September 2009 Archives

NYSE's Bluenext and CBEEX announce the development of China's first Voluntary Standard at the first US-China Low Carbon Conference in New York today. Not only does this strengthen the new partnership between CBEEX and Bluenext first announced earlier this summer, but also marks the first step towards a Voluntary system to limit emissions domestically in China.

At the US-China Low Carbon Conference Serge Harry, Chairman and CEO of NYSE's Bluenext and Xiong Yang, Chairman of CBEEX made the announcement to a multi-national audience of Chinese and US CEOs from the financial, industrial and carbon worlds. The new standard is touted to become the recognised international and domestic carbon standard for China. Details about the design and methodologies will come out in full at the official launch in Copenhagen in December. But experts suggest that the Standard will make a significant impact on the fledgling Chinese voluntary carbon market.

The standard, which will rely on existing proven methodologies, will cover, among other sectors, agriculture and forestry and large scale carbon offset projects. The standard is being developed now so the market might quickly respond to a post -COP 15 world.

Witnessing the announcement today was Duncan Niederauer, CEO of NYSE Euronext, James Rogers, Chairman and CEO of Duke Energy, Wang Yusou, Chairman of the Board of ENN Group and David Yarnold, Executive Director of EDF. They were joined by over a 150 leading figures who have an interest in the Low Carbon technologies and finance.

SOURCE Bluenext

Low cost energy abundance is possible for the United States but is being blocked by environmental extremists in the Obama Administration according to a new article by Jon Basil Utley just posted at Reason Magazine on-line: http://www.reason.com/news/show/136265.html .

Jon Utley is The American Conservative associate publisher, and a former foreign correspondent for Knight Ridder newspapers.

In "Alaska Oil Abundance Versus Washington's Wasted Billions: The case for new oil drilling in Alaska and off America's coasts," Utley explains that 80% of American oil consumption comes from imports, costing some $300 to $400 billion yearly. "They wreck our trade balance, subsidize many of our enemies, and add to our already mountainous foreign debt," Utley says.

While analysts are forecasting $100 dollar-a-barrel oil within a year, the Obama Administration continues to block offshore drilling (even though it was approved by Congress last year) and wants to raise taxes on the oil companies, Utley says.

"New oil drilling in Alaska and off America's coasts would create hundreds of thousands of American jobs and billions of dollars in real tax revenue for Washington," Utley writes in the article. "Compare that to government spending to create jobs, which costs some $200,000 per job."

Solar power, Utley says "involves billions of dollars in costly subsidies which add to the ballooning budget and trade deficits" while wind power will cost the taxpayers $10 billion. "Ethanol was similarly hyped by Washington -- another gigantic boondoggle with severely damaging consequences for food prices and tens of billions of dollars of wasted resources."

"Major technological breakthroughs make vast new oil production possible -- once Washington permits it," Utley says. Natural gas is "already abundant and promises to stay cheap into the foreseeable future. . . . there exists tremendous potential for natural gas in auto and truck engines. . .many trucks, buses, and taxis could easily be converted to run on natural gas, costing less than a dollar a gallon."

"Research drilling has made vast new oil production possible," Utley says. "Horizontal drilling allows wells to reach into oil reserves as never before and to produce far more oil from each field. . . .a traditional vertical well might expose 200 to 300 feet of reservoir rock [while] a new well using multiple horizontal sections can expose over 20,000 feet of reservoir rock."

"The Obama Administration is a prisoner of its 'base,' which includes extreme environmentalists doing all they can to delay and handicap new oil and gas drilling. If just a fraction of the $700 billion stimulus bill was spent on subsidizing natural gas fueling facilities at interstate truck stops, America could use more of its natural gas to avoid tens of billions of dollars of oil imports," Utley said.

See the entire article at Reason Magazine on-line: http://www.reason.com/news/show/136265.html

SOURCE Reason Magazine On-line

Southern Company today announced that China will be the site for the first worldwide commercial implementation of the Transport Integrated Gasification (TRIG(TM)) technology for producing low-emission coal-based electricity.

TRIG is an advanced integrated gasification combined cycle (IGCC) technology that produces electricity with lower emissions than traditional coal power plants. It also is compatible with lower rank coals that are abundant in China.

The technology was developed by Southern Company, KBR Inc., and other partners, including the U.S. Department of Energy, at the DOE's research facility in Wilsonville, Ala., that is managed and operated by Southern Company.

Under the terms of their technology licensing arrangements with KBR Inc., the companies will provide Beijing Guoneng Yinghui Clean Energy Engineering Co., Ltd. with licensing, engineering services and proprietary equipment for the implementation of TRIG technology at a power plant operated by Dongguan Tianming Electric Power Co., Ltd. (Dongguan TMEP) in Guandong Province, Peoples Republic of China.

