Archive
Past issues of the Abraham Energy Report from 2008 to the most recently archived issue:
December 2009 – Vol. 1, Issue 9
Copenhagen Preview: Slow Economy Lowers Expectations for Climate Pact
When President Obama entered office on Jan. 20, 2009, there were great expectations that the United States would enact climate legislation and join the world community in a new climate treaty by year-end. However, a deteriorating U.S. and global economy has derailed the fast-moving climate talks and drastically lowered expectations for action for at least another year.
Even without a formal, legal agreement emerging from this month’s climate negotiations in Copenhagen, the historic gathering of 192 nations still could provide important signals of what a future international accord may look like.
OPEC Meeting Preview: Partly Cloudy Skies with Sunshine and Rain Possible
OPEC Ministers are set to meet Dec. 22, 2009, in Angola, in what promises to be a much more positive economic atmosphere than the one they faced last year at this time before the Ministers met in Algeria on Dec. 17, 2008. Prices have recovered from their year-end lows, and have settled into a relatively stable and comfortable (from OPEC’s perspective) range of $75 to $80 per barrel. Global oil demand is recovering, mostly outside the Organisation for Economic Co-operation and Development (OECD), and production costs for new developments have come down. A comfortable margin of spare oil production capacity has opened up, primarily in OPEC, without giving rise to a price-induced surge in non-compliance with production targets.
Energy Cooperation Success on Obama China Trip
The media’s focus on the atmospherics of President Barack Obama’s recent trip to China overshadowed the actual achievements of the trip—a new spirit of energy and environmental cooperation between the two nations. The President, Energy Secretary Chu, Ambassador Huntsman and their teams are to be commended for a robust energy cooperation agenda and the significant achievements resulting from the visit.
Central Asia: Pipelines are the New Silk Road
Central Asia historically has been a region where major powers fought for control of the overland trade routes between China, Europe and Russia. These so-called silk routes extended over 4,000 miles and proved to be a vital path for inter-regional trade for more than 3,000 years.
October 2009 – Vol. 1, Issue 8
LNG Terminal Construction Faces New Hurdles in Coast Guard Reauthorization
When the House Transportation and Infrastructure Committee approved the $10 billion Coast Guard Reauthorization bill on Sept. 24, it also adopted a critical provision that has received little attention but could have enormous impact on U.S. energy markets.
Buried in the legislation was language that could, ultimately, block construction of some new U.S. maritime terminals for “especially hazardous materials,” which includes liquefied natural gas (LNG) and some agricultural chemicals.
Smart Grid on a Fast Track
The benefits of investing in the construction of a national Smart Grid, in terms of energy efficiency, green energy development and the long-term viability of the power sector, have always outweighed its costs. Still, the nation has been surprisingly slow to embrace the much-needed overhaul.
Certainly, there are some who view the enterprise as little more than corporate welfare for the nation’s power companies, or who think it’s main goal is some misguided and costly effort to speed the transmission of renewable energy from distant wind and solar resources.
More headlines from this issue:
» Climate Change Law “Not Going to Happen” in 2009
» Drill Baby Drill! The Moratorium’s End—One Year Later
» Russia: “End of the World” Gas Fields May be Open to the West
» Obama Administration Commits to Powering Up Batter Technology Development
» Outcome of the OPEC Meeting: Production Quotas Unchanged; Actual Output Likely to Fall
» U.S.-Russia Energy and Environment Working Group Update
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August 2009 – Vol. 1, Issue 7
OPEC Watch: Fall Meeting Preview
In the last months, and in the wake of the May OPEC meeting, many market analysts were somewhat surprised by the run-up in oil prices (see Abraham Energy Report story on Oil Prices: How High Can They Go?). It appeared to some that the market was looking way ahead of itself to the day when the world economy and oil demand would recover, leading once more to tighter markets and higher oil prices. We look at the factors that have influenced the market in recent months in advance of the Sept. 9, 2009, OPEC meeting in Vienna.
