Wednesday, October 31, 2007

Qatar Liquid Natural Gas to India

It was reported today from Qatar by that Qatar has said it will consider offering a major chunk of the Liquefied Natural Gas (LNG) on a priority basis to India after its expanded capacity of 77 Million Metric Tonnes (MMT) becomes operational by 2010.

It was reported today from Qatar by that India will be getting the second tranche of 2.5 MMT per year of LNG by 2009 from Qatar.
It was reported today from Qatar by that India has already got 5 MMT per year during 2004 taking the total supply to 7.5 MMT under the 25-year agreement signed with the state-owned oil company RasGas.

It was reported today from Qatar by that India’s Petroleum and Natural Gas Minister Murli Deora, who returned from a two-day visit to Qatar, said here on Tuesday that the assurance was given by the Emir Sheikh Hamad bin Khalifa Al-Thani and the Deputy Prime Minister and Minister of Energy, Abdullah bin Hamad Al-Attiyah during his two-day stay in Doha.

It was reported today from Qatar by that the Emir of Qatar also extended an invitation to Prime Minister Manmohan Singh to visit Qatar to strengthen the bond of friendship and cooperation between the two nations.

Tuesday, October 30, 2007

Rocky Mountain Natural Gas Pipeline

It has been reported by the Dow Jones news line website that the Rockies Express Pipeline, being built between the natural gas-rich Rocky Mountains and markets in the Midwest and Ohio, might be expanded as far east as New Jersey, the project's developers said Monday.

It has been reported by the Dow Jones news line website that Kinder Morgan Energy Partners (KMP), Sempra Energy (SRE) unit Sempra Pipelines & Storage, and ConocoPhillips (COP), which are developing the project as a joint venture, said they were soliciting market interest in a proposal to extend the pipeline 375 additional miles from its original endpoint in Clarington, Ohio, to Princeton, N.J.

It has been reported by the Dow Jones news line website that the companies issued an "open season," or request, for non- binding bids from interested customers for contract terms of 10 years or more to ship natural gas using the proposed extension. Service on the proposed line would start Jan. 1, 2011, under the request.

China Natural Gas News

It has been reported today from China via the news website that natural gas output is set to almost triple by 2020 as the country's top producer steps up exploration and exploitation, a top expert told an energy forum in Beijing Monday.

"Gas production will increase fast with the estimated 2020 production hitting 150 billion cubic meters (bcm)," Qiu Zhongjian, an academician at the Chinese Academy of Engineering, told the forum hosted by the China National Committee of World Petroleum Council.

It has been reported today from China via the news website that of the 58.6 bcm of natural gas extracted last year, PetroChina contributed 70 to 80 percent, said Jia Chengzao, vice-president of PetroChina and academician at the Chinese Academy of Sciences.

It has been reported today from China via the news website that this year, PetroChina plans to prove 100 bcm of natural gas at Songliao Basin, where Daqing and Jilin oilfields are located.

It has been reported today from China via the news website that PetroChina is confident of the appraisal results of its Sichuan Longgang Gasfield - whose reserves are believed to be the highest in the country - but Jia would not put a figure to it.

It has been reported today from China via the news website that Also in Sichuan Province, the Guang'an region is believed to hold 1 trillion cubic meters of natural gas, Jia revealed yesterday.
"The potential is huge in Guang'an, with reserves in place reaching 145 bcm in 2006," he said.

China Gas Pipeline Complete

The website reported today from Yichang that construction of a tunnel under the Yangtze River that will form part of a gas pipeline project running from Sichuan Province to Shanghai was completed Monday.
The website reported today from Yichang that The 1.4-km, 3.08-m diameter tunnel sits 20 m beneath the riverbed and connects two wells on either side of the river in Yichang city, Hubei Province, Liu Juzheng, head of the Hubei section of the pipeline, said.

The website reported today from Yichang that With a total length of 2,203 km, the pipeline will serve as an "energy artery" as part of the West-East gas project, Liu said.

The website reported today from Yichang that The pipeline is expected to channel 12.1 billion cu m of natural gas a year from the Puguang field in Sichuan to central and eastern regions of the country, including Chongqing Municipality, the provinces of Hubei, Anhui, Jiangxi, Jiangsu and Zhejiang, and Shanghai Municipality.
The website reported today from Yichang that The tunnel, which took 325 days to complete, is the first of five to be built under the Yangtze.

