Full Access to ASPO.TV - including all videos from the 2011 and 2010 annual conferences.  Coming soon:  the “Best of” 2006-2009 conference presentations.

Unlimited FREE Access to the ASPO-USA Webinar Series - including presentation slides and video recordings of every webinar (non-members, $40 per webinar).

Special Invitations and Discounts at ASPO-USA Events - including the annual conference.  Stay tuned for upcoming member-only events.

Opportunities to Get Involved with ASPO-USA’s Work - Want to help ASPO-USA advance its mission?  Members are a critical part of our success, and we wouldn’t be here without you.  Talk to us, we can find a role to suit your schedule and interests.

Make Your Voice Heard - Part of ASPO-USA’s mission is to spur meaningful action to confront the monumental challenge of Peak Oil.  Our message of urgency will only be heard if we speak with a unified voice.  ASPO-USA is that voice.

And here’s one more…

Satisfaction - Your membership dues provide critical baseline support for ASPO-USA to continue and grow its work.  As an ASPO-USA member, you get the satisfaction of knowing you are supporting our ongoing activities to provide high-quality information and education resources, and promote constructive dialogue and action to confront Peak Oil.

To further build on this legacy and more effectively harness the strength of its expert network, ASPO-USA is creating working groups focused on different issue areas, to help guide and support ASPO-USA’s work.  These working groups will help deepen ASPO-USA’s capacity to address core oil and energy issues, as well as broaden our capacity to address different aspects and consequences of Peak Oil.  At present, ASPO-USA advisory board members comprise most of the working groups, however, there are numerous opportunities for ASPO-USA members to get involved with contributing to and supporting the work of different working groups.

If you are interested in learning more about ASPO-USA’s working groups, or would like to explore other volunteer leadership opportunities, please email us at info@aspousa.org or give us a call at 202-470-4809, ext. 1.  We can fashion a role for you that fits your interests and schedule.

The Oil and Gas Supply Group is naturally central to our work, and is already helping us better track trends and synthesize information related to the price and availability of oil and gas supply-from both conventional and unconventional sources.  Other fundamental issue areas that will be addressed by different working groups include:

• Economy
• National Security & Geo-Politics
• Renewable Energy & Oil Alternatives
• Transportation
• Food & Agriculture
• Climate & Environment
• Population & Consumption

Other working groups are focused on supporting functional roles rather than specific technical areas, including:

• Communications & Media
• Public Policy
• Information Technology (IT) & Social Media
• Educators & Students
• Conference & Events

Again, if you are interested in getting involved, please feel free to contact us at info@aspousa.org or 202-470-4809, ext 1.

Feeling Peaky (Economist) - http://www.economist.com/node/21553034

The Future of Oil (TIME) - http://www.time.com/time/magazine/article/0,9171,2110452,00.html

Why Saudi Arabia is losing its power to calm oil markets (Wash Post) - http://www.washingtonpost.com/blogs/ezra-klein/post/why-saudi-arabia-is-losing-its-power-to-calm-the-oil-markets/2012/04/04/gIQABRklvS_blog.html

Has the United States beaten Peak Oil? Not so fast (Wash Post) - http://www.washingtonpost.com/blogs/ezra-klein/post/has-the-united-states-beaten-peak-oil-not-so-fast/2012/02/17/gIQAhFbAKR_blog.html

Meet the Man the Shale Gas Industry Hates (Globe and Mail) - http://www.theglobeandmail.com/globe-investor/investment-ideas/david-parkinson/meet-the-man-the-shale-gas-industry-hates/article2405737

Pump Panic Highlights the West’s Slavery to Crude Oil (Telegraph) - http://www.telegraph.co.uk/finance/economics/9178147/Pump-panic-highlights-the-Wests-slavery-to-crude-oil.html

U.S. Face Twin Perils of Climate Change and Peak Oil (Scientific American) - http://www.scientificamerican.com/article.cfm?id=merriam-kansas-peak-oil-and-climate-change

Has Petroleum Production Peaked, Ending the Era of Easy Oil (Scientific American) - http://www.scientificamerican.com/article.cfm?id=has-peak-oil-already-happened

Obama says concerned about global oil output (Reuters) - http://www.reuters.com/article/2012/03/06/us-usa-obama-energy-idUSTRE8251DW20120306

Getting a peek at the effects of Peak Oil - http://www.timesunion.com/business/article/Getting-a-peek-at-the-effects-of-Peak-Oil-3442301.php#photo-2749688

Michael Klare: GOP Promises of Lower Gas Costs Belied by Dwindling Supply of World’s Oil http://www.democracynow.org/2012/3/14/michael_klare_gop_promises_of_lower

Oil Supply as a Strategic Risk (NY Times) - http://green.blogs.nytimes.com/2012/01/25/oil-supply-as-a-strategic-risk/

Researchers Argue Peak Oil is Here, Bringing Permanent Volatility (Wired) - http://www.wired.com/autopia/2012/01/nature-journal-study-peak-oil/

Oil: In perpetuity no more (Aljezzera) - http://www.aljazeera.com/indepth/features/2012/02/201222051514575294.html

Is $2.50/gallon gas possible (CNN) - http://yourbottomline.blogs.cnn.com/2012/03/16/is-2-50gallon-gas-possible/

Get Ready for $5 Gas This Year: Ex-Shell CEO - http://www.cnbc.com/id/46342617he’s

[For more details or to register for upcoming webinars, please visit the ASPO-USA Webinar Series webpage].

These webinars are already proving to be an effective way to harness the knowledge and experience of ASPO-USA’s vast network of experts.  They are intended to complement other ASPO-USA information and education resources, such as our annual conference.   The relative ease and convenience with which these webinars can be organized, however, provides a good opportunity to address specific issues and questions with detail and depth.  A typical 90-minute session allows for extended discussion among presenters and participants.  The availability of slides and video recordings of the full presentation and discussion, as well as opportunities for follow-up discussion with presenters and panelists, adds to the overall value and impact of each webinar.

A webinar is simply a way to give a presentation remotely with the help of web-based tools to display visual information and broadcast sound (attendees may also have the option to participate via telephone).  The term ‘webinar’ may carry connotations of a cold, overly “techie” form of communication, but the technology thus far has proven to be refreshingly “personal” with participants able to convey questions and feedback in real time during the session via an online chat feature.  Participants are generally in “listen-only” mode, but individual speakers can also be unmuted to allow for spoken questions and comments.  Overall, it is very akin to hosting a radio call-in show, but with the added ability to share visual information.

The format can be adapted and used in many different ways.  It can feature one presenter with questions and discussion, or a multi-person panel.  It can employ a standard one-way presentation, or it can be structured as an interview, panel discussion, or debate.  ASPO-USA intends to explore and creatively employ different variations and styles of presentation.

