Europe and Middle East
is anywhere near catching up with the U.S.,” David Thomas, lead oil & gas analyst at Credit Suisse told CNBC on Wednesday. “You have to look at how much volume is currently being produced by the U.S., and the fact that it’s easy for the U.S. to carry on with its shale production.” While the exploration and production of shale gas — an increasingly important source of cheap natural gas — was underpinned by a supportive political and legal regime in the U.S, such support was lacking in the U.K. and Europe, Thomas said. The U.S. has embraced shale gas production whole-heartedly, leading to a fall in domestic gas prices and making it possible that the country could achieve energy independence in oil and gas by 2035, according to the International Energy Agency. But the 27-nation European Union has been slower to explore the possibilities presented by the controversial energy supply. ) EU policymakers are set to decide by the end of the year whether strict regulation of the industry is required. Opponents of shale gas exploration in Europe say existing environmental law is inadequate for the potential risks involved in the extraction process — the hydraulic fracturing for the gas known as “fracking.” Reflecting public anxiety over fracking in the U.K., protests have been staged at a site where test drilling was being carried out by energy firm Cuadrilla. government is keen to explore shale gas as an alternative domestic energy supply, however, and on Tuesday the country’s Economics Affairs Committee held its first session hearing evidence from experts on shale gas and the possible impact of its extraction. Pro-shale gas campaigners in the energy Industry insist that shale gas provides lower energy costs, can curb greenhouse emissions and could provide a more indigenous source of energy a moot point for the U.K. and majority of Europe which largely relies on Russia for its gas supply. Too many risks in Greece: Gazprom CEO Alexander Medvedev, CEO of Gazprom Export, says there were too many risks in bidding for the national gas company in Greece. Thomas said there would be a “very slow development in shale outside the U.S” with Europe posing challenges in terms of its higher population density, different land rights, oil field services and geology. “We think that overall, global shale gas revolution will be slower going into 2020 and beyond,” Credit Suisse’s analyst said.
Germany’s DAX 30 index erased 0.1% to 8,587.29. In the corporate sector, shares of Novartis AG gave up 0.7% after J.P. Morgan Cazenove cut the drug maker to neutral from overweight. Clariant AG added 1% after HSBC lifted the chemicals firm to neutral from underweight. 3:26 a.m. Oct. 8, 2013 James Chanos, founder and managing partner of Kynikos Associates, discusses China, the energy sector and Tesla while speaking to WSJ’s Liam Denning at WSJ’s Heard on the Street event, “Investing in an Age of Easy Money.” (Photo: Getty) 3:09 p.m. Oct. 7, 2013 The U.K.s benchmark stock index heads for its lowest closing level in more than six weeks on nervousness about the prolonged U.S. government shutdown. 12:11 p.m. Oct.
Diesel Flow to Europe to Cap Winter Price Surge: Energy Markets
refiners currently have about a $2-a-barrel advantage over their European counterparts as surging crude production provides them with cheaper feedstock, Torbjorn Tornqvist, chief executive officer of Gunvor Group Ltd., said Oct. 1 in a speech at the Oil & Money conference in London. Plant Closures I expect the next two years we will see probably five, six plants being closed in Europe, accounting for about 500,000 to 700,000 barrels a day of refining capacity, he said. Gunvor, an oil-trading company with offices in Cyprus and Geneva, bought refineries in Belgium and Germany last year from Petroplus Holdings AG, Europes largest independent refiner before it became insolvent. MOL Hungarian Oil & Gas Plcs Mantova refinery in Italy last week became the latest European facility to close, citing the unfavorable economic environment that the refining business faces in Italy. It joined 15 sites in the region to have shut since 2008, according to the IEA. Chartering of ships to haul diesel from the U.S. to Europe climbed in the third quarter to the most since Bloomberg began compiling the data last year, as refiners increase production amid North Americas oil shale boom. Europe imports about 16 percent of the diesel it uses, IEA data show. Russia, which supplied a third of Europes imported diesel in 2012, according to the IEA, has also entered seasonal maintenance, taking offline 21 percent of its refining capacity in the week ended Oct. 2, according to the countrys Energy Ministry. When the overhauls end in November, Russian flows of the fuel will rebound, according to the survey of refining executives. Russian Diesel Russia, the worlds largest oil producer, has doubled exports of high-quality diesel to Europe this year to about 650,000 barrels a day, Facts Globals Parker said. OAO Rosneft, the worlds largest publicly traded oil producer by volume, is spending $25 billion on refinery upgrades. Diesel crack spreads below $15 a barrel were extremely disappointing for refineries that have all maximized diesel production, Dario Scaffardi, Sarass executive vice president and general manager, said on an Aug.