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	<title>HeatingOil.com &#187; Saudi Aramco</title>
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	<link>http://www.heatingoil.com</link>
	<description>Heating Oil Intelligence</description>
	<pubDate>Thu, 02 Sep 2010 20:51:57 +0000</pubDate>
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		<title>Heating Oil Weekly Roundup: Gulf of Mexico Oil Spill, Climate Bill Comparison, and a TV that Watches You</title>
		<link>http://www.heatingoil.com/blog/heating-oil-weekly-roundup-gulf-of-mexico-oil-spill-climate-bill-comparison-and-a-tv-that-watches-you-0514/</link>
		<comments>http://www.heatingoil.com/blog/heating-oil-weekly-roundup-gulf-of-mexico-oil-spill-climate-bill-comparison-and-a-tv-that-watches-you-0514/#comments</comments>
		<pubDate>Fri, 14 May 2010 20:35:47 +0000</pubDate>
		<dc:creator>Michael Hoven</dc:creator>
		
		<category><![CDATA[Blog]]></category>

		<category><![CDATA[energy efficiency]]></category>

		<category><![CDATA[energy policy]]></category>

		<category><![CDATA[offshore oil drilling]]></category>

		<category><![CDATA[American Power Act]]></category>

		<category><![CDATA[Arabian Gulf]]></category>

		<category><![CDATA[BP oil spill]]></category>

		<category><![CDATA[climate and energy bill]]></category>

		<category><![CDATA[climate bill]]></category>

		<category><![CDATA[Gulf of Mexico]]></category>

		<category><![CDATA[Gulf of Mexico ecosystem]]></category>

		<category><![CDATA[Gulf of Mexico oil spill]]></category>

		<category><![CDATA[Kerry-Lieberman]]></category>

		<category><![CDATA[oil slick]]></category>

		<category><![CDATA[oil spill]]></category>

		<category><![CDATA[oil spill cleanup]]></category>

		<category><![CDATA[Saudi Aramco]]></category>

		<category><![CDATA[Sony Bravia]]></category>

		<category><![CDATA[supertankers]]></category>

		<category><![CDATA[Waxman-Markey]]></category>

		<guid isPermaLink="false">http://www.heatingoil.com/?p=16564</guid>
		<description><![CDATA[
As the cartoon indicates, nature has some of its own methods for dealing with an oil spill. (Unfortunately, treating the oil slick like a birthday cake is not one of them.) For National Geographic, Christine Dell’Amore examines the microbes and chemical processes that the Gulf of Mexico’s ecosystem uses to defend itself.
One engineer says he [...]]]></description>
			<content:encoded><![CDATA[<div id="attachment_16565" class="wp-caption alignleft" style="width: 526px"><img class="size-full wp-image-16565" title="oil-spill-near-florida" src="http://www.heatingoil.com/wp-content/uploads/2010/05/oil-spill-near-florida.jpg" alt="(image: Jeff Parker, Florida Today via cagle.com)" width="516" height="409" /><p class="wp-caption-text">(image: Jeff Parker, Florida Today via cagle.com)</p></div>
<p align="left">
<p>As the cartoon indicates, nature has some of its own methods for dealing with an oil spill. (Unfortunately, treating the oil slick like a birthday cake is not one of them.) For <em>National Geographic</em>, Christine Dell’Amore examines the microbes and chemical processes that <a href="http://news.nationalgeographic.com/news/2010/05/100507-science-environment-gulf-mexico-oil-spill-cleanup-bacteria/" target="_blank">the Gulf of Mexico’s ecosystem uses to defend itself</a>.</p>
<p>One engineer says he knows how to clean up the oil spill, but he can’t convince anyone to try his plan. Mark Warren at <em>Esquire</em> has the story of the former Saudi Aramco engineer who says he used <a href="http://www.esquire.com/blogs/politics/gulf-oil-spill-supertankers-051310?src=rss" target="_blank">supertankers to suck up a 700-million-gallon oil spill in the Arabian Gulf</a>.</p>
<p>Want to know the differences between the Waxman-Markey climate bill that passed the House and the American Power Act that Kerry and Lieberman proposed in the Senate? You could read the two climate and energy bills. Or you could look at Brad Johnson’s <a href="http://wonkroom.thinkprogress.org/2010/05/12/kerry-lieberman/" target="_blank">chart comparing them over at the Wonk Room</a>.</p>
<p>Energy efficiency is good, but Sony’s latest advance is, well, a little creepy: a TV that watches you while you sleep. The UK’s <em>Guardian</em> explains that certain models of the <a href="http://www.guardian.co.uk/environment/2010/may/14/sony-energy-saving-tvs-watch-sleep" target="_blank">Sony Bravia have facial recognition software</a> that allows the TV to turn off if you fall asleep on the couch. This and a handful of other energy-saving innovations could cut electricity consumption by 30 percent. No word on whether or not the TV wakes you up if you’re snoring.</p>
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		<item>
		<title>At CERAWeek Conference, Oil and Gas Are the Future</title>
		<link>http://www.heatingoil.com/blog/at-ceraweek-conference-oil-and-gas-are-the-future310/</link>
		<comments>http://www.heatingoil.com/blog/at-ceraweek-conference-oil-and-gas-are-the-future310/#comments</comments>
		<pubDate>Wed, 10 Mar 2010 21:01:31 +0000</pubDate>
		<dc:creator>Michael Hoven</dc:creator>
		