Monday, October 29, 2007

Qatar Natural Gas

Qatar has reported today that the Emir H H Sheikh Hamad bin Khalifa Al Thani is scheduled to make the opening speech at the 6th Doha Conference on Natural Gas which gets under way at the Sheraton Doha today.

Qatar has reported today that Deputy Premier and Minister of Energy and Industry H E Abdullah bin Hamad Al Attiyah will make the ministerial speech. Qatar has reported today thatIndia’s Minister of Petroleum and Natural Gas Murli Deora will make the keynote address.

Indian Natural Gas Is Up Again

It has been announced today that Gujarat Gas, an Indian subsidiary of British Gas and the largest city gas distribution company in India, is likely to witness a strong growth in topline and bottomline in the coming quarters, thanks to additional supplies of natural gas.

Gujarat Gas'supply contract with Panna-Mukta-Tapti (PMT) consortium became operational in September ’07. This will add nearly 50% to Gujarat Gas' supply contracts volumes once it becomes fully operational. In view of this, investors can consider investing in this company with a 12-month perspective

Saturday, October 27, 2007

Oil & Natural Gas Corporation Offering

Reuters reported a story that India's Oil and Natural Gas Corp is planning on conductiong an initial public offering of their subsidiary ONGC Petro-additions Ltd. (OPaL), a special purpose vehicle for a new petrochemicals plant, which the India Business Standard reported on Saturday, India time.

"We are planning an IPO of OPaL after the other equity partner or partners to the project are finalized," R.S. Sharma, Chairman and Managing Director of ONGC was quoted as saying.

"We are not in a hurry and it could happen by early next year." An ONGC spokesman said he could not immediately comment on the report.

Alberta Canada Taxes Natural Gas @ 9% reported yesterday that the province of Alberta, which supplies about 10 percent of U.S. oil needs, will boost oil and natural-gas royalties starting in 2009. It won't implement a proposed new tax on oil-sands developments. reported yesterday that the province of Alberta royalties for oil sands, or the amount the government charges to extract natural resources, will increase to as much as 9 percent before companies recover their investments, up from 1 percent, the provincial government said today in a statement. The rate after costs are recovered will rise to as much as 40 percent, up from 25 percent. reported yesterday that the province of Alberta staed that all planned royalty increases combined will raise an extra C$1.4 billion ($1.45 billion) in revenue in 2010, the government said. The changes will be effective January 2009, and there will be no exemptions for existing projects.

Friday, October 26, 2007

Artic Natural Gas Development - Gazprom, Statoil & Total

Gazprom on Thursday signed a deal with StatoilHydro of Norway to develop the Shtokman natural gas field, dashing the hopes of U.S. energy companies of getting a stake in the giant Arctic project.

Under the deal, StatoilHydro was to get a 24 percent stake in the field's operating company, joining Total of France, which in July was granted the right to a 25 percent stake. Gazprom will retain majority control of the company, and will retain ownership of the field itself.

"We have giant reserves of gas in the Barents Sea, while our partners from Norway have good experience in production and transportation of gas in harsh Arctic conditions," said the Gazprom chief executive, Alexei Miller.

Gazprom, a state-run firm, shocked observers a year ago when it said it would develop Shtokman on its own, amid increasing signs of energy nationalism in Kremlin policy. It has since backtracked, allowing foreigners to develop a project seen as one of the world's most challenging.

Shtokman, once developed, is expected to be a prime future source of energy for Europe and North America.

Thursday, October 25, 2007

Carbon Intensity - CO2 Emissions

It was reported today from Seattle, Washington that the carbon intensity, which measures carbon emissions as a function of economic activity, began rising by about 0.3 percent per year at the start of the new millennium, said "Global and Regional Drivers of Accelerating CO2 Emissions," the study published in this week's Proceedings of the National Academy of Sciences. Carbon intensity had previously been dropping by about 1.3 percent per year since 1970.

It was reported today from Seattle, Washington that "The majority of current emission scenarios for modeling climate through the 21st century assume sustained decreases in the carbon intensity of the global economy, which have not occurred since 2000," said Josep G. Canadell, lead author of the study and executive director of the Global Carbon Project.

