The company said its technical studies indicate that the licenses in the region most likely contain an estimated 2.9 trillion cubic meters or 102 trillion cubic feet. According to Bloomberg, the new estimates released Monday sent IGas Energy shares soaring. They jumped 15 percent in London trading after the statement was released. IGas, which is due to start drilling later this year, said in a statement that a study “supports our view that these licenses have a very significant shale gas resource with the potential to transform the company and materially benefit the communities in which we operate.” “Gas in place of about 100 trillion cubic feet (2.8 trillion cubic meters) is highly significant, both relative to IGas’s existing resource base and the UK’s existing gas reserves,” Bloomberg quotes Laura Loppacher, an analyst at Jefferies Group LLC in London as saying. “US shale recovery factors are generally estimated to be 10 percent to 30 percent with current technology.” Should 30 percent be extractable, UK reserves would jump about 850 billion cubic metres compared with BP’s current estimate of 200 billion cubic metres, more than quadrupling the country’s gas reserves. The new estimate from IGas Energy follows the one made by its rival – Cuadrilla. Cuadrilla’s estimate revealed that its field in the same region in north west England may hold up to 5.7 trillion cubic metres. Increasing extraction of shale gas could help UK ease its gas dependency on Qatar and Russia. Exploration and development group Cuadrilla believes it could supply a quarter of the UK’s gas needs from a resource in Lancashire. “There are already over 300 licenses for onshore exploration and development, conventional and unconventional, a fifth of which are substantial,” UK Energy Minister Michael Fallon said last month at the All Party Parliamentary Group for Unconventional Gas & Oil (APPG) meeting in the House of Commons. Shale gas drilling is however a tricky process. Companies use hydraulic fracturing – the cracking of various rock layers by a pressurized liquid in order to release the gas trapped inside the shale formations. Supporters of the hydraulic fracturing point to the economic benefits from the vast amounts of formerly inaccessible gas reserves. Opponents of the drilling methods point to potential dangers to the environment, including polluting ground water, depletion of fresh water, and soil and air contamination among other risks. The UK ended its shale gas exploration moratorium in December last year despite environmentalists’ concerns over the controversial extraction technology, the International Business Times reports. Conservative MP Dan Byles quoted by IBTimes said that the shale gas industry could provide as many as 30,000 UK jobs. … Read More
The Best Opportunity This Decade: Maximum Gold Profits
When it all comes down you must be positioned in assets that will not only store value, but build it as well. … Read More
Free flow: Israel lifts 49-year blockage of Jordan River
Israel plans to replenish the Lower Jordan, which flows from the Sea of Galilee north to the Dead Sea, with 30 million cubic meters annually, when the rehabilitation project gets into full swing in two years. During the initial stage launched on Sunday approximately 1,000 cubic meters of water are being discharged per hour.At the same time the organizations involved will clean the riverbed and treat water to remove pollution and reduce salinity of the river. Earlier Israeli military conducted an effort to sweep for land mines along the river left there decades ago after the Six-Day War in 1967. The Lower Jordan serves as the border between the nation of Jordan in the east and Israel and the Israeli-occupied West Bank in the west.The plan is to restore the natural environment of the Lower Jordan River and make it attractive to tourists. One site has particular significance for Christians, because John the Baptist is thought to have baptized Jesus there. Pilgrims flock to the nearby town of Jericho in the West Bank every year to visit the revered site.Lower Jordan was damaged greatly by decades of excessive water diversion upstream. Israel relied heavily on water taken from the Sea of Galilee to provide for its agricultural and drinking needs. Water flow from the lake into Jordan was cut after the establishment of the Deganya Dam in 1964, as the Jewish states sought to provide for the arriving immigrants.But Israel’s move to divert water via its National Water Carrier project irritated the country’s neighbors. The Headwater Diversion Plan by Lebanon was launched in 1964 by Syria and Jordan, which wanted to undermine Israel’s effort by curbing water supply to the Upper Jordan River and the Sea of Galilee it feeds.Israel responded with military attacks culminating with in airstrikes on Syria in April 1967. The water dispute and the hostilities over the diversion of the precious resource were a major factor behind the 1967 War, which started two months after the raid.The renewal of water release comes after improvements in technology and water conservation, Alexander Kushnir, Israeli Water Authority Commissioner, said.