Russian cold curbs gas to Europe

Russia reduced gas supplies to Europe and trimmed back its oil output because of extreme cold at home, and weather forecasters warned of another deep freeze next week. Temperatures plunged below -30 degC (-22 degF) in central Russia, occasionally dipping below -50 degC (-58 degF) in parts of oil-producing Siberia.

Russian gas monopoly Gazprom said it had cut back gas supplies to Hungary and Bosnia-Herzegovina by around 20% to deliver more to domestic users, and may also cut flows to Italy and Austria. Gazprom is the world's largest gas company and supplies one quarter of Europe's gas needs. It had already briefly reduced supplies to Europe in early January due to a contract dispute with Ukraine, a key transit country for European deliveries. Ukraine said it was partly responsible for lower Russian supplies to Europe as it was taking more gas after temperatures plunged to about minus 20-30 degrees Celsius.

The extreme cold has also slowed Russia's oil output by an average 200,000 barrels per day over the past week from the December average of around 9.65mn bpd. On Tuesday, production fell further to 9.4mn bpd with output declining at almost all major oil firms with facilities in West Siberia, including Lukoil, Rosneft, TNK-BP, Sibneft and Yukos.

(2006-01-20 11:39:26 SGT) [Energy] Permalink

Matt Simmons : ''Missing barrels'' reveal bad data

peakoil.com -> home.businesswire.com :

From 2004 through 2005, the world produced almost 650 million barrels more oil than demand consumed, according to the accepted International Energy Agency model. But where are these barrels of oil? "Little of this glut has shown up in observed petroleum stocks," writes Mr. Simmons, author of Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy, in the January issue of World Energy Monthly Review. "In fact, as demand for oil continues to grow, daily usage rates indicate many key stock points are at historic lows."

Faulty measurement models, "despite a great deal of rhetoric about better transparency," are to blame for inaccurate estimates of global supply, he asserts, leading to the perceived supply gluts. Not only is the supply side lacking helpful data, Mr. Simmons writes, but "the world has no system to record the physical use of almost all oil products and also lacks accurate reports of crude-oil refinery runs."

"The whole reporting system for the global oil supply is badly in need of an overhaul," Mr. Simmons concludes, adding that we are facing the "dangerous ... prospect of suddenly running into shortages while supply-and-demand models report massive gluts."

(2006-01-20 11:18:03 SGT) [Energy] Permalink

Coal a viable fuel : PowerSeraya, Singapore

business-times.asia1.com.sg :

PowerSeraya reckons that coal can be a viable alternative fuel for producing electricity. 'Coal remains very much an option,' managing director Neil McGregor said on Monday. 'We've done an economic study and completed our investigations.' The year-long in-house study looked at several issues, including where it can be sourced from - Indonesia being the nearest producer - and what environmentally friendly technology was available.

Technological advances have cut pollution from coal-fired power stations have helped make coal more popular. At the same time, higher gas prices and supply worries - underlined by Russia's recent move to choke piped supplies to Ukraine - have raised doubts about gas. Mr McGregor said that known coal reserves are probably 10 times greater than known gas reserves. And with more countries chasing gas of late, the economics of gas are not looking so good.

About 85% of the gas used by Singapore generating companies is piped from Indonesia, and the rest from Malaysia. Singapore officials have been saying that the island should diversify its gas-supply sources because neighbouring countries will eventually want their gas to power their own economies. Last week, Indonesia said it was considering laws that would compel natural gas producers to allocate 25% of production for domestic use.

(2006-01-20 00:59:04 SGT) [Energy] Permalink

Chinese personal savings hit 14t yuan

business-times.asia1.com.sg :

The frugal Chinese had a record 14 trillion yuan (S$2.8 trillion) in personal savings by the end of 2005, as families socked money away to pay for schooling, health care and housing, the government said. The figure was an increase of 11% over the 12.6 trillion yuan in total savings in 2004, and amounted to an average of more than 10,000 yuan (S$2,020) per person.

Unable to count on government support for schooling, health care and retirement, Chinese tend to save more than families in the United States and other western countries. Although many Chinese are investing in property, the lack of other reasonable investment options obliges people to put most of their savings in banks. Chinese families spend an average of only 60% of their income, saving the remaining 40%. That compares with a world average savings rate of 20%, the China Daily said.

(2006-01-20 00:50:56 SGT) [Biz] Permalink

GIC may buy real estate in India and Brazil

business-times.asia1.com.sg :

Government of Singapore Investment Corp, which manages more than US$100 billion of foreign reserves, said it may buy real estate in India and Brazil for the first time to guard against the risk of falling US property prices. 'Whether it's going to be a bubble or a slow leak is hard to say,' Seek Ngee Huat, president of GIC Real Estate Pte, said in an interview. 'We will explore new markets in places like Brazil and India. There are high risks' in the US housing market.

GIC Real Estate, the property arm of GIC, plans to invest 'hundreds of millions of dollars' in shops and homes in both countries, widening its reach as the US housing market cools. US mortgage applications filed in the last week of 2005 fell to their lowest since 2002. Billionaire investor George Soros, during his visit to Singapore on Jan 8, said the US may fall into recession next year because the Federal Reserve may raise interest rates too high to slow growth and curb inflation, stifling the housing market.

(2006-01-20 00:45:07 SGT) [Biz] Permalink

« Previous day (Jan 19, 2006) | Main | Next day (Jan 21, 2006) »

Most popular blog postings on lowem.log :

1. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
2. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
3. Live spot gold price quotes chart on COMEX
4. Fuel prices seen stoking Malaysia inflation in 2008
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Singapore SIBOR rate fell to 1.25% in Apr 2008, lowest since Aug 2004
7. Malaysia inflation rate jumps to 7.7% in Jun 2008, a 26-year record high
8. Singapore : electricity tariffs to increase April 2008 on rising oil prices

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Singapore : Bread price inflation continues
4. 2010 Honda Civic Hybrid preliminary specifications released
5. Peakoiler buys 2008 Honda Civic Hybrid FD3
6. How to insert currency exchange rates into Google Spreadsheets
7. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
8. Singapore : Inflation erodes away bank savings