ODAC Newsletter - June 11
Original article: http://www.odac-info.org/newsletter/2010/06/11

Gas

Pennsylvania nat gas well capped after blowout

Workers capped a natural gas well in central Pennsylvania on Friday after it ruptured
during drilling, spewing gas and drilling fluid 75 feet (23 meters) in the air, officials said.

The well, operated by EOG Resources Inc (EOG.N) in a remote area of Clearfield County, blew out at about 8 p.m. EDT (midnight GMT) on Thursday when a drilling team "lost control" of the well while preparing to extract gas, according to a statement from the state Department of Environmental Protection...

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Behind the Russia-Ukraine deal on gas

There are several reasons behind the deal between Russia and Ukraine which saw a significant discount on Russian gas in exhange for the extention on the lease for the Black Sea Fleet in Sevastopol.

Passions are raging in Kiev over the agreement president Dmitry Medvedev signed with Ukrainian president Viktor Yanukovych on April 21 in Kharkiv, which provides a significant discount on the price of Russian gas in exchange for extending the lease for the Black Sea Fleet in Sevastopol until 2042...

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BP suffers $1bn setback in Siberia

The political storm engulfing BP intensified yesterday as the group came under renewed pressure on its Russian front.

Gazprom, the Kremlin-controlled gas monopoly, has raised new questions over the future of a giant gasfield in Siberia controlled by the British group’s Russian joint venture TNK-BP...

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Turkey brokers key gas supply deals for Nabucco

Azerbaijan and Turkey yesterday (7 June) signed a deal to ship 11 billion cubic metres of Azeri gas per year to Turkey. Shipments would start in 2017 and some of the gas may be pumped into the EU's planned Nabucco pipeline. Meanwhile, Northern Iraq declared in Turkey that it stands ready to provide gas supplies "to make Nabucco work".

The agreement was signed in Istanbul by Azerbaijan's minister of industry and energy, Natig Aliyev, and Turkey's minister of energy and natural resources, Taner Yildiz, EurActiv Turkey reported...

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Shale gas not yet game-changer for Europe

Shale gas cannot be seen yet as a game changer in Europe as it is in the United States, where roughly 50% of the country's needs are met by developing unconventional gas. The conclusion was reached by international experts at a public event held in Brussels yesterday (7 June).

To illustrate the possible impact of developing shale gas in Europe, Don Gauthier of the US Geological Survey said that in an area the size of the Benelux countries, there would have to be up to 6,000 wells, an impact that would probably attract environmental opposition...

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UK

Onshore wind produces “cheapest zero carbon” electricity

Onshore wind is the "least cost zero carbon" technology option in the near to medium term with regards to generation costs, according to a report published by the Department of Energy and Climate Change (DECC) today.

However, the study also found that biomass plants could become even cheaper than onshore wind projects over time as carbon prices increase...

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UK alarm over attack on BP

UK industry expressed alarm yesterday at the "inappropriate" and increasingly aggressive rhetoric being deployed against BP by Barack Obama, US president, warning that the attacks on the oil company could damage transatlantic relations.

The concerns come amid mounting political unease in Britain that attacks on BP over its handling of the Gulf of Mexico oil spill are being dictated by the politics of November's crucial mid-term elections in the US, rather than normal regulatory considerations...

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Climate

New UN climate chief calls for more ambition

The incoming head of the UN climate convention has said rich nations must pledge bigger emission cuts if climate change is to be tackled effectively.

But Christiana Figueres said she was confident that leaders would meet the challenge "because humanity has to meet it - we don't have another option."...

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Transport

How China's hybrid cars could change the world

Unless you follow blogs such as The Wall Street Journal's excellent China Realtime Report, you probably missed the biggest global energy news in recent weeks (and no, I'm not forgetting about BP): Last week, China announced considerable subsidies for consumers who buy electric or plug-in hybrid vehicles. Beijing will pay the first $7,800 to $8,800 of the sticker price for the first 50,000 such vehicles bought in five designated Chinese cities, or roughly 31 percent, for instance, of BYD's $25,000 F3DM...

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