FT Energy News 6 January

US pins blame for BP spill (Page 1)

Systematic failures by the management of BP and other companies led to the Macondo well blow-out in the Gulf of Mexico last year, the official US inquiry has concluded, warning that industry complacency could cause a similar accident again. The report will be published on Tuesday and delivers a scathing verdict on the procedures followed by BP and its contractors on the project, Halliburton and Transocean.

Spill fears fail to bring curb on deepwater oil drilling (Page 2)

MPs will today rule out a moratorium on deepwater drilling in the North Sea but urge oil and gas companies to address shortcomings in their response plans to spills. A report by the Commons energy and climate change committee calls on the government to ensure that standardised response plans are replaced by site-specific guidelines that take into account local conditions.

China keeps turbines turning as European cuts affect demand (Page 23)

Government budget cuts will slow growth in the European wind power industry this year, but surging demand from China is helping advance the global push behind green energy according to Vestas Wind Systems, the world’s biggest wind turbine maker. Growth in new wind energy installations in Europe is forecast to shrink from 14% in 2010 to 1% this year, according to analysts at Citigroup.

FT Energy News 5 January

Oil price ‘enters danger zone’ (Page 1)

High oil prices threaten to derail the fragile economic recovery among developed nations in the Organisation for Economic Co-operation and Development according to the IEA oil import costs have soared by $200bn to $790bn to the end of 2010.

US oil groups press for easing of drilling curbs (Page 7)

The US oil industry has launched a campaign to persuade the government to open more of the country’s coastline and interior for oil and gas drilling, arguing that ending restrictions could create more than 500,000 jobs. The American Petroleum Institute believes that the November elections in which the Republicans won control of the house of representatives will lead to a better reception from Congress to its appeal for increased drilling access.

BP hits seven-month high on Gulf compensation news (Page 17)

BP shared jumped 7% after news that its compensation payouts for the Gulf of Mexico spill might be much lower than anticipated.

Cairn hires rigs for Arctic oil search (Page 20)

Cairn Energy’s highly prospective Arctic exploration programme remains on track after they said they have rented two drilling rigs and secured a $900m credit line. The operator said that it had plans to drill up to four wells this year, subject to approval from the country’s government.

Latest Falklands setback knocks Desire shares (Page 20)

Shares in Desire Petroleum, the Aim-quoted oil explorer, fell by almost a quarter after it announced that no oil had been found in a prospective well off the Falkland Islands. Desire has now drilled four wells in the North Falklands Basin without finding oil and said it had funds to drill one more.

South Atlantic yields more frustration (Page 20)

The admission that Desire Petroleum is considering to raise more cash to bolster its faltering Falklands drilling campaign raises fresh questions about the prospects of companies drilling there.

Petrobras in talks over Eni’s Galp stake (Page 22)

Petrobras, Brazil’s national oil company, is in talks with Eni, the Italian energy group, to acquire its 33% stake in Galp, the Portuguese oil company. Galp is a partner with the Brazilian group in exploration and production in off-shore fields, including the potentially enormous “pre-salt” discoveries of 2007. Petrobras is already engaged in one of the most ambitious investment programmes in the industry.

FT Energy News 9th November

Chinese Businesses fuel market for cleaner energy (Page 10)

China Clean Energy is collecting waste oil from restaurants and factories and turning it into bio-diesel and chemicals, helping cut carbon emissions.

BP cleared of putting cost above safety (Page 19)

BP did not put cost before safety in drilling the Macondo well that ruptured in April, according to the presidential commission investigating the spill in the Gulf of Mexico; which stated they had not seen a single instance where a human being made a conscious decision to favour dollars to safety.

Shell reduces Woodside stake to fund projects (Page 20)

Royal Dutch Shell is selling almost a third of its stake in Woodside Petroleum for $3.34bn as it looks to free funds to redeploy new projects. Shell plans to increase its LNG capacity by more than 20% by 2015.

Afren employees kidnapped in Nigeria (Page 20)

Five employees of Afren, the Africa-focused independent oil-company, have been kidnapped from an offshore oil rig in Nigeria.

FT Energy News 20th October

Cooling ambitions (Page 11)

Delays, cost over-runs and foreign competition have dimmed French hopes for its new-generation nuclear reactor as a significant source of diplomatic and economic power.

China: The world’s biggest market but in need of nuclear know-how (Page 11)

The Chinese government plans to build 70GW-100GW of nuclear capacity by 2020, 23 reactors are under construction and another 120 have been proposed.

Market bulls set target of $100 a barrel for crude oil (Page 33)

Goldman-Sachs forecast oil will reach $100 a barrel by the end of next year, helped by a weak dollar and a stronger than expected growth in oil demand.

The Carbon Tax in Ireland

After many years of talk and conjecture, the Irish Government have introduced a carbon tax on transport (Diesel and Petrol) and thermal (heating) fuels. This year the rate set is €15 per tonne. This is about the middle of the rates that I had heard suggested.

