[DantesPeak]

Sinopec to suspend oil product exports in Q3
(Agencies)
Updated: 2008-05-28 15:34

China Petroleum & Chemical Corp (Sinopec), Asia's top refiner, will suspend oil product exports in the third quarter in order to increase domestic supply, Sinopec Group said.

The company will on the other hand increase gasoline and diesel imports for the summer harvest, the Beijing Olympics and earthquake relief, the group said in a statement.

Sinopec absorbs built-in losses for fuel imports because of domestic price caps at the retail level. The Chinese government has agreed to subsidize oil majors on a monthly basis starting April against losses arising from the import of crude and fuel.

Yesterday a company official said that Sinopec received around 7 billion yuan ($1 billion) in subsidies for oil imports in April.

China Daily

China Tells Coal Companies To Increase Output For Quake Relief

DOW JONES NEWSWIRES
May 31, 2008 2:44 p.m.

BEIJING (AFP)

Though there were shortages in some areas of coal, oil, electricity and agricultural goods, the supply was generally sufficient, the circular said.

Coal production in the quake zone should resume as soon as possible, and coal-producing counties should seek approval from authorities if they want to reduce one-third of output, the circular said.

The State Council also ordered the China National Petroleum Corporation and Asia's top oil refiner, Sinopec, to guarantee oil supply to the quake zone.

Sinopec has pledged to halt gasoline exports in the third quarter to cope with extra domestic demand caused by quake relief and has made emergency deliveries of diesel and petrol to Sichuan and nearby regions.

WSJ

[eXpat]

Strikes over fuel price hit India link

Communist allies of the ruling coalition kicked off a week of protests against Wednesday's price hikes by calling one-day strikes in the three states they rule - West Bengal, Kerala and Tripura - leaving streets, offices and airports largely deserted.

...
"The government does not care for poor people like us," he said. "Today they have raised fuel prices, tomorrow the prices of other essentials will go up and we will continue to suffer."

Flights cancelled

Protesters, some waving red flags, stopped trains and buses in Kolkata, the capital of West Bengal, and even forced people out of cabs to enforce the dawn-to-dusk strike, witnesses and police said. Rain also helped keep people off the streets. Flights in and out of the state were cancelled, leaving hundreds stranded at the airport. The main opposition party in the state, the Trinamool Congress, will throw its weight behind a 12-hour strike today.

Stoppages also hit Tripura and Kerala, where the container port of Kochi, an important commodities transit point, was shut.

[DantesPeak]

PetroChina says demand, supply fuel diesel shortage

Reuters - Friday, June 13BEIJING, June 12 - Vigorous demand and relatively slow growth in supply have sparked more diesel shortages across China, a senior official with PetroChina said on Thursday.

Though China's top oil firm sold 35.34 millIon tonnes of refined oil products in the local market in the first five months of this year, 8.6 percent higher than a year earlier, this was still not enough to meet domestic diesel demand, said Tian Jinghui, vice president of PetroChina's Refining and Marketing Company.

Tian did not provide the volume of diesel sold during the period or its percentage change over last year.

With independent refiners cutting production or halting operations due to losses caused by both state-set low fuel prices and soaring crude oil costs, fuel supply in the market has fallen more sharply than a year earlier, Tian said in an email release.

Reuters

[MrBean]

China was the first empire and wants to and will be the last empire standing.

The sign mark of a "healthy and vigorous" empire is evergroing demand. With flat production and global exports dropping since 2005 China's growing consuption is possible only by demand destruction in other places - especially in US, where most slack to be cut is found.

From empire's point of view, subsidies are handy tool converting the flow of oil from US to China. Don't expect the subsidied and fixed prices to go away before US and Chines oil consumption per capita is on par...

[MrBean]

China was the first empire and wants to and will be the last empire standing.

We all know what happens to empires, dont we ?. Especially us Brits.

China will fiz out, but not for a while yet, its currently at max power. Even by turning off the engines (peak oil), China still has a hell of alot of kinetic "energy" to keep it going.

Time now for America to get itself organised & arise.

Gasmon

Am I missing something, how does "Time now for America to get itself organised & arise." (up to the task of empire, I assume) arise from "We all know what happens to empires, dont we ?"

If empires are not good things and it sucks to be empire (suicidal mania for shitty end after hurting many and doing lot of damage) then why wish any nation or culture to take up that game?

