Oil & Energy
Oil Prices Hit $106 Amid M’East Conflict
Oil prices rose above $106 a barrel Thursday in Asia amid a wave of violent protests and uprisings in the oil-rich Arab world.
Benchmark crude for May delivery was up 29 cents at $106.04 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract added 78 cents to settle at $105.75 on Wednesday, the highest close since September 26, 2008.
In London, Brent crude was up 8 cents at $115.55 a barrel on the ICE futures exchange.
Oil has jumped 24 per cent since February 15 as violent conflict roils the Middle East and North Africa.
Israeli warplanes hit Hamas targets in Gaza early Thursday, retaliating for rocket attacks on Israeli cities and a bus stop bombing in Jerusalem a day earlier.
Coalition missiles strikes have pounded forces loyal to Libyan leader, Moammar Gadhafi, for five days, giving rebels breathing room to regroup. With Gadhafi refusing to step down and United States President, Barrack Obama, ruling out a land invasion, the conflict could face a stalemate that keeps most of the Organisation of Petroleum Exporting Countries (OPEC) nation’s 1.6 million barrels a day of crude production shut down longer than investors had initially anticipated.
In Syria, a crackdown on anti-government protests escalated Wednesday as police killed, at least, 15 demonstrators in the southern city of Daraa. Meanwhile, Yemen declared a 30-day state of emergency in a bid to quell an expanding uprising against the 32-year rule of President Ali Abdullah Saleh.
Signs that US consumers are not letting rising fuel costs crimp demand also lifted crude prices. The Energy Department said gasoline inventories fell 5.3 million barrels last week, and gasoline stocks are down 8.9 per cent during the last five weeks.
In other Nymex trading for April contracts, heating oil added 1.2 cents at $3.07 a gallon and gasoline gained 0.3 cent to $3.02 a gallon.
Natural gas jumped 3.5 cents to $4.37 per 1,000 cubic feet.
Nelson Chukwudi with Agency reports
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By Felicity Bradstock for Oilprice.com 16
Oil & Energy
Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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