Queen’s Speech 2015: UK Energy Bill To Boost Oil And Gas Production

queens speechThe UK aims to maximize domestic oil and gas production and curb the spread of onshore wind farms as the government leans toward maintaining energy security over cutting carbon emissions. The measures form part of an Energy Bill announced by Queen Elizabeth II in a speech to Parliament in London on Wednesday that outlines the first legislative program of Prime Minister David Cameron’s majority Conservative government. —Bloomberg, 27 May 2015

The North American oil boom is proving resilient despite low oil prices, producer group OPEC said in its biggest and most detailed report this year, suggesting the global oil glut could persist for another two years. A draft report of OPEC’s long-term strategy, seen by Reuters ahead of the cartel’s policy meeting in Vienna next week, forecast crude supply from rival non-OPEC producers would grow at least until 2017. It also said that since 1990, most of the forecasts concerning future non-OPEC oil supply have been pessimistic and often erroneous. —Reuters, 28 May 2015

For months Saudi Arabia was cagey about its oil strategy. The kingdom claimed its decision not to cut production and stop the slide in prices was solely about letting the oil market reset itself. That charade is over. The Saudis now openly boast that their strategy to let oil prices collapse was an attempt to kill U.S. shale production. Citing the nearly 60% drop in the U.S. oil rig count since October and the slowing of U.S. oil production, they are claiming a brilliant triumph. But rather than kill the U.S. shale revolution, the Saudis have only made it more resilient, sped up its rate of technological innovation and capped oil prices for at least a half-decade or more. –Mark Perry, Investor’s Business Daily, 26 May 2015

Note to Russian President Vladimir Putin’s country, the United States is poised to begin exporting huge amounts of liquefied natural gas produced from shale fracking. It will obviously pose a significant threat to Russia‘s dominance in the European gas market. This may be a direct result of the Russian invasion of Crimea and its continued interference in Ukraine. U.S. Energy Secretary Ernest Moniz said four LNG export terminals are under construction and the first exports may be shipped overseas as early as this year. –Dwight L Schwab Jr, The Examiner, 26 May 2015

A new study, by scientists from the University of Southampton and National Oceanography Centre (NOC), implies that the global climate is on the verge of broad-scale change that could last for a number of decades. Since this new climatic phase could be half a degree cooler, it may well offer a brief reprise from the rise of global temperatures, as well as resulting in fewer hurricanes hitting the United States. —University of Southampton, 27 May 2015