		<category><![CDATA[Blog]]></category>

		<category><![CDATA[Natural Gas]]></category>

		<category><![CDATA[oil infrastructure]]></category>

		<category><![CDATA["bridge fuel"]]></category>

		<category><![CDATA[alternative energy]]></category>

		<category><![CDATA[CERAWeek 2010]]></category>

		<category><![CDATA[coal]]></category>

		<category><![CDATA[ConocoPhillips]]></category>

		<category><![CDATA[energy conference]]></category>

		<category><![CDATA[energy industry]]></category>

		<category><![CDATA[energy mix]]></category>

		<category><![CDATA[fossil fuel]]></category>

		<category><![CDATA[fossil fuels]]></category>

		<category><![CDATA[gas]]></category>

		<category><![CDATA[gas industry]]></category>

		<category><![CDATA[green bubble]]></category>

		<category><![CDATA[Houston Chronicle]]></category>

		<category><![CDATA[hydrocarbon denier]]></category>

		<category><![CDATA[IHS CERA]]></category>

		<category><![CDATA[James Mulva]]></category>

		<category><![CDATA[Khalid Al-Falih]]></category>

		<category><![CDATA[Mulva]]></category>

		<category><![CDATA[natural gas]]></category>

		<category><![CDATA[natural gas bridge fuel]]></category>

		<category><![CDATA[Obama]]></category>

		<category><![CDATA[Obama administration]]></category>

		<category><![CDATA[oil]]></category>

		<category><![CDATA[oil and gas]]></category>

		<category><![CDATA[oil and gas industry]]></category>

		<category><![CDATA[oil day]]></category>

		<category><![CDATA[oil industry]]></category>

		<category><![CDATA[power]]></category>

		<category><![CDATA[renewable energy]]></category>

		<category><![CDATA[renewable energy technology]]></category>

		<category><![CDATA[Saudi Aramco]]></category>

		<category><![CDATA[Secretary of Energy]]></category>

		<category><![CDATA[solar power]]></category>

		<category><![CDATA[solar power technology]]></category>

		<category><![CDATA[Steven Chu]]></category>

		<category><![CDATA[transportation fuel]]></category>

		<category><![CDATA[US Energy Policy]]></category>

		<category><![CDATA[Wall Street Journal]]></category>

		<guid isPermaLink="false">http://www.heatingoil.com/?p=14007</guid>
		<description><![CDATA[Tuesday was “oil day” at the CERAWeek 2010 energy conference, sponsored by the energy research firm IHS CERA, and leading figures from the energy industry and from the Obama administration gathered to speak about the future of oil and gas. The dominant tone was one of confidence, as most speakers insisted that fossil fuels would [...]]]></description>
			<content:encoded><![CDATA[<div id="attachment_14008" class="wp-caption alignnone" style="width: 234px"><img class="size-full wp-image-14008 " title="260xstory" src="http://www.heatingoil.com/wp-content/uploads/2010/03/260xstory.jpg" alt="Secretary of Energy Steven Chu speaking about the future of oil and gas at CERAWeek 2010. (image: chron.com)" width="224" height="332" /><p class="wp-caption-text">Secretary of Energy Steven Chu speaking about the future of oil and gas at CERAWeek 2010. (image: chron.com)</p></div>
<p>Tuesday was “oil day” at the CERAWeek 2010 energy conference, sponsored by the energy research firm IHS CERA, and leading figures from the energy industry and from the Obama administration gathered to speak about the future of oil and gas. The dominant tone was one of confidence, as most speakers insisted that fossil fuels would remain the key energy sources far into the future, <a href="http://www.chron.com/disp/story.mpl/business/6905614.html" target="_blank">reported the <em>Houston Chronicle</em></a>.</p>