Electricity isn’t included because all electricity generators are already included in a scheme called the EU Emissions Trading Scheme (ETS).

“But I don’t burn CO2… so why would I care?” you say! Sorry but when you use a fuel such as coal, gas or petrol, it emits CO2. Different fuels emit different amounts, with Coal being very bad and Natural Gas being not as bad.

The Carbon Tax was added to transport fuels the day after the budget (December 10^th)

The tax will come into effect on oil and gas in May

It has yet to be decided when it will take effect on solid fuels (coal and turf). I expect this is because it will be the hardest to implement.

So how much is this €15/tonne in reality? Well here is a rough idea –

	Fuel commonly sold in quantities of	Which would cost €	Tax will lead to an increase of	So that increase in % terms
Petrol	Litre	1.19	4.2cent	3.5%
Auto-Diesel	Litre	1.10	4.9cent	4.4%
Kerosene	1,000 Litres	516	€ 43.14	8.4%
Market Gas Oil	1,000 Litres	539	€ 46.87	8.7%
LPG	1,000 Litres	720	€ 27.97	3.9%
Fuel Oil	1,000 Litres	600	€ 52.15	8.7%
Natural Gas	M3 (13,750kWh)	800	€ 47.86	6.0%
Peat Briquettes	Bale	3.85	39cent	10.1%
Coal	Bag (40kg)	16.20	€ 1.79	11.1%

As a greenie… I’m in favour of this. In theory the money (330million they say) should be spent on projects to reduce emissions and save us from “the Climate Change”. So that should mean more grants for light bulbs, planting trees and buying boats! I’ll keep you posted on it!

Dublin Bikes

I signed up the other day for the new dublin bikes service. Generally its a very good service. Pay €10 annualfee and you can use bikes to cycle around the city centre.

Dublin Bikes

My Comments however

1. More please. I have seen manyempty stations already. That would reck my head if I went to get one, and the station was empty

2. Better management please. I’ve already seen stations that are full. Imagine how annoyed you would be if you went to drop back your bike and the station was full!

3. More stations please. I don’t like to walk a long way

4. Cover a larger area please. I live far too far out of town!

5. Make the map of where stations are a bit easier to access on the website. If you are using your mobile, accessing google maps embedded into a website is really slow. Not to worry… I’m going to put a jpg version of the map right here on this post.

Dublin bikes map

Information on the government bike scheme

So… things are beginning to look a bit like spring, so isn’t it time for you to think about making use of the government bike scheme… here are the details…

The government have put in place a scheme for employers to buy bikes for their employees. Before tax. This means that if you are lucky enough to be on the top rate of tax, you can essentially get new bike at 45% off. You can also get reflectors, locks and other bike accessories.

 

Think of it like this, take the top €1,000 of your wages (the one over €35,400 and so in top rate of tax-41% plus 4% prsi, more if your a civil servant). When paying it to you the employer they give you €550 and the tax man €450. Instead your employer can spend €1000 on a bike, and give it to you. The shop owner still gets the €1000, but you only lose out by €550. The one who loses out? The taxman!

 

If you only pay the lower rate of tax, the same thing applies, but you will only be saving €250.

 

If you only want to spend a smaller amount, that’s fine too. Any number up to €1,000 is ok.

Whats the catch? New bikes only! And from a shop/supplier who is tax registered, and of your employers choosing. Most of the big bike suppliers have schemes in place to make it easy for your employer though.

 

Other points

You need your employer to administrate the scheme, and it is voluntary for them, so you have to explain to them that it won’t cost them a penny, just a bit of administrative hassle!

Your employer doesn’t have to pay employers PRSI on the money, so saving between 8.5% and 10.75% of the money spent.

You can only make use of the scheme once every 5 years.

Electric bikes are eligible. Electric bikes are limited to those with an electric motor with a maximum rated power of 0.25 kilowatts and a max speed of 25 km/h

You also need to use a bike shop who has registered for tax. No Swedish imports for you!

 

The Greens have put together a nice little website here

Raleigh have a good site here

 

Irish Government Home Insulation Grant Scheme

Well it’s official. The “Home Energy Saving Scheme (HES)” has gone national. I reported on the pilot scheme which ran in a few regions some time ago, but now here we are, with the national role out. The gist of the scheme is that it provides grants for home owners to improve the insulation and draft proofing levels in their homes.

So how much are the grants?
Grants are fixed for each type of measure as indicated in the table below. If the cost of the work (vat inclusive) is less than the fixed grant amount, the actual cost will be reimbursed. You can apply for one, some or all of these measures.

