Peak Oil Review — July 14, 2008

1. Production and Prices

2. China

3. Blackouts and Shortages

4. Washington

5. Energy Briefs

1. Production and Prices

Oil prices fell by $10 a barrel during the first part of last week on reports of a more conciliatory attitude in Tehran, a rising dollar, and profit-taking. On Thursday and Friday, oil jumped by more than $10 a barrel to touch an all-time high of $147.25 on reports, later denied by the Pentagon, that Israeli aircraft were rehearsing for strikes against Iran over Iraqi airspace and on well-publicized Iranian missile tests. A statement by the MEND that they are going to renew attacks on Nigerias oil infrastructure contributed to the price spike. Despite the $10s worth of volatility, oil closed out the week at $145.08, down 21 cents from the previous weeks close.[…]

2. China

The specter of serious power shortages across China this summer looms larger as more provinces are reporting problems. According to BPs Statistical Review China is a very inefficient user of energy. Couple this with drought-induced shortages of hydro-power, the recent earthquake, various kinds of price caps on power and coal, and efforts to improve Chinas abysmal coal mine safety record, and one has the perfect recipe for power shortages in a economy that is growing at 10 percent a year.[…]

International Business Times