September 26, 2007
Volume: 11
Issue: 19
Top Stories
Economist: Price of Oil May Reach $100/bbl Next Year
Study: Biofuels May Have No Benefit, Raise GHGs
European Parliament Environment Committee: Voluntary Vehicle CO2 Caps Not Working
New Zealand Unveils Emissions Trading Scheme
API: Policies that Punish Oil Companies Hit Broad Base of Investors, Retirees
IEA: Recent Energy Efficiency Gains Trim CO2 Emissions
European Commission President Promotes Global Carbon Market
Market Report
Brent
Gasoil
NYMEX Crude Below $80/bbl for First Time in Eight Trading Days
News from Americas
Chrysler Creates Electric Vehicle Organization
Foster Wheeler to Do Studies for Panama Refinery
Report: Lukoil, PDVSA Could Build Refinery Together
Motiva Will Expand Port Arthur Refinery to 600,000 b/d
Report: 20-25% of Pemex Liquid Fuels Adulterated
PDVSA is Partnering with Petrobras on Pernambuco Refinery
News from Middle East / Asia
Petrol Ofisi Likely to Decide on Turkish Refinery in November
Kuwait Wants Shell Out, BP In for Chinese Refinery Project
New Refinery Planned for Malaysia
S-Oil Won’t Reevaluate New Refinery for a Couple of Years
IPIC to Get 20% Stake in Japan’s Cosmo Oil
Idemitsu, Japan Energy Discussing Increased Refinery Alliance
Construction of New Vietnam Refinery Expected to Begin in December
Oman Merges Sohar and Oman Oil Refineries
News from Europe / Africa
Statoil Purchases Retail Stations from ConocoPhillips
Report: BP Expects ‘Dreadful’ Q3
OMV Makes Hostile Offer to MOL Shareholders
Fluor to Provide Services for Tatarstan Refinery Project
Report: Shell Offers Rosneft Refinery Stake
Europia Lists Concerns About European Commission Regulation of Transportation Fuel GHGs
Petrobras, Statoil Sign Biofuels Agreement
BP Rotterdam Refinery Begins Biofuels Production
CNPC to Build Refinery in Chad

News from Americas

Chrysler Creates Electric Vehicle Organization

Recently-privatized U.S. automaker Chrysler announced recently it is creating ENVI, an organization tasked with commercializing electric-drive vehicles and related advanced propulsion technologies.

Full Story >>

Foster Wheeler to Do Studies for Panama Refinery

State oil company Qatar Petroleum and Occidental Midstream Projects have hired Foster Wheeler to perform studies on the refinery the companies plan to build in Panama, Business News Americas reported.

Full Story >>

Report: Lukoil, PDVSA Could Build Refinery Together

Russian oil company Lukoil and Venezuelan state oil company PDVSA could partner to build a refinery in Venezuela that would process oil from the Faja de Orinoco region.

Full Story >>

Motiva Will Expand Port Arthur Refinery to 600,000 b/d

Motiva Enterprises, the Houston-based joint venture between Dutch oil major Shell and Saudi Aramco, announced recently it will go forward with its previously announced plan to expand its 275,000 b/d Port Arthur, Texas, refinery to 600,000 b/d.

Full Story >>

Report: 20-25% of Pemex Liquid Fuels Adulterated

An analysis by the Mexican government has found that as much as 25% of the liquid fuels sold in the country are adulterated, state news agency Notimex reported recently.

Full Story >>

PDVSA is Partnering with Petrobras on Pernambuco Refinery

Brazil’s state oil company Petrobras and Venezuelan state oil company PDVSA have reaffirmed their prior agreement to jointly build a refinery Abreu e Lima in Brazil’s Pernambuco state, Latin America News Digest reported.

Full Story >>

News from Middle East / Asia

Petrol Ofisi Likely to Decide on Turkish Refinery in November

Turkey’s Petrol Ofisi said recently it will likely soon make a decision on whether to build its planned refinery with Austria’s OMV, Turkish Daily News reported.

Full Story >>

Kuwait Wants Shell Out, BP In for Chinese Refinery Project

Kuwait does not want Dutch oil major Shell to partner in a refinery Chinese state oil company Sinopec and Kuwait Petroleum (KPC) plan to build in Guangzhou in the Guangdong province in southern China, Kuwait’s state news agency KUNA reported.

Full Story >>

New Refinery Planned for Malaysia

Malaysian holding company Global PLB and China’s Qingdao TopOil recently signed an agreement to create a joint venture 200,000 b/d refinery in Pulau Carey in Malaysia’s Selangor state, Malaysian national news agency Bernama reported.

Full Story >>

S-Oil Won’t Reevaluate New Refinery for a Couple of Years

South Korean oil company S-Oil will not take another look at a planned refinery it recently put on hold for a couple of years, the company’s CEO said, Reuters reported.

Full Story >>

IPIC to Get 20% Stake in Japan’s Cosmo Oil

Abu Dhabi’s International Petroleum Investment Co. (IPIC) will take a 20% stake in Japan’s Cosmo Oil, becoming the company’s largest shareholder, Cosmo announced.

Full Story >>

Idemitsu, Japan Energy Discussing Increased Refinery Alliance

Japan’s Idemitsu Kosan and Japan Energy plan to begin talks on whether to increase their cooperation in refinery operations, Dow Jones reported.

The companies already partner on a crude receiving terminal at Ise Bay, which serves Idemitsu’s 160,000 b/d Aichi refinery and Japan Energy’s Chita refinery.