Each webinar will serve as a stand-alone treatment of a given topic, but we also intend the series to “add up” into a more coherent and integrated understanding of Peak Oil issues.  The challenges posed by Peak Oil and the responses they will compel are multi-faceted and enormously complex.  The webinar series, we hope, will help put these issues into a useful perspective.

In addition to the value we hope the webinar series will bring to individual ASPO-USA members, the catalog of recorded webinars will be useful for a variety of other purposes-including outreach to journalists, policymakers, and other target audiences.

Is there a specific topic or question that you would like to see addressed in an ASPO-USA webinar?  Please feel free to share your ideas and specific interests.  The ASPO-USA webinar series is intended to serve the needs and goals of our members and constituents.  Your input will help us achieve that goal.

For more information, check out the ASPO-USA Webinar Series webpage or email us at info@aspousa.org.

Since receipt of EIA’s response was announced, dozens of additional signatures have been added to a new, open letter to Secretary Chu that reiterates the original letter, and we invite you to add your name to the growing list of concerned citizens.

[To add your name to the ASPO-USA open letter to Secretary Chu, please email us here.]

The letter was presented to DOE representatives from the Office of the Secretary following a news conference held in October of last year in front of DOE headquarters in Washington DC.  ASPO-USA is working to make these concerns as public as possible in order to spur constructive action among public officials and the private sector.  At the same time, ASPO-USA recognizes the considerable political pressure that inhibits DOE staff from talking freely about this issue, let alone taking action.  There is good reason to suspect that Secretary Chu and other top DOE officials are well-versed in the fundamental problems facing global oil supplies.  In fact, the 2007 Hard Truths About Energy report produced for DOE by the National Petroleum Council documents the threat of serious oil challenges ahead-without ascribing a strict Peak Oil label or explanation, but essentially warning of similar consequences.

The response to ASPO-USA’s letter came under the signature of EIA Acting Administrator Howard Gruenspecht.  This was not surprising, given the EIA emphasis of the ASPO-USA letter; however, leadership on this issue must come from the top of the Department, and ultimately from the President.  The response did not address the specific points and questions raised in the ASPO-USA letter, giving instead a generalized summary of EIA’s “official” outlook on global oil supply.  Nevertheless, it was instructive that the letter restated the contentious premise underlying EIA’s supply projections-that increasing oil prices will inevitably create new supply.  This is the crux issue on which ASPO-USA will focus as it pushes for a critical review of EIA’s methodologies, and appropriate action by DOE.

Acting Administrator Gruenspecht’s response came approximately five months after the original letter was submitted, without answers to several important and explicitly stated questions or a reply to ASPO-USA’s request for a meeting with DOE staff.  There is no indication that EIA or DOE will take any specific action to address what could be the most serious economic and national security challenge the nation has ever faced.  In the light of this underwhelming response, how should ASPO-USA proceed?

First, we continue to press for an in-person meeting and we have been preparing for such a meeting if and when it should occur.  Second, we are using private channels to communicate with DOE and EIA officials to help articulate our concerns more fully.  Third, we are also using these communications to gain a more detailed understanding of how EIA develops and applies it oil price and supply projections, and to foster a genuinely constructive conversation with EIA analysts, and a more transparent examination of their work.  Lastly, we are also developing relationships with media outlets and individual journalists to help bring critical attention to this underappreciated but paramount issue of “getting the facts’ straight in order to steer a wise course for America’s energy future.

What do you think ASPO-USA should do to follow-up on EIA/DOE’s response?  Please feel free to share your ideas by email to info@aspousa.org, and please indicate if you would like to add your name to an open letter to Secretary Chu that reiterates the original letter submitted by ASPO-USA.

[Read the ASPO-USA Letter to Steven Chu and other related materials here]

[Read the Letter from Howard Gruenspecht to ASPO-USA here]

1. Oil and the Global Economy

In a week dominated by shifting economic news, oil traded in a narrow range ending up a dollar or so a barrel at week’s end with NY oil just below $105 and London just below $120. NY gasoline futures, which at one point were trading 40 cents a gallon below early April highs, recovered a bit to close out the week at $3.20, down about 20 cents from the recent highs. Natural gas futures climbed steadily during the week on a dose of colder weather in the US and the continuing reduction in drilling for gas. There has also been a surge in utilities and industrial users burning gas while it is still so cheap.

The weekly stocks report showed US crude inventories increased by 4 million barrels the week before last while gasoline and distillate inventories were down by 2.2 and 3.1 million barrels respectively. Total oil products supplied to the US markets are down by 4.2 percent from the same four weeks last year. Distillates supplied are up by 0.1 percent from last year suggesting that another round of heavy diesel exporting is taking place.

MasterCard’s SpendingPulse, which reports on gasoline consumption at the retail pump, says that gasoline sales the week before last were down 6.1 percent from the same week last year. SpendingPulse notes that gasoline sales show “exaggerated weakness on weekends” meaning that significant cutbacks in discretionary weekend driving. The service says that US gasoline demand for so far in 2012 is running about 8.5 million b/d as compared with 9 million b/d last year and 9.5 million b/d in 2007. This puts US gasoline demand this year at 5.5 percent below 2011.

The economic data was mixed last week which accounted for the uncertainty in the markets. On Monday Chinese manufacturing was reported as improving; however by Tuesday it was reported to be contracting for the sixth straight month. The Federal Reserve weighed in with a pledge to protect the economy by keeping interest rates low during the next two years and possibly resorting to increasing the money supply. Most of the concerns last week were focused on the EU where serious economic problems seem to be emerging once again.

The US’s GDP growth of 2.2 percent for the first quarter was a disappointment. This was a preliminary estimate and is likely to be revised when better data is available. Some hold that GDP calculation has become so heavily politicized in recent years that it is a poor reflection of reality. Certainly the continuing drop in domestic gasoline consumption over the past year does not suggest that much economic growth is going on.

2. The Iranian Confrontation

Although the confrontation was relatively subdued by recent standards last week, there were a number of developments. The Syrian uprising in which the Iranians are deeply ensnared continues to deteriorate as animosities rise with the body count and the UN observer presence does little to quell the situation. As the Syrian economy shuts down amid the turmoil, the Assad government is likely to turn to Moscow and Tehran for more support. This in turn adds considerably to the pressures on Tehran which is already beginning to feel the impact of the Western sanctions on their oil exports.

There was a brief flurry of excitement on Wednesday when Tehran’s ambassador to Moscow said that Iran is considering a Russian proposal to halt the expansion of its nuclear program in order to avoid further sanctions. Under the Russian proposal Iran would stop building centrifuges, mothball the ones not yet in use, and agree to more inspections. Washington’s reaction to the proposal was that the Ambassador is not part of the negotiations and that it will be Tehran’s actions that count.

