Wednesday’s announcement, they are all clamouring to be taken into consideration, with Germany’s environment and economics ministries part of the chorus of criticism.

German industrialists estimate the measures could endanger one million jobs.

For the Commission, coming up with the calculations to achieve the EU’s goals — through proposals to bolster emissions trading and national targets on carbon dioxide cuts and renewable energy use — has proved a thankless task.

French President Nicolas Sarkozy wrote to its chief Jose Manuel Barroso imploring him to calculate the targets based on the amount of pollution currently produced per inhabitant, rather than on gross domestic product (GDP).

France wants greater consideration taken of its wide use of nuclear power.

Nordic nations too are bristling. With Europe’s most impeccable environmental credentials, Denmark, Finland and Sweden were seeking reward for their already substantial efforts.

But they could be penalised for their relative wealth, with Sweden likely to be asked to derive half its energy from renewable sources, Finland 40 percent and Denmark 32 percent.

At the other end of the scale, ex-communist states, already battling to bridge the EU’s economic gulf, complain they have to overcome a legacy of environmental abuse and energy intensive industries.

Greece, Ireland, Portugal and Spain — which have become richer as members of the EU but have done little to reduce greenhouse gas emissions — are also likely to be hit hard.

But a week before the package was to be released, a defiant Barroso vowed not to compromise, even though the method of calculation does not yet have unanimous support in the Commission itself.

“Do not expect us to compromise on European interests,” he said. “Both our international credibility and credibility before European Union citizens depend on fulfilment of the targets.”

“It is essential to meet the three central challenges that the European Union faces in energy: competitivenesss, sustainability and security of supply,” he said.

In the end, the Commission’s calculations are bound to be modified, as the proposals are picked apart by the EU nations and the European Parliament over the next several months.

And while the targets will be legally binding, any action taken to fine a country that fails to respect them by 2020 would take years, dragging through EU infringement procedures and the courts.

Powered by ScribeFire.

Bodman: Global energy security requires significant investment

Nick Snow
Washington Editor

WASHINGTON, DC, Jan. 21
– Billions of dollars in investments will be required annually to
achieve global energy security by diversifying supplies, suppliers and
supply routes, US Secretary of Energy Samuel W. Bodman told business
leaders in Saudi Arabia.

“These three elements are the key to enhancing global security. To
achieve them is, perhaps, one of the most significant challenges of our
time. And to address them in a timely manner, we will need literally
billions of dollars annually, over many years,” he said in prepared
remarks that were released Jan. 19.

The International Energy Agency estimates that $22 trillion of
investment will be needed between now and 2030 if the world is to meet
expected energy demand, Bodman said in his breakfast address in Riyadh.
“This investment must be global, in developed and developing nations
alike, and at all stages in the energy cycle,” he said.

Government and business leaders also should recognize that greater
environmental responsibility is required in all energy cycle phases, he
said. This means harnessing scientific and technological resources, as
Saudi Arabia is doing at its King Abdul Aziz City for Science and
Technology, and soon at the King Abdullah University of Science and
Technology to develop cleaner energy sources and technologies, Bodman
said.

“That’s not even the whole picture. We must also consider the impact
energy prices have on our economies. The tremendous economic growth in
China and India and their growing demand for more and more energy has
received much attention. What has not been as widely discussed is the
impact high prices have on smaller and developing countries,” he said.

Economic impacts
Bodman
said he doesn’t consider it an overstatement to suggest that high oil
prices can hurt a country’s economic health. They can restrict
development in ways that keep businesses from growing, inhibit
improvements in health care and other critical areas, and generally
prevent rises in living standards, he said. Both consuming and
producing nations must act responsibly to encourage economic growth
worldwide, raise global living standards, and improve environmental
health, he said.

Achieving this goal will require many different efforts in several
different areas, Bodman said. “We must start by asking: Will the
necessary investments be made to bring sufficient hydrocarbons to
market? Is the investment climate in producing countries conducive to
inviting such capital flows? Are large consuming nations having the
right type of discussions and collaborations with producing nations? If
not, why not? And are we adequately investing in ways to produce fossil
energy more cleanly and efficiently?”

Bodman suggested that it is time to stop taking what he termed
“purposeful market distortions” that clearly won’t help, such as
restricting supplies, reducing production, and creating price floors
and ceilings. “I can’t stress this enough: The global oil market must
be allowed to function in a predictable and transparent way,” he
declared.

The world also requires new energy options beyond hydrocarbons, Bodman
said. “Everyone—governments included—has an important role to play in
the development of alternative fuels and advanced energy technologies.
But the private sector cannot do it alone. We need a new ay of thinking
about how we can work with the private sector. Even our research
priorities must be developed with substantial input from corporations,
utilities and universities. And research needs to be conducted in a
coordinated way.”

Governments should commit
To
that end, Bodman has challenged many countries’ governments to publicly
commit to increase investment in research and development necessary to
achieve the necessary alternative fuels and energy efficiency
breakthroughs, and to achieve the right balance between energy security
and environmental stewardship. “This requires significant public and
private global investments. But it’s worth it,” he said.

Increased investment in energy research and development also would help
meet another global challenge: the shortage of qualified engineers and
technical staff needed to meet the demand for rapid innovation, Bodman
said.

“We need to invest in the next generation of leaders to steer us
through the energy challenge, and we must get beneficial technologies
into the marketplace more quickly. That means sharing the risk that
capital markets and the private sector are not yet ready to take on,”
said Bodman.

One example is a new technology commercialization and development fund
that DOE is developing at several of its national laboratories, he
said. The fund will permit the labs to use prototype development,
demonstration projects, market research and other deployment activities
to move clean energy technologies which have moved beyond the research
stage toward commercial viability, he said.

“We must leverage the power of private equity, as we are doing in the
example I just cited. We must make smart public funding and regulatory
decisions, and unleash the world’s best scientists and engineers on the
problem of developing cost-effective, market-ready advanced energy
technologies,” said Bodman.

“Without sustained global investments, and without a new global
commitment to invest in new sources of energy and breakthrough
technologies, we will not achieve the innovations we must have to solve
the world’s critical energy problems,” he warned.

Powered by ScribeFire.