[MrBean]

China was the first empire and wants to and will be the last empire standing.

We all know what happens to empires, dont we ?. Especially us Brits.

China will fiz out, but not for a while yet, its currently at max power. Even by turning off the engines (peak oil), China still has a hell of alot of kinetic "energy" to keep it going.

Time now for America to get itself organised & arise.

Gasmon

Am I missing something, how does "Time now for America to get itself organised & arise." (up to the task of empire, I assume) arise from "We all know what happens to empires, dont we ?"

If empires are not good things and it sucks to be empire (suicidal mania for shitty end after hurting many and doing lot of damage) then why wish any nation or culture to take up that game?

Empires are good - IN THE ASCENDANCY.

The Romans, The British both grew rich & lax. Lost it, like China, soon.

Rather my thoughts are for America to rise as the worlds policeman, like the old British Empire navy once was.
Of course, when you have arose, the hard part is keeping it going.

If America goes down the tube, the rest of the world will follow, without doubt. Hence my thoughts.

Up to it ?.

Gasmon

Down the tube she goes and won't be missed, if you ask me.

I mean, if empire on ascendancy is like shooting up heroin, does the trip really make up for all that follows in overall balance (and not just short-termism of quarterly capitalism)?

Why not settle for something more modest, on the scale of addictions?

[abelardlindsay]

You know all those billions and billions china has piled up from years of trade surpluses with the U.S? I am sure they are coming in handy for subsidizing oil at $2.50/gallon.

[DantesPeak]

You know all those billions and billions china has piled up from years of trade surpluses with the U.S? I am sure they are coming in handy for subsidizing oil at $2.50/gallon.

It's more than $1 trillion in total, with $1 trillion in US dollars. It is believed that most of those $s are in short term secuties like US Treasury bills, although some is in the form of bank deposits. So they could spend those dollars now, and would have an incentive to do so if they though the price of oil was going to keep rising, the dollar would fall, or they perceived an oil shortage ahead.

[bratticus]

Twilight said:

I wonder when cost over-runs will be blamed specifically on high energy prices.

I will come when it is understood that money does not create energy, rather, it is energy that creates money.

That's disgusting!

Meanwhile watch an Energy City Qatar (link) promo video.

[DantesPeak]

PUMPS REMAIN DRY: ‘No-stock’ board on display at a petrol bunk on the 100-feet road at Koyambedu in Chennai on Tuesday.

Front Page
Wednesday, Jul 02, 2008

Rush for petrol, diesel at bunks continues on Day 2

Special Correspondent

Chief Secretary and oil company officials say crisis will blow over today

CHENNAI: The rush for petrol and diesel in Chennai and the suburbs continued through Monday, leading to a repeat of chaotic scenes at retail outlets and nightmarish traffic snarls on Tuesday.

Besides complaints of shortage and rationing of the fuels and outlets remaining closed, Tuesday saw customers charging some of the bunks with hoarding and overcharging.

Though officials of oil marketing companies said the situation was better than it was on Monday and more loads were despatched to the outlets, long queues of vehicles were seen at the bunks. At many of the outlets such as the one on Venkatnarayana Road, T.Nagar, customers started queuing up early in the morning.

An interesting development, amid the fear of the situation worsening when truckers go on strike from Tuesday midnight, was the increased patronage for public transport and the relatively fewer private vehicles on road. Senior officials of both the Metropolitan Transport Corporation and Southern Railway said the demand for bus and train services rose substantially.

The Hindu

Radio stations broadcast news about availability of fuel in various parts of the city Tuesday, but fears of a scarcity persisted.

Several people told IANS of colleagues applying for leave citing non-availability of fuel.

Vegetable prices went up Monday by almost 80 percent.

Calcutta News

[DantesPeak]

Truckers call off strike, toll tax hike frozen for a year

Press Trust of India
Friday, July 4, 2008 (New Delhi)

The three-day-old truckers' strike has been called off following an agreement between the transporters and the government after marathon negotiations that lasted for about ten hours.

The truckers have been demanding roll-back of hike in toll tax, honouring of service tax agreement of 2004, and availability of non-branded diesel and removal of speed governors on highways.

''All our issues on service tax have been resolved and the provisions of agreement reached in 2004 will be honoured,'' All India Motor Transport Congress president Charan Singh Lohara told reporters in Delhi after the meeting.