Israel stirred the confrontation pot last week when the IDF’s Chief of the Staff told a newspaper that he did not believe that Tehran had as yet made the decision to build a bomb. This was followed by Israeli Defense Minister Barak’s statement that the chances appear low that Iran will bow to international pressures and halt its nuclear program. He also said that the world must swiftly and firmly stop Tehran from acquiring nuclear weapons or it will set off a Middle East arms race. The Israeli government tried to play down the appearance of internal disagreement, although the Army’s Chief of Staff opined that the Iranian government was run by rational people, while Prime Minister Netanyahu said he would not count on Tehran’s rational behavior.

Meanwhile, cyberwar flared when someone attacked the computers of Iran’s oil ministry. The ministry was reported to have all its facilities disconnected from the Internet in order to prevent viruses from spreading. While outwardly calm, some oil ministry officials are saying off the record that the attacks are a major problem.

The fussing over the effectiveness of the sanctions continued last week with India saying that the US has not yet threatened the country with sanctions and it will continue to buy as much Iranian oil as it needs. The position of China in all this is becoming more interesting. Beijing has cut back significantly on its purchases of Iranian crude. The question is whether it is trying to help with the sanctions or is simply trying to extract price concessions from Tehran as the Iranians become more desperate?

Washington, however, says that Beijing is playing a more constructive role in the talks over the nuclear confrontation, rather than just following Moscow’s lead as it has done in the past. China has a lot more to lose in the confrontation than do the Russians as a significant portion of its oil is coming from Middle Eastern countries and would likely suffer more than most should exports from the region be reduced.

On Friday an Iranian official denied that China had cut its crude imports despite Chinese data showing that imports of Iranian crude in the first quarter were down by one third from last year. The data shows that China cut its imports by 5 percent year on year in January, 40 percent in February, and 54 percent in March. Industry sources continue to say the cuts are due to contract disputes.

3. The EU’s crisis

Now it is Spain. With unemployment up to 24 percent, retail sales in the cellar, S&P downgrading government debt, and bad debts soaring, a government minister characterized the state of Spain’s economy as a crisis of huge proportions. The key issue across the EU is how harsh austerity budgets with government spending being to cut deal with the sovereign debt crisis will ever lead to a recovery. The popular reaction to these measures has been the fall of 16 EU governments since the start of the debt crisis. If French President Sarkozy is voted out of office on May 6th, he will be the first French President to suffer such a fate in 20 years.

Nearly all observers agree that the EU’s economy is going downhill and that there is no solution in sight. In the few countries that are still doing well, there is increasing resistance to bailing out those that aren’t. More radical solutions such as forcing some members out the Eurozone, abandoning the Euro entirely, or shifting economic decision making to Brussels are being discussed again. What seems sure is that some sort of radical change is likely in the next year or so. The concern is that the EU will slide into a major recession, widespread financial default, or worse.

The impact of such a development on the demand for oil would, of course, would be severe with effects rippling across the global economy. Next to the interminable problems in the Middle East, the EU situation is likely to have the greatest impact on the oil markets in the next two years.

Quote of the week

“… while slowly increasing US crude oil production is very important, the dominant trend we are seeing is that developed oil importing countries like the US are being gradually priced out of the global market for exported oil, as global oil prices doubled from 2005 to 2011, and as developing countries like the Chindia region consumed an increasing share of a declining volume of global net exports of oil.”

- Jeffrey J. Brown

The Briefs (clips from recent Peak Oil News dailies are indicated by date and item #)

