Energy collapse worldwide

It's a money-loser, which is what I've been pointing out all along. And in that sense, this certainly will turn out to be "the energy of the future." -- RF

Chesapeake shuns gas, shrinks rig count

Fuel Fix,

7 August, 2012

Chesapeake Energy Corp., which calls itself America’s Champion of Natural Gas, said Tuesday it is basically giving up on gas drilling this year, adding to an industrywide retreat from what has been deemed the fuel of the future.

The nation’s second-largest natural gas producer after Exxon Mobil Corp. said that as part of a major contraction in its operations it has cut its plan for new gas exploration by 83 percent.

Chesapeake previously had planned to operate 47 gas rigs in 2012, but now hopes to cut that rig count to eight by the end of the year, executives said during a conference call with analysts on Tuesday to discuss the company’s second-quarter earnings.

That shift by the most prominent proponent of natural gas came as fossil fuel producers across the spectrum are shying away from gas drilling, even though they have invested billions of dollars in its promise as a major energy resource for the future.

The problem is price.

For article GO HERE

Coal To Drop As Steel Output Slows In BHP Setback: Commodities

Bloomberg,

9 August, 2012

Coal used to make steel is set to drop to the lowest price in two years, eroding earnings at BHP Billiton Ltd. (BHP) and Rio Tinto Group (RIO), as European demand wanes and China shifts supply contracts to Mongolia from Australia.

The contract price may drop 11 percent to $200 a metric ton in the three months to Dec. 31 from $225 a ton this quarter, according to seven analysts and industry officials in a Bloomberg survey. The spot price in China fell 25 percent from the end of June to $177 yesterday, the lowest this year, according to data compiled by Bloomberg.

A deepening debt crisis in the eurozone has dragged down demand and prices of commodities, forcing the world’s largest steelmaker ArcelorMittal (MT) to shutter or idle plants in the region. Slowing economic growth in China, the second-biggest importer of metallurgical coal, has increased chances of output cuts at mills and further shrinkage in demand for the fuel.

For article GO HERE 

 

Power Shortage Warning Issued for 2nd Day in Korea

Arirang,
8 August, 2012


The Korean government issued an alert on the nation's power reserves for two straight days on Monday and Tuesday.
A surge in power consumption from the record heat wave in Korea prompted the Korea Power Exchange to issue a "code yellow" warning after the country's electricity reserve dropped to below 3 million kilowatts at around 2 p.m. Korea time.
Later the agency downgraded the warning to "code blue" after the exchange managed to raise the power reserves through voltage control and advising factories to reduce power consumption.
The latest surge in energy use is largely due to one of the longest streaks of heat wave in the nation where even nighttime lows have remained at over 25 degrees Celsius, since July 27th.

For article GO HERE

Poor rains lead to huge rise in diesel use by Punjab farmers

IBNLive,
7 August, 2012


Deficient rain coupled with severe power shortage in Punjab has led to higher consumption of diesel, primarily by the farm sector. 
The sale of diesel has risen by 22 per cent in June and and July as compared to the same period of corresponding period last year. 
Diesel sale of all public sector oil marketing companies in Punjab jumped to 5.61 lakh tonne in June and July this year from 4.61 lakh tonne in corresponding months of last year, showing an upward jump of 22 per cent, as per data. 
The months of June and July are crucial from the point of view of sowing as this period is ideal for sowing paddy including basmati varieties. Punjab’s rice has about 30 per cent share in the central pool. Rain in Punjab this monsoon season has been deficient by over 65 per cent, forcing the farmers to depend on diesel- run water extracting pumps to save their kharif crops like paddy. 
 According to a study conducted by the Punjab government, farmers’ additional expenditure on diesel to save their paddy, maize and cotton crops would be around Rs 550 crore.
In the wake of poor rains, farmers in the state had to incur additional expenditure of Rs 3,000 per hectare in nurturing the paddy crop, official said. "Against applying 26 irrigation for paddy, farmers may have to apply at least 30 irrigations for the crop this season due to scanty rain and power shortage which will cause jump in input cost," a farm expert of Punjab Agricultural University said. 
 Heavy power shortage also aggravated the woes of farmers who resorted to using diesel to run their water pumps.

For article GO HERE

Southern California Edison prepares for possible power outages

Customers urged to conserve power

 

My Desert,

8 August, 2012

High demand for around-the-clock energy use — especially air conditioners — could lead to failed equipment and power outages for Southern California Edison customers as high temperatures are expected through the weekend, officials from the utility warned today.

Many customers have been using more energy in the evenings because of the high temperatures, especially air conditioning, which is putting a strain on the utility's distribution equipment, a press release said.

This continuous use could result in the equipment failing. The electric company has increased the number of crews available through this weekend to respond to outages.

Customers are urged to conserve power throughout the day, but especially in the evenings as much as possible, including setting thermostats no lower than 78 degrees and using electric fans instead of air conditioning when practical.

 

For article GO HERE

Israel Electric Corp. seeks NIS 3 billion in treasury aid

The utility is facing record demand for electricity in burning summer heat, as usual; Demand was up 14% in June and 11% in July, compared with a year ago.

Haaretz,

6 August, 2012

Israel Electric Corporation is asking the state for NIS 3 billion in aid to help cover the cost of importing the higher-cost fuel that is keeping power stations running this summer, after losing access to low-cost Egyptian natural gas.

In a letter to Finance Minister Yuval Steinitz, the IEC board of directors said the utility needs financial help to weather August and September. But, it added, the company may actually need help throughout the year.

The Finance Ministry told the Reuters news agency it had received a request from the state-owned IEC for help in resolving its cash-flow crunch during the next two months, but that it had not yet decided on the type or amount of aid it would provide.

As usual, the utility has to cope with record demand for electricity in the burning summer heat; demand was up 14% in June and 11% in July compared with the same months a year ago.

At the same time it has had to cope with a shortage of natural gas - a relatively cheap fuel - because since February 2011, its Egyptian gas supply has been disrupted time and again by sabotage attacks on the pipeline that delivers the gas. Egypt formally halted the supply this April.

For article GO HERE