<p>While a positive assessment of the future of oil and gas might be expected from energy insiders, some of the oil and gas industry’s central claims about the continuing potential and relevance of fossil fuels were confirmed by Secretary of Energy Steven Chu. He talked about the promise of natural gas, which can be used for power generation and burns cleaner than coal, as a “bridge” fuel that can play a role in the “transition to other fuels” in the future. Oil, too, will retain its place in the energy mix, <a href="http://blogs.chron.com/newswatchenergy/archives/2010/03/steven_chu_at_c_1.html" target="_blank">according to Chu</a>: “Oil is an ideal transportation fuel, so it will be with us for decades.”</p>
<p><span id="more-14007"></span>Chu’s guarded endorsement of oil and gas relieved some conference attendees in the oil and gas industry, who were worried that US energy policy might find no room for the continued use of fossil fuels, but other speakers took a more skeptical note on the possibility of an energy transition that would replace fossil fuels with alternative energy sources, whether in a few decades or longer. Saudi Aramco’s chief executive, Khalid Al-Falih, warned of the tendency for renewable energy technology to “overpromise but then underdeliver,” <a href="http://online.wsj.com/article/SB10001424052748704145904575112100136887926.html?KEYWORDS=aramco" target="_blank">reported the <em>Wall Street Journal</em></a>. A cycle of overenthusiastic investment could spawn “green bubbles,” he said, though Aramco is planning to invest in solar power technology.</p>
<p>James Mulva, CEO of ConocoPhillips, may have gotten the most applause when he <a href="http://www.star-telegram.com/2010/03/09/2027877/future-role-of-natural-gas-discussed.html" target="_blank">criticized Chu’s characterization of natural gas as a “bridge” fuel</a>. Contrary to claims of what he called “hydrocarbon deniers” who think alternative energy can support the world’s energy needs, he stated: “natural gas is more than a bridge fuel. It is part of the long-term energy solution.”</p>
<p>Disagreement persists on the exact role that oil and gas may play in supplying energy demand in the future, but some consensus emerged on “oil day.” Mulva echoed Chu’s sentiment that “oil. . . will be with us for decades” during an interview after his presentation, when he said, “we know that oil and gas and coal, there&#8217;s not going to be an alternative to them for decades to come.” Just as the oil and gas industry doesn’t deny that renewable energy has its place, nor does Chu, the leading figure in US energy policy, deny that oil and gas will continue to be necessary. The question is how much renewable energy can and should be used, and how quickly it can begin to replace some (but not all) consumption of fossil fuels.</p>
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		</item>
		<item>
		<title>Oil Producers Urge Realism, not Rhetoric</title>
		<link>http://www.heatingoil.com/blog/oil-producers-urge-realism-not-rhetoric129/</link>
		<comments>http://www.heatingoil.com/blog/oil-producers-urge-realism-not-rhetoric129/#comments</comments>
		<pubDate>Fri, 29 Jan 2010 20:05:23 +0000</pubDate>
		<dc:creator>Jared Killeen</dc:creator>
		