• Global GHG emissions will nearly double by 2050 under current policies unless urgent action is taken, the International Energy Agency has warned. (4/28, #4)
• A Japanese deep-sea drilling probe has set a new world record for depth, reaching 7,740 meters (25,400 feet) below the sea surface. (4/28, #7)
• US oil and gas drilling activity this week declined by 27 units to reach 1,945 total rigs working. The rig count for the week ended Apr27th was up by 127 rigs compared with the same period a year ago. (4/28, #16)
• A group of energy companies has scrapped a $1.4 billion carbon capture and storage project, dealing a major setback to Alberta’s efforts to reduce greenhouse gas emissions. (4/28, #17)
• A new study finds that the GHG emissions from palm oil production are significantly underestimated. And that palm oil biofuels could be more climate-damaging than oil sands fuels. (4/28, #22)
• Coal consumption by China’s four major coal-consuming sectors grew at a higher rate that the country’s coal output in the first quarter. (4/27, #9)
• The Exxon Mobil reported disappointing first-quarter earnings, saying net income dropped 11 percent because of lower production volumes and weak chemical profit margins. In contrast, Royal Dutch Shell, Europe’s biggest oil company, said its earnings rose 15.9 percent in the first quarter from a year earlier because of new projects and higher prices. (4/27, #10, #11)
• US natural gas for delivery this fall is trading at a record premium, signaling the fuel may be poised to rebound from its worst quarter in two years because of production cuts and rising demand from power plants. (4/27, #12)
• Turkey started drilling for oil and natural gas off Northern Cyprus, threatening to further poison relations with Greek Cypriots in the latest chapter of a gathering row over ownership of potential energy riches in the eastern Mediterranean. (4/27, #16)
• Egypt’s decision to cut off natural gas supplies to Israel threatens the countries’ historic 1979 peace treaty and could crank up simmering tensions over disputed offshore gas fields in the eastern Mediterranean. (4/23, #9) (4/26, #10)
• Set to become the world’s largest photovoltaic power plant, the Aqua Caliente project in Arizona reached the 100-megawatt milestone. (4/27, #17)
• The expected heir to Chinese Premier Wen Jiabao will seek to strengthen energy ties to Europe during an upcoming visit, Chinese Vice Premier Li Keqiang will make a stop in Brussels to meet with European Council President Herman Van Rompuy and European
  Commission President Jose Manuel Barroso during a five-day state visit beginning April 30. (4/26, #16)
• The possibility of an El Nino, a warming of the mid-Pacific Ocean, has forecasters predicting lower temperatures across the US this summer, which may mean less electricity will be needed to run air conditioners. (4/26, #18)
• Norwegian energy company Statoil said it was working to make oil sands production from its Canadian assets less threatening to the environment. (4/26, #19)
• The Nova Scotia government said it needs 2 more years to study hydraulic fracturing. No fracking will be approved until the extended review is completed. (4/26, #20)
• Iraq expects oil production to reach 10 million barrels per day within the next six years. (4/25, #7)
• Nigeria lost $6.8bn because of corruption and mismanagement of its controversial fuel subsidy program from 2009 to 2011, according to a report presented to the Nigerian parliament. (4/25, #9)
• The biggest-ever pipeline of copper projects is under threat as Chile, as the world’s top producer struggles to contain rising opposition to new power plants. (4/25, #10)
• India’s consumption of refined fuel products rose 4.9% last fiscal year, at its highest pace since 2007-08, due to a growth in vehicle sales and power shortages boosting diesel demand for running generators. (4/25, #12)
• India’s March crude-oil output fell 2.9% while natural gas production declined 10.1%, falling for the 15th month in a row. (4/24, #16)
• Dhaka, the capital city of Bangladesh, faces severe water shortages, particularly during the annual March to May dry season. While the city needs 2.2 billion liters of water a day, it can only produce 1.9 million-2 billion. (4/25, #13)
• After dropping for most of the month, gasoline is now cheaper in much of the U.S. than it was a year ago. That hasn’t happened in more than two years, and it could be part of a larger decline in gasoline prices that could lift consumer confidence ahead of the summer driving season. (4/25, #14)
• Carlyle Group’s talks to buy a majority stake in Sunoco Inc.’s Philadelphia refinery show private equity is betting that the business abandoned by public oil companies may be poised for a long-term rebound. (4/24, #17) (4/25, #16, #17)
• A former BP engineer was arrested on charges of intentionally destroying evidence requested by the US about the size of the 2010 Gulf of Mexico oil spill, in the first criminal case arising from the incident. (4/25, #18)
• Italy’s Eni and Rosneft are expected to agree to search for oil and gas in the Russian Arctic, Russia’s second major exploration deal in two weeks after U.S. ExxonMobil partnered with the state oil firm. (4/25, #19)
• Britain’s economy has fallen back into recession for the first time since 2009 after official figures showed that it unexpectedly contracted during the first three months of the year. (4/25, #20)
• Iraq’s crude oil exports from its southern oil terminals jumped to record rates in April and theses rates are expected to be sustained for the rest of the year thanks to the opening of two new floating terminals. (4/24, #8)
• The Iraqi Parliament’s oil and energy committee is resuming its efforts to push forward thenlong-delayed oil legislation – and as a first step, it has voted to set aside a draft favored by Prime Minister Nouri al-Maliki. (4/24, #9)
• Royal Dutch Shell agreed to buy Cove Energy after raising its bid to $1.8 billion, securing a stake in gas fields discovered off Mozambique. (4/24, #13)
• The Sudanese president Omer Hassan al-Bashir announced that his country will not allow its southern neighbor to export any of its oil through the its pipelines in the wake of the worst fighting between the two countries since they broke up into two last year. (4/23, #12)
• Cuba expressed support to Argentina for its decision to expropriate a majority share of Spanish-owned oil company Repsol YPF, saying it is lawful. (4/23, #16)
• An electricity crisis is looming in India as around 50 power stations have just days of coal stocks to fuel the plants. Several hours of power cuts are routine in most parts of the country and with shortage of electricity reaching 21,000 megawatt the situation is expected to worsen this summer. (4/23, #19)
• Drilling in the deep Gulf of Mexico is becoming robust two years after the oil spill that prompted a six-month moratorium on deep-water exploration, but more of the work now is left to large companies. Triple-digit oil prices are driving the activity, making it worthwhile to go forward even given the cost, risk and heightened government scrutiny of working in waters often a mile deep or more. (4/23, #21)
• The European Union has delayed a decision on whether to classify oil sands as a “dirty” form of crude oil, bringing praise from Canadian officials. (4/23, #26)
• China and Iceland announced a deal on the oil-rich Arctic region after Chinese Premier Wen Jiabao flew in to Reykjavik on the first stage of a four-nation European tour. (4/23, #27)

As many Peak Oil Review readers know, ASPO-USA has launched a regular webinar series to provide in-depth analysis and discussion of a wide variety of Peak Oil and energy-related topics.  You may have seen information regarding the first two webinars held this past month-one on shale gas featuring Art Berman, and another on global oil exports featuring Jeffrey Brown.  I would like to use this opportunity to say a little more about the webinar series, because I hope you will take advantage of this rich information resource-and I hope it will provide another great reason for you to begin or renew your ASPO-USA membership.

The series is part of ASPO-USA’s ongoing efforts to harness the knowledge and brain power of our expert network, and is intended to complement ASPO-USA’s other educational activities.  A webinar, in case you are not familiar, is simply a way to give a presentation remotely with the help of web-based tools to display visual information and broadcast sound (attendees also have the option to participate via telephone).  The format, however, can be adapted in many different ways.  It can feature one presenter with questions and discussion, or a multi-person panel.  It can employ a standard one-way presentation, or it can be structured as an interview, panel discussion, or debate.  ASPO-USA intends to explore and employ these different variations.

Each webinar is intended to provide a stand-alone treatment of a given topic, but we also intend that the webinar series taken as a whole will “add up” to provide a coherent and integrated understanding of Peak Oil issues.  The challenges posed by Peak Oil and the responses they will compel are multi-faceted and enormously complex.  The webinar series, we hope, will help put these issues into a useful perspective.  For example, Jeffrey Brown’s presentation focused on oil export trends and the importance of rising oil consumption, especially in oil-exporting nations, in addition to overall production.  This work is fundamental to forming a clear view of the global oil picture.  Meanwhile, Art Berman’s insightful analyses of shale gas and shale oil plays commands serious attention, and we plan to bring in other expert viewpoints to compare and contrast with Art’s work.

Each webinar is scheduled as a “live” event with attendees listening in and asking questions in real time to the presenter or panelists.  However, every webinar will be recorded and available for future viewing along with other video products on ASPO.TV.  This allows users to “attend” a webinar at their convenience, and allows ASPO-USA to develop a library of recorded webinars that can be used for other purposes.

Is there a specific topic or question that you would like to see addressed in an ASPO-USA webinar?  Please feel free to share your ideas and specific interests.  The ASPO-USA webinar series is intended to serve the needs and goals of our members and constituents.  Your input will help us achieve that goal.

For more information, check out the ASPO-USA Webinar Series webpage or email us at info@aspousa.org.

Upcoming Webinars

May 17–Shale Oil in Perspective - Art Berman

June 7–A National Oil Emergency Response Plan - Roger Bezdek

ASPO-USA would like to congratulate Incubate Pictures for the huge success of its recent online video. Working in conjunction with the Post Carbon Institute, Incubate created a 30-minute animated documentary on Peak Oil, energy-return-on-investment, renewable energy and other key energy challenges.

EDITORIAL NOTE:  the title “There’s No Tomorrow” is rather unfortunate, given the spirit of ASPO-USA’s work to advance meaningful and constructive responses to Peak Oil, but we commend the quality of the video’s content and the creative and educational achievement it represents.