Full Story >>

Construction of New Vietnam Refinery Expected to Begin in December

The CEO of Vietnamese tissue paper maker Hapaco said the company will begin construction of the 20,000 b/d oil refinery it plans to build with German consulting firm Evagor in December, Reuters reported, citing Vietnamese state magazine Dau Tu Chung Khoan.

Full Story >>

Oman Merges Sohar and Oman Oil Refineries

Oman’s Sultan Qaboos bin Said has issued a decree merging the country’s Sohar Refinery Co. with its Oman Oil Refinery Co., Times of Oman reported.

Full Story >>

News from Europe / Africa

Statoil Purchases Retail Stations from ConocoPhillips

Norway’s Statoil announced recently it has purchased ConocoPhillips’ Jet-branded retail stations in Scandinavia.

Full Story >>

Report: BP Expects ‘Dreadful’ Q3

BP CEO Tony Hayward told employees to expect the company’s third quarter performance to be “dreadful.”

Hayward made the remarks at a staff meeting in Houston and circulated them in a confidential note, Financial Times reported.

Full Story >>

OMV Makes Hostile Offer to MOL Shareholders

Austrian oil company OMV yesterday made a hostile offer for Hungary’s MOL of HUF 32,000 (U.S. $180.47) per share.

OMV is engaging MOL’s independent shareholders due to resistance to an OMV takeover by MOL management.

Full Story >>

Fluor to Provide Services for Tatarstan Refinery Project

Fluor announced recently it has signed an agreement with Russian oil company Tatneft to provide project management consulting services for Tatneft’s planned refinery in Tatarstan, Russia.

Full Story >>

Report: Shell Offers Rosneft Refinery Stake

Dutch oil major Shell is offering Russian state oil company Rosneft a stake in the Miro Mineraleolraffinerie Oberrhein refinery in Germany, Vedomosti reported.

Full Story >>

Europia Lists Concerns About European Commission Regulation of Transportation Fuel GHGs

European Petroleum Industry Association (Europia) stated recently its concerns about the European Commission’s Fuel Quality Directive, released last January.

Specifically, Europia took issue with Article 7a of the Directive, which deals with the regulation of greenhouse gas (GHG) emissions from liquid transportation fuels.

Full Story >>

Petrobras, Statoil Sign Biofuels Agreement

Brazilian state oil company Petrobras and Norwegian oil company Statoil announced recently they have signed a long-term biofuels, exploration and production strategic collaboration agreement.

Full Story >>

BP Rotterdam Refinery Begins Biofuels Production

CDTech announced recently that BP’s Rotterdam refinery has started producing biofuels after CDTech modified an MTBE unit to produce ETBE.

Full Story >>

CNPC to Build Refinery in Chad

China’s state oil company CNPC has reached an agreement to build an oil refinery in Chad, in what would be the first in the country.

Full Story >>

Top Stories

Economist: Price of Oil May Reach $100/bbl Next Year

Oil prices are likely to reach $100/bbl by the end of 2008 due to increasing domestic consumption in the world’s major oil producing countries, the chief economist at CIBC World Markets said.

Full Story >>

Study: Biofuels May Have No Benefit, Raise GHGs

The use of biofuels may not have any benefits over fossil fuels and may even increase greenhouse gas emissions, according to a new study led by atmospheric chemist Paul Crutzen, a Nobel Prize laureate.

The study found that farming the most common biofuels crops results in the release of double the amount of nitrous oxide (N20) than previously thought, “wiping out any benefits from not using fossil fuels and, worse, probably contributing to global warming,” according to the study.

Full Story >>

European Parliament Environment Committee: Voluntary Vehicle CO2 Caps Not Working

A recently released report by the European Parliament’s Environment Committee says the EU’s voluntary limit of 140 grams per kilometer of CO2 emissions by 2008 for cars will not be met and calls for a mandatory cap of 120 grams per kilometer by 2012.

Full Story >>

New Zealand Unveils Emissions Trading Scheme

The government of New Zealand recently revealed the framework for an emissions trading scheme that would begin next year, beginning with the forestry industry, but eventually expanding to all sectors and gases.

The scheme would apply to transportation fuels in 2009 and stationary energy sources and industrial emissions beginning in 2010.

Full Story >>

API: Policies that Punish Oil Companies Hit Broad Base of Investors, Retirees

The American Petroleum Institute (API) released a self-analysis that showed “Big Oil” is less a profit center for corporate insiders and more a valuable source of income for a broad cross section of Americans, including retirees. That portrayal comes just as Congress begins conferencing energy bills that contain punishing tax provisions.

Capitol Hill staffers met last week in pre-conference discussions of House and Senate energy bills.

Full Story >>

IEA: Recent Energy Efficiency Gains Trim CO2 Emissions

Energy efficiency gains since 1990 have reduced carbon dioxide (CO2) emissions 14% below what they otherwise would have been, according to the International Energy Agency (IEA).

That’s the conclusion of a new IEA publication, Energy Use in the New Millennium: Trends in IEA Countries.

Full Story >>

European Commission President Promotes Global Carbon Market

European Commission President Jose Manuel Barroso told a U.N. meeting on climate change that developing a global carbon market is the key to “ultimate success” in reducing greenhouse gases and adapting to the effects of climate change.

Full Story >>

Market Report

Brent

Full Story >>

Gasoil

Full Story >>

NYMEX Crude Below $80/bbl for First Time in Eight Trading Days

The price of the November crude oil futures contract on the New York Mercantile Exchange (NYMEX) closed below $80/bbl yesterday for the first time since Sept. 14.

Full Story >>