Exxon’s CEO, Rex Tillerson, has said that rising costs to build pipelines to exploit Arctic natural gas from Alaska and Canada could soon be uneconomic. Tillerson said that the cost estimate to build a gas line from Canada’s Mackenzie Delta gas fields had more than doubled to about $15 billion. “At those costs, it’s not … Read More
Gas
BP Secures $900m Libyan Gas Deal
BP has secured a $900m (ÂŁ455m) gas exploration deal with Libya, in a sign of Tripoli’s transformation from pariah to attractive investment destination for UK and US companies. Tony Hayward, BP’s new chief executive, described the agreement as the group’s “single biggest exploration commitment”. The deal coincides with a visit to Tripoli by Tony Blair, … Read More
BG Group to Supply Gaza Gas to Israel
This is a really hot political potato. The British BG Group is poised to agree the terms of an historic $4 billion deal to supply Palestinian gas to Israel from a discovery off the Gaza coastline. Representatives from BG are due to thrash out a 15-year contract with the Israeli Cabinet next week. Despite the … Read More
Moscow Warns TNK-BP Over Gas Licence
There is no sign of BP’s troubles stopping. Moscow has now ratcheted up the pressure on BP’s Russian venture, warning that TNK-BP could see the licence for its vast Kovykta gas field revoked within “a matter of days”. Oleg Mitvol, head of Russia’s environmental watchdog, said his agency would open a probe tomorrow into whether … Read More
Veco CEO Pleads Guilty to Bribery
Some say that corruption always starts at home. The CEO of VECO, an oil field services company, has pleaded guilty in an American federal court to bribing Alaska lawmakers during negotiations over a proposed natural gas pipeline. Bill J. Allen, has entered his plea in US. District Court to numerous counts, including conspiracy and bribery. … Read More
Gazprom Targets UK Expansion
The Russian gas monolith, Gazprom, is making a concerted effort to increase its influence in Britain by targeting landmark buildings as customers. The energy company, whose chairman is Dimitry Medvedev, the first deputy prime minister of Russia and a presidential hopeful, has also stepped up its lobbying efforts in the UK with the appointment of … Read More
Gas Cartel Ruled Out
The world’s largest gas exporters have ruled out launching an Opec-style cartel that would control 70 per cent of the world market. Instead they promised “collaborated efforts” on issues such as pricing. Energy ministers from the 13 largest gas exporters have met in Doha, Qatar, to discuss proposals from Iran and Venezuela to develop the … Read More
Pardon My Skepticism
On March 5, the New York Times published a front-page story called “Oil Innovations Pump New Life Into Old Wells.” Getting new oil from “played out” wells was the thrust of the piece; as the price of oil rises, it becomes worthwhile investing new money into old wells. The article also indirectly took on the … Read More
The $30 Billion Alaskan Gas Pipeline
The concept of huge gas pipeline that snakes all the way from Alaska’s North Slope across Canada to the lower American states draws closer to being a reality. Alaska’s new Governor Sarah Palin, has announced that she will submit her natural gas pipeline legislation within two weeks. Anyone interested in building the line will have … Read More
Turkmenistan Begins “New Era”
The oil industry is getting excited by the fact that power has changed hands for the first time in two decades in the authoritarian energy-rich state of Turkmenistan. Former dentist, Gurbanguly Berdymukhamedov, has taken the presidential oath in the capital. The strategic importance of the event was underscored by the presence of Russian Prime Minister … Read More