		<category><![CDATA[Blog]]></category>

		<category><![CDATA[oil companies]]></category>

		<category><![CDATA[Al Falih]]></category>

		<category><![CDATA[alternative energy]]></category>

		<category><![CDATA[alternative fuel]]></category>

		<category><![CDATA[alternative fuels]]></category>

		<category><![CDATA[Andrew Liveris]]></category>

		<category><![CDATA[Barack Obama]]></category>

		<category><![CDATA[BP]]></category>

		<category><![CDATA[cap and trade bill]]></category>

		<category><![CDATA[cap-and-trade]]></category>

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		<category><![CDATA[carbon tax]]></category>

		<category><![CDATA[CEO]]></category>

		<category><![CDATA[Chief Executive]]></category>

		<category><![CDATA[climate change]]></category>

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		<category><![CDATA[CNNMoney.com]]></category>

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		<category><![CDATA[crude future]]></category>

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		<category><![CDATA[energy speculator]]></category>

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		<category><![CDATA[future for crude]]></category>

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		<category><![CDATA[hydrocarbons]]></category>

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		<category><![CDATA[Middle East]]></category>

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		<category><![CDATA[Peter Voser]]></category>

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		<category><![CDATA[Royal Dutch Shell]]></category>

		<category><![CDATA[Saudi Arabia]]></category>

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		<category><![CDATA[Shell]]></category>

		<category><![CDATA[Shell workforce]]></category>

		<category><![CDATA[State of the Union]]></category>

		<category><![CDATA[State of the Union address]]></category>

		<category><![CDATA[Switzerland]]></category>

		<category><![CDATA[Tony Hayward]]></category>

		<category><![CDATA[United States]]></category>

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		<category><![CDATA[US energy]]></category>