It was reported today from Seattle, Washington that while the Earth's carbon intensity has risen, overall carbon dioxide emissions have also increased while the land and oceans' carbon-absorbing capacities are dwindling. It was reported today from Seattle, Washington that climate change has caused alterations in the wind patterns over the Southern Ocean, causing already carbon-rich water to well up to the surface -- resulting in less ability for the ocean to soak up excess carbon from the atmosphere. And on land, large droughts have hurt plant cover that naturally absorbs large quantities of carbon dioxide.

"(Together), these effects characterize a carbon cycle that is generating stronger-than-expected climate forcing sooner than expected," the study said.

"The new twist here is the demonstration that weakening land and ocean sinks are contributing to the accelerating growth of atmospheric CO2," added Chris Field, a co-author of the study and director of the Carnegie Institution's Department of Global Ecology.

Wednesday, October 24, 2007

XTO Buys Natural Gas - Barnett Shale Formation has reported today that XTO Energy Inc. acquired natural-gas properties in the Barnett Shale formation of North Texas from multiple sellers for about $550 million. has reported today that the purchases included 24,000 acres with proven reserves equivalent to more than 200 billion cubic feet of gas, Fort Worth-based XTO said Tuesday in a statement on PR Newswire. has reported today that The U.S. oil and natural-gas producer also reported Tuesday that its third-quarter profit rose 12 percent on increased output and higher prices. has reported today that Net income rose to $412 million, or $1.05 a share, from $367 million, or 99 cents, a year earlier, XTO said in a statement. Sales rose 30 percent to $1.42 billion.

Excluding a loss for the decreased value of derivatives contracts used to lock in prices, the company said it earned $1.06 a share. On that basis, XTO was expected to earn $1.07, the average of 22 analyst estimates compiled by Bloomberg.

Tuesday, October 23, 2007

Natural Gas Find in India is reporting that an Indian and a Canadian exploration consortium will be investing $100 million US dollars in exploring two new reservoirs of crude oil and natural gas discovered in the northeastern states of Assam and Nagaland, India.

An Indian petroleum ministry official said the Assam Company Limited and its Canadian partner, Canoro Resources Limited, have found oil and natural gas at two drilling blocks in Amguri near Jorhat in Assam and one at Changpang in Nagaland.
According to preliminary estimates reported by the two companies, the two reservoirs could yield up to 3,100 barrels of oil equivalent (BOE) a day, which will consist of 1,200 barrels of oil condensate and 12 million cubic feet of gas per day.

Monday, October 22, 2007

Halliburton Profits Up 19 Percent reported today that oil services company Halliburton on Sunday said third-quarter net profit rose 19 percent, helped by a tax benefit, new international contracts and higher activity from its customers.

Halliburton, which earlier this year opened a headquarters in Dubai to capture contracts in faster-growing, more profitable Eastern Hemisphere markets, has been hit by pricing pressure in its largest North American market.

Domestic US Natural Gas Supply - Dipping into the 21st Century has some strong opinions on how to keep the price of natural gas from going through highs and lows in the pricing volatility; they write that obviously, one way to stem this trend in prices would be to increase supply. They believe that this could theoretically be done through one of two means, domestic production could increase, but despite the drilling rig count more than doubling between 2001 and now, domestic gas production has actually declined.

The second way, therefore, maintaining U.S. production -- let alone increasing production -- is becoming increasingly difficult and United States experts expect this trend will continue. In order to offset domestic supply constraints, the U.S. market is increasingly reliant on imported gas, which brings us to our second method to increase supply.

Similar to the United States, Canada's natural gas production also peaked earlier this decade. Because of this and more natural gas being diverted from the export market for use in crude production at Canadian tar sands, they think piped exports to the U.S. will remain stable but slowly decrease in the coming years.

Therefore, the U.S. must continue to seek other supplies. Unconventional gas supplies (shale gas, coal bed methane, etc.) are projected by the Energy Information Administration as the only source of supply growth in the lower 48 states through the first quarter of this century.

Sunday, October 21, 2007

Gasoline Prices Rising Until Dollar Rises

Gas prices are rising and it is causing some hurt with a lot United States citizens.
There are people grumbling under their breath every time they fill up their Ford Expedition, but most say gas prices would have to almost quadruple to $10 a gallon before they would get rid of their SUV.
Still, paying $55 to fill his 20 gallon tank isn't always easy.