At the Dongguan TMEP facility, TRIG technology will be added to an existing gas turbine combined cycle plant so that it can use clean synthetic gas from coal as its fuel for generating electricity, rather than fuel oil.

"China's rapid growth vividly demonstrates the global need for advanced technologies to ensure reliable, affordable and cleaner supplies of energy," said Southern Company Chairman, President and CEO David Ratcliffe. "This plant will demonstrate that TRIG offers an effective technological solution to these challenges."

The 120-megawatt Dongguan TMEP plant, expected to begin operation in 2011, would demonstrate an example of advanced U.S. IGCC technology that is being developed in partnership between the DOE and industry. This IGCC technology is compatible with carbon capture, and its deployment in China is an important step toward positioning IGCC for future integration with carbon capture technology.

Ratcliffe also noted that Southern Company subsidiary Mississippi Power currently is seeking regulatory approval to build a 582-megawatt plant using TRIG technology in Kemper County, Miss. That plant would include 65 percent carbon capture and sequestration.

Source: Southern Company

Regional reservoir and field development experts meet to discuss successful strategies to bolster petroleum extraction from ageing reserves.

International Quality and Productivity Centre (IQPC), the global provider of tailored, industry-driven conferences, will be addressing how to tap into the region's vast reserves to maximize oil recovery.

Production Optimization Middle East 2009 is an exclusive two-day conference with four essential half-day workshops, taking place at Le Royal Meridien, Abu Dhabi, UAE.

Regional industry experts will gather in Abu Dhabi on 13 - 16 December 2009 to share their latest practical solutions for accessing ageing reservoirs in order to exploit their potential. The successful application of artificial lift technologies combined with strategic field development planning will be discussed to reveal technical and operational initiatives for bolstering petroleum extraction.

Production Optimization Middle East 2009, hosting valuable contributions from 16 industry experts, provides an excellent opportunity to find solutions to the very latest production challenges, benchmark your current practices, and build industry partnerships that will result in mutual business growth.

Talal Al Mutairi, Team Leader of Field Development, Kuwait Oil Company states, "Production optimization is an integrated effort which requires a multidisciplinary team who should be working with the latest advanced technologies as the industry faces maturing reservoirs, along with severe shortage of technically competent manpower. As this event will be attended by delegates from different companies working in the region, attendees will get the chance to be exposed to best practices and establish a networking community for the benefit of the business."

Production Optimization Middle East 2009 will act as a forum for some of the most topical regional issues facing the industry right now, by providing practical case studies from leading Oil companies. Clement Edwards, Well and Reservoir Manager, Shell will be addressing how using LEAN methods in well and reservoir management can help you become more efficient at producing hydrocarbons.

Furthermore, Abdul Hameed Aborshaid, Manager of Production Engineering, Saudi Aramco will assess the role of ifield technology in sustaining production and optimizing operations.

This highly focused event will bring together a selection of industry professionals for two days of high-level networking and debate over burgeoning challenges, including successful EOR strategies for Middle East reserves.

    Further information may be obtained at
http://www.productionoptimizationme.com

SOURCE IQPC Middle East

Envion Inc. is leading the charge towards a green future with the introduction of a revolutionary plastic-to-oil conversion technology. The Envion Oil Generator(TM) (EOG) is a first-of-its-kind technology that converts any type of plastic waste into high quality, synthetic light medium oil for less than $10 per barrel.

Envion introduced its first market-ready commercial unit at a demonstration held at the Montgomery County Solid Waste Transfer Station in Derwood, Maryland today. Montgomery County Executive Isiah Leggett joined Envion Chairman and CEO Michael S. Han for a demonstration of the process.

"The Envion Oil Generator(TM) provides a revolutionary solution to the problem of plastic waste by transforming it from an environmental hazard into a sustainable, renewable energy source," said Han. "The market for our technology is vast, and it provides municipalities with a solution that cuts costs."

As a petroleum-based product, plastic contains a huge amount of stored energy that literally goes to waste with conventional disposal methods. Envion's innovative technology reclaims that energy and provides it in a form that is immediately commercially viable: oil.

Through Envion's proprietary technology, one ton of waste plastic can be converted into approximately four 42-gallon barrels of high quality, synthetic light to medium oil. This oil is a refined and 99% sediment free product that can be used to produce gasoline, diesel fuel, jet fuel and kerosene.

"About eight percent of world crude oil production is used to manufacture plastic," Han added. "The Envion Oil Generator(TM) uses a closed loop, catalyst-free system to take plastic and convert it back into oil safely, efficiently and economically."