You can watch the video below:

1. Oil and the Global Economy
Last week, the oil markets were mixed with NY oil finishing the week up a bit to a close of $103.88 and London closing down a couple of dollars at $118.64. With the Iranian nuclear negotiations underway the level of bellicose rhetoric has dropped considerably. However the Syrian situation, which continues to deteriorate, and the sanctions on Iran’s oil exports, which continue to tighten, serve as reminders to the markets that the Middle Eastern situation could get worse before it gets better.

There is growing concern that the US and global economic situation is not looking as good as it did earlier this year. Some believe the unusually warm winter moved some of the spring’s usual economic activity ahead giving the impression that the economy was starting to move. Some are opining that $4 gasoline in the US and $9 gasoline in Europe might be slowing things down a bit. Interest rates on European debt are beginning to rise and US employment, home sales, and industrial production numbers are not looking as good.

Warm weather continues to drive down US natural gas prices with new 10-year lows being set last week. As prices continue to trend downwards analysts are expecting to see $1.85 per million BTU’s shortly. No end to the warm weather is in sight and it will be a while before air conditioning demand kicks in. Rigs drilling for natural gas climbed by seven last week to 631 after slipping to the lowest level in 10 years from a recent peak of 936 in mid-October. It is likely that the increase in rigs drilling for gas are doing so in liquids-rich areas. The EIA now expects that US gas output for 2012 will reach 69.3 billion cu ft. per day – up 4.5 percent for the year. Rigs drilling for oil reached a 25-year high of 1,337 last week.

NY gasoline futures continue to fall and are now down 25 cents per gallon since early April. Retail prices have not followed as rapidly with the AAA saying that gasoline fell only 4 cents a gallon in the past week and only 2 cents in the past month. Many states are still above or close to $4 a gallon. Some observers are predicting that we have already seen the peak in gasoline prices for the year and that they will continue to fall in the months ahead. According to MasterCard, gasoline consumption the week before last was down 6.8 percent from the same week in 2011.

The Philadelphia refinery situation is still an open question. The larger of the two Sunoco refineries is still scheduled to be closed in July and the reports that Delta Airlines is negotiating for the other are considered ludicrous by most observers. The price jump that comes with the transition to summer gasoline blends is still a few weeks away and sanctions on Iranian oil exports are still tightening. All this suggests that predictions we have seen a peak in gasoline prices may be premature.

Iraq’s second single point mooring system went online last week, adding another 450,000 b/d of export capacity. Baghdad hopes to increase exports from Basra from the current 2.15 million b/d to 2.75 million b/d by the end of the year. Another round of bombings occurred in Iraq last week with 35 killed and 100 injured across 10 cities. Most of the attacks were against security installations in Shia areas and were intended to show that the government cannot provide for public safety.

2. The Iranian Confrontation
By recent standards, it was a relatively quiet week in the confrontation. Both sides say that the meeting on April 14th was generally satisfactory with Tehran willing to discuss their nuclear program rather than simply airing a list of grievances. The meetings are scheduled to resume on May 23rd in Baghdad.

The five week delay in the meetings brought forth protests from Israeli Defense Minister Barak that the talks were simply a stalling operation on the part of Tehran and that participating in talks does not exempt Tehran from Israeli attacks on their nuclear facilities. Barak again denied that there is a deal with Washington to not launch attacks as long as Tehran is willing to talk. To back up this threat, Israeli television broadcast a detailed and unprecedented account of Israeli Air Force preparations for strikes on Tehran’s nuclear facilities.

In the meantime, preparations for the embargo that is due to start in about two months continue. Many observers are saying that inability to get insurance on shipping to and from Iran may be more effective than direct sanctions on oil exports. Some 90 percent of shipping insurance is written by Western firms, leaving only China, India, Japan, and Tehran itself to offer coverage to foreign ships. Foreign shipping companies, however, say they have no faith in Tehran’s willingness to pay claims. The Indian, Chinese, and Japanese governments are considering whether to write insurance on Iranian oil cargoes coming to their countries.

Tehran accused the Saudis of attempting to replace Iran’s oil exports by increasing production to more than 10 million b/d. Iran’s Oil Minister expressed doubts that the Saudi’s will be able to maintain the current rate of production for long. The IEA continues to say officially that the Saudis can increase production to 12 million b/d, but some outside observers have doubts that such a rate can be sustained.

3. The EU’s debt crisis
After a month or so out of the headlines, the EU’s economic problems are once again moving oil prices. Last week started with Spain’s bond yields breaking above 6 percent raising fears that a bailout of Madrid is not far away. Although the bond crisis subsided by week’s end, the debate over the euro zone’s future continues. Most observers agree that the EU is headed back into another recession that will be amplified by the wave of austerity measures sweeping Europe. With government spending being slashed everywhere, many are wondering just how economic growth will ever be restored to the continent.

The situation currently is being exacerbated by the French Presidential election which seems likely to result in policy changes affecting euro zone bailouts, oil embargoes, Syria, immigration, and other key issues. The role of the European Central Bank continues to be debated. Both French President Sarkozy and his main challenger would like the bank to take the lead in relieving fiscal pressure on hard pressed governments in the manner the US Federal Reserve has been doing. By law the European Bank’s job in to contain inflation and not to help stimulate economic growth, however. Few expect that any important changes to the bank’s mandate will come soon.

Last week the IMF announced that it had added $430 billion in extra lending capacity to used if the euro zone crisis deteriorates. This money will be added to a $200 billion commitment previously made by the euro zone countries themselves. Oil consumption in EU has been falling for several years and high oil prices and taxes have pushed gasoline into the $8-9 a gallon range putting additional pressures on fragile economies. In two months the EU’s oil embargo on Iran will be in force. While governments hope that offsetting oil flows will come from other countries, the situation is far from clear and further deterioration of the EU’s financial situation this summer is possible. For the oil markets the concern remains that we could be entering another period of recession or worse.

4. Argentina nationalizes YPF
The nationalization of Spanish oil company Repsol’s 51 percent interest in Argentina’s largest oil company, YPF, has set off a wave of protest in Europe. The company which used to belong to the Argentine government was sold off in wave of privatization in 1989. Buenos Aires says the company was not reinvesting its profits in Argentina, but was transferring them back to Spain. Repsol, which has demanded $10 billion in compensation, suggests the move really was aimed at getting control of Argentina’s recently discovered Vaca Muerta shale gas formation which some say could be the third largest such formation in the world.

After Argentina rejected Repsol’s demand for $10 billion in compensation, Spain announced that it would retaliate against what it deems an illegal act. Madrid has already announced that it would stop importing $900 million a year worth of Argentine biofuels and warned there would be other retaliatory measures. In support of Spain, the EU parliament condemned Argentina’s move and called on the EU to look at partial suspension of Argentina’s tariff preferences.