		<category><![CDATA[US energy consumers]]></category>

		<category><![CDATA[World Economic Forum]]></category>

		<guid isPermaLink="false">http://www.heatingoil.com/?p=11779</guid>
		<description><![CDATA[A day after Barack Obama’s State of the Union address, in which the president somberly admonished the United States for its dependence on Middle Eastern crude, an assortment of oil executives convened at the World Economic Forum in Davos, Switzerland, to pronounce their own thoughts on the matter of energy policy and, with thumbs to [...]]]></description>
			<content:encoded><![CDATA[<div id="attachment_11782" class="wp-caption aligncenter" style="width: 213px"><img class="size-full wp-image-11782    " title="world-economic-forum-logo-1" src="http://www.heatingoil.com/wp-content/uploads/2010/01/world-economic-forum-logo-1.jpg" alt="The World Economic Forum played host to a forum of the oil industry’s leaders. (image: eyeofdubai.com)" width="203" height="197" /><p class="wp-caption-text">The World Economic Forum played host to a forum of the oil industry’s leaders. (image: eyeofdubai.com)</p></div>
<p>A day after Barack Obama’s State of the Union address, in which the president somberly admonished the United States for its dependence on Middle Eastern crude, an assortment of oil executives convened at the World Economic Forum in Davos, Switzerland, to pronounce their own thoughts on the matter of energy policy and, with thumbs to their noses, toast the continued predominance of fossil fuels.</p>
<p>According to CNNMoney.com, the forum was attended by top executives from oil giants like BP, Saudi Aramco (the national oil company of Saudi Arabia), and Royal Dutch Shell. Displeased with President Obama’s vocal endorsement of alternative fuels, and worried by Congress’s consideration of a cap and trade bill that would effectively limit demand for oil in the United States, the CEOs hoped to dispel what they consider a fanciful notion of an oil-free world. Rather, these men described a bright future for crude, which, they said, would continue to dominate energy markets for decades to come despite interference from the Obama administration.</p>
<p><span id="more-11779"></span>Tony Hayward, group chief executive of BP, announced that regardless of lower demand for oil in developed countries, BP is forecasting a 40 percent increase in energy consumption among non-OECD nations over the next 20 years. He added that despite developments in alternative energy, he believes that oil and gas will remain the preeminent sources of fuel. “Even in the most aggressive climate change legislation perceived, hydrocarbons will represent 80% of energy consumption over next 20 years,” Hayward said, briefly outlining BP’s plans to boost production in their Iraqi oil field from 1 million barrels a day to 3 million barrels by 2020.</p>
<p>Representing Saudi Aramco, Khalid Al Falih declared the debate concerning “peak oil” to be no longer worth mentioning—<a href="http://www.heatingoil.com/blog/bp-economist-arab-oil-producers-peak-oil-time108/" target="_blank">an opinion common among oil executives</a>. He dismissed the goal set by President Obama to reach energy independence as “unachievable and misleading to the public,” complaining that while Saudi Arabia continues to invest in oil production, “we don’t see reciprocal assurances from customers, by which I mean policy makers, to signal to us a long-term commitment.” Al Falih’s comments are rather more severe than <a href="http://www.heatingoil.com/blog/saudi-aramco-ceo-renewable-energy-and-petroleum-have-bright-future131/" target="_blank">those he made only a month ago</a>, when he conceded that alternative fuels will ultimately displace crude and that, while sometimes exaggerated, the theory of peak oil was in fact supported by evidence.</p>
<p>Peter Voser, CEO of Royal Dutch Shell, hoped to offer a more “realistic” view of the energy industry, arguing that should alternative fuels come to replace fossil fuels, it will not be anytime soon. “It takes 25 to 30 years to gain 1% of global market share from the moment we start investing in a major project,” he said. In recent months, Shell has faced a number of challenges, including setbacks in their Nigerian operations caused by <a href="http://www.heatingoil.com/blog/tired-of-conflict-and-instability-shell-looks-to-sell-nigerian-assets1221/" target="_blank">attacks by local militants</a> and slumping third quarter profits, which forced the company to <a href="http://www.heatingoil.com/blog/shell-to-slash-us-workforce-mostly-in-houston1218/" target="_blank">slash its workforce in December</a>.</p>
<p>Amidst the oil executives, Andrew Liveris, chairman and CEO of Dow Chemical, elected himself to speak on behalf of US energy consumers. Noting that Dow has recently suffered under rising fuel costs, Liveris declaimed both the proposed carbon tax, which he said would simply pass on costs to consumers, and cap and trade system, which rewards speculators rather than energy providers. It is debatable whether Liveris, the wealthy head of the largest chemical company in the United Sates, is in fact representative of energy consumers, but his distrust of government interference in matters of energy production certainly reverberated at the World Economic Forum.</p>
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		<item>
		<title>Saudi Aramco CEO: Renewable Energy and Petroleum Have Bright Future</title>
		<link>http://www.heatingoil.com/blog/saudi-aramco-ceo-renewable-energy-and-petroleum-have-bright-future131/</link>
		<comments>http://www.heatingoil.com/blog/saudi-aramco-ceo-renewable-energy-and-petroleum-have-bright-future131/#comments</comments>
		<pubDate>Fri, 01 Jan 2010 15:27:59 +0000</pubDate>
		<dc:creator>Michael Hoven</dc:creator>
		
		<category><![CDATA[Blog]]></category>

		<category><![CDATA[crude oil prices]]></category>

		<category><![CDATA[green energy technology]]></category>

		<category><![CDATA[renewable energy]]></category>

		<category><![CDATA[2030]]></category>

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		<category><![CDATA[global economic development]]></category>

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		<category><![CDATA[Korea]]></category>

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		<category><![CDATA[social advancement]]></category>

