The Bullroarer - Friday 20th June 2008

Radio Australia - China's Sinopec buys into Australian oil company

China's largest oil refiner, the state owned Sinopec Corporation, has bought a 60 per cent stake in Australian oil company AED.

NZ Herald - Tui field's success heightens NZOG allure

The success of the Tui field for New Zealand Oil & Gas has highlighted the company's appeal as a target for takeover and merger deals, analysts say.

Stuff.co.nz - New tech helps motorists escape high fuel prices

With oil prices near $US140 a barrel, motorists are starting to look seriously at both alternative fuels and electric vehicles as a way to be able to keep driving their cars.

But experts say it will take five to 10 years for these alternatives to take root, given the capacity challenge for an auto industry that is adding 65 million new cars a year to a fleet of 1 billion.

ABC - Major airlines facing closure 'within six months'

Virgin Blue says high oil prices will force some major airlines around the world to shut down within the next six months.

The Australian - Fluid roads cut costs

The fuel consumption of vehicles is strongly dependent upon the average speed from point A to point B, including the stopping and starting at traffic signals and on congested roads. Tests in cars have shown that fuel consumption (and greenhouse gas emissions) increase by 30 per cent as the average speed decreases from 100km/h on freeways to 30km/h on congested streets.

The increase in fuel consumption of trucks is even higher between these speeds (say 50 per cent) because of the greater energy needed for the stopping and starting of these heavier vehicles.

A considerable amount of work on urban congestion has been carried out by the Council of Australian Governments.

Stuff.co.nz 0 Fuel costs test tourism firms

Vehicle-based tourism businesses are struggling to contain surging fuel prices within their cost structure, forcing changes to business models including the use of smaller cars.

The Australian - Petrol retailers and refiners 'strain law'

THE head of the nation's consumer watchdog has renewed his attack on oil refiners and petrol retailers, accusing them of behaviour as close to "illegally collusive" as it can find without being against the law.

Radio Australia - State responsible for WA gas shortage

A report on Western Australia's gas crisis will be able to recommend prosecutions over the incident, but the State Government will be responsible for initiating the court action.

Otago Daily Times - Contact's wind farm appeal fails

Contact Energy's appeal against the Mahinerangi wind farm has been dismissed but the company is still intending to pursue its appeal against Otago's other big wind farm, Project Hayes.

In an Environment Court decision, Judge Jeff Smith said the conditions sought by Contact Energy were inappropriate and unreasonable in that they did not relate to any environmental effect as a result of the granting of consent.

Contact Energy did not oppose TrustPower building the $400 million, 200MW Mahinerangi wind farm but wanted a condition imposed to upgrade transmission lines at the Roxburgh substation and lines through to the Waitaki Valley.

A similar appeal was made by Contact Energy against Meridian Energy's Project Hayes wind farm.

Judge Smith said when Mahinerangi wind power was sent to the national grid before power generated at the Roxburgh dam, spillage of water would occur.

Contact Energy argued this was an adverse effect on the environment but Judge Smith said it was about trade competition.

Scoop.co.nz - New clean technology opens up world markets

Mr Goff officially opened Hamilton-based company Enviro-Energy’s new pilot processing plant at the Hamilton Wastewater Treatment Plant, which uses new technology to convert sewage sludge into ash using minimal energy.

Scoop.co.nz - Pure Power establishes Brains Trust

Pure Power establishes Brains Trust to focus on lignocellulosic conversion

Renewable energy company, Pure Power, today announced that it is increasing its research and development activities into lignocellulosics by setting up a “Brains Trust” to capitalise on its significant expertise in this field.

Lignocellulosics is the science governing the conversion of plant biomass to biofuels and other bioproducts.

The Age - Kosky flags long trains

SOMETIMES the most obvious solutions prove the most elusive.

A possible fix to the public transport crisis has dawned on the State Government: make the trains longer.

Public Transport Minister Lynne Kosky yesterday said her department was looking at making Melbourne's trains run seven carriages at peak hour, instead of the current six, in a bid to relieve extreme overcrowding.

"We are looking at … providing an extra carriage for some of the trains that come in during the peak period and go home at the end of the day," Ms Kosky said.

The Australian - Oil giants prepare for return to Iraq

FOUR Western oil companies are close to signing oil contracts with the Iraqi Government that will return them to the country 36 years after losing their oil concession when Saddam Hussein rose to power.

[.....]

It is not clear what role the US played in awarding the contracts; there are still US advisers to the Iraqi Oil Ministry.

But the deals do nothing to allay suspicions within the Arab world and the American public that the US went to war in Iraq to secure its oil wealth.

To be announced on June 30, the contracts will be awarded on a no-bid basis.