''Toll rates applicable prior to December 2007 will be applied henceforth and there will be no increase in toll for a period of one year on government-funded 770 km national highway stretches,'' Transport Secretary Brahm Dutt said.

Emerging from the meeting Finance and Revenue Secretary P V Bhide said the service tax agreement of 2004 would be followed.

''Even our problems relating to speed governors and mechanical tax (applied in West Bengal, Orissa and Tamil Nadu) have also been resolved,'' Lohara said and added all service tax notices sent to truckers would be withdrawn as per the agreement.

NHAI Chairman N Gokulram said due to the freezing of hike in toll-tax, there would be some drop in revenue collection, however, declining to give exact details.

On the demand for availability of non-branded diesel, the petroleum ministry had earlier sent a direction to all oil marketing companies to make the fuel available in adequate quantities in all their outlets across the country.

The truckers had stopped service since July 2 midnight and held a series of meetings with government officials.

The strike by called by AIMTC, apex body of transporters that claims to represent nearly 4.8 million truck and two million tempo operators, had crippled goods movement in various parts of the country.

NDTV

Higher energy prices are not being accepted well by those whom they hit the hardest, and shortages add to the bad feelings.

India has had some problems distributing diesel across the country - especially points furthest from the refineries. We saw the same problem here in the US in 2007 - the most distant lcoations get hit by shortages first as supplies dwindle.

Quoting from another post made on July 2, I strongly believe subsidies will actually increase as the price of energy rises. Therefore the higher free market price signal, that would normally 'destroy' demand, is being by-passed:

World wide Demand Destruction will not occur until countries that subsidize the price (use) of gasoline (China, India, Venezuela, Saudi Arabia, Iran, ect, ect) allow it to be priced to world levels. It will come back to bite them in the butt, but not before it has decimated the American and possibly the European economies.

Not only is that not going to happen, but I think the gross amount of subsidies will actually increase as the price rises. That includes the US, where I expect some combination of a sort of fuel consumption tax cut, some kind of income tax credit or a kind of rebate to offset rising fuel and/or heating costs.

[AirlinePilot]

I strongly believe subsidies will actually increase as the price of energy rises. Therefore the higher free market price signal, that would normally 'destroy' demand, is being by-passed:

Another unintended consequence of peak, just the opposite of what one might think would happen, but not so due to I believe a different reason than supply demand concerns.

I believe its going to rapidly become apparent that no country is going to be able to repeal subsidies with any long term success due to exactly what this specific instance sites. Social unrest brought to crisis levels quickly and the PTB realize that without the subsidies the real problems are worse than actually having them, I.E. shortages and potential violence.

Its because they have no other choice due to lack of planning and foresight. Same thing will happen everywhere you have subsidies which get repealed. At some point the lesser crisis is to go back to the subsidy. I think a lot of us predicted this sort of thing over a year ago. Governments and regulatory agencies will have no better choice due to lack of planning and the potential dangers.

I also agree with Dantes on this, the correct signals which NEED to be sent won't ever happen. Smoother sailing maybe for a short period of time, but your basically just prolonging the agony slightly.

The longer we go without allowing real market forces and demand destruction to occur due to price, the uglier the end game becomes.
I think it may end up happening here in the states with the elections coming up. We'll have no other choice due to total inability to realize or plan for what is actually going on.

It's Peak Oil Stupid.

Thats my new election campaign slogan

[vampyregirl]

Construction of the large scale Pearl GTL plant in Ras Laffan Industrial City is on schedule with start up expected in late 2009.
The first three GTL reactors arrived in the port of Ras Laffan in January and have been installed. Installation of offshore platforms is underway.
The Pearl plant will produce 140k bpd of liquid transport fuel and 120 bpd of Napthta and Ethane.
Shell GTL has been proven on a commercial scale at the 14,700 bpd plant in Bintulu, Malaysia which produces GTL liquid fuel for Asian and European markets. Shell GTL works in Diesel engines either on its own or blended with conventional Diesel. It is most often used as a blend. A special blend of Shell GTL and Shell V Power Diesel has powered the Audi Sport team to victory at Le Mans three years in a row.

The Qatargas 4 project is also expected to start up in late 2009. The plant will have a capacity of 7.8 mtpa of LNG. Eight LNG carriers have been ordered.
Qatargas 4 LNG will mostly be shipped to contracted buyers in the United States and China. In January PetroChina signed a sales and purchase agreement to buy 3 mtpa from Qatargas 4.

