Press review 22-06-2013

"There are relevant signs that Portugal will explore natural gas", that's how the State Secretary for Energy put it this week. In a follow up interview the Minister of Economy further detailed that 40 M€ have already been invested to assess the potential of the southern coast off the Algarve and that estimates of success stand now at 30%; exploratory drilling should start in 2014.

Speculation on natural gas reserves off the Algarve has been around for years, but this is the first time a government seems genuinely interested. The coverage by the Portuguese press has been so far rather poor; with no technical data reported, it is hard to distinguish this move from previous hypes on local fossil fuel production. One thing is certain though, whatever happens off the Algarve it won't benefit Portuguese consumers, all profits are to be taken solely by exploring companies themselves; they don't seem even obliged to sell the gas in the country.

Four or five years ago the hype was much stronger on the prospects of petroleum resources in deep waters of the western coast. Exploratory work commenced in 2012 and so far no one has judge it suitable to invest the hundreds of millions of euros required for a drilling campaign. I'll follow the situation in the Algarve with the same scepticism.

Press review 15-06-2013

I have been quite busy lately and travelling a lot, time has been scant for in depth analysis of the press. In order to avoid another week in blank here is a quick round up of relevant news in the energy world.

Desertec made quite a splash a couple of weeks ago with the recognition that transmission lines from the Magreb to Europe are not going to happen easily, if ever. On the one side this is a result of the negligent foreign policy towards our closest neighbours; on the other hand this is a natural outcome of the internal renewable energy expansion in Europe. The project may continue, but now focused on local markets. The press has made no reference to the wind component of the project; the Atlas being one of the strongest wind resources in the world it is likely that it will too go forward, rest to know when.

Press review 01-06-2013

I've been busier than usual the past few weeks and even following news has become difficult, thus shortened and belated press reviews. Several times in the past I've written that the conflict in Syria will end up re-designing the Near East boundary map and above all whom has control over which slice of land. The past few days the lifting of the weapons embargo from the EU to the Sunni has dominated the news. Under the surface however, the table seems definitely turning in favour of the Shia side.

Press review 25-05-2013

This week the main focus is on the politics in Europe, the road ahead slowly narrowing.

China Daily
France's Hollande urges euro zone government
17-05-2013

PARIS - French President Francois Hollande called on Thursday for an economic government for the euro zone with its own budget, the right to borrow, a harmonised tax system and a full-time president. [...]

Rebutting criticism that France has lost its leadership role in Europe because of its dwindling economic competitiveness, Hollande said he wanted to create a fully-fledged political European Union within two years.

"It is my responsibility as the leader of a founder member of the European Union... to pull Europe out of this torpor that has gripped it, and to reduce people's disenchantment with it," Hollande said.

"If Europe stays in the state it is now, it could be the end of the project." [...]

Hollande said a future euro zone economic government would debate the main political and economic decisions to be taken by member states, harmonise national fiscal and welfare policies, and launch a battle against tax fraud.

He proposed bringing forward planned EU spending to combat record youth unemployment, pushing for an EU-wide transition to renewable energy sources, and envisaged "a budget capacity that would be granted to the euro zone along with the gradual possibility of raising debt".

Press review 18-05-2013

Today's focus is on electricity storage. The technology to support the decentralised grid paradigm that renewable energies are bringing about is not quite there yet - but getting there it seems. Sustained high petroleum and gas prices plus the fast decline of wind and solar PV costs are sparking research and development pretty much everyone. What strikes me at the moment is the number of different technologies that presently show the potential to arrive on the market in the next few years. For grid support at least a massification of electrical storage appears to be in arm's reach.

Press review 11-05-2013

This week the most important piece of news is naturally the war on solar energy. Without surprises the Commission announced a 47% tariff on solar panels made in China. The goals of this measure are not those issued by the press: (i) almost all manufactured goods sold in Europe are fabricated by folk of the like that died last week crushed in Bangladesh - without changing the rules of international trade there's no way solar panels can ever be fabricated in Europe; (ii) in 2008 oil prices dropped clearly below production costs and no tariffs where imposed on OPEC; (iii) companies in Europe operating in the solar sector are installers and technical service providers - they will certainly be negatively hit. The goal of the Commission is simply to delay the growth of solar power in order to protect traditional electricity suppliers, nothing else. I'll now be waiting for similar measures on LNG imports from the US, where market gas prices are about half of production costs.

Press review 04-05-2013

This week the media has been more attentive to the situation in Syria with both sides hiking the rhetoric. The US has threatened to directly supply warfare material to the Sunni, promptly matched by the Hezbollah with a promise of entering Syria to help the Shia. Meanwhile both sides accuse each other of employing chemical weapons. The good sense seems to be running out and the conflict might be about to unravel. The geography of the Near and Middle East may never be the same.

Something that has been out of the radar but that is far from buried is the Fukushima nuclear site in Japan. More than two years after the tsunami that led meltdowns in several cores, the situation seems to remain far from control. This apparent ineptitude of the managing company may itself explain why the accident took place in the first place.