Myall Coast - Rudd Fingers Financial Speculators In Oil

THE Prime Minister blamed financial market speculators for contributing to high oil prices yesterday, while continuing to reject Opposition calls for a cut in the fuel excise to ease petrol prices at the bowser.

[.....]

But many economists say politicians are using speculators as scapegoats. They say the oil futures contracts traded by investors cancel each other out and do not affect physical supplies of oil.

[.....]

The Minister for Resources and Energy, Martin Ferguson, will fly to Jeddah tonight to attend an international oil summit called by Saudi Arabia.

Northern Tasmania - Bartlett to drive clever fuel use Summit focus on public transport, alternate fuels

PREMIER David Bartlett's fuel summit in Launceston will explore increased use of public transport, as well as the development of alternative fuels.

The Australian - Fuel-saver technology Premo-drive run over by budget

PERMO-DRIVE is the sort of company that Kevin Rudd would like to believe is Australia's future - not only is it a manufacturer, it has developed innovative technology to slash fuel consumption.

Its hybrid drive system for trucks promises to deliver fuel savings of up to 25 per cent, many times greater than the efficiency offered by the Toyota Camry the federal Government is backing with a $35 million cash grant.

[.....]

Permo-Drive's technology is based on a hydraulic brake, which stores the energy released when a truck is slowing down by compressing gas in cylinders.

The truck then uses the power from the release of the gas when it is accelerating. It is ideal for rubbish trucks, postal vans and commercial delivery vans, which stop frequently.

Chief engineer Chris Marshall said the system was much lighter and cheaper than battery-based hybrid systems.

News.com.au - Gas-guzzling V8s? Can't give them away

WITH petrol prices skyrocketing, Australians' appetite for big, gutsy cars is dwindling, with used car dealers slashing the price of the fuel-guzzlers in an effort to offload them.

That last story about car dealers closing shop brings it all inot perspective. People are losing jobs in industries that were pretty robust in recent years. The turn around has been stunning in how rapidly it has taken place. I think anyone in the automotive business must be doing a lot of navel gazing at the moment and wondering what the future holds. Airlines, trucking, freight and logisitcs businesses will (should) all be doing the same thing, along with anyone involved in the property sector, which is huge. If these vital industries suffer a rapid downturn, the rest of the economy will be dragged down with it. China or no.

I think China wants increased equity in Australian resource firms to influence export prices and I suspect to replace some labour with their own nationals. None of this business of teenage apprentices earning $100k in the mines. They also have what I call pseudo-equity a mixture of soft loans and exclusive supply deals.

The only new alternative fuel I know of in northern Tas is biodiesel from poppyseed oil. However the once urgent Gunns pulp mill anticipated a log throughput of 5-8 million tonnes a year. Even if half of that is unsustainable, more so because of Tassie's apparent 60% rainfall decline, that could make a hell of a lot of cellulosic biofuel. For example Verenium, Range Fuels and Choren all reckon they the right approach. With $130 oil the profit should be there.

I think China wants increased equity in Australian resource firms to influence export prices

And to influence where it goes. I made the point in an earlier post that countries can "lock up" resources by miltary means or by simply buying them "in the ground". If China owns 60% of this "Australian" venture, who do you think the oil will go to when China and Australia both need oil?

In the same vein we could ask whether the Brits want coal seam methane to sell in Australia or to send back to Old Blighty. Note that Indian interests now own a few coal and iron ore shows as well as much of Burrup ammonia. Which gets us back to why half a million people had to die in Iraq. No doubt a few countries now think Aussies are economic imperialists thanks to BHP and others.

I'd liken the mining industry to musical chairs. Everybody knows it won't be possible to dig up billions of tonnes of rock when oil nosedives and the music stops. The aim is to have a nice patch of ground to sit on.

Hmm, was my last post moderated out? It didn't have a lot of text but it did include a link. I'll try again with a slightly different link:

Fuel demand is elastic

Hmm, was my last post moderated out? It didn't have a lot of text but it did include a link. I'll try again with a slightly different link:

I didn't moderate it wiz. I never saw it. I don't think anyone else would have moderated it out either - unless the link was extremely offensive in some way? It is possible that some automatic filter saw a link without explanation and assumed you were a spam-bot. The link you provide looks on-topic, inoffensive, and interesting. Thanks for trying again.
aeldric.

It is not clear what role the US played in awarding the contracts; there are still US advisers to the Iraqi Oil Ministry.

But the deals do nothing to allay suspicions within the Arab world and the American public that the US went to war in Iraq to secure its oil wealth.

To be announced on June 30, the contracts will be awarded on a no-bid basis.

Goodness me ... was that really the reason? The Australian can be masterly at the under-statement.