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Mon, Jun 02, 2008

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Worldwide Anger
Bubbles Up Over Crude
Turkey to Market Caspian Oil

Worldwide Anger
Bubbles Up Over Crude
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Drivers around the world are being pummeled by the effects of record gas prices.
Americans are shell-shocked at $4-a-gallon gas. But consider France, where a gallon of petrol runs nearly $10. Or Turkey, where itŐs more than $11.
According to AP, drivers around the world are being pummeled by the effects of record gas prices. And now some are hitting back, staging strikes and protests around the world to demand that governments do more to ease the pain.
ItŐs a growing problem in a world thatŐs increasingly mobile and more vulnerable than ever to the cost of crude oil, which is racing higher by the day and showing no signs of stopping.
As oil soars, the effect on drivers can vary widely. Taxes and subsidies that differ from nation to nation are the main reasons, along with limits in oil refining capacity and hard-to-reach places that drive up shipping costs.
In Europe and Japan, for example, high taxes have accustomed drivers to staggering gas prices. As a result, plenty of European adults never learn to drive, preferring cheap mass transit to getting behind the wheel.
Those who do drive are still testing new pain thresholds. And it would be worse in Europe if the strong euro werenŐt cushioning the blow.
On the other hand, in emerging economies such as China and India, government subsidies shield consumers. But that means governments themselves have to find a way to afford the soaring market prices for oil.
Increasingly, people around the world are reaching the boiling point--and itŐs not just drivers.
Fishermen in Spain and Portugal launched nationwide strikes Friday, keeping their trawlers and commercial boats docked at ports. In Madrid, demonstrators handed out 20 tons of fish in a bid to win support from the public.
In Spain, European UnionŐs most important producer of fish, the fishing confederation estimates fuel prices have gone up 320 percent in the past five years--so high many fishermen can no longer afford to take their boats out.
The world is driving more than ever: There are 887 million vehicles in the world, up from 553 million just 15 years ago, according to London consultancy Global Insight. It estimates the figure will be 1 billion four years from now.
In Europe, the high tax burden means crude prices make up a smaller part of the retail cost of gas.
ŇThe pain of a rise in prices is much less in Europe because we may be paying a lot more here, but the rise in a percentage sense is a lot smaller,Ó said Julius Walker, oil analyst at the International Energy Agency.
The United States, with its relatively low taxes, is considered to have retail prices closer to what energy data charts call the Ňreal costÓ of gasoline--closely linked to the price of oil.
So as oil prices have soared, US gas prices have soared along with them.
Prices for regular unleaded gas have risen from $1.47 a gallon in May 2003 to more than $3.96 now, a jump of nearly 170 percent. In the same period, the most popular grade of gas in France rose by just over 90 percent--a relatively gentle climb.
Americans are driving less--about 11 billion fewer miles in March 2008 than March 2007, a drop of about 4 percent, according to the Schork Report newsletter. It was the first drop in March driving in almost three decades.
Nations that produce huge amounts of oil arenŐt necessarily in better shape.
Russia is the worldŐs second-leading producer of oil, but gas there comes to about $3.68 a gallon--about the same as in the United States, where workers earn about six times as much money.
Much of the Russian cost comes from taxes, which run between 60 and 70 percent. Limited refining capacity and the costs of transporting gasoline across the countryŐs vast expanse also push up prices. ItŐs not that bad everywhere.
In Venezuela, long-held government subsidies and bountiful supplies have made the people think of cheap fuel as a birthright. ItŐs a veritable wonderland for gas guzzlers--12 cents per gallon. Consumers there are snapping up SUVs.
For solutions to the oil crisis, policymakers in less oil-rich nations are looking to Brazil, where ethanol made from sugarcane is widely available to the nationŐs 190 million people.
Eight out of every 10 new cars sold there are flex-fuel models that run on pure ethanol, gas or any combination of the two. Ethanol in Sao Paulo is running about half the price of gas, which is $5.67 per gallon.