		<guid isPermaLink="false">http://www.heatingoil.com/?p=9793</guid>
		<description><![CDATA[
For a man at the top of the global oil industry, the president and CEO of Saudi Aramco, Khalid Al-Falih is accepting of the rise of renewable energy, reports Aramco ExPats. “Ultimately,” he said in a speech in Korea, alternative sources of energy “will displace petroleum.” He’s not too worried, though, because “there will be [...]]]></description>
			<content:encoded><![CDATA[<p style="text-align: left;">
<div id="attachment_9794" class="wp-caption aligncenter" style="width: 188px"><img class="size-full wp-image-9794   " title="geo_08_al_falih_for_web" src="http://www.heatingoil.com/wp-content/uploads/2009/12/geo_08_al_falih_for_web.jpg" alt="Khalid Al-Falih, Saudi Aramco CEO, sees room for alternative energy and the Saudi national oil company. (image: geobahrain.org)" width="178" height="255" /><p class="wp-caption-text">Khalid Al-Falih, Saudi Aramco CEO, sees room for alternative energy and the Saudi national oil company. (image: geobahrain.org)</p></div>
<p>For a man at the top of the global oil industry, the president and CEO of Saudi Aramco, Khalid Al-Falih is accepting of the rise of renewable energy, <a href="http://www.aramcoexpats.com/Articles/Pipeline/Saudi-Aramco-News/Dhahran-Media/4768.aspx" target="_blank">reports Aramco ExPats</a>. “Ultimately,” he said in a speech in Korea, alternative sources of energy “will displace petroleum.” He’s not too worried, though, because “there will be attractive uses for our hydrocarbons other than burning.”</p>
<p>Wait, isn’t he supposed to say that renewable energy can’t replace oil? Well, Al-Falih thinks Aramco can have it both ways. Renewable energy will “ultimately” take oil’s place—“over time.” But for now, petroleum is still king, and “an essential commodity to virtually every aspect of modern life.” He’s previously conceded that believers in peak oil have a case, but that oil will last longer than they think.</p>
<p><span id="more-9793"></span>He makes a good case, and leans on the IEA’s assessment that oil will be the biggest component of the global energy mix in 2030, even as global energy demand rises by 40 percent. When Al-Falih says that “global economic development” and “social advancement” depend on “making the best use of proven sources of energy” (read: oil and gas), he’s speaking in his own self-interest—but he might also be right.</p>
<p>Even in the hazy future when renewables dominate the energy industry, Al-Falih has plans to make sure Aramco still fares well: Petro-Rabigh, Saudi Arabia’s first crude petrochemical refinery, will manufacture plastics,<span id=":u5" dir="ltr"> a material that will continue to see use even if alternative fuels power homes and fuel vehicles.</span></p>
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		<item>
		<title>Saudi Arabia Plans to Use Carbon Capture to Boost Oil Production</title>
		<link>http://www.heatingoil.com/blog/saudi-arabia-plans-to-use-carbon-capture-to-boost-oil-production1211/</link>
		<comments>http://www.heatingoil.com/blog/saudi-arabia-plans-to-use-carbon-capture-to-boost-oil-production1211/#comments</comments>
		<pubDate>Fri, 11 Dec 2009 14:37:46 +0000</pubDate>
		<dc:creator>Carol Sonenklar</dc:creator>
		
		<category><![CDATA[Blog]]></category>

		<category><![CDATA[Copenhagen Climate Conference]]></category>

		<category><![CDATA[energy policy]]></category>

		<category><![CDATA[environmental regulation]]></category>

		<category><![CDATA[greenhouse gas emissions]]></category>

		<category><![CDATA[international politics]]></category>

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		<category><![CDATA[Ali al-Naimi]]></category>

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		<category><![CDATA[carbon capture]]></category>

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		<category><![CDATA[carbon dioxide]]></category>

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		<category><![CDATA[carbon injection project]]></category>

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		<category><![CDATA[Ghawar field]]></category>

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		<category><![CDATA[Gulf Petrochemicals and Chemicals Association]]></category>

		<category><![CDATA[Mr. al Naimi]]></category>

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		<category><![CDATA[Saudi Arabia]]></category>

		<category><![CDATA[Saudi Arabia and carbon capture]]></category>

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		<category><![CDATA[Saudi Aramco]]></category>

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		<category><![CDATA[Saudi minister of petroleum and mineral resources]]></category>

