Saturday, February 15, 2014

FRACKING OR FOOD??!

California fracking opponents aiming to stop development of massive state oil reserves are focusing their drive this year around the state's record-breaking drought, arguing oil production would suck sorely needed water from farms and homes.

California Rep. Marc Levine told Reuters last week that he will co-author an upcoming bill that would place a moratorium on hydraulic fracturing in the state, and said he will use the drought, which could be the state's worst ever, to bolster his position.

"The drought is a game changer on fracking," Levine said. "We have to decide what our most precious commodity is—water or oil? This is the year to make the case that it's water."


Demonstrators protest against fracking outside the State Capital after California Governor Jerry Brown delivered the State of the State address in Sacramento, California, Jan. 22, 2014.

A moratorium bill failed last year on a vote of 37 to 24, although another bill requiring greater disclosure on fracking, including water use, passed.

State Sen. Holly Mitchell, Levine's co-sponsor on the bill, is not planning to focus on the drought, but environmentalists already are capitalizing on it, picketing Gov. Jerry Brown at events including his announcement of the drought.

"Fracking uses water we just can't spare," said Dan Jacobson, legislative director for environmental lobby group Environment California.

Fracking has created an energy boom in the U.S. and has the potential to drastically increase oil production in California Monterey Shale deposit, which federal officials have estimated holds up to 15 billion gallons of oil, more than most estimates for Alaska's Arctic National Wildlife Refuge and twice the reserves of North Dakota's Bakken shale oil deposit.

Bad for gas!!!


2 billion in workers wages!!


Cheap energy!!


Choose energy!!


Sunday, February 9, 2014

HARD WINTER MEANS MORE OIL PRODUCTION

Getty Images

Brent crude eased back after hitting a five-week high above $109 a barrel on Monday as investors look ahead to more U.S. and Chinese economic data this week that could shed greater light on the demand outlook in the world's two largest oil consumers.

Investors will also closely track speeches this week from the new head of the U.S. Federal Reserve, Janet Yellen, for assurance that monetary policy will stay loose.

(Read more: Crude ends higher, lifted by hunger for heating oil)

March Brent crude fell 33 cents to $109.24 a barrel by 0349 GMT, easing from a session high of $109.75, its loftiest since Jan. 2.

U.S. crude for March delivery was down 3 cents at $99.85, after rising to $100.46 earlier in the session, the highest since Dec. 27.

"We are striking resistances on both charts, Brent and West Texas. I suspect that's containing the exuberance in the market," CMC Markets chief strategist Michael McCarthy said.

"Should we push through say $100.50 on West Texas and $110 on Brent, we could see a spike on technical buying that could continue the rally."

(Read more: Cheaper crude and fuel exports help US refiners' profits)

Oil jumped more than $2 on Friday as investors overlooked lower than expected U.S. non-farm payroll data to focus on a frigid winter that has boosted oil products demand.

"The overall picture of the economy remains one coming out of recession and quite clearly in recovery mode," McCarthy said.

Brent prices could also be supported by tighter Forties supply this year as Britain's biggest oilfield, Buzzard, will undergo a total nine weeks of maintenance in 2014, rather than the two weeks traders had expected.

Both the oil benchmarks appeared overbought on technical charts, pointing to lower prices, said Tetsu Emori, a commodity manager at Astmax Investment.

(Read more: Oil giant warns of 'significantly lower' profit)

Investors were also treading cautiously amid risks in emerging economies, he said.

Easing geopolitical tensions over Iran's nuclear program weighed on oil prices as supply from the OPEC producer could rise if Tehran reaches a final deal with world powers.

Iran has agreed to start addressing suspicions that it may have worked on designing an atomic weapon, the U.N. nuclear agency said on Sunday.

Iran and six world powers are due on February 18 to start a final round of talks aimed at reaching a broader diplomatic settlement with the Islamic state.