Cloudy Skies Ahead for Climate Bill
The climate change steamroller hit a roadblock in Congress in late July and then received a near-death blow in late August as Democratic leaders in the Senate announced they were postponing the introduction of comprehensive cap-and-trade legislation until the end of September. Citing of series of factors—the death of Sen. Edward “Ted” Kennedy, Sen. John Kerry’s health woes and the problems around health care reform, the chief sponsors—Kerry, D-Mass., and Barbara Boxer, D-Calif.—decided to delay the bill’s introduction again.
More headlines from this issue:
» Japan Maintains Influence on Global Energy Policy and Markets
» U.S. Sen. Max Baucus: Power Player in Climate Bill
» Canadian Oil Sands Pipeline Secures Stable Energy Supply
» Reins Could Tighten on Energy Futures Trading
» Russia and LNG: A new Supplier in the Market
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June/July 2009 – Vol. 1, Issue 6
Oil Prices: How High Could They Go?
The factors at work in the marketplace determining the level of oil prices in the short-term and long-term are a never-ending source of fascination and mystery. After sliding from a peak of $147 per barrel last July to a low near $33 per barrel in December, oil prices are now on the rebound.
With global demand still contracting in 2009, any real tightening of the fundamental supply/demand balance is unlikely to occur in the short term. Despite that, the price of oil has doubled to near $70 per barrel today, from the 2008 year-end lows.
Offshore Wind Must Be Integral Part of Nation’s Energy Mix
As Congress works on the issues of carbon emissions and energy security, one of the measures that has moved to the forefront in both the House and Senate bills is a provision that would establish a national renewable energy standard (RES). If it becomes law, the RES would require power companies to generate approximately 15–20 percent (depending on the legislation’s final outcome) of their energy from renewable sources and energy efficiency by 2021.
More headlines from this issue:
» CCS Technology Seen as Key to Resolving Climate Change Concerns
» Climate Change Update: Economy Looms Large Over Climate Bill
» OPEC: Looking Past the Fundamentals and Hoping for Recovery
» NRC Chairman Jaczko Redefining Role at Important Juncture
» The EU and the Great Pipeline Game
» Water: Rising as a Major Energy Industry Concern
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May 2009 – Vol. 1, Issue 5
The Summer Outlook for Gasoline Supplies and Prices
Looking back over the last 50 years, annual motor gasoline demand in the United States rose from 2.4 million barrels per day (mmbd) in 1949, to a peak of 9.3 mmbd in 2007, an annual average growth rate of nearly 2 percent. This analysis reviews the forces at work that are likely to affect U.S. motor gasoline demand, supply and prices during the 2009 summer driving season and beyond.
Climate Change Legislation Blocked Despite Concessions
Despite months of intense negotiations, and ongoing encouragement from President Obama, cap-and-trade legislation continues to be a difficult sell in Congress, and it remains unlikely it will be ready for the President’s signature in 2009.
In recent weeks, it’s apparent that members of the U.S. House—Republicans and Democrats alike—share the U.S. Senate’s concerns about the cost of cap-and-trade legislation and are proving a serious impediment to passage, despite optimistic forecasts from Energy and Commerce Chairman Henry Waxman (D-Calif.) that the bill would pass the House by Memorial Day.
More headlines from this issue:
» Russia: Resource Nationalism Waning?
» Salazar’s Expanded Role in Obama Energy Policies
» Energy Investments Down, Prices to Rise
» State Energy Policies Roundup
» GHG Registry Facing Criticism
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April 2009 – Vol. 1, Issue 4
March OPEC Meeting: The End is Near (Maybe)
OPEC Ministers met in Vienna on March 15 to review trends in the oil market, the global economy, and the adequacy of their three previous attempts to reduce oil production in line with declining global demand. They also examined the degree of each OPEC member’s compliance with the existing production quotas set at their last meeting in December 2008.
Energy Challenges Call for Bold Action from President
In his recent speech to Congress and in his various actions since taking office, President Obama has suggested that one of his foremost priorities is to transform America’s energy landscape and move us away from high levels of carbon emissions and imported energy toward clean energy and energy independence.
These goals are commendable, and in terms of the President’s commitment to expanding America’s energy research efforts and providing broad incentives for the development of renewable energy such as wind, solar and geothermal, his policies have been highly consistent with these objectives. The truth is, though, there is nothing very bold about advocating for more renewable energy, which has enjoyed bi-partisan support in Washington for decades.