The steep rise in oil prices to $90 a barrel over the past month means American consumers are almost certain to pay more for gasoline, heating oil, airline tickets and even food and goods that have to be transported great distances, experts say.
Some analysts are now predicting oil could go as high as $120 a barrel, but others argue that underlying supply and demand fundamentals do not support such a spike and that a drop in prices is more likely.
What is clear is that if the dollar continues to lose buying power against other currencies, the price of oil will continue to rise.

Saturday, October 20, 2007

Natural Gas Asset Sold for $180 Million

Denbury Resources Incorporated reported today that has agreed to sell its Louisiana natural gas assets for about $180 million plus any amounts received from a net profits interest, to a privately held company. The sale is expected to close in 30 to 45 days.

Denbury Resources Incorporated reported today that it expected that the ultimate sales price might be increased by up to 10%, depending on certain profit sharing deal.

Friday, October 19, 2007

Natural Gas and Oil is in India

The Reuters news agency reported today from India that major oil and gas producer, Oil and Natural Gas Corp expects group turnover to more than double to $50 billion and above by 2012 and sees overseas acquisitions as a key growth driver, its chairman said on Thursday.

Oil and Natural Gas Corp Videsh, state-run Oil and Natural Gas Corp's overseas investment arm, has a presence in 29 oil and gas projects spread over 15 countries and is spearheading India's quest for securing energy security through overseas equity oil.

"We intend to strengthen ONGC Videsh and intensify further acquisition endeavors for future growth. The overseas oil and gas assets will substantially contribute in revenue stream," Chairman and Managing Director R.S. Sharma told Reuters in an interview.

Thursday, October 18, 2007

Shallow Natural Gas Wells in Texas

Victory Energy Corporation announced in its world wide press release today that the Corporation has satisfactorily completed the on-site due diligence of the five (5) options on the shallow gas wells located in the Adams Ranch, Adams-Baggett Canyon Sandstone gas field in Crockett County, Texas.

Victory Energy Corporation announced in its world wide press release today that the Corporation's advisory team spent several days this past week performing an on-site inspection of the natural gas field located on the Adams Ranch approximately 25 miles south of Ozona, Texas. This was the last stage in the due diligence process. The team conducted an evaluation of existing natural gas producing wells and an inspection of the contiguous locations currently under natural gas options to the Corporation.

"This last step in the due-diligence process verifies the potential of the opportunity offered to Victory. The Corporation can now progress to close on the options and begin drilling later this year," stated Jon Fullenkamp, President of Victory Energy Corporation.
Victory Energy Corporation announced in its world wide press release today that the "Canyon Sandstone" gas wells located on this ranch are part of the large prolific Adams-Baggett Canyon Sandstone field. Victory Energy Corporation announced in its world wide press release today that the Canyon Sandstone formation is found at a depth of 4,300 feet to 4,900 feet.

Wednesday, October 17, 2007

Japan Natural Gas

It was reported today by news that Japan will spend as much as $77 million U.S. dollars to find oil and natural gas in its continental shelf next year 2008, using the country's first state-owned oil and gas exploration ship, a Japanese government official said.

The oil and gas survey will cover areas along both the Pacific Coast and Sea of Japan, the Japan trade ministry official said on condition of anonymity. A $213 million vessel that conducts three- dimensional seismic surveys will be delivered in the next few months by Norway's Petroleum Geo-Services ASA.

The nation of Japan is accelerating oil and gas drilling at home and overseas to secure long term supplies. The Japanese national budget for natural- resource development may rise 12 percent to $1.5 Billion U.S. dollars in the 2008 year starting April 1. The trade ministry in March announced the discovery of a Pacific field holding 40 trillion cubic feet of frozen natural gas, equivalent to Japan's natural gas demand for about 14 years.

``The private sector just can't afford exploration work in such vast areas surrounding Japan,'' said Shigeyoshi Hasegawa, a spokesman for Japan Petroleum Exploration Co., the country's second-biggest oil and gas explorer. ``The government's survey data would be very beneficial.''

Tuesday, October 16, 2007

Gazprom is No Microsoft

Eurpean Union Energy Commissioner Andris Piebalgs struck a more conciliatory tone in regards to Gazprom and its competition at a news conference today, "Do we treat Gazprom as we treat Microsoft? Yes we do. The difference is that Microsoft has 100 percent of the market," Piebalgs told a news conference in the Latvian capital Riga. "That is why we do not take measures against Gazprom, there is no need. They do not play a big enough role in the market." These comments are in contrast to his comments made earlier during the unveiling of the new European Union energy policy package.

