Oil & Energy
Oil Dips Ahead G-20 Summit
Crude slipped on Friday, mainly depressed by ample supply but underpinned by a Caribbean storm which might move towards the Gulf of Mexico, where oil facilities are clustered and BP continues to fight an oil spill.
Worries about the fragility of global economic recovery ahead of a summit of Group of 20 nations was additionally weighing on prices and overshadowing global markets.
By 0855 GMT, United States crude futures fell 34 cents to $76.17 a barrel, heading for the first weekly decline in three weeks.
Brent crude futures fell 47 cents to $76.00.
“Two topics are dominating today. One is a hurricane is forming now, which is supportive to the market.
“And we have a looming problem of very high inventories worldwide, which offsets the support and is putting prices in a very tight range,” said Andy Sommer, energy market analyst with EGL in Switzerland.
“The market is, of course, watching the G20 meeting and the Chinese yuan situation,”
Ahead of the G20 summit, MSCI’s all-country world index was down 0.2 per cent, heading for a 2.7 per cent weekly loss.
European shares were bucking the trend, however, with the FTSEurofirst 300 up 0.3 per cent after three days of losses.
The dollar made little headway.
In the United States, the world’s top oil market, crude oil and product inventories remained much higher than a year earlier levels.
High inventory levels can provide a cushion to reduce price spikes should bad weather cause supply disruptions.
This was the case when deadly hurricanes Katrina and Rita hit the US Gulf of Mexico in 2005.
Oil & Energy
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Oil & Energy
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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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