World Energy Week in Review - 11 August 2006
By EV World
This week, BP announced that due to dangerous corrosion, which had already resulted in the worst oil spill on the Alaska North Slope earlier this year, it was shutting down much of its oil pipeline, closing in the equivalent of eight percent of America’s domestic oil production.
The price of a barrel of oil immediately spiked $2 on the news, prompting speculation that BP had cunningly delayed the announcement until the peak of the U.S. driving season in order to profit from increased oil prices.
We talk with ODAC newsletter editor Doug Low from the capital of the British petroleum industry in Aberdeen, Scotland about the BP announcement, as well as the curious re-release of the two-month old CERA oil production report that asserts supply will outpace demand in the coming years. The timing of the report seems strangely synchronous with the growing public awareness of "peak oil" and concerns about the Saudi Arabia’s largest oil field.
This week, Richard Heinberg, noted in an essay that a confidential source knowledgeable with the state of Saudi oil production told him at the recent ASPO meeting in Pisa, Italy that the Ghawar oil field has begun to decline.
Finally, a committee made up of members of Parliament in the UK have urged the government to implement a 1,800 gas-guzzler tax to help reduce CO2 emissions from the growing fleet of SUVs that Low estimates now represents 25% of all new car sales in Britain.
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