“We have established a system of desalination plants, water purification and waste water reuse facilities, along with optimizing the use and conservation of citizens – which has enabled the Water Authority to significantly increase the amount of water allocated to nature, along with the ever-increasing restoration of natural water resources,” he explained as cited by the Jerusalem Post.Combined with increased rainfalls after years of draught, those allowed the Sea of Galilee to raise to 209.96 meters below sea level, which is close to the maximum capacity of 208.8 meters below sea level, the body reports.The move was also hailed by the Jordanian contributors to the rehabilitation effort. But environmental activists, who generally favor the effort to help the Jordan River, criticized Israeli authorities over the small scale and the lack of transparency of the project.The target of 30 million cubic meters per year is “not anywhere near the 220 million cubic meters that we have identified is necessary – our concern relates to the process,” said Gidon Bromberg, Israeli director of Friends of the Earth Middle East. He added that the Water Authority had never done an independent assessment of the plan.“We cannot accept the process that is currently moving forward because it is moving forward in a non-transparent manner that prevents public debate, which is actually needed for the ecological rehabilitation of the Lower Jordan,” he said. … Read More
Resource rich countries cannot manage their wealth – report
A quarter of all independent countries on planet are resource rich. The 58 states produce 85% of world’s petroleum, 90% of the diamonds and 80% of copper with total profits from their extractive sector totaling more than $2.6 trillion.According to the Resource Governance Index (RGI), in 41 countries out of the group the extractive sector contributes a third of their GDP. And the future of these countries heavily depends on how effective they govern their resources.Norway takes the top ranking followed by the United States and the United Kingdom, all three majoring in hydrocarbon extraction. Russia comes 22 in the ranking, dragging behind its neighbor Kazakhstan and major South American energy states. Among the countries with the worst natural resource governance are Saudi Arabia, Iran, and Turkmenistan, and Myanmar concludes the ranking. The Index shows a striking governance deficit in natural resources management worldwide with only 11 countries on the list scoring satisfactory. The RGI evaluates four key components of resources governance in each country: institutional and legal setting, reporting practices, safeguards and quality controls and enabling environment. It also takes into account data from the World bank, advocacy groups, including Transparency International and various ecology watchdogs.The Index is based on the assertion that a good governance of natural resources provides successful development of country and is designed to serve as a tool to help identify good practices as well as governing failure.The Revenue Watch Institute is a unique organization of its kind exclusively dedicated to address the problems of countries that are rich in natural resources. … Read More
Market Buzz: Oil growth to give strength
Friday April 19 ended in the black for the Russian floors against positive outlook in Europe and growing oil. The MICEX added 0.24% to close at 1338.43, while the RTS gained 0.67% to close at 1345.19.European stock markets mostly closed higher on Friday also reflecting growth on the Asian markets. Investors took advantage of the recent slide to buy cheaper stocks ahead of the weekend.The Stoxx Europe 600 index gained 0.5% to close at 285.21 on Friday. The British FTSE 100 index of leading companies rose 0.69% to 6,286.59 points, the French CAC 40 added 1.46% to 3,651.96 points. The DAX 30 in Germany lost on Friday giving up 0.18% to 7,459.96 points.European floors are expected to open higher on Monday. Investors believe resource stocks will keep on growing after Friday’s gains as commodities prices recover after last week’s major slide.US stocks ended Friday higher as well. Yet despite the optimistic Friday’s picture, last week turned out the worst week in months for the US market.On Friday The S&P 500 index added 13.64 points, or 0.9%, to 1,555.25. For the week however The S&P 500 was off 2.1%, the biggest loss since November.The Dow added 10.37 points, or 0.1% to 14,547.51, after spending the most of the trading session losing. Weekly loss for the Dow Jones industrial average made 2.1%, the indicator’s worst performance since June.The NASDAQ Composite slid 88.89 points or 2.70% to close at 3,206.06. The tech indicator was down 2.7% on the week, the worst since October.Monday looks good on the Asian markets. Most Asian stocks traded higher on April 22. Stocks in Japan continue their impressive rally as Abenomics seems to do its job well. Also the G20 summit in Washington held through Thursday and Friday last week revealed that finance ministers and central bank presidents from the world’s biggest economies approved of Japan’s newly adopted stimulus plan, pushed by Japanese Prime Minister Shinzo Abe.Elsewhere on the Asian floors South Korea’s Kospi gained 0.5% to 1,916.62. Hong Kong’s Hang Seng lost slightly sliding by 0.1% to 22,001.27. Australia’s S&P/ASX 200 rose 0.4% to 4,949.Oil is currently mixed. Brent losing 0.04%, and WTI rising 0.19%. … Read More
