OPEC cuts 1 million barrels in 1st reduction since 2004

OPEC will take one million barrels of oil a day off oversupplied world markets as soon as possible with its first output cut in more than two years, a senior OPEC delegate said, sending oil prices up nearly $1.50. The world's biggest oil exporter Saudi Arabia will shoulder most of the burden, the delegate said, as OPEC moves to address a 25% drop in prices since mid-July. The reduction amounts to just over 3% of the organization's total output. This will be OPEC's first output cut since April 2004.

U.S. oil rallied on the news, hitting $60.85 a barrel, up nearly $1.44, at one point. Analysts have expected this move for some time, especially after Nigeria and Venezuela announced they were making unilateral cuts. Kuwait added to the impetus on by stating its readiness to join in the reductions if necessary.

(2006-10-05 22:15:06 SGT) [Energy] Permalink

IT chiefs urged to tackle ''energy crisis''

peakoil.com -> itweek.co.uk :

IT directors have been advised to increase efforts to reduce energy consumption as new evidence emerged highlighting the financial cost to IT departments of power-hungry hardware and soaring electricity prices. Gartner warned that while energy costs currently account for around 10% of overall IT budgets, the increased use of high-density blade servers coupled with rising electricity prices could result in power accounting for over half of IT budgets within the next few years.

"You can now put 10,000 servers in a datacentre without too many people needed to manage them," explained chief of research at Gartner, Steve Prentice. "So whereas you used to make datacentre decisions based on management costs and skills availability, now sensible firms are making those decisions based on energy. Google and Microsoft make no secret of the fact that their next generation datacentres in the US are being located in the Pacific North West because it puts them close to low-cost and reliable hydro-electric power."

(2006-10-05 22:09:59 SGT) [Energy] Permalink

The markets react to peak oil

peakoil.com -> fromthewilderness.com :

Recent price swings – both up and down – have been predicted as a part of the Peak Oil scenario for years. The bumpy plateau is triggered as civilization and the world economy attempt to cope with ever-rising prices and shortages. This is certainly understood by world leaders, and it may account for a large part of the increased hoarding of fuel stocks which is becoming commonplace. Of course, economists boastfully mislabel this hoarding as increased inventory.

Falling prices should not be embraced as positive, or an indication that Peak Oil is any less real today than it was when M. King Hubert first explained it. Price drops will only further our collective delusion, offer a false sense of security, and delay necessary preparations for the Post-Peak society.

(2006-10-05 22:05:35 SGT) [Energy] Permalink

Toyota aims to sell one million hybrids by 2010

business-times.asia1.com.sg :

Currently, Toyota produces a worldwide total of 400,000 hybrids, according to Yoshihiko Matsuda, the chief engineer for the RX400h. 'We have been trying to reduce the cost of hybrids since the introduction of the first-generation Prius,' he says, adding that Toyota cannot concentrate on achieving cost reduction unless it concentrates on every component of the hybrid car, including the battery, motor generator, inverter and ECU.

He says the carmaker's goal is to sell one million hybrids in 2010, a 150 per cent increase over four years, adding: 'That is the target, but the customer will have to make the choice.'

(2006-10-05 21:56:38 SGT) [Energy] Permalink

Jakarta to invest 2 trillion rupiah in biofuels projects

business-times.asia1.com.sg :

Indonesia's government will invest two trillion rupiah (S$345 million) in a company that will promote the production and export of fuels made from crops such as oil palms and sugarcane. Indonesian President Susilo Bambang Yudhoyono is turning to agriculture, provider of about 40% of the nation's jobs, to lower rural unemployment.

Mr Yudhoyono has tried to meet his pledge to cut poverty by half, keep prices in check and create more jobs for the country's 242 million population. Indonesia's jobless rate rose to 10.4% in February from 10.3% a year earlier. The world's fourth most populous nation has 40 million people living on 17 cents a day. Indonesia, South-east Asia's biggest oil producer and user, imports a third of its oil requirements.

(2006-10-05 21:53:38 SGT) [Energy] Permalink

US to delay buying emergency oil through winter

peakoil.com -> money.cnn.com :

The Energy Department said it will hold off buying replacement oil for the nation's emergency petroleum stockpile through the winter heating season in order to keep more supplies on the market. The department needs to replace some 11 million barrels of crude oil that it sold last year from the stockpile for $600 million to oil companies that needed help after Hurricane Katrina disrupted petroleum supplies.

The reserve now holds about 688 million barrels of oil at four underground storage sites in Texas and Louisiana. That is equal to about 56 days of U.S. petroleum imports. The emergency stockpile was created by the Congress in the mid 1970s after the Arab oil embargo.

(2006-10-05 21:45:40 SGT) [Energy] Permalink

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