Repsol had been in negotiations with China’s Sinopec to sell its 57 percent share in YPF – a deal which presumably has been killed by the nationalization. Spain recently has been Argentina’s top foreign investor with some $23 billion going to the country in 2010. Some analysts are already noting that outright expropriation sets a very bad precedent that will likely stifle foreign investment in the country. Argentina is already involved in a trade war with the UK over ownership of the Falkland Islands and its recently discovered oil.

Quote of the week
“Our massive economic growth over the past 150 years has been closely associated with, and dependent upon, a similar growth in energy use, especially oil. But we’re not growing economically much anymore… And all of our economic theories are built on the principle that economies grow. We’re entering the second half of the age of oil, a time during which the production of oil can no longer increase year after year. It will eventually decline and it’s going to be very different.”
- Charles Hall

The Briefs (clips from recent Peak Oil News dailies are indicated by date and item #)

• Israel’s biggest gas discovery, potentially turning the fuel importer into an exporter, is prompting a race by nations from Lebanon to Turkey to tap similar deposits in disputed waters of the East Mediterranean. Noble Energy is developing the Leviathan and Tamar fields off Israel that hold about 30 trillion cubic feet of gas, more than triple the U.K.’s remaining reserves and worth about $670 billion at today’s prices. (4/19, #9)
• The Russians appear to be making a determined bid to secure a stake in the energy boom in the eastern Mediterranean despite the danger of conflict. Israel, Lebanon, Cyprus, Greece and Turkey are vying for control of the offshore natural gas fields in a region long-deprived of energy resources. (4/21, #6)
• Pressure intensified on Chesapeake Energy as analysts called on it to overhaul corporate governance and warned that the company’s financial structure and liquidity concerns could present a risk for shareholders. The calls for change came in the wake of revelations that entities controlled by Aubrey K. McClendon, the company’s founder and CEO, borrowed up to $1.4 billion from a private-equity firm that has done hundreds of millions of dollars in deals with the company. (4/21, #11)
• Proposed West Coast coal export terminals for shipping coal mined in Wyoming and Montana to Asia are facing increasing scrutiny. If all the Pacific Northwest projects were built, as much as 150 million tons of coal could be exported annually, equal to almost 50 percent more than the country’s coal export output for 2011. (4/21, #12)
• Southwest Airlines reported an adjusted first-quarter loss of $18 million amid rising fuel costs. (4/21, #14)
• Canadian natural gas deliveries could drop as much as 2.6 Bcf/d from 2011 to 2014, as drilling activity slows in dry gas plays and prices remain low. The slowdown in estimated marketed gas production is tied to low gas prices and producers’ focus on higher-priced liquids. (4/21, #15)
• Ford will invest US$760 million to build a new assembly plant in Hangzhou, China with its joint venture Changan Ford Mazda Automobile (CFMA), adding initial capacity of 250,000 units. When Hangzhou opens in 2015, Ford’s total passenger car capacity in China will increase to 1.2 million units annually, doubling current output. (4/20, #17)
• After a long and arduous battery of inspections, not to mention many power failures and blackouts, Japan is ready to resume using nuclear energy after Japanese Prime Minister Yoshihiko Noda last week declared that two reactors were safe to reactivate and operate after having passed computerized “stress tests”. (4/20, #18)
• Japan’s imports of liquefied natural gas rose to a record last fiscal year as utilities turned to fossil fuels after the Fukushima disaster led to the shutdown of almost all the nation’s atomic reactors. (4/19, #15)
• Oil Search said it has struck more gas in Papua New Guinea, firming up the potential of its recent P’nyang discovery to support an expansion of its US$15.7 billion gas-export joint venture with ExxonMobil. (4/20, #19)
• BP announced it reached a definitive agreement that settles the bulk of the claims related to the Deepwater Horizon oil spill in the Gulf of Mexico. BP estimates the cost of the settlement at roughly $7.8 billion paid to the Plaintiffs’ Steering Committee, which will come from the $20 billion trust fund established for fines and penalties associated with the 2010 spill. (4/20, #22)
• Exploration in the Utica shale deposit in Ohio is in the very early stages, though results are encouraging, Anadarko Petroleum said. (4/20, #23)
• The world has more undiscovered, technically recoverable natural gas resources than previously estimated, according to the US Geological Survey’s (USGS) World Petroleum Assessment released Wednesday. Excluding the US, USGS estimates the world to have 5,606 trillion Tcf of undiscovered, technically recoverable conventional gas, compared to 4,669 Tcf of gas estimated in 2000. USGS officials attributed the increased estimate for natural gas resources to the inclusion of more areas in the new assessment, including offshore areas and regions such as the Arctic and East Africa. (4/19, #5)
• Iraq’s oil ministry said that ExxonMobil is not allowed to bid in the May energy auction because of its oil deals with the Kurds. (4/19, #8)
• TransCanada submitted a reroute of its Keystone XL oil pipeline to the Nebraska state government Wednesday, moving a step closer to reviving the project after it was rejected by the US government earlier this year. The reroute will avoid an environmentally sensitive area. (4/19, #18)
• A US House panel approved of a measure that would tie any potential release of U.S. strategic oil reserves to an increase in domestic oil and gas production. (4/19, #19)
• Two years after the Gulf of Mexico oil spill, scientists say they’re finding trouble with sick fish that dwell along offshore reefs and in the deep waters - especially in places where the oil spill hit the hardest. The scientists are unsure what’s causing a small percentage of the fish they’re catching to have large open sores and strange black streaks. (4/19, #21)
• A below-average Atlantic storm season in 2012 probably will provide little support for energy prices. Only four hurricanes are expected this year, according to researchers at Colorado State University who pioneered long-range Atlantic forecasting. (4/19, #22)
• Dow Chemical will build a multibillion-dollar plant to convert natural gas into the building blocks of plastic, becoming the latest chemical maker to capitalize on the abundant gas supplies that are helping spur a renaissance in US manufacturing. (4/19, #25)
• Britain may have enough offshore shale gas to catapult it into the top ranks of global producers, energy experts now believe. While production costs are still high, new US technology should eventually make reserves commercially viable. (4/19, #28)
• French oil major Total will cut oil supplies at a deep oil platform off the coast of Angola for maintenance in June. Girassol is one of OPEC member Angola’s largest fields and can pump up to 250,000 b/d. West African crude oil traders said that operator Total would cut production in order to inject new volumes from a satellite field to sustain output as reserves fall. (4/18, #4)
• The Obama administration proposed new measures to limit speculation in the oil markets, seeking to draw a contrast with Republicans who have been calling for more domestic drilling during a time of near record gasoline prices. The new proposals require oil traders to put up more of their own money for transactions, ask for more money for market enforcement and monitoring activities, and call for higher penalties for market manipulation. (4/18, #11)
• Shell Pipeline said it will extend by one week the open season for comments on the planned reversal of a pipeline that would bring crude oil from Louisiana to the Houston refining hub. (4/18, #13)
• A Texas court ruling classifying drilling for oil and gas as a manufacturing process would cost the state up to $4.4 billion in revenue, its comptroller has warned. (4/17, #18) (4/18, #14)
• Scientists may hesitate to link some of the weather extremes of recent years to global warming - but the public, it seems, is already there. A new poll shows that a large majority of Americans believe that this year’s unusually warm winter, last year’s blistering summer and other weather disasters were probably made worse by global warming. And by a 2-to-1 margin, the public says the weather has been getting worse, rather than better. (4/18, #17)
• One of the auto industry’s most closely guarded secrets—the cost of batteries for electric cars—has spilled out. Speaking at a forum on green technology, Ford Motor Chief Executive Alan Mulally indicated battery packs for the company’s Focus electric car cost between $12,000 and $15,000 apiece. (4/18, #21)
• The IEA said it was investigating implications of a potential investment shortfall in upstream activity in the Middle East and North African energy sector. The International Energy Agency said much of the world’s remaining oil and natural gas reserves are in Middle East and North African countries. (4/17, #5)
• Cheniere Energy Inc. received federal approval to construct what would be the first major natural gas export facility in the lower 48 US states, putting the company a step closer to shipping some of America’s newly abundant natural gas abroad. (4/17, #21)
• The US EPA has released the 17th annual US greenhouse gas inventory. The final report shows overall emissions in 2010 increased by 3.2% from the previous year. EPA attributes the trend to an increase in energy consumption across all economic sectors, due to increasing energy demand associated with an expanding economy, and increased demand for electricity for air conditioning due to warmer summer weather. (4/17, #22)
• Rosneft and Exxon Mobil concluded an alliance that will secure vital know-how and upstream access to North America for the Russian state oil firm and increase the US major’s global reserves base. (4/17, #26)
• The UK government said shale gas exploration can resume in the north of England if new procedures are followed, despite evidence that Cuadrilla Resource’s operations in the area caused two earth tremors last year. (4/17, #27, #28)
• China has aggressive plans to increase the role of natural gas in meeting its energy needs. Estimates suggest that the country may as much as quadruple its gas consumption levels last year by 2020 and is looking to meet this demand from a number of sources including LNG. (4/16, #12)
• President Obama quietly signed the “Supporting Safe and Responsible Development of Unconventional Domestic Natural Gas Resources Executive Order” which will create what amounts to a Presidential super committee that will oversee the regulation and development of the ‘unconventional’ natural gas. (4/16, #13)

