ODAC Newsletter - August 22

Welcome to the ODAC Newsletter, a weekly roundup from the Oil Depletion Analysis Centre, the UK registered charity dedicated to raising awareness of peak oil.

Tension between the West and Russia over Georgia intensified this week, with Russia slow to withdraw, and as the US signed a deal to station a missile defence shield in Poland. This meant the Azerbaijan to Supsa pipeline stayed closed and shipments were stuck in Black Sea ports. While BP expects that the BTC pipeline should be open again within a week, there are reports that Kazakhstan is now reconsidering where its interests lie for the Kashagan field. It may decide that it is safer to export oil via Russia than to connect to the BTC.

Europe’s dependence on Russian energy was highlighted further as wholesale gas prices jumped 14% on news that a leak in a Norwegian North Sea gas pipe will close it for the winter. In the UK, BG and EDF have already announced large price increases, and this week EoN followed suit with hikes of 15% for gas and 9.7% for electricity. In the words of Adam Scorer of Energywatch “The brakes have come off the market.”

With this backdrop the Lib Dem leader Nick Clegg today threw down the gauntlet to Labour and the Conservatives as he launched his party’s energy policy. The policy would turn its back on the government’s nuclear revival, concentrating instead on slashing energy use through conservation, incentivising a massive expansion of renewables and reducing reliance on imported hydrocarbons. It is interesting to note that the plan still appears to be set in the context of a growth economy, the like of which has only been possible with ever increasing energy consumption.

While change crawls along at the national level, local leaders are increasingly looking at what can be done in their jurisdiction. In the US this week Mayor of New York Michael Bloomberg supported renewables in the city while underlining that real change had to come by way of conservation measures. In the UK, in support of local authorities, ODAC will shortly be releasing its new report Preparing for Peak Oil: Local Authorities and the Energy Crisis, which can be previewed online. Produced in partnership with Post Carbon Institute, the report provides local authorities with an outline of peak oil, their vulnerabilities to its consequences as well as suggesting some policies and approaches for mitigation.

Oil
Oil Gains a Third Day on U.S.-Russia Tensions, Dollar Weakness
The falling oil price is simply a lull in the storm
Bulls, bears stuck in tug-of-war over oil
Political rifts slow recovery of Iraqi oil
BP-Led Oil Pipeline to Resume Shipments Next Week
Mideast oil demand to stay strong

Gas
Leak prompts UK gas price hike
Energy firm E.On to raise prices
LNG Project Delays May Cut 100 Million Tons of Supply

Electricity
Olympics add to China's power crisis
Venture capitalists boost smart power grid
Could it be lights out for the Gulf?

Renewables
Solar utility: electricity from sunshine on a massive scale in California
Plan for anaerobic digesters in every town to recycle leftovers
Wave power all at sea until tide turns

Climate
Stark warning on Britain's shrinking coast

Geopolitics
Kazakhstan considers to divert oil export route from BTC to Russia
It's economics, not politics, that will influence Russia
US and Poland sign missile-shield deal

Politics
Clegg reveals his grand vision on renewable energy
New York Mayor Sees Conservation as Main Path to Energy Savings
Carbon credits tick all the boxes. What's the delay?