LNG - India - Natural Gas

India began securing its future natural gas supplies by purchasing LNG in 2004 with its first LNG Terminal set up by Petronet at Dahej on the west coast side of the country. India, anticipating the fact that its dependence on oil and natural gas will increase in the coming years, India is emphasizing on techniques for efficient use of all energy sources and is developing alternative energy sources as fast as it is able.

With the expansion of new LNG facilities at Dahej and the setting up of new Terminals at Kochi, Dabhol and Mangalore, India is preparing itself for a significant increase of natural gas in its energy sector. At the same time, maintaining the imports from the countries like Oman and Qatar ensures that India does not lag behind in the race for securing long term energy supplies. India believes that it is taking strides to becoming a powerful competitor in the energy sector and the development of its country through a strategically planned infrastructure, balance of geographical and political concerns and co-operative policies that are able to pave the way for India to develop a powerhouse future.

Monday, October 15, 2007

Crude Oil Prices Up - Turkey Ready to Fight?

The price of crude oil rose above $85 a barrel for the first time this year in New York on speculation that Turkish forces may pursue Kurdish militants in Iraq, stopping or curbing oil shipments as refiners prepare for the peak-demand heating-season.

Crude oil rose as much as 1.9 percent because Turkey's government appears ready to allow its military to attack Kurdish bases in Iraq, which has the world's third-largest oil reserves. Crude oil prices also rose after the Organization of Petroleum Exporting Countries – OPEC - said crude oil production outside the group will be lower than previously forecast.

Australian Natural Gas - A Go!

A massive natural gas project in north-west WA has been given the environmental go-ahead by the Federal Government.

The Pluto project is worth an estimated $12 billion, and includes an liquefied natural gas plant on the Burrup Peninsula to process gas from the field, almost 200km offshore from Karratha.

It's the second major gas project to win federal approval in the past week.

The Pluto project will face strict environmental criteria, including the protection of snakes and turtles, and waste management strategies.

The decision has angered environmental and aboriginal groups.

Natural Gas Prices - October 15, 2007

As we begin the week of October 15, 2007, let us be aware of the natural gas prices from last week:

Nymex Henry Hub Futures: $7.15/mmbtu

Henry Hub spot market: $6.45/mmbtu

New York City Gate spot market: $6.81/mmbut

PeDaVeSA Natural Gas

It has been reported by the Venezuela daily Internet connection that work is progressing on a processing plant that will eventually take Venezuela into the lucrative export market for liquefied natural gas (LNG). At long last, say PDVSA's critics, wondering why Venezuela has ignored its natural gas potential for so long. There shouldn't be any quick expectations, as we are thinking it will be 2010 before the plant is ready to go.

In the meantime, PDVSA will also get to manage and maintain the largest thermal electricity power generation complex in Latin America.

Friday, October 12, 2007

Canadian Natural Gas Output to fall in 2009

A major downturn in drilling for natural gas in Western Canada will shrink Canadian supplies of the clean-burning fuel by as much as 15% in the next two years, the National Energy Board predicted yesterday.

Canada's energy regulator said it expects Canadian production to plummet to as little as 14.5 billion cubic feet a day by 2009, revising earlier predictions that gas deliverability would stay flat at around 17 bcf/d, or roughly where it has been since 2000.

"There is a pervasive drilling downturn that's impacting most resources in the Western Canada basin, where 98% of the gas is produced," said NEB gas supply analyst Ken Martin.

Thursday, October 11, 2007

Natural Gas Price Up in Kansas City

The Kansas City Star is reporting that there’s some good news on the winter home heating front for most natural gas customers in Kansas City, as natural gas customers probably won’t get unexpected high gas prices like they have been in recent years.
Natural gas, the most popular fuel in the Midwest, is expected to have a mild price increase, at least compared with the surging cost of heating oil and propane in this winter 2007. That’s according to the Energy Information Administration’s annual outlook for winter heating costs, released Tuesday from Washington D.C.

The United States nationwide average winter bill for homes that use natural gas, usually among the most up and down pricing of commodities, is expected to total $891 for the winter 2007, up 9.5 percent from last year’s winter heating bill of 2006.