More headlines from this issue:
» EPA: Carbon Ruling Coming
» FutureGen Revival Signals New Opportunity
» US LNG Import Preview—2009
» Russian Oil Production Slides
» Climate Change Update: New Revenues Challenge
» IRENA: New NGO for Renewables
» Electricity Grid Improvements Moving Forward
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March 2009 – Vol. 1, Issue 3
A Look Ahead at Global Oil and LNG Demand in 2009
The Abraham Energy Report is pleased to present a wide-ranginginterview with Dr. Chakib Khelil, immediate past President of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) and Minister of Energy and Mines for the People’s Democratic Republic of Algeria.
As immediate past President, Dr. Khelil has overseen OPEC at one of the most volatile periods in the organization’s history. Over the past year, OPEC has seen oil price fluctuations that have challenged historic trends, government expectations and public perceptions. The unpredictable nature of the international economy further destabilizes the oil markets and demands cautious and reasonable leadership.
Launching an Energy Tech Revolution
The Big Three automakers teeter on the edge of bankruptcy, the economy continues to slide, jobs are lost and credit remains elusive. In the midst of all the bad news, one economic number is giving people hope—the price of oil, which is around $100 cheaper than just a few months ago. This bright spot is, however, a mirage that could create a false sense of ease for consumers. Bottom line: The energy crisis is not going away. It will come roaring back once the world economy starts growing again.
More headlines from this issue:
» Russia-Ukraine Gas War
» Can China and India save OPEC?
» Nuclear Power: Untapped Potential
» President Obama’s First 100 Days: Energy Opportunities
» OPEC Update
» Climate Change Delay Likely
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November 2008 – Vol. 1, Issue 2
The Next Secretary of Energy
While the first Cabinet posts announced were naturally President-elect Obama’s economic team, there is already great speculation about (and quiet campaigning for) the post of Energy Secretary. The President elect has ambitious plans when it comes to energy and climate change, and the person selected tolead the department will be central to the new administration’s success.
The Economy, Oil and the Fundamentals of Demand
The substantial reduction in the price of oil in recent months suggests that the global oil bubble may have finally burst, allaying once persistent fears that the demand for oil and its price would rise unabated far into the future.
That the hand-wringing over oil has come to an end is not surprising. After all, oil prices peaked at a historic $147 per barrel in July; today they hover near $55. For now, the flagging economy promises to put a damper on both demand and prices.
More headlines from this issue:
» SEC Proposes New Oil & Gas Rules
» OPEC Update: Chasing Demand Downward
» Carbon Capture & Storage: A Viable Solution for Climate Change
» China Moves Toward Reform
» Russia’s Strategic Asset Law
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September 2008 – Vol. 1, Issue 1
Q&A Interview With Qatargas CEO
As the world’s energy consumers consider the future—one where oil prices continue to rise and coal remains a less environmentally friendly option—liquefied natural gas (LNG) is quickly becoming a credible and likely alternative to meeting long-term global energy needs.
At the top of the list of nations poised to satisfy those needs is Qatar.
In an interview with the Abraham Energy Report, Qatargas Chairman and Chief Executive Officer, Mr. Faisal Al-Suwaidi, discussed the future of Qatargas and its role in supplying worldwide LNG production and demand.
Global Markets: A Sense of Urgency and Opportunity
As we launch the Abraham Energy Report, it is with the knowledge that global energy markets are at a critical juncture and the staggering challenges ahead demand both a sense of urgency and opportunity.
The urgency is unambiguous, confirmed by the International Energy Agency (IEA) in its most recent World Energy Outlook: The world faces a perfect storm of constrained fossil fuel supplies, unbounded energy demand and a new resolve to reduce greenhouse gas emissions—all of which qualify as significant economic and political stressors today and in the future.
More headlines from this issue:
» Europe Eyes AGP as Alternative to Russian Natural Gas
» No Matter the Election Results, Climate Change at the Top of New President’s Agenda
» Russia: Different Dance; Same Dance
» Why OPEC Won’t Raise Oil Production
» NRG Energy’s Nuclear Gambit
» US LNG Imports to Remain Strong
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