Turkey to Market Caspian Oil
A new energy agreement signed between Azerbaijan and Kazakhstan linking a planned oil pipeline to AzerbaijanŐs Baku was ratified by Kazakh President Nursultan Nazarbayev yesterday, marking an opportunity for Turkey to market Caspian Sea oil to the rest of the world.
Under the agreement, Kazakhstan will transport oil through the new Eksene-Kuruk pipeline, to be constructed, and also via tankers, to Baku, the starting point of the Baku-Tbilisi-Ceyhan (BTC) pipeline, which passes through Georgia and terminates in Turkey, Todayszaman reported.
KazakhstanŐs KazMunai Gaz and AzerbaijanŐs state-owned oil company have been negotiating since 2002 for ways to make possible the integration of Kazakh oil to the BTC.
The agreement was finalized on May 26, when the Kazakh parliament ratified the deal. The agreement entered into force with NazarbayevŐs final approval yesterday.
Under the new deal, a new 730-kilometer pipeline running from KazakhstanŐs Eskene region to Kuruk will be constructed. Oil will be transported from the Kuruk port to Baku via tanker. Once pumped into the BTC there, Kazakh oil will then go to Ceyhan in Turkey, increasing the amount of oil arriving in Ceyhan to 75 million tons a year--up 50 percent from the current 50 million.
The BTC, which began operating in 2006, is 1,767 kilometers long, with 443 kilometers of it passing through Azeri land, 248 through Georgia and 1,076 through Turkey.
The Eskene-Kuruk-Baku pipeline, expected to be completed in 2013, will have a pumping capacity of 1.6 million barrels a day, compared to the BTCŐs current capacity (as of May 28) of 1 million barrels per day. The pipeline has been operating for two years.
The BTC is owned by BP, 30.1 percent; Azerbaijan BTC, 25 percent; Chevron, 8.9 percent; Statoil, 8.71 percent; the Turkish Petroleum Corporation (TPAO), 6.53 percent; ENI, 5 percent; Total, 5 percent; Itocuhu, 3.4 percent; INPEX, 2.5 percent; ConocoPhillips, 2.5 percent; and Hess, 2.36 percent. Russia sees the new pipeline as an attempt to weaken its regional influence.

Nuclear Pact
Algeria and France are due to sign an unprecedented nuclear energy cooperation pact, Algerian Energy Minister Chakib Khelil said.

EnergyCol3
Harnessing Energy From Oceans
Forever moving--our restless oceans have enough energy to power the world. As long as the Earth turns and the moon keeps its appointed cycle, the oceans will absorb and dissipate vast amounts of kinetic energy--a renewable energy resource of enormous potential.
But harnessing this resource has proven more difficult than first thought. In this the latest installment of the GLOBE-Net Series on Renewable Energy--we look at how the power of the oceans might eventually find its place among other forms of renewable energy, ENN wrote.
According to the United Nations, 44 percent of the worldŐs population lives within 150 km of an ocean coast. In Canada and Australia the number is much higher at 80 percent. In the United States 53 percent of the population live in close proximity to an ocean.
Thus it is only natural that many countries look to the oceans as a source of energy to be harnessed. How they seek to exploit this resource varies according to factors of geography and available technologies.
The two main forms of energy associated with our oceans are tidal power and wave power--born of the same source, but different in how they turn energy into electricity.

Tidal Power
Tidal power coverts the energy of tides into electricity utilizing the rise and fall of the ocean tides. The stronger the tide, either in water level height or tidal current velocities, the greater the potential for tidal electricity generation.
Tidal generators act in much the same way as do wind turbines, however the higher density of water (832 times that of air) means that a single generator can provide significant power at velocities much lower than those associated with the wind power generators.
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Tidal power boasts several advantages over other types of renewable energy technology, because tides are more predictable and reliable than wind energy or sunny days for solar power. Tidal energy has an efficiency ratio of approximately 80 percent in terms of converting the potential energy of the water into electricity.

Wave Power
Ocean surface waves are also a considerable source of energy potential, but energy that is not as restricted in terms of location as tidal energy systems. Typically wave energy is captured using buoys which generate mechanical energy as they oscillate vertically from wave motion.
Terminator devices extend perpendicular to the direction of wave travel and capture or reflect the power of the wave. Water enters through a subsurface opening into a chamber with air trapped above it and wave action causes the captured water column to move up and down like a piston to force the air though an opening connected to a turbine.
A point absorber is a floating structure with components that move relative to each other due to wave action (e.g., a floating buoy inside a fixed cylinder). The relative motion is used to drive electromechanical or hydraulic energy converters.
Attenuators are long multi-segment floating structures oriented parallel to the direction of the waves. The differing heights of waves along the length of the device causes flexing where the segments connect, and this flexing is connected to hydraulic pumps or other converters.
Overtopping devices have reservoirs that are filled by incoming waves to levels above the average surrounding ocean. The water is then released, and gravity causes it to fall back toward the ocean surface. The energy of the falling water is used to turn hydro turbines.
Wave power varies considerably in different parts of the world, and wave energy canŐt be harnessed effectively everywhere.
According to the Ocean Renewable Energy Group, a Vancouver based organization that promotes the development of ocean energy in Canada, regions considered to have ÔgoodŐ wave energy resources are generally those found within 40 to 60 degrees of latitude, where the strongest winds are found.
Wave-power rich areas of the world include the western coasts of Scotland, northern Canada, southern Africa, Australia, and the northwestern coasts of the United States.