Wednesday, October 10, 2007

Gazprom Gets $1.2 Billion from Ukraine

Russia's natural gas monopoly giant Gazprom has reached a deal on resolving Ukraine's debt for natural gas, Gazprom said October,9 2007. Russian Prime Minister Viktor Zubkov said Ukraine will pay $1.2 billion of the $2 billion debt by transporting natural gas from its underground storage areas to Gazprom conglomerate. The rest of the gas debt will be paid by natural gas suppliers in the Ukrainian market, Zubkov added.

Tuesday, October 9, 2007

Natural Gas UPS Trucks

ATLANTA - October 8, 2007 - UPS (NYSE:UPS) – United Parcel Service today announced it was adding 306 alternative fuel vehicles to its "green fleet" by placing an order for 167 Compressed Natural Gas (CNG) delivery trucks while taking delivery of 139 new propane delivery trucks in North America. Additionally, the company has launched an initiative to use biodiesel fuel in its ground support vehicles at the United Parcel Service Worldport® air hub in Louisville.

The CNG trucks will be deployed early next year in Dallas, Atlanta and four California cities -- Los Angeles, Ontario, San Ramon and Fresno. They will join more than 800 such vehicles already in use in the United States by United Parcel Service. The propane vehicles are joining nearly 600 propane trucks already operating in Canada and Mexico by United Parcel Service.

"While there's a great deal of interest in the research we're doing with new types of hybrids, 70 years of testing alternative fuel vehicles has taught us there are multiple technologies that can effectively reduce our dependence on fossil fuels as well as our carbon footprint," said Robert Hall, UPS's director of vehicle engineering. "Adding this many propane and CNG vehicles is going to have a very positive impact."

United Parcel Service's global alternative-fuel fleet now stands at 1,629 vehicles -- the largest such private fleet in the transportation industry - and includes CNG, liquefied natural gas, propane and electric and hybrid electric vehicles. The company also is working with the Environmental Protection Agency on a hydraulic hybrid delivery vehicle.

The propane and CNG trucks currently in the UPS fleet were converted from gasoline and diesel vehicles in the 1980s to run on alternative fuels. The new trucks are originally manufactured for alternative fuel use.

The chassis for the CNG trucks are being purchased in two sizes from Freightliner Custom Chassis Corporation. The trucks will feature engines from Cummins Westport that are expected to yield a 20 percent emissions reduction and 10 percent improvement in fuel economy over the cleanest diesel engines available in the market today. The truck bodies will be identical externally to the signature-brown trucks that now comprise the by United Parcel Service fleet and will be marked as CNG vehicles.

The new propane-powered vehicles were manufactured by Workhorse Custom Chassis and feature the latest technology in clean-burning propane engines provided by Baytech Corporation. Propane vehicles emit about one-third fewer reactive organic gases than gasoline-fueled vehicles. Nitrogen oxide and carbon monoxide emissions also are 20 percent and 60 percent less, respectively, than conventional vehicles.

The UPS propane vehicles will run on liquefied petroleum gas (LPG) provided at eight on-site fueling stations at UPS facilities in Canada. LPG is derived from petroleum during oil or natural gas processing and is cleaner-burning than regular gasoline.

The biodiesel initiative in Louisville is being launched with the support of a $515,000 federal grant that is helping offset some of the cost of building a fuel infrastructure at the airport. The infrastructure will provide a 5 percent biodiesel blend of fuel to run 366 ground support vehicles starting early next year.

Biodiesel is a clean-burning diesel replacement fuel that can be used in compression-ignition engines. It is manufactured from U.S.-produced oils such as soybean oil, recycled cooking oils or animal fats. The use of biodiesel reduces particulate matter, carbon emissions and volatile organic compounds.

by United Parcel Service, UPS, which just celebrated its 100th anniversary, began deploying alternative fuel vehicles in the 1930s with a fleet of electric trucks that operated in New York City. The company’s "green fleet" has traveled 126 million miles just since 2000.

While continuing to develop its alternative fuel fleet -- UPS already has invested more than $15 million in the effort -- the company also has purchased and is operating nearly 20,000 low-emission conventional vehicles. These vehicles have regular gas- and diesel-powered engines but employ the very latest technology and manufacturing techniques to reduce emissions as much as possible.

"Deploying alternative fuel vehicles and exploring renewable energy sources like biodiesel are just two of the many ways by United Parcel Service actively pursues its commitment to sustainable business practices," said Hall. "We have always believed that working green and working smart are synonymous."

