DrumBeat: October 20, 2006

[Update by Leanan on 10/20/06 at 9:20 AM EDT]

OPEC cuts output by more than expected

Reduction of 1.2 million barrels a day is first in more than two years

DOHA, Qatar - Oil cartel OPEC decided to cut production by a greater-than-expected 1.2 million barrels a day on Friday, and some members indicated it was open to further cuts.

Mr. Pombo’s Map

The processes for extracting oil shale are still hugely expensive — which is fortunate, because the potential environmental costs are staggering. You can pump oil from oil shale by heating the underground formations, with untold effect on groundwater. Or you can dig it all up, cart it away and heat it somewhere else, scarring vast tracts of the West.

None of this has stopped Congressman Richard Pombo of California — champion of the idea that we can drill our way to energy independence — from throwing yet another economic bone to the energy sector. In a little-noticed provision of the much- reviled Deep Ocean Energy Resources Act — which the House passed in June and the Senate will take up when Congress returns — Mr. Pombo lowered the royalty rate for oil shale from 12.5 percent to 1 percent. Should the day arrive when the price of shale oil becomes competitive, this could turn out to be an extraordinary giveaway of federal revenue (most oil shale lies under federal land) and a huge incentive to wreak environmental damage.


Falling US fuel prices ease fears of recession


Climate Change Is Real, but How Bad It Will Be and How Fast It Will Happen Is Still Open to Debate

It also bears repeating that 50 percent of the contribution a car makes toward global warming occurs during its manufacture and the extraction of its raw materials. Better mileage or a different fuel source isn’t going to change that, nor does ethanol significantly reduce CO2 emissions, and may actually increase a few other pollutants.


Has Diesel Grown on the United States?


Evangelicals Ally With Democrats on Environment: Religious leaders hope the global-warming campaign sends a message to the GOP.


More energy policy gridlock seen in next Congress

If Democrats gain control of one or both houses of the U.S. Congress, they will likely face continued energy policy gridlock, industry lobbyists and congressional experts say.


Prop. 87 fuels high octane fight on oil production tax


Russia Rattles Asia With Attack on Shell's Sakhalin-2

The attack on Shell is more about OAO Gazprom's attempt to get a piece of the project than protecting wildlife, analysts say. The move has angered Asian nations banking on Sakhalin to help meet their growing energy needs. Sakhalin, just 25 miles north of Japan, contains the equivalent of 45 billion barrels of oil, equal to the North Sea's reserves, Shell estimates.


British wildlife head north as planet warms


Indian protests threaten northern Peru oil output

Peru Indians armed with bows, arrows and rifles continued to block oil production at Argentine crude producer Pluspetrol on Thursday as the government warned of fuel shortages in the jungle region.

Pluspetrol shut down its 50,000 barrel-per-day oil output in Peru's northern jungle on Tuesday after Achuar Indians took over four oil wells, complaining that crude production is damaging the environment.


Danish PM: EU must become less dependent on imported energy


'Save us from the fires of Shell,' say Irish gas protestors

Mayo, Ireland - For over two weeks the site of a planned gas terminal in north-west Ireland has been the scene of tense early- morning standoffs between police and prayer-chanting protestors.


Skills shortage hits oil sector

A skills shortage is jeopardising the future of the oil and gas industry, according to a new report.


Companies learning how to power down

A Holiday Inn in Sarasota can serve as an inspiration to businesses everywhere trying to cut costs. It recently reduced its energy bill by $3,000 a year by adding a reflective roof.


Water scarcity seen dampening case for biofuel

Water scarcity harms the case for using food crops to make biofuels, a leading environmental author and journalist said on Thursday.

"The downside of growing food for fuel is water," said Fred Pearce, author of the book "When the Rivers Run Dry".


[Update by Leanan on 10/20/06 at 9:41 AM EDT]

Green chimney could save the planet

A new power plant chimney that converts greenhouse gases into helpful substances could have a huge impact on global warming.