1. Oil and the Global Economy
Oil prices closed largely unchanged Friday after mid-week weakness on signs that the global economy is slowing and lower tensions in the Middle East. New York gasoline futures, while still a few cents per gallon below recent highs, rebounded after the week’s stocks report showed a substantial drop in inventories. New York oil futures closed at $102.83 and Brent at 121.81 on Friday amid analyst predictions that prices would soon move lower.

Reports that China’s 1st quarter economic growth fell to a 3-year low of 8.1 percent last quarter coupled with weak employment figures from the US, and increasing financial problems in Spain and Italy were a major factor keeping downward pressure on prices. Despite the resumption of talks on the Iranian nuclear issue, increasing turmoil in Syria and ever tightening oil sanctions kept a floor under prices.

New York natural gas futures continued their slide last week falling below $2 per million BTUs, the lowest level for this time of year since 1997. The ruinously low prices, which are only a fraction of the costs of producing shale gas, have resulted in a steep decline in rigs drilling for shale gas. Baker-Hughes puts the number of gas-only drilling rigs at 10 year low. Some analysts are saying the prices will fall in $1.85 per million in the near future. The warmest March in the US on record has pushed the inventory of natural gas to a record high for this time of year. Some are predicting that natural gas storage caverns will be out of space by July or August forcing curtailment of production.

Extremely low natural gas prices have many talking about a “manufacturing renaissance” in the US based on low natural gas costs. Others are talking about a massive LNG export industry developing in the US to take advantage of high LNG prices in Asia and Europe. Money-losing $2 natural gas is only a temporary phenomenon and given the short producing life of “fracked” shale gas wells is likely to lead to higher natural gas prices next year.

US gasoline prices fell about two cents a gallon last week leading to a spate of press stories about the end of the 2012 gasoline price spike. Most analysts believe that the price spike still has a ways to run as the annual spring changeover to summer gasoline blends is still underway. The IEA reported on Wednesday that gasoline stocks were down by 4.3 million barrels the week before last – likely due to the annual changeover. Stories that Delta Airlines was considering buying the shuttered Sunoco refinery near Philadelphia served as a reminder that the possible closure of the second and larger Sunoco refinery is only ten weeks away. Most analysts are skeptical that Delta could be successful in running an aging refinery in a region where Sunoco says it has been losing $1 million a day. Should the second Sunoco refinery close, many see serious problems in supplying refined oil products to East Coast markets in the second half of the year.

2. The Istanbul talks
The Iranian nuclear confrontation took a major turn last week with the opening of talks between the Group of 6 and Tehran in Istanbul. Initial reports say the first meetings were satisfactory to both sides, although no concrete proposals were tabled. An American participant noted that without concrete progress, the sanctions will remain in place. Another meeting is scheduled for May 23rd in Baghdad, with lower level meetings to take place in between.

For now, the word is “confidence building” measures. The West would like to see Tehran give up its 20 percent enriched uranium, open suspect weapons-related facilities to IAEA inspection, and close the underground enrichment facilities. For its part, Tehran would like to see a relaxation of sanctions on its oil exports and banking system.

Optimism that this round of talks may eventually lead to some sort of settlement without hostilities rose when Iran’s Supreme Leader Ayatollah Khamenei reiterated his fatwah against Iran’s acquisition of nuclear weapons saying that such an action was against Islam and a sin. Skeptics pointed out, however, that while Iran’s acquisition of nuclear weapons might be a sin, acquiring the capability to quickly assemble them if the state was threatened is another issue not covered by the fatwah.

Tehran’s concern may not so much in deterring Israel and the West from military strikes on Iran as it is with the consequences of introducing such weapons into the 1200-year old Sunni-Shiite dispute. If Tehran were to openly acquire nuclear weapons or the plausible capability to quickly assemble them, the chances are that we would see a nuclear arms race between the branches of Islam increasing the possibility that the Saudis, Egyptians, and others would feel impelled to join in.

Negotiating a solution to all this will be a difficult and drawn out affair. In the meantime the sanctions programs continue to move ahead with the IEA saying that Iranian oil exports could be down by as much as 1 million b/d later this year. Despite a ceasefire in Syria, the situation continues to deteriorate with Ankara outraged over Syrian forces pursuing dissidents into Turkey last week. With Tehran and Moscow deeply vested in the Assad government, the course of this situation is far from clear. Another round of UN observers is due to arrive shortly. As the casualties mount, however, pressures for outside military intervention continue to grow raising the possibility of still deeper Iranian involvement in the conflict.