UPS pursues a wide range of socially responsible and sustainable business practices designed to reduce our impact on the environment and improve communities around the world. UPS is included in the Dow Jones and FTSE4Good Sustainability Indexes, which evaluate corporations based on economic, environmental and social criteria. Learn more about UPS's responsible business practices at

Monday, October 8, 2007

Kuwait to Product Natural Gas

Oil-rich Kuwait will begin producing free natural gas for the first time ever in December, but it will be for local consumption only, a senior official told the Kuwait News Agency on Sunday.

Farouk al-Zinki, chief executive of the state-owned Kuwait Oil Co., told the official news agency tha the company will initially pump 175 million cubic feet a day at the end of the year. He did not provide a date.

The company aims to reach a production rate of one billion cubic feet a day by 2015, said al-Zinki. That will cover only part of the country's need for gas, he said.

He did not elaborate, but Kuwait has been looking to import natural gas from Iraq, Iran and Qatar to use for generating electrical power and in petrochemical industries.

Sunday, October 7, 2007

India Back Tracking on Natural Gas Hike?

Petroleum and Natural Gas Minister, Murli Deora, today hinted that there may not be any increase in the prices of kerosene and liquified petroleum gas in the near future, though the final call on the matter would be taken by Prime Minister Manmohan Singh.

"We are trying to see that the common man, specially kerosene and LPG consumers, are not hurt. We don't want to increase even the price of diesel. The price increase issue will, however, be decided by the Prime Minister," Deora told reporters on the sidelines after inaugurating the new Tapti Compression and Processing Platform here.

Admitting that the Government is 'aware' of the increasing burden of oil subsidy, he said 'some solution is being sorted out'.

Iran Has Natural Gas, But No International Money Backing

You can cut a deal with the Devil, but you better make sure the Devil has the money to pay for the pipeline. Forbes reports today that the stakes are very high for investing in Iran, and Turkey has found out the hard way: it has failed to get financing from overseas big money for a $3.5 billion gas deal with the Islamic Republic, a development which points to further problems for the likes of Shell and Total in getting their Iran deals done..

The Turkish Energy Ministry was quoted as saying Wednesday that state-owned energy company TPAO is going it alone, once an agreement is finalized later this month, to develop several phases of the South Pars natural gas field in Iran for $3.5 billion.

With international pressure from the European Union and the United States mounting over Iran's pursuit of nuclear power, international investors are less willing to invest hard cash by putting down money down, regardless of the financially lucrative rewards.

"It is increasingly impossible to get financing," said Global Insight analyst Samuel Ciszuk. He said that with costs going up all the time across the energy sector, it would be even harder to make sure the budget of $3.5 billion would be feasible.”

Saturday, October 6, 2007

Natural Gas Pipeline Expansion - Part 2

Tidelands Oil & Gas Corporation has received a commitment with Cheniere Corporation to fund the development of Tidelands' planned Burgos Hub Export/Import Project.
This natural gas project seeks to connect the North American pipeline grid to natural gas supplies and markets in northern Mexico.
Cheniere has purchased an 80 percent equity interest in the natural gas pipeline project in exchange for up to $9 million in current and future payments and royalties to be paid to Tidelands by third-party customers who use the natural gas pipeline.
Houston-based Cheniere (AMEX: LNG) specializes in the development of liquefied natural gas receiving terminals and natural gas pipelines along the Gulf Coast.
"With Cheniere as a partner, we will be able to accelerate development of the project to streamline the North American natural gas market," Tidelands President and CEO James B. Smith says.
San Antonio-based Tidelands (OTCBB: TIDE) received an initial payment of $1 million when Cheniere signed on to the project on Sept. 28.
Additional payments will be made as construction begins on each phase of the project. In addition, Cheniere will pay Tidelands $25,000 per month for 24 months to provide management consulting on the project.
Cheniere has also agreed to fund, at its discretion, all up-front project development fees up and until construction begins on each phase. After that time, the companies will share development expenses.
Phase I of the project will consist of a pipeline extending from a natural gas plant in Hidalgo County, Texas, to Estacion Arguelles in Tamaulipas, Mexico, eventually connecting to Monterrey.
Phase II of the project will involve the construction of a pipeline extending from a station in Donna, Texas, to another station in Mexico owned by Pemex Gas y Petroquimica Basica.
Phase III of the project will be the construction of what's called the Brazil Storage facility, an underground natural gas storage facility in Rio Bravo, Mexico.
Tideland is a developer of natural gas pipeline, storage and receiving facilities.