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		<guid isPermaLink="false">http://www.heatingoil.com/?p=8153</guid>
		<description><![CDATA[
The latest country to jump on the carbon capture idea is Saudi Arabia. The oil-producing nation wants to capture carbon dioxide and inject it into the world’s largest oilfield by 2013 to attempt to increase output and reduce the country&#8217;s carbon footprint, reports the National.
Ali al Naimi, the Saudi minister of petroleum and mineral resources, [...]]]></description>
			<content:encoded><![CDATA[<div id="attachment_8154" class="wp-caption alignleft" style="width: 399px"><img class="size-full wp-image-8154   " title="aramco_pic" src="http://www.heatingoil.com/wp-content/uploads/2009/12/aramco_pic.jpg" alt="A Saudi Aramco pipeline under construction. (image: arabianoilandgas.com)" width="389" height="267" /><p class="wp-caption-text">A Saudi Aramco pipeline under construction. (image: arabianoilandgas.com)</p></div>
<p align="left">
<p>The latest country to jump on the carbon capture idea is Saudi Arabia. The oil-producing nation wants to capture carbon dioxide and inject it into the world’s largest oilfield by 2013 to attempt to increase output and reduce the country&#8217;s carbon footprint, <a href="http://www.thenational.ae/apps/pbcs.dll/article?AID=/20091209/BUSINESS/712099942/1005" target="_blank">reports the <em>National</em></a>.</p>
<p>Ali al Naimi, the Saudi minister of petroleum and mineral resources, made the proposal on Wednesday at a meeting of the Gulf Petrochemicals and Chemicals Association, which is similar to <a href="http://www.treehugger.com/files/2009/03/inside-abu-dhabi-carbon-capture-and-storage.php" target="_blank">plans for carbon capture in Abu Dhabi</a>. Yesterday&#8217;s announcement of the carbon capture project at the giant Ghawar oilfield was a key part of Saudi Arabia’s “initiatives on green.&#8221; The announcement came after the Saudi government was criticized by many global leaders for public skepticism that a global agreement could successfully cut emissions through reduced consumption of fossil fuels.</p>
<p><span id="more-8153"></span>Although the Ghawar field is the world’s largest single source of crude– producing about 5 million barrels per day last year before Saudi Arabia scaled back output to comply with OPEC cuts&#8211;it has been operating for about 58 years. Engineers say enhanced recovery methods like the carbon injection is the only way to maintain output.</p>
<p>Saudi Arabia first disclosed plans for the carbon injection project in October, but Mr. al Naimi detailed a longer-term strategy yesterday, saying that the eventual goal was to connect carbon capture with the kingdom’s interest in producing biofuels from algae.</p>
<p>The idea to capture carbon is not new; in the U.S., the <a href="http://www.heatingoil.com/blog/carbon-dioxide-injections-offer-hope-of-carbon-neutral-oil1208/" target="_blank">latest project is in Texas</a>. But what is new is the notion of carbon capture from simultaneous projects, which could substantially reduce greenhouse gas emissions. But there&#8217;s an ongoing debate at the Copenhagen summit on whether to include carbon capture in a UN-administered funding program called the <a href="http://unfccc.int/kyoto_protocol/mechanisms/clean_development_mechanism/items/2718.php" target="_blank">Clean Development Mechanism (CDM)</a>. If carbon capture is included, it would allow owners of such projects in developing countries to sell credits on the open market for every ton of carbon they keep out of the atmosphere.  However, experts expect the proposal to be excluded from the final version of the CDM.</p>
<p>Saudi Arabia has taken an active interest in the simultaneous projects idea. At the UN Convention on Climate Change last year, the country’s negotiators submitted a document saying, that many developing countries that have great opportunities to contribute in this area will have no incentives in implementing such actions if this technology is not eligible under the CDM.</p>
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		</item>
		<item>
		<title>Manifa, Saudi Arabia&#8217;s Offshore Oil Project, Scheduled for 2013</title>
		<link>http://www.heatingoil.com/blog/81181210/</link>
		<comments>http://www.heatingoil.com/blog/81181210/#comments</comments>
		<pubDate>Thu, 10 Dec 2009 21:01:18 +0000</pubDate>
		<dc:creator>Jared Killeen</dc:creator>
		
