Iran, like Mexico, has a new and more reform-minded president who wants to loosen the national oil company’s grip on his country’s massive reserves, and bring in private investment to boost output.
The reappointment of Bijan Zanganeh has brought a promise to restore output to 2005 levels of around 4.2m barrels a day, a 60% boost on current output. He is promising to speed up work on the country’s South Pars offshore gas development, which has suffered big technical and financial problems as sanctions have scared away foreign investors. But his proposal to foster a competitive private sector to help develop Iran’s many stalled energy projects will pit him against the powerful Revolutionary Guard.
Two articles from The Economist highlight the challenges that India faces and the issues surrounding Coal India
Some $130 billion has been ploughed into the power industry in the past five years. Of that, $60 billion or so has come from the private sector—probably the largest-ever private-sector investment India has seen. There are the usual gripes of an emerging economy: blackouts (during peak hours the system delivers 10% less electricity than customers want) and an inadequate grid that does not reach some 300m people (although it has improved a lot in recent years).There is also a risk that India cannot deliver the long-term increase in electricity generation that its economy needs to fulfil its potential.
Lebanon continues to experience extended blackouts despite the introduction of measures to add capacity to the grid. A widening gap between supply and demand, increased stresses and stuttering investment present significant challenges.
Despite current power shortages, Lebanon could become a net producer of energy in the years ahead if hydrocarbon fields located in the eastern Mediterranean are found to contain large deposits of oil and natural gas. The fields lie between Cyprus, Lebanon and Israel, spanning each country’s exclusive economic zone. However, unresolved disputes over maritime borders may hinder exploitation of the suspected reserves
The FSA and Ofgem have launched an investigation into the alleged manipulation of the NBP wholesale gas price by one or more of the UK Big 6 following claims from a whistleblower published in the media. All have categorically stated that they take no part in market manipulation.
The UK public have up-until this point been fairly acquiescent as their energy bills have risen and complaints have been muted rather than expressly vocal. However, the Big Six should not take that as a sign that there is no discontent as a rejuvenated Ofgem/FSA along with mounting political pressure and upcoming energy market reforms place considerable downside risk upon them.
Allegations of manipulation of UK wholesale gas prices are being investigated by the Financial Services Authority (FSA) and Ofgem. The investigations by the FSA, the UK’s financial watchdog, and energy regulator Ofgem are said to follow claims by a whistleblower. Energy Secretary Edward Davey said he was “extremely concerned about the allegations [and that] the government takes alleged abuse in our markets very seriously”
The cause of the trading pattern, which involved a series of deals done below the prevailing market trend, has not yet been established.
It comes as quite a surprise to many managers when they learn that growth is not always a blessing. Rapid growth can put considerable strain on a company’s resources, and unless management is aware of this effect and takes active steps to control it, rapid growth can lead to bankruptcy.
This post looks at one way companies can measure whether they are growing too fast or too slowly and the corrective measures they can make.
Cash has building up on the balance sheets of companies across the world and they show very little interest is liberating it. Natural-resource companies account for a disproportionate proportion of the $900 billion of the cash-build up citing concerns over the euro-zone, middle east upheaval, possible recession in China and America’s economic health.
This Economist article looks at the issue of cash build up and how it impacts upon the economy in general
The UK Governments policies and handling of both short and long term energy issues have come under close scrutiny this week; EDF Energy announced a rise 10.8% in domestic fuel bills which was followed positive news relating to investment in the Horizons project by Hitachi and most recently the confusing message around windfarms.
This article published in The Guardian discusses the impact that mixed messages and uncertainty in relation to renewable power is having upon investors
The government looks set to stop new wind farms after Energy Minister John Hayes was quoted by The Daily Mail and Telegraph as stating that the UK had enough of them. The remarks, carried broadly in the UK press, have to be seen in the context of domestic political positioning as Mr Hayes looks to define his brief, in the context of the coalition and a wider conversation the Government is looking to have about low carbon generation.
Domestic support for wind-farms remains consistent and the Government is mandated to reduce greenhouse gas emissions by 34% by 2020. The debate over how this will be met will frame UK energy policy for decade’s to come.
This blog has previously highlighted and commented upon the difficulties faced by all parties in deployment of new nuclear plants in the United Kingdom. Whilst recognising the need for new generation capacity this corner of the internet, is yet to be convinced that nuclear power represents the solution to the problem for a number of reasons.
The news today that Areva and China Guangdong Nuclear Power (CGNP) are withdrawing their joint approach for the Horizon project has been widely reported and I present two articles in this post from CityAm and The Guardian