Each individual unit can process up to 10,000 tons of plastic waste annually, generating as much as 50,000 barrels of oil. With full national deployment, the Envion Oil Generator(TM) could generate over 150,000,000 barrels of oil each year in the United States alone. Additionally, the EOG is capable of processing all types of plastic waste, thus reducing the time and cost of sorting plastic by type.

Envion's innovative approach provides a comprehensive solution that has the potential to remove plastic waste from landfills, freeing up the estimated 24% of capacity that plastic occupies in landfills. The United States produces approximately 50 million tons of plastic waste per year, the vast majority of which ends up taking up space in landfills. With the ability of a single EOG to eliminate 10,000 tons of plastic per year, at a cost of $17 per ton, the Envion Oil Generator is a cost effective alternative to the $70-$200 cost range of landfill disposal. Additionally, according to the EPA recycling programs process only 6.8% of plastic waste and are also not as cost effective, costing between $50 and $150 per ton of plastic recycled.

The Envion process uses a proprietary technology to convert plastic into energy without the need for fossil fuel combustion. The technology is cost effective because it requires only minimal energy input and is fully automated allowing the facility to operate with only two operators.

Envion is expected to have multiple EOGs in full operation within months, with orders coming in from the United States and Internationally. Envion's EOG is a shovel-ready, green technology that is sustainable and poised to reshape the renewable energy industry, offering a cost-effective solution for local municipalities to safely and efficiently manage their plastic waste.

"Given the shortage of sustainable plastic waste disposal alternatives, Envion is uniquely poised to capitalize on the substantial benefits of licensing its groundbreaking technology," continued Han. "Envion's products and services are specifically designed to be sustainable, renewable, and scalable with rapid delivery using cost-effective and efficient supply chains and applying just-in-time manufacturing to minimize inventories."

SOURCE Envion Inc.

According to VBCC, advisors to Karl W. Miller, a senior energy executive and institutional investor, today issued the following statement through his advisors, regarding the state of the U.S. Equity Markets and the Energy Industry.

Mr. Miller warns that China continues to be irrelevant to the US economy and energy complex at the current time, given the fact that there is no fundamental U.S. demand.

Oil and Natural Gas are decoupled in the U.S. and investors should not chase a speculatively driven oil price when it has nothing to do with the fundamentals on the ground relating to Natural Gas production and demand in the United States. Oil is a dollar based, but has no linkage to natural gas in the U.S. as it does in Europe and Asia.

Mr. Miller has issued a sell recommendation on Natural Gas producers. There is no fundamental reason for Natural gas to trade above $3 mmbtu in the U.S. in the near term.

Mr. Miller expects natural gas to correct to the $2.50 to $2.75 mmbtu price range getting cheaper, as there is no demand. Thus, the pipeline and natural gas producers will suffer reduced earnings and are overvalued as well.

Chinese government owned and controlled energy companies are deploying capital cheap natural resources globally outside the U.S. to shore up their own deficient domestic portfolio. Chasing China or Asia in the equity market rally is a false illusion in the near term.

Mr. Miller retains a sell recommendation on U.S. renewable energy companies. He predicts will see many of these companies, which are reliant upon massive government subsidies, state approval of pass through price increases, and highly levered fail and/or be purchased at distressed prices when the bust comes, and it is sure to come.

Chasing a false market rally is a formula for failure for all class of investors. Mr. Miller recommends that the sidelines are the best placement of capital at the current time. The real buying opportunity will come, but now is not the time.

About Mr. Miller

Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980's and has an extensive background in banking, commodities trading and risk management.

Mr. Miller has a long history in the global energy business and has held a variety of executive management positions both within the United States, Europe and Asia. Mr. Miller has bid on over $25 billion in energy related assets during his career.

Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricite de France, El Paso Energy, Enron Corporation and JPMorgan Chase.

Mr. Miller holds an MBA in Finance from the Kenan-Flagler Business School at The University of North Carolina, Chapel Hill. Mr. Miller also holds a B.A. in Accounting from Catholic University located in Washington DC.

Mr. Miller is currently on medical leave until late 2009.

Source: VBCC

Williams (NYSE: WMB) announced today that the Federal Energy Regulatory Commission (FERC) has approved a proposal to expand its Transco natural gas pipeline by 308,500 dekatherms per day to serve markets in the southeastern United States.

New service from the 85 North project will be available in two phases. Phase 1 will increase capacity by 90,000 dekatherms per day by the summer of 2010, while Phase II will increase capacity by 218,500 dekatherms per day by the summer of 2011.

