Senior Market Analyst, Commodities and Energy
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May 1, 2013

Column: Don’t mess with Texas water, frackers warned

LONDON (Reuters) – Eagle Ford in Texas is one of the fastest-growing shale oil and gas plays in the United States, but it is also in one of the driest parts of the country.

Following a severe drought in 2011, concerns are mounting that oil and gas extraction is competing with irrigation for scarce water supplies.

May 1, 2013

Don’t mess with Texas water, frackers warned: Kemp

LONDON, May 1 (Reuters) – Eagle Ford in Texas is one of the
fastest-growing shale oil and gas plays in the United States,
but it is also in one of the driest parts of the country.

Following a severe drought in 2011, concerns are mounting
that oil and gas extraction is competing with irrigation for
scarce water supplies.

May 1, 2013

USGS estimate for Bakken oil remains conservative: Kemp

LONDON, May 1 (Reuters) – The Williston Basin underneath
North Dakota, Montana and South Dakota contains twice as much
crude and three times more gas than previously thought,
according to an updated assessment published by the U.S.
Geological Survey (USGS) on Tuesday.

USGS assesses that at least 7 billion barrels of oil, and
6.4 billion cubic feet of natural gas, could ultimately be
recovered from the two formations, with at least a 50 percent
probability.

Apr 30, 2013

Column: Droughts put U.S. energy supply in peril

LONDON (Reuters) – Water and energy are inextricably linked.

Power plants are the largest users of water in the United States, while substantial amounts of energy are needed to supply fresh water to homes, farms and factories and treat waste water prior to safe disposal.

Rising water consumption for hydraulic fracturing and production of biofuels, coupled with severe droughts in Texas in 2011 and across more than 60 percent of the continental United States in 2012, have propelled that link up the policymakers’ agenda.

Apr 30, 2013

Droughts put U.S. energy supply in peril: Kemp

LONDON, April 30 (Reuters) – Water and energy are
inextricably linked.

Power plants are the largest users of water in the United
States, while substantial amounts of energy are needed to supply
fresh water to homes, farms and factories and treat waste water
prior to safe disposal.

Rising water consumption for hydraulic fracturing and
production of biofuels, coupled with severe droughts in Texas in
2011 and across more than 60 percent of the continental United
States in 2012, have propelled that link up the policymakers’
agenda.

Apr 29, 2013

Battle of Balcombe’s shale to test British policymakers: Kemp

LONDON, April 29 (Reuters) – The village of Balcombe in West
Sussex, with fewer than 2,000 residents, is set to test whether
Britain’s politicians, media and public can strike a sensible
balance between climate change and energy security, local
concerns and national priorities.

Balcombe has become a rallying point for a broad alliance of
environmentalists and community groups opposed to the
introduction of hydraulic fracturing for shale gas in Britain,
as Guy Chazan explains in a thoughtful article in Monday’s
Financial Times (“Sussex village of Balcombe is focal point of
fracking opposition” April 29).

Apr 18, 2013

Wind power will raise costs for coal, gas generators:Kemp

LONDON, April 18 (Reuters) – Forcing coal and gas-fired
power plants to ramp up and down more frequently to compensate
for the growing number of wind farms connected to the power grid
will reduce their efficiency and increase maintenance costs.

The adoption of renewable energy laws and renewable
portfolio standards (RPS), requiring power purchasers to give
priority to clean generation from intermittent sources such as
wind, will require fossil fuel generators to operate more
flexibly, according to a recent study funded by the U.S.
Department of Energy.

Apr 17, 2013

Cool roofs, New York summers and global warming: Kemp

LONDON, April 17 (Reuters) – Converting the world’s roofs
from dark colours to reflective white would cancel the warming
effect of 1 billion tonnes of carbon dioxide each year for the
lifetime of the roof, according to former California Energy
Commissioner Arthur Rosenfeld.

The reduction in warming would be equivalent to taking half
the world’s cars off the road for 20 years, Rosenfeld wrote in a
recent commentary for the International Energy Agency (“White
roofs cool the world efficiency” April 3).

Apr 15, 2013

Commodities as hedge funds not an asset class: Kemp

LONDON, April 15 (Reuters) – The status of commodities as a
distinct asset class is under threat following another lousy
start to the year for investors.

Total returns on the two major commodity indices, the
Standard and Poor’s Goldman Sachs Commodity Index
and the Dow Jones-UBS Commodity Index, show losses of
4.4 percent and 3.7 percent respectively so far this year, while
an investment in the S&P 500 equity index is up 12
percent, including dividends.

Apr 12, 2013

Falling oil prices to test Saudi policy: Kemp

LONDON, April 12 (Reuters) – Saudi officials should welcome
the recent decline in oil prices, which takes benchmark Brent
close to the level of $100 per barrel that everyone from the
kingdom’s oil minister down has said is “reasonable” for both
consumers and producers.

For more than a year, Saudi officials have sought to anchor
market expectations by reiterating the $100 figure, though the
kingdom has often appeared more comfortable with prices around
$110, and adjusted production and exports accordingly.

    • About John

      "John joined Reuters in 2008 as one of its first financial columnists, specialising in commodities and energy. While his main focus is on oil markets, he has written broadly on the emergence of commodities as an asset class, regulatory issues and macroeconomic themes. Before joining Reuters, John spent seven years as a senior analyst for Sempra Commodities (now part of JP Morgan) covering base metals and crude oil. Previously, he worked as an analyst on world trade, banking and financial regulation for consultancy Oxford Analytica."
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