Friday, October 5, 2007

Natural Gas Pipeline Expansion

Gulfstream Natural Gas System, L.L.C. announced today that it has accepted the certificate issued by the Federal Energy Regulatory Commission authorizing the company to expand its pipeline system to provide natural gas service to Progress Energy's Bartow Power Plant in Pinellas County, Fla.

The expansion project, known as Phase IV, is designed to increase Gulfstream's system capacity by approximately 155,000 dekatherms per day. It will include construction of approximately 17.5 miles of 20-inch diameter pipeline that will connect the existing Gulfstream pipeline to the Bartow Power Plant. The project also will require the installation of additional compression in Coden, Ala., and Manatee County, Fla.

"We appreciate the efforts of the FERC and other state and federal agencies in reviewing this application," said Brad Reese, Gulfstream vice president. "Progress Energy is a major electric provider and we welcome the opportunity to help them meet the region's growing energy needs for many years to come."

Thursday, October 4, 2007

Natural Gas Is Up Again on Storm Watch

Natural gas prices rose in New York on Tuesday on speculation that a storm might move into the Gulf of Mexico and threaten production platforms and pipelines.

A weather system over the southeastern Gulf and the southern tip of Florida has some "potential for subtropical or tropical cyclone formation" over the next couple of days as it moves west, the U.S. National Hurricane Center said Tuesday.

"This could be the last gasp chance of getting a storm," said Michael Rose, trading director at Angus Jackson in Fort Lauderdale, Florida. "The temperature of the water is so hot it may be ripe" to produce a major storm, he said.

The weekly sea-surface temperature in the Gulf waters near Florida averaged about 29 degrees Celsius (84 Fahrenheit) as of Sept. 26, according to the U.S. Climate Prediction Center. Warm water is needed for storms to form.

Natural gas for November delivery rose 37.7 cents to $7.427 per million British thermal units on the New York Mercantile Exchange.

Wednesday, October 3, 2007

Natural Gas Prices in United States Up Again

Natural gas prices rose on a rally in natural-gas futures that likely helped crude oil barrel prices pare its losses by the close of business today. Natural-gas prices were up more than 5%, supported by the potential for storm activity in the Gulf of Mexico.

For crude oil, the oil market consensus at the moment considers it "either profit taking or correction, or both," said Charles Perry, chairman of energy-consulting firm Perry Management. "I believe it is a little of both."

"Lots of money has been made [on paper] the last two weeks for those who are long, and they know full well hogs get slaughtered," he said. "So it is time to lock in the profit."

Tuesday, October 2, 2007

Gazprom Seeks to Reassure Europe

Gazprom has taken a step to make its European clients rest a little easier by using some of its large reserves in the Shtokman fields to supply gas to Europe, officials of the German-Russian consortium that will transport the fuel said Monday.

Confirming for the first time that the Shtokman fields would be tapped, the officials said that Gazprom was seeking to reassure European customers that Russia would develop one of the largest offshore natural gas reserves in the world.

Europe increasingly depends on Russian gas, buying more than a quarter of its total from Gazprom, the state-owned Russian energy monopoly. Energy analysts said Europe, which imported around 330 billion cubic meters of gas in 2005, would require an additional 200 billion cubic meters per year by 2015.

Monday, October 1, 2007

Sakhalin, Russia - Wild West of Oil in the East

Sakhalin, Russia is in the midst of a black gold rush for crude oil, which is a throw back to the old gold rush in the 19th century west.

30 percent of Russian oil and natural gas has been reported to be buried under the territory of Sakhalin, Russia. Projections include 2.7 billion barrels of oil in 11 oil fields, 1.261 trillion square meters of natural gas in 18 natural gas fields and 2.5 billion tons of coal in 52 coal mines as confirmed most recently by the Korea Trade-Investment Promotion Agency office in Vladivostok, Russia. The above numbers if true would take care of Korea’s oil need for three years and natural gas for sixty years.

The black oil rush was initiated by Exxon Mobil in 2005 and followed by Royal Dutch Shell and BP, as well as China, India, Japan and Turkey paying frequent visits to Sakhalin.

The Korea National Oil Corporation is also set to deliver annual 1.5 million tons of liquefied natural gas (LNG) from Sakhalin back home starting in 2008. It is the first time for Korean natural gas consumers to meet natural gas from Sakhalin.