MEASURE	CATEGORY	GRANT *
Roof	Roof Insulation	€250
Wall	Cavity wall insulation	€400
	Internal Wall Dry-Lining	€2,500
	External wall insulation	€4,000
Heating Controls	High Efficiency Gas or Oil fired Boiler with Heating Controls Upgrade*	€700
	Heating Controls Upgrade*	€500
BER Assessment (Building Energy Rating)	A Before works and an After works BER assessment	€200

* Minimum requirement of: 2 zones (space and water) with 7 day programmer (time and temperature) control and boiler interlock, time and temperature control of electric immersion heater and either 1 more zone control or 3 TRV’s.

* There is a minimum grant amount of €500. The BER grant cannot form part of this €500 amount.

So what’s the catch (s)??
No DIY. All works must be completed by a contractor from SEI’s Registered List, which will be published when the scheme opens for homeowner applications. The list is being assembled as of now. If undertaking a BER, these must be completed by a registered BER assessor. A list of registered assessors is available on the SEI website www.sei.ie/BER

No grants for work you’ve already done.

Hold your horses!!!

The scheme is not open to home owners just yet. The plan is to put together a list of installers put together. ASAP. Then get going. As you need a grant approval before you start, you can’t start yet. Hold it now!!!

 

Want to know more? Check out www.sei.ie/hes

Reply to Consultation on Domestic Export Tariff

Hey Folks,

The CER and ESB Customer Supply are coming together to offer an export tariff to domestic home owners. So the idea is that if you install a Wind turbine, a Solar PV panel, or a Micro-CHP, you will be in a position to sell electricity to back to the grid for profit. The drawback is that the rate they propose to pay you will be far less than what you currently the pay for electricity. (this is explained by the difference between retail and wholesale prices. Anyway, you can find their proposal here. I’m responding to the consultation and am blogging it here. Sorry for all the acronyms, but hey… thats what google is for…

 

Dear Sir/Madam,

I am delighted to have this opportunity to comment on your proposal to develop an export tariff for Domestic customers and hope that my comments are helpful and useful. Congratulations to both yourselves and to ESB Customer Supply (ESBCS) on taking this initiative.

My comments on the ESBCS proposal

Financial approach – The proposal set out by ESBCS appears to be a largely based on a simple financial calculation. This does not take into account subtle softer benefits of such generators which tend to encourage their owners to be more aware of energy use, and so reduce consumption, particularly at peak times. This will act to help Ireland Inc. reduce our National GHG emissions and improve security of supply.

Benefits of embedded generation – The proposal does not seem to recognise the benefits of such embedded generation in reducing system losses and generally strengthening the grid.

Need for increased dispatchable capacity on the grid – As identified in Eirgrid’s report on Generation Adequacy report 08, Ireland requires more installed generation plant. This initiative could act to provide some or all of that capacity.

Danger of channelling funding through ESBCS – While I understand the attractiveness of using ESBCS to provide this scheme, doing so is to create a further barrier to other suppliers entering the residential market. Could a system similar to the WPDRS be used to allow all suppliers to provide such a tariff with your support.

Though the proposal suggested that the approximate price comparison between wholesale and retail electricity is two thirds, the price of 9c/kWh is not two thirds of the published domestic kWh tariff, of 16.4c/kWh.

 

General  comments

Environmental approach – The proposal does not focus on the environmental benefits of many of the likely technologies to be included in the scheme.

Capacity/Reserve/AER/Wind/REFIT/WPDRS tariff structures – In the past financial structures have been created to facilitate generators which bring benefits to the system which are not simply kWh based. I propose that a similar pragmatic approach be taken here.

Licence to build/generate – Using the current structure, registration of such a large number of generators by yourselves will create great challenges for both the generator owners and yourselves. Is a simpler solution being developed?

The existing Grid Code is not suitable for consumption of domestic generator owners, though the risk their generators will create is potentially greater than all the existing capacity on the grid. Is a more suitable guide/code on the way for their benefit?

Of all the benefits I have mentioned here, greater benefits could be exploited by introducing a similar scheme for small and medium businesses. Could such a scheme be fast-tracked for their benefit.

 

In conclusion

I believe that the potential scale, environment and security of supply benefits of this scheme are being severely underestimated by this proposal. Furthermore I disagree with asking ESBCS to act as the main agent for the scheme. Provision of funding could be provided by the CER to be paid to any supplier who offers such a tariff. Finally I believe that the administrative burdens this will create are significant, and should not be underestimated.

While I congratulate you greatly on the proposal, I do believe that a larger tariff should be introduced considering the benefits the scheme will bring. A simple net metering structure would provide a far greater incentive and a greater benefit to us all.

 

Regards

 

XXXXXX XXXXXXX

Trending oil and diesel prices

Since April 07 I’ve been keeping my diesel reciepts (for work). Though diesel and petrol (gas) prices haven’t followed each other perfectly, its still an interesting graph. I’d like to see what it would look like if I also fed in the €/$ exchange rate… there is always more you could to do with excel… 

Graph of Oil and Retail Diesel Prices (Gas prices)

Notes – These prices come from random service stations, though I do try and go to the cheaper ones

Thanks to the Energy Information Administration for the oil prices