Three articles in this week's roundup:
~ Senate Panel Considers Climate Change Bill's Impacts
~ Oil and gas group forms in Greenland
~ Slower desulfurization growth seen in US, Canada
Senate Panel Considers Climate Change Bill's Impacts
From the Oil and Gas Journal:
Days after one US Senate committee approved a climate change bill with a carbon cap-and-trade program, the chairman of another convened a hearing to examine the possible economic consequences.
The news is bleak for the economy if the US proceeds with the bill (also referred to as the Waxman-Markey Bill); expectations that this bill will help the US economy are unrealistic. The mantra is that it will create "green jobs", perhaps but at what cost? And how many jobs will be lost as a result of the increased burden on the economy? Republican Senator Charles E. Grassley (Iowa) stated that"
“An honest cost assessment requires us to acknowledge that there would be no economic benefit for Americans from it, at least initially.”
I think Senator Grassley is being more than even-handed to his Democrat colleagues; the likelihood of economic benefit even in the long term is slim from "cap and trade schemes", except for traders in credits such as Al Gore, and GE, who are strong backers of the scheme. According to the Washington Post, the CBO (Congressional Budget Office) Director Douglas W. Elmendorf's
testimony to the Senate on the bill the House passed over the summer, would cause "significant" job losses in the fossil-fuel industries and would slow U.S. economic growth for several decades, including between 0.25 and 0.75 percent by 2020.
Year Percentage Change
2020 -0.2 to -0.7
2030 -0.4 to -1.1
2040 -0.7 to -2.0
2050 -1.1 to -3.4
Table: Projected Changes in Gross Domestic Product in Selected Years from the Implementation of H.R. 2454
The data can be seen on the testimony of Congressional Budget Office Director, Douglas W. Elmendorf's to the Senate: "
The Economic Effects of Legislation to Reduce Greenhouse-Gas Emissions" (
He is the Congressional Budget Office Director testifying to a Senate Committee) Republican Senator John Barrasso (Wyoming) stated that the policy reflected the administration's tendency:
"to promise jobs for all, create some for a few and let the rest of us fend for ourselves."
Oil and gas group forms in Greenland
Could Canada figure in future O&G production in Greenland? Newfoundland and Atlantic Canada with engineering expertise for off-shore would be geographically well placed to provide engineering in addition to Houston, Tx. According to
Oil Voice
A continuously increasing focus on the possibilities for oil and gas production in Greenland has increased the need for a common forum for the industry. Now the formation of the Greenland Oil Industry Association (GOIA) is a reality under the chairmanship of Arne Rosenkrands of DONG Energy and with Ian Watt of Cairn Energy as vice chairman. The seven founders of the association are companies holding exploration licences offshore Greenland – DONG E&P Grønland A/S, Esso Exploration Greenland Ltd, Chevron Greenland Exploration A/S, Husky Oil Operations Ltd, Capricorn Greenland Exploration Ltd. (Cairn Energy PLC), PA Resources AB and Nunaoil A/S.
Greenland Oil Industry Association (GOIA) stated their main objectives:
- To work together to ensure safe execution of drilling and production activities and to ensure the highest standards of environmental stewardship
- To expand the knowledge base through joint industry studies, and share best practice
- To provide a forum for industry communication with the authorities and the community in Greenland
- To strengthen and promote the development of a competitive oil and gas industry in Greenland through cooperation and stakeholder dialogue
Cairn Energy plc.
announced an agreement with PETRONAS International Corporation Ltd (PICL) on October 14, for a farm-out of Greenland Blocks. Cairn has agreed to sell PICL a 10% interest in its existing 6 operated blocks offshore plus other agreements for US $310 million, which will be targeted for additional investment in Greenland exploration. The total consideration to be paid by PICL in respect of the above transactions is US $310 million*. These funds will be targeted for additional investment in Greenland exploration.
Slower desulfurization growth seen in US, Canada
Oil and Gas Journal Reports that;
refinery desulfurization capacities for gas oil and naphtha in US and Canada will continue to grow through 2013 but more slowly than they did in the period 2000 - 2008.
Among 134 active refineries in the US and Canada covered by the study, gas oil desulfurization increased from 2.83 million b/d in 2000 to 3.82 million b/d in 2008. The total is expected to reach 3.98 million b/d in 2013.
The average growth rate thus will decline from 3.7% per year in 2000 -2008 to 0.8% per year in the forecast period, the study says.
The US and Canada have a combined 22% of the world’s refinery distillation capacity but 36% of its gas oil desulfurization capacity, the study notes. Their combined naphtha desulfurization capacity is 40% of the global total.
Refiners have been adding desulfurization capacity to meet requirements for ultralow-sulfur diesel and gasoline.
Gurth Whitaker Calgary, AB