"With volumes now ramping up at Transco's two new pipeline interconnects at Station 85, this project will connect these supplies to growing markets in the southeastern United States," said Phil Wright, president of Williams' natural gas pipeline business. "We appreciate the FERC's thorough review of this project. With the certificate now in hand, we will immediately move forward with constructing this much-needed capacity."

The 85 North project will require construction of approximately 22 miles of 42-inch pipeline, in addition to a new 20,500 horsepower compressor facility in Anderson County, S.C., as well as modifications to existing compressor facilities. Williams estimates that the project facilities will cost approximately $248 million. Phase I construction will begin this fall, while Phase II construction is scheduled to get underway next summer.

The Transco pipeline is a 10,500-mile pipeline system that transports natural gas to markets throughout the northeastern and southeastern United States. This expansion will increase the total system capacity of the Transco pipeline to approximately 8.5 billion cubic feet per day.

Charlotte-based Piedmont Natural Gas (NYSE: PNY) today announced results for its third quarter ended July 31, 2009. For the quarter, the Company reported a seasonal loss of $7.3 million and ($0.10) per diluted share compared with a loss of $7.7 million and ($0.10) per diluted share for the same period in 2008.

For the nine months ended July 31, 2009, net income was $127.1 million and diluted earnings per share were $1.73, compared with net income of $123.2 million and diluted earnings per share of $1.67 for the same period in 2008.

Utility margin increased by $3.8 million for the third quarter and by $6.1 million for the nine months ended July 31, 2009 compared to the same periods in 2008. The increase in margin is due to the Company's 2008 general rate case in North Carolina and continued customer growth across its three-state service area. Operations and maintenance expenses were essentially flat compared with the same periods in 2008.

Revised Fiscal 2009 Earnings Guidance

In light of its year to date performance and its forward-looking assessment of the fourth fiscal quarter, Piedmont Natural Gas is narrowing its fiscal 2009 earnings guidance to a range of $1.50 to $1.60 per diluted share with emphasis on the upper end of the range. The Company's earnings guidance includes management's assessment of overall market conditions, customer growth rates and demand, ongoing business process improvement and cost management programs, capital expenditures and financing requirements. Changes in market conditions which the Company cannot reasonably anticipate could cause earnings for the year to differ from this guidance.

Chairman, President and Chief Executive Officer Thomas E. Skains commented, "This fiscal year has been a challenging one as our employees have worked through the very difficult economic conditions brought on by the global recession. By sticking to the fundamentals of maximizing profitable growth opportunities, implementing ongoing cost management and business process improvement programs, spending our capital resources prudently and providing quality customer service, we are poised to achieve another year of record earnings per share for our shareholders."

Conference Call

In conjunction with this third-quarter earnings release, you are invited to listen to the conference call that will be broadcast live over the Internet on Wednesday, September 9, 2009, at 9:00 a.m. Eastern Time, hosted by Chairman, President and Chief Executive Officer Thomas E. Skains. Log on to the web at www.piedmontng.com and click on Investors, then on Presentations. The conference call will be archived on the Presentations page of the website within the Investors section.

    Piedmont Natural Gas Company, Inc.
    Summary of Operations
    (in thousands except per share amounts and degree days)

    Three Months Ended                  July 31
    ------------------                  -------               % Increase
                                  2009         2008           (Decrease)
                                  ----         ----           ----------
                              (Unaudited)   (Unaudited)

    Operating Revenues          $180,201     $354,709             (49)%
    Cost of Gas                   99,362      277,689             (64)%
    Margin                        80,839       77,020               5%
    Operations and Maintenance
     Expenses                     50,124       49,738               1%
    Depreciation                  24,488       23,581               4%
    General Taxes                  8,841        7,928              12%
    Utility Income Taxes          (4,199)      (6,846)             39%
    Operating Income (Loss)        1,585        2,619             (39)%
    Other Income (Expense), net    2,162        2,530             (15)%
    Utility Interest Charges      11,047       12,827             (14)%
    Net Loss                      (7,300)      (7,678)              5%
    Average Shares of Common
     Stock:
         Basic                    72,983       73,368              (1)%
         Diluted                  72,983       73,368              (1)%
    Earnings Per Share of
     Common Stock:
         Basic                    ($0.10)      ($0.10)              - %
         Diluted                  ($0.10)      ($0.10)              - %
    System Throughput -
     Dekatherms                   36,895       38,931              (5)%
    Gas Customers Billed in
     July                            942          943               - %
    System Average Degree Days
     - Actual                         43           35              23%
    System Average Degree Days
     - Normal                         51           53              (4)%
    Percent Normal Degree Days        84%          66%              -