[DantesPeak]

Diesel shortages persist in India and Saudi Arabia:

Govt explores ways to beat diesel crunch
OUR SPECIAL CORRESPONDENT

Great DeMand
New Delhi, Aug. 17: The government has called the chiefs of state-run oil companies to discuss the problem of diesel shortage in the country.

“There have been reports of diesel shortages in Pune and other parts of Maharashtra, among other places. I have called a meeting of oil PSU chiefs on August 19 to seek an explanation,” petroleum minister Murli Deora said.

The demand for diesel has risen nearly 25 per cent in recent times as it is increasingly being used in power generation instead of fuel oil and naphtha that are costlier.

“The demand-supply gap seems to have widened because of this,” Deora said.

Indian Oil Corporation chairman Sarthak Behuria has said the company would not be importing diesel and sell it at low prices to meet the rising demand.

Diesel is heavily subsidised because it is used in the public transport system and by the farm sector and truckers.

Telegraph-India

Northern fuel shortages widen
Saudi Gazette Report
AR’AR – A fuel crisis is the last crisis most would not expect in the world’s largest oil exporting country. The northwestern city of Ar’ar already facing a diesel shortage for the last month is now faced with a shortage of fuel.
Some nine owners of fuel stations filed complaints to the Ar’ar Chamber of Commerce and Industry against Saudi Aramco for not supplying enough fuel to meet their needs, Al-Hayat reported.
Thani Al-Anezi, chairman of the Northern Frontier Region Chamber of Commerce and Industry, said the complaint has been referred to the concerned authorities and will be followed up because the impact falls on citizens, travelers and owners of fuel stations. He called on Saudi Aramco to conduct a field survey and supply fuel as it is required to fuel stations and factories through its own fuel tanker trucks or contracted ones.
Al-Anezi said the shortage was due to a new electronic quota system adopted by Saudi Aramco.
“The electronic system distributes a certain quantity of fuel to each fuel station, but the quantity distributed is not precise and does not meet the market demand,” he said. “The system does not take into consideration that many fuel stations do not own their own fuel tanker trucks, so several fuel stations may help each other.”
“Some factories purchase large quantities of fuel reducing the quota for fuel station owners,” he added.

Saudi Gazatte

[shortonoil]

DantesPeak quoted:

The demand for diesel has risen nearly 25 per cent in recent times as it is increasingly being used in power generation instead of fuel oil and naphtha that are costlier.

As the price of coal goes up and gets short to electrical utilities, they are using diesel to make up the difference!

A view of the world’s long range PO planning at its best! If anyone doubts that we are not in serious trouble, you can take your head out of the sand about now!

[vampyregirl]

The joint development of Qatargas 3 & 4 will make Qatar the world's largest producer of LNG ( Liquified natural Gas) with production of 42 million tonnes per annum. LNG trains 6 and 7, currently under construction each have a production capacity of 7.8 mtpa, making them the largest LNG trains in the world.
The trains will be feed by three production in the North Field, 65 milometres offshore, each delivering 1.4 billion cubic feet per day. Condensate from the gas will be separated at the gas inlet at Ras Lafsan, before the gas is converted into LNG.
Each train has turbine compressor strings and they should be completed in 2010.

Partenrs in Qatargas 3 are Qatar Petroleum 68.5% ConocoPhillips 30% and Mitsui 1.5%
Qatargas 4 is a joint venture between QP and Shell.

www.shell-me.com/en/200807/feature1.php

[Graeme]

Qatar has enough gas reserves for 200 years: OBG

DOHA: Qatar’s proven oil reserves estimated at a whopping 25.7 billion barrels can last for 90 years at an average production of 776,000 barrels a day, while the country’s massive gas reserves are enough to support planned gas production for over 200 years, The Oxford Business Group (OBG) has revealed these figures in The Report: Qatar 2009 released yesterday.

Qatar’s North Gas Field is the world’s largest non-associated gas field and holds an estimated 902trn cu feet, which is the equivalent of 162bn barrels of oil and is enough to support planned gas production for over 200 years.

LNG’s place on the export ladder is due to increase substantially in the coming years with exports of LNG currently expected to rise from 9.4m tonnes (mt) in 2007 to 38.7 mt by 2012.

http://www.thepeninsulaqatar.com/Display_news.asp?section=Business_News&subsection=Local+Business&month=June2009&file=Business_News2009060315553.xml