With the end of the Nabucco pipeline project, the road seems clear for Gazprom to soon triumphantly roll out its rival South Stream project. This is certainly what recent media reports have suggested. In reality, however, South Stream is still very far from what could be described as a “launching phase”, writes Bulgarian energy consultant Valentin Stoyanov. According to Stoyanov the success of South Stream now depends on the EU. If Brussels does … [Read more...]
Interview Tony Hayward: “Kurdistan is a good place to be”
For independent oil companies, getting their hands on new exploration acreage where both technical risk and political risk are low is an illusion, says Tony Hayward, former BP chief and current CEO of the independent Anglo-Turkish oil and gas producer Genel Energy, in an interview with James Stafford of Oilprice.com. Exploring for oil and gas in new frontiers is all about striking the right balance between geological potential and political risk. … [Read more...]
Interview Tyler Cowen: “The shale boom? It’s just getting started”
The shale boom in the US is only just beginning to affect the global economy, says famous US economist and New York Times best-selling author Tyler Cowen in an interview with James Stafford of Oilprice.com. The only question, says Cowen, is who will be the next to latch on to this revolution. Photo: shale oil production in Estonia, by WaronError1 … [Read more...]
The Romania-Moldova Gas Pipeline: a chance for Moldova to connect to the EU
The Iasi-Ungheni gas interconnector between Romania and Moldova, the construction of which began in late August, is expected to improve Moldova’s energy security, bring commercial benefits to both Moldova and Romania, and contribute to the physical integration of the European gas market. The real raison d'ĂŞtre of the new pipeline is, however, rather geopolitical in nature: it will help wean Moldova from Russian domination and bring the country … [Read more...]
The coming oil price clash – and what it will mean for our economies
Peak oil is dead, we all know that by now. Or is it? Oil prices are certainly not coming down despite years of recession and stagnant demand in OECD countries. According to Gail Tverberg, who runs the blog Our Finite World, prices are so high because oil exporters need ever more money to fund their expenditures. The problem is that oil importers increasingly cannot afford those prices anymore: they are disguising the effect of high oil prices by … [Read more...]
Nuclear Power: the Faustian Bargain
There are good reasons to be in favor of nuclear power – for now. There are even better reasons to want to replace nuclear power by renewable energy – in the not too distant future, writes Allan Hoffman, former energy expert at the US Department of Energy. This is the second of two articles in which Hoffman, who runs the blog Thoughts of a Lapsed Physicist, reflects on a sensitive energy topic. In his first article he weighed the pros and cons of … [Read more...]
Ukraine: the energy to change course
Twenty-two years after breaking free from the USSR, Ukraine is now attempting to do the unthinkable and permanently shake Russia’s hold on the country. The plan? Looking westward to the European Union and building an energy hub that might just revolutionize the region’s geopolitical status quo. Photo: Dobrych … [Read more...]
Interview geologist David Hughes: shale oil just a brief reprieve
Europe is looking with envy at the US shale revolution. UK Prime Minister David Cameron recently even said he was "pretty jealous" of the US, saying that the “huge benefits” of shale gas outweigh any “very minor change” to the landscape. In the US, however, the debate has moved ahead: although the economic benefits of the shale revolution are undeniable, the question is how long the shale oil and gas boom can last. Critical observers expect peak … [Read more...]
The three ages of Europe’s single electricity market
It is still far from perfect and has been painfully slow in taking shape, but an EU-wide power market has now emerged. Jean-Michel Glachant, Director of the European University Institute's Florence School of Regulation where he holds the Loyola de Palacio Chair, nevertheless warns that renewable energy and a “smarter” grid remain challenges to its further development. Photo by Filter Forge via Flickr … [Read more...]
The new energy world according to the IEA
The International Energy Agency has given us a lot to think about recently. The IEA has produced one major report after the other – on renewables, gas, oil and climate change. How do these outlooks stack up and what do they impy for our energy future? Editor Karel Beckman provides a handy summary – so you won’t have to worry about this anymore over the summer. Or maybe you do… Photo: Audi A3 Sportback g-tron … [Read more...]
It is too early to give up on Nabucco!
The failure of Nabucco West is the result of a lack of strategic guidance and the inability of the Nabucco consortium and its shareholders to deliver on the market policy expectations of both Governments and societies in their respective countries. But it is too simplistic to say that the choice by the Shah Deniz II Consortium for the Trans Adriatic Pipeline (TAP) was made purely out of “commercial” considerations, argues Peter Poptchev, who has … [Read more...]
European shale gas: miracle or mirage?
Nick Grealy, energy consultant and proponent of shale gas, reflects on the battle for public perception of shale gas. A key problem, he says, is the speed of the change that has taken place. It has surprised many people. In fact, many people still fool themselves into thinking it can’t happen in Europe” . But according to Grealy, a European shale gas revolution is inevitable. Photo: drilling rig in Marcellus play in US (by wcn247) … [Read more...]
EIB cleans up its energy lending policy
The European Investment Bank (EIB) intends to place stricter CO2 emission standards on coal power plants that it finances, but not as strict as the standards president Obama recently proposed in the US. The EIB is also considering investing in shale gas projects, according to a draft of its new energy lending policy. NGOs accuse the EIB of a “missed opportunity to politically reject coal”. With the EBRD and World Bank also mulling new investment … [Read more...]
End of Nabucco – end of Southern Gas Corridor?
Now that the Trans-Adriatic Pipeline (TAP) was (apparently) chosen to be the preferred route to carry gas from the Shah Deniz II field in Azerbaijan to Europe, the EU flagship pipeline project Nabucco has effectively been killed. Agata Loskot-Strachota, Energy Policy Expert at the Centre for Eastern Studies (OSW) in Warsaw and Janek Lasocki, Advocacy Coordinator at the European Council on Foreign Relations in London, discuss – in five … [Read more...]
How to profit from rising energy prices in Russia
Russia offers great potential for European companies to invest in energy efficiency, renewable energy and electricity production, writes Alexander Gusev of the German Institute for International and Security Affairs (Stiftung Wissenschaft und Politik). Rising prices in Russia stimulate energy-saving programs by companies and increase the populatiry of decentralized generation. But major problems, such as an incomplete legal basis and bureaucracy, … [Read more...]