    Nine Months Ended                   July 31
    -----------------                   -------               % Increase
                                  2009         2008           (Decrease)
                                  ----         ----           ----------
                               (Unaudited)  (Unaudited)
    Operating Revenues        $1,415,276   $1,777,357             (20)%
    Cost of Gas                  943,802    1,312,031             (28)%
    Margin                       471,474      465,326               1%
    Operations and Maintenance
     Expenses                    154,200      155,598              (1)%
    Depreciation                  72,937       69,179               5%
    General Taxes                 26,235       25,080               5%
    Utility Income Taxes          73,035       69,092               6%
    Operating Income             145,067      146,377              (1)%
    Other Income (Expense)        18,006       18,316              (2)%
    Utility Interest Charges      35,972       41,479             (13)%
    Net Income                  $127,101     $123,214               3%
    Average Shares of Common
     Stock:
         Basic                    73,180       73,355               - %
         Diluted                  73,476       73,628               - %
    Earnings Per Share of
     Common Stock:
         Basic                     $1.74        $1.68               4%
         Diluted                   $1.73        $1.67               4%
    System Throughput -
     Dekatherms                  170,879      165,947               3%
    Gas Customers Billed in
     July                            942          943               - %
    System Average Degree Days
     - Actual                      3,191        2,953               8%
    System Average Degree Days
     - Normal                      3,119        3,148              (1)%
    Percent Normal Degree Days       102%          94%              -
 
SOURCE Piedmont Natural Gas

ComEd yesterday submitted a petition to the Illinois Commerce Commission (ICC) to approve the utility's application for federal stimulus grants that would fund half of a $350 million Smart Grid pilot. If approved and fully funded, ComEd would add 180,000 customers to its original Advanced Metering Infrastructure (AMI) pilot proposal and finance other technologies to significantly reduce customer interruptions.

ComEd's application was submitted to the U.S. Department of Energy (DOE) last month. It calls for expanding the proposed AMI pilot and more than doubling the number of customers receiving new Smart Meters from about 140,000 to 320,000 customers in Chicago and 31 other communities. The stimulus funding also would significantly expand investment in other advanced automation technology to make the transmission and distribution systems "smarter" and more reliable.

The petition to the ICC includes a request to allow ComEd to recover remaining costs of the stimulus projects after receiving the 50 percent match from the DOE. The ICC's approval would be in addition to the more than 100 letters of support the utility received from the City of Chicago, other municipalities and organizations for its federal application submitted in August.

"ICC support will greatly increase the chance that the DOE will select ComEd's application, as it will demonstrate strong local interest to put federal stimulus funds into action," said Anne Pramaggiore, president and chief operating officer, ComEd. "By tapping up to $175 million in federal stimulus funds, we can accelerate and multiply Smart Grid benefits to our customers and reduce customer costs."

Earlier this summer, ComEd filed a petition with the ICC recommending a one-year AMI pilot, one of the country's most comprehensive evaluations of how customers will interact with this innovative technology.

If the $350 million federal stimulus project is approved by the DOE and the rider by the ICC, the effect to the average residential customers' bills would be an average 35 cents per month beginning April 2010 - or an increase of about one half of a percent on an average customer bill of approximately $77.

ComEd's proposed expansion of smart grid technologies also will provide useful information to the ICC and other stakeholders as policies for statewide Smart Grid deployment are developed. ComEd's AMI pilot and Smart Grid vision will play an important role in building a more energy efficient and independent future for Illinois by delivering higher levels of reliability and providing customers unprecedented choices and control.

The federal matching funds come from the American Reinvestment and Recovery Act of 2009 (ARRA), which is designed to accelerate the modernization of the nation's electric system and promote economic recovery through job creation. DOE will select projects for funding later this year, and if approved, benefits from the ComEd application also will include:

• Creation of about 3,800 jobs in northern Illinois.
• Deployment of additional smart meters in ComEd's service territory in combination with advanced pricing and billing options. Additional customers will receive in-home displays, programmable devices that will let them control their air conditioners remotely and Web interface options to help manage energy usage and costs.
• A unique project with the City of Chicago that integrates smart meters and advanced technology with energy efficiency incentives in urban communities targeted for sustainability investments through the Chicago Climate Action Plan.
• Dynamic Voltage Reduction technologies to reduce line losses the energy that is wasted as power is moved from power generation plants to homes and businesses.
• Intelligent substation technologies to improve safety and optimize maintenance practices while enhancing reliability and operational performance.
  

ComEd also applied for federal funding for an innovative test integrating solar power with smart metering dynamic pricing and energy storage to increase reliability and provide more options to manage energy use.

Source: ComEd