India and China’s largest oil companies have agreed to jointly explore for oil and natural gas world-wide and use their combined financial resources and expertise to secure energy supplies for their fast-growing economies.

The natural gas bonanza in the eastern Mediterranean just keeps getting bigger and so do the geopolitical headaches. Israel, whose exploration is the most advanced, is making new strikes. Cyprus is on the cusp of energy riches and is seeking loans in China. Lebanon is hustling to get its act together to launch exploration of its waters. All this has stirred political tensions in the region, exacerbating old rivalries between Israel and Lebanon and between Turkey and Greece, with Syria, Egypt and the Palestinians in the Gaza Strip likely to get dragged in somewhere down the line. Now Russia, seemingly determined to rival Turkish ambitions of regional influence, is getting involved.

Prices of crucial shale gas byproducts, such as ethane and propane, have tumbled to 10-year lows due to booming shale gas output.

Japan and Russia have agreed to throw their support behind a huge private-sector project to build a liquefied natural gas (LNG) plant in Russia’s Far East. The planned plant in Vladivostok is expected to produce 10 million tonnes of LNG annually — or about 13% of Japan’s annual imports –when it comes online later this decade.

The Organization of Petroleum Exporting Countries (OPEC), which in its heyday could trigger global economic crises by turning off the oil taps, faces an uncertain future as the shale oil and gas revolution transforms the energy business. OPEC’s plight is deepened by a growing confrontation between oil price hawks, like Iran and Algeria, and the so-called doves led by Saudi Arabia, long the dominant member of the cartel, over slumping prices. An emerging alliance between Iran and its traditional rival Iraq, now increasingly under the influence of Tehran following the withdrawal of U.S. forces in December, is also jolting OPEC.

Japan’s parliament approved government guarantees on insurance for crude oil cargoes from Iran this week, paving the way for it to become the first of Iran’s big Asian oil buyers to get round new European Union sanctions.

Oil from a pipeline bypassing the Strait of Hormuz should be loaded for a first test cargo from the United Arab Emirates by July. Iran in February threatened to close shipping lanes through the Strait of Hormuz in retaliation for sanctions targeting its energy sector. The threat sparked a push to get around the waterway with conventional oil pipelines. The 230-mile Abu Dhabi crude oil pipeline is designed to carry oil from the western deserts of the United Arab Emirates to the port of Fujairah.

Norwegian energy company Statoil predicts global energy demand should increase 40% by 2040 and demand for fossil fuels should lead the way. “Demand will increase for all types of energy,” Statoil chief economist Klaus Mohn said in a statement.

US oil company Apache Corporation announced that there may be an estimated 3 billion barrels of crude oil under land it purchased in America’s Heartland. The crude oil sits under 880,000 net acres spread across the states of Kansas, Nebraska, and Montana.

Auto manufacturers in India are cutting production of gasoline-run vehicles with consumer demand diminishing as the cost of the fuel has risen.

Talks to overcome the barriers to the creation of a single green energy market between Ireland and Britain are under way between officials, the British-Irish Council reported yesterday. The discussions include greater interconnections between the nations’ electricity grids. The goal is to enable Ireland to be able to export energy to Britain. British energy companies are investing heavily in offshore wind in Scotland but Ireland has the potential to produce energy more cheaply in shallower waters.

Pakistan’s Ministry of Petroleum has been directed by the government to immediately supply 28000 tonnes of fuel oil daily to the nation’s power plants so as to add 1200 MW to the national grid system. Prior to the directive 2000 tonnes of fuel oil were being supplied for electricity production. The government is trying to solve an energy crisis which has led to on-going electric power shortages in the industrial and residential sectors of the economy. Pakistan is the only country in south Asia where power generation has declined in the last five years, as disclosed by the BP Statistical Review 2012. According to the report, Pakistan generated only 89.1 terawatt hours of electricity in 2011 against 98.2 terawatt hours in 2007.

The Government of India asked Coal India Ltd. to import coal to help address local electricity shortages and also to rework its fuel supply pacts with power utilities.  The government is putting pressure on the state-run coal mining firm in an effort to boost electricity generation amidst energy shortages. India’s coal shortage has widened to 192 million metric tons in the financial year that began April 1 from about 85 million tons two years ago. Coal India supplies 80% of the country’s coal demands.

Electricity prices in the state of South Australia are rising 17.7% as of July 1st.  The price increase is attributed to Australia’s new carbon tax and the level of the feed-in tariff’s for solar and wind projects which are passed on to consumers.

Residential electricity users in Bangladesh have seen at least a 50% rise in their bills since March due to a change in the tariff structure. Now the unit price of electricity for households depends on how much power is consumed by each household in a month.

Sweden’s biomass industry now supplies 20% of all energy in the country.

h/t  Ray Long, ASPO-USA, Assistant Director

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1 Comment on Energy Facts of the Day

  1. I am really glad to read this blog posts which includes plenty of useful facts, thanks for providing these statistics.