Current plans foresee a series of step by step confidence building measures that will move forward at a pace sufficient to keep the Israelis from unilaterally striking Iranian nuclear facilities thereby triggering a major oil price spike. There so many variables in this situation that the shape of an outcome is nearly impossible to foresee.

3. The IEA’s Oil Market Report
The headline news in this month’s OMR was the IEA’s assessment that global oil stockpiles rose by 1.2 million b/d during the 1st quarter, thereby ending the slow drawdown of global stocks that the Agency has been noting since 2009. Much of the 1.2 million b/d increase in global stocks during the first quarter is due to stockpiling by the Saudis and Chinese. The Iranians are also putting into floating storage much of the 300,000 b/d they can no longer sell due to the EU’s sanctions. Unless there is a quick relaxation of sanctions, Iranian oil exports are expected to be down by 0.8-1 million b/d this summer.

With the Saudi and other OPEC producers increasing output, the Agency foresees a fairly balanced market in the 2nd half of this year, but recognizes the possibility that price spikes from Middle Eastern tension will still be with us.

Global demand for oil in 2012 is still forecast to increase by some 800,000 b/d reaching 91 million b/d by the 4th quarter. As expected, North American, and EU demand continue to fall while the rest of the world continues to increase consumption.

There are still many unknowns in the oil equation. If Japan can see its way clear to restarting some of its nuclear power plants demand could drop considerably in the next few months.

The IEA says that global oil supply dropped by 400,000 b/d in March with higher OPEC crude and NGL output offsetting unexpected drops in Non-OPEC production. Much of the lower Non-OPEC drop is due to troubles in the North Sea and breakdown of the equipment processing the Alberta tar sands. OPEC production increased by 135,000 b/d in March to 31.4 million b/d. The Saudis continue to produce 10 million b/d and tanker bookings suggest that this number will continue to increase in coming months.

The IEA estimates that spare capacity is now around 2.5 million b/d, but many outside observers are skeptical that it is this high.

Quote of the week
“… it would appear that at best oil production in the near future will be virtually flat, leading to more spiking of oil prices and greater world economic problems. Another possibility is that world production will begin to decline. The likelihood of decline would appear to be increased if more oil exporters encounter political disruptions, or if the world enters a major recession leading to an oil price decline.”
- Gail Tverberg

The Briefs (clips from recent Peak Oil News dailies are indicated by date and item #)

• Iran is disabling tracking systems on most of its 39-ship tanker fleet in an effort to disguise the destination of oil sales. (4/14, #12)
• Total Exploration and Production Uganda, a unit of Total SA is planning to spend at least $300 million on exploration and appraisal activities in its two exploration areas in Uganda this year. (4/14, #15)
• Mexico is set to become the second country worldwide to begin legislating against climate change, as its House of Representatives passed a climate law. If passed by the Mexican Senate, the General Law on Climate Change will require the whole country to reduce its carbon by 50% by 2050. (4/14. #17)
• Venezuelan President Chavez has given a speech from the presidential palace in Caracas, the first since his latest round of treatment in Cuba for a malignant tumor. Mr Chavez, who was more than two hours late, told thousands of supporters that he was “doing well”. But he also said he would return to Cuba on Saturday for more radiotherapy. (4/14, #17)
• With US and Canadian gas stockpiles entering injection season at record highs, there is little storage operators can do to prevent levels from testing facility limits, except to hope for production cuts or significant summer utility demand. (4/14, #20)
• US President Barack Obama issued an executive order establishing an interagency working group to coordinate federal policies to support safe and responsible US unconventional natural gas resource development. Oil and gas trade associations and other business groups immediately applauded the action. (4/14, #23)
• Cheniere Energy, the natural gas importer that lost $1.2 billion in a decade, is poised to become the sole U.S. exporter of fuel from the shale bonanza that’s turned the nation into the world’s biggest gas producer. (4/14, #26)
• Americans are buying record numbers of hybrid and electric cars as gas prices climb and new models arrive in showrooms, giving the vehicles their greatest share yet of the U.S. auto market. (4/14, #27)
• With natural gas prices hovering near 10-year lows, investors have fled coal companies, pushing the Dow Jones U.S. Coal Index down by more than half in the past year. (4/14, #28)
• Still reeling from devastating drought that led to at least $10 billion in agricultural losses across Texas and the South in 2011, the nation is enduring more unusually parched weather. A mostly dry, mild winter has put nearly 61 percent of the lower 48 states in “abnormally dry” or drought conditions. (4/14, #29)
• A crude oil pipeline owned by Italian oil and gas group Eni was attacked on Friday in Nigeria’s onshore Niger Delta and a militant group claimed the strike. (4/13, #8)
• China’s economy grew 8.1 percent in the first quarter from a year earlier, its slowest pace in almost three years. With Europe struggling and the US recovery appearing to ebb, signs of strength from China, the world’s second-largest economy, could still help allay fears of a global slowdown. (4/13, #9)
• South Sudan’s government suspended oil production in the disputed oil-rich area of Heglig following the capture of the area by the South Sudan’s forces known as the Sudan People’s Liberation Army. (4/12, #15)
• The United States imported 64 percent less crude oil from Nigeria than last year because of idled refineries and more use of domestic crude. (4/12, #22)
• Tulsa-based natural gas transporter ONEOK Partners LP announced that it plans to enter the crude oil business by building a 1,300-mile pipeline from the Northern Great Plains to the Cushing hub in central Oklahoma. (4/11, #18) (4/12, #28)
• French energy company Total said it expects to have a natural gas leak off the coast of Scotland under control by the end of the month. The Elgin platform in the North Sea was evacuated after Total confirmed a significant natural gas leak about 150 miles off the coast of Aberdeen at the end of March. (4/12, #31)
• A Canadian government attempt to speed up construction of Enbridge’s Northern Gateway oil pipeline to the West Coast is unlikely to prevent a flood of court challenges that could still delay the multibillion-dollar project. (4/10, #27)
• France’s economy, second largest in the euro zone, posted no growth in the first quarter and there are no signs of a strong recovery in activity in the coming months. (4/10, #28)
• An explosion hit the Egyptian pipeline carrying gas to Israel and Jordan for 14th time since the uprising against President Hosni Mubarak began last year. (4/9, #12)
• The opening of a new Russian oil terminal on the Baltic Sea, seen as a new direct link to Europe, is having an effect on world crude markets, analysts say. The new universal port is at the end of the newly constructed, $3.3 billon Baltic Pipeline System-2 trunk oil pipeline system, which runs from Unecha in Russia’s Bryansk Region to Ust-Luga. (4/9, #26)