More Bombs Rock Mass.; Gunfight at MIT
In what the FBI’s public information officer calls an “active” and “fluid” situation, hundreds of police cruisers converged on a small neighborhood in Watertown, Massachusetts after multiple bombs were reportedly detonated. … Read More
Icelandic trade alliance advances Chinese Arctic ambition
After entering a free trade agreement on Monday, the remote and recession-crippled Iceland is brokering Chinese Arctic access.Olafur Ragnar Grimsson, President of Iceland, advocates in favor of oil companies and countries without direct territorial claims to the Arctic, and believes they should have a voice in the region’s future.”We realize that there are other nations in Asia and Europe that have legitimate concerns and enterprises in the Arctic and it’s important to involve them in a co-operative effort,” Grimsson said.China doesn’t border the Arctic seas, but is still seeking a permanent observer status on the Arctic Council, an eight nation body with territorial claims to the region, including Iceland. China’s application is expected to be accepted when a decision is made next month.The Arctic Council members are the US, Canada, Denmark, Finland, Norway, Russia, Sweden, and Iceland.Iceland provides a unique opportunity for China, as its proximity to the melting Arctic circle (1,000 km) could open up new potential trade routes, and possibly natural resource exploration -gas, oil, diamonds, gold, and iron- all resources any up-and-coming superpower should have its sights on.If enough ice melts to create a viable shipping route, it would cut about 6,400 kilometers (4,000 miles) and two weeks off the voyage from Shanghai to northern European ports.China has hunkered down heavy investment in the Arctic region, from Russian oil ventures with Rosneft to iron-ore extraction projects in Greenland. China has flirted with the idea of sinking $2.3 billion dollars into Greenland to trade 15 million tons of iron ore per year.”It’s attractive also for all the resources but China is already a major shipping nation … and Chinese companies are now very eagerly awaiting policy signals from the Chinese government on what kind of priorities they will give to the Arctic,” said Leiv Lunde, director of the Oslo-based Fridtjof Nansen Institute, who was in Shanghai Monday attending an Arctic issues conference.China recently completed its largest embassy in Reykjavik, which can reportedly house 500 people, and demonstrates China’s serious interest in the area.The 30,000 km free trade agreement30,000 kilometers (19,000 miles) of tumultuous waters, ice caps, and snowy landmasses stand between Iceland and Shanghai, but this didn’t deter Icelandic Prime Minister Johanna Sigurdardottir and Chinese President Xi in their trade negotiations.”China is willing to increase exchanges and mutual understanding with Iceland and boost bilateral cooperation in sectors such as clean and renewable energy and fisheries,” Chinese President Xi said.The free trade pact will lower tariffs and will boost seafood exports from Iceland to China.”It also signals the deepening of our relationship, especially our economic relationship which has been lifted to a new height,” Xi said during talks following a formal welcome ceremony at the Great Hall of the People in Beijing.”The Free Trade Agreement (FTA) and the joint declaration inked yesterday between the two nations bear great significance in pushing forward bilateral relations,” said Xi.Trade between the two countries rose 21.1% last year to $180 million, according to the Chinese Ministry of Foreign Trade.Cozying up to ChinaThe move towards China, and not the EU is a political move of independence away from the EU.Iceland began its EU membership application in early 2010 but in 2012, due to overwhelming opposition and election season, the Icelandic Parliamentary committee suspended ascension talks with the EU. Almost two thirds of Icelanders oppose membership and less than 25% support entrance, according to the most recent islander poll. However, ministers keep hinting at the need to join up with their neighboring economic heavyweight.The Icelandic economy is still in recovery after the banking bubble burst in 2008. Banks declared bankruptcy instead of getting a bailout, and started from scratch, a unique path to financial stability, that seems to be working for Iceland, as growth slowly recuperates. When the 2008 economic crisis hit, Iceland shocked economic pundits and let its three largest banks fail, and defaulted on $85 billion. The stock market dipped 90%, unemployment jumped to 10%, and most the inflation rate topped at 18%. Now that the market has stabilized, they are looking far and wide to expand their export industry. … Read More
