Wednesday June 21, 2006

World grain stocks fall to 57 days of consumption

energybulletin.net -> earth-policy.org :

This year's world grain harvest is projected to fall short of consumption by 61 million tons, marking the sixth time in the last seven years that production has failed to satisfy demand. As a result of these shortfalls, world carryover stocks at the end of this crop year are projected to drop to 57 days of consumption, the shortest buffer since the 56-day-low in 1972 that triggered a doubling of grain prices.

World carryover stocks of grain, the amount in the bin when the next harvest begins, are the most basic measure of food security. Whenever stocks drop below 60 days of consumption, prices begin to rise. The U.S. Department of Agriculture (USDA) projected that this year's wheat prices will be up by 14% and corn prices up by 22% over last year's. This assumes normal weather during the summer growing season. But if this year's harvest is sharply reduced by heat or drought, they could far exceed the projected rises. With carryover stocks of grain at the lowest level in 34 years, the world may soon be facing high grain and oil prices at the same time. For the scores of low-income countries that import both oil and grain, this prospect is a sobering one.

Each year the world's farmers must try to feed an additional 70 million people, good weather or bad. This growth is concentrated in the Indian subcontinent and sub-Saharan Africa, which is where most of the world's hungry people live. Growth in world grain demand, traditionally driven by population growth and rising incomes, is also now being driven by the fast growing demand for grain-based fuel ethanol for cars. Roughly 60% of the world grain harvest is consumed as food, 36% as feed, and 3% as fuel. While the use of grain for food and feed grows by roughly 1% per year, that used for fuel is growing by over 20% per year.

Farmers are facing a record growth in the demand for grain at a time when the backlog of technology to raise grain yields is shrinking, when underground water reserves are being depleted, and when rising temperatures threaten to shrink future harvests. As a result the world grain market may become a seller's market, one where higher grain prices, like high oil prices, are an integral part of the economic landscape.

(2006-06-21 23:05:25 SGT) [Env] Permalink

F1 racing to go hybrid

greencarcongress.com -> evworld.com -> formula1.com :

The FIA (the governing body of world motor sport) has declared its intention to drag Formula One into the 21st century. The announcement's impact on road cars should excite everyone who is concerned about fuel prices and global warming. The central message is that the most technically advanced and heavily-funded form of motor sport will now be obliged to focus on fuel economy, one of the key issues that concern ordinary drivers.

The President of the FIA, Max Moseley, gave a stark warning to the auto makers (BMW, DaimlerChrysler, Fiat, Honda, Renault/Nissan, Toyota, etc) who control most of the Formula One teams, that they were spending hundreds of millions of dollars every year just trying to get a few more rpm out of their racing engines. This was unsustainable, and wasted superb engineering resources on an ultimately futile objective. Formula One should be the proving ground for advanced automotive technology, but it has fallen behind in areas such as fuel consumption. The FIA has now decided to allow hybrids from the beginning of 2009.

The FIA is placing only two major constraints on the technology used. The first, which is paramount, is safety. The second is a weight limit of 20 kilograms (44 lbs) for the complete 'surge power unit'. For example, if ultra-capacitors are used, the motor and controller/inverter must be included within the 20 kg weight budget. Among the alternatives are hydraulic systems and kinetic energy storage systems. The FIA estimates that the early systems will be capable of delivering some 60 bhp of additional power for as much as nine seconds, with peak power doubling over several years of further development.

Despite the light weight of the current F1 cars, they usually get only 4 miles per gallon on a typical track. The fuel consumption is so high because the cars repeatedly surge up to 180 mph or more and then brake heavily, many times in each lap of a typical circuit, throwing away the kinetic energy of the car as heat from the brakes every time they do it. There is genuine potential for race-bred Formula One technology to find its way, eventually, into road cars. The FIA appears to agree with Toyota's view that almost all road vehicles will eventually have regenerative braking.

(2006-06-21 19:21:12 SGT) [Tech] Permalink

Singapore first in SE Asia to roll out HDTV trial on terrestrial TV

channelnewsasia.com :

Television viewers will enter a new era of broadcasting from Sunday, 18 Jun 2006 when a six-month high definition TV (HDTV) trial kicks off in Singapore. The trial will be on new terrestrial Channel 38. Singapore will be the first in Southeast Asia to roll out HDTV trial on terrestrial TV. About a thousand households, community clubs, libraries and retail outlets will also get to experience HDTV when MediaCorp airs the final three World Cup matches live in high definition format.

During the trial, MediaCorp will have to gauge the stability of the new technology as well as the level of reception in homes which require roof-top or indoor antenna. It is also expected to invest heavily in new equipment and facilities to produce local shows in high definition, as the media industry makes its transition to digital technology.

See also :

1. MediaCorp estimates cost of at least S$100m to implement HDTV

(2006-06-21 19:02:20 SGT) [Tech] Permalink

China's first strategic oil reserve facility to be ready in August

channelnewsasia.com :

China will complete construction of its first strategic oil reserve facility in August, state press has reported. The plant, which will have the capacity to hold 5.2 million cubic meters (32.7 million barrels) of crude oil is located in the coastal city of Zhenhai in China's eastern province of Zhejiang, the China Daily reported. Huge tanks are also being constructed at three other sites - a second plant at Zhejiang, and one each in the eastern provinces of Liaoning and Shandong.

Chinese officials said earlier this year that they would begin filling the Zhenhai facility by the end of the year, but soaring prices may cause a delay. China hopes its reserves will be able to hold up to half a year's supply of oil within 10 years. The four strategic oil reserve bases are expected to hold supplies for at least 30 days. China, the world's second-biggest oil consumer after the United States, used about 318 million tons [2.33 billion barrels, 6.39 mbpd] of oil last year, of which 40%, or about 127 million tons [0.93 billion barrels, 2.55 mbpd] were imported.

See also :

1. ASEAN, China, Japan, South Korea mull oil stockpile
2. Strategic Petroleum Reserve (SPR) (USA)
3. Global strategic petroleum reserves

(2006-06-21 12:46:32 SGT) [Energy] Permalink

Large natural gas field discovered offshore China

channelnewsasia.com :

Canada's Husky Energy Inc has discovered a significant deepwater gas reserve with its Chinese partner, China National Offshore Oil Corp (CNOOC), in the South China Sea near Hong Kong. Based on preliminary analysis of drilling results, the discovery could contain a potential recoverable resource of four to six trillion cubic feet (120 billion to 180 billion cubic meters) of natural gas, the energy company said. The discovery was made in the mouth of the Pearl River about 250 kilometres (150 miles) south of Hong Kong.

english.people.com.cn :

Canada-listed Husky Energy Inc. announced last Wednesday that the Liwan 3-1-1 field identified on block 29/26, a production sharing contract (PSC) block with the CNOOC in the Pearl River Mouth Basin, was estimated to contain a potential recoverable reserve of four to six trillion cubic feet of natural gas. Husky found natural gas in its first well drilled in the block.

The recoverable reserve of the possible field could be confirmed only after more wells were drilled and further evaluations were made, said Xiao Zongwei, spokesman for CNOOC Ltd. Under the PSC between Husky and CNOOC signed in 2004, CNOOC Ltd. has a stake of up to 51 percent in the development of any discovery.

If confirmed, the discovery, drilled at a depth of 1,500 meters, may be the first significant deep-water gas discovery offshore China, indicating a possible huge increase in China's oil and gas reserves, said experts.

(2006-06-21 12:23:52 SGT) [Energy] Permalink

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