		<category><![CDATA[Blog]]></category>

		<category><![CDATA[crude oil prices]]></category>

		<category><![CDATA[middle east]]></category>

		<category><![CDATA[offshore oil drilling]]></category>

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		<category><![CDATA[Arabian heavy crude]]></category>

		<category><![CDATA[Aramco]]></category>

		<category><![CDATA[Aramco and Manifa]]></category>

		<category><![CDATA[crude prices]]></category>

		<category><![CDATA[Heating Oil]]></category>

		<category><![CDATA[heating oil prices]]></category>

		<category><![CDATA[Manifa]]></category>

		<category><![CDATA[Manifa 2013]]></category>

		<category><![CDATA[Manifa and bay]]></category>

		<category><![CDATA[Manifa construction]]></category>

		<category><![CDATA[marine life]]></category>

		<category><![CDATA[new offshore oilfield]]></category>

		<category><![CDATA[off-shore crude oil project]]></category>

		<category><![CDATA[off-shore drilling]]></category>

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		<category><![CDATA[oil supply]]></category>

		<category><![CDATA[price of crude]]></category>

		<category><![CDATA[price of oil]]></category>

		<category><![CDATA[Saudi Arabia]]></category>

		<category><![CDATA[Saudi Aramco]]></category>

		<category><![CDATA[Saudi Aramco and Manifa]]></category>

		<category><![CDATA[Saudi Aramco oil field]]></category>

		<category><![CDATA[Saudi Aramco project]]></category>

		<category><![CDATA[world oil market]]></category>

		<guid isPermaLink="false">http://www.heatingoil.com/?p=8118</guid>
		<description><![CDATA[The Saudi national oil company Aramco announced on Wednesday that it has resumed construction of its enormous off-shore drilling complex, called Manifa, estimating that the project is now 60% complete and should be operating by 2015. The company decided to delay the project when oil prices sank last year; but, with a barrel of crude [...]]]></description>
			<content:encoded><![CDATA[<div id="attachment_8119" class="wp-caption alignnone" style="width: 330px"><img class="size-full wp-image-8119  " title="img_7631" src="http://www.heatingoil.com/wp-content/uploads/2009/12/img_7631.jpg" alt="The man-made islands of Manifa. (image: dredgetheworld.blogspot.com)" width="320" height="214" /><p class="wp-caption-text">The man-made islands of Manifa. (image: dredgetheworld.blogspot.com)</p></div>
<p>The Saudi national oil company Aramco announced on Wednesday that it has resumed construction of its enormous off-shore drilling complex, <a href="http://www.ogj.com/index/article-display/4938017807/articles/oil-gas-journal/drilling-production-2/production-operations/field-start-ups/2009/12/aramco-targets_manifa.html" target="_blank">called Manifa</a>, estimating that the project is now 60% complete and should be operating by 2015. The company decided to delay the project when oil prices sank last year; but, with a barrel of crude now fetching upwards of $70, Manifa is once again a viable enterprise.</p>
<p>The company has called Manifa “the largest single off-shore crude oil project in Saudi Aramco’s history”—and for a very good reason. When completed, Manifa will comprise 27 man-made islands connected by 41 km of causeway. Moreover, it will produce 900,000 barrels per day (bpd) of Arabian heavy crude, 90 MMscfd of associated gas, and 65,000 bpd of condensate, more than any other Saudi Aramco oil field now operating. Indeed, Manifa’s crude could constitute as much as a tenth of the company’s daily production.</p>
<p><span id="more-8118"></span>Of course, the construction and operation of Manifa will have quite an impact on the surrounding bay. At the moment, marine life in the bay includes pearl oysters, hamour fish, crabs, dolphins, shrimp, and sea turtles, all of which could be affected by the project.</p>
<p>Once up and running, Manifa will represent a substantial increase in Saudi Arabia’s capacity to supply the world oil market.  More supply means lower prices for petroleum products like heating oil—especially if demand level stay anywhere near their current lows.</p>
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