05.07.2009

This signifies that the investor believes that under a scenario where a barrel of oil would cost $60 he would be able to make 15% return on his investment (possibly on alternative fuels)

A person living in another country and culture, usually on a business assignment

There are three major types of vehicle engines that release exhaust gases: gasoline, diesel, and turbine. The composition of exhaust gases is based primarily on the fuel and the temperature at which it is burned (by the vehicle) Fuels use additive chemicals for many different reasons: to aid in flow, prevent freezing, and clean internal parts. These additives are present in low concentrations but they may be important exhaust components. Diesel and turbine engines use similar fuels and produce similar exhaust gases; except that diesel engines generally release more unburned carbon as particulate matter. Gasoline is a more refined fuel, but chemicals are still added. The major components of vehicle exhaust gases include carbon (as very small particles), unburned hydrocarbons, carbon dioxide, carbon monoxide, nitrogen oxides, sulfur oxides, water vapor, and thousands more “low-level” chemicals. The peculiar odor of diesel exhaust is due to aldehydes, acrolein, and sulfur compounds. Gasoline engines generally produce more carbon monoxide than diesel or turbine engines; diesel and turbine engines produce higher. levels of nitrogen oxides. The use of emission control measures from fuel regulation, to air injection and catalytic conversion of the exhaust gases, greatly affects the types and amounts chemicals found in the exhaust gases.

An area contiguous to a state and extending 200 nautical miles (320 km) from a country’s coastline. In this zone a nation controls the undersea resources, primarily fishing and seabed mining. Pursuant to the 1982 Maritime Convention, a coastal State exercises sovereign rights for the purpose of exploring and exploiting, conserving and managing the natural resources of the EEZ, whether living or non-living. The coastal State does not have sovereignty over the EEZ, and all States enjoy the high seas freedoms of navigation, overflight, laying and maintenance of submarine cables and pipelines, and related uses in the EEZ, compatible with other Convention provisions. However, all States have a duty, in the EEZ, to comply with the laws and regulations adopted by the coastal State in accordance with the Convention and other compatible rules of international law. Sovereign rights are declared in an EEZ to include a number of parameters. What happens when within the space of 200 nautical miles another country is located with conflicting rights? The matter is taken to a arbitration to the UN.

Price of oil and gas, especially very much in the world’s largest consumer country (the US) are very much linked to the amount of excess supplies existing in storage

Although the seller’s obligation, in a GSA, is to deliver gas up to the delivery capacity level, the buyer will generally have some rights to request higher volumes. The seller’s obligation to deliver excess gas will be generally on reasonable endeavors basis. Excess gas will normally be paid for at a premium to the normal contract price. (e.g. If the buyer is entitled to nominate up to [120]% of MCQ on any day, then excess gas would be any quantity greater than [120 ]% of MCQ)

The EU’s main source of natural gas is Russia. Relationships between the two will worsen following the latest Gazprom-Ukraine fight in January 2009. Another issue with Russia is it is doubtful that Moscow will be able to finance the necessary investments in Eastern Siberian fields to maintain sufficient gas production levels and it is equally doubtful that Russia will be able to transport that gas to the faraway EU market, as the entire Siberian grid system is in great need of upgrading. The second largest supplier to the EU is from Norway’s offshore fields but these are likely to plateau around 2015. The third largest source of gas to Europe is Algeria. Because of the increasing fear of dependence on Russia, the idea for European governments to back a trans-Saharan pipeline to carry Nigerian gas to the Continent via Algeria is growing. The feasibility of such a project still needs to be assessed (2009), but if it were built it would turn Algeria into an important intercontinental gas hub for Europe. The European Commission projects that between 2005 and 2030 natural gas demand among the EU’s 27 current member states will rise 24% to 666 bcm from 537 bcm in 2009, with imports forecasted to stand at between 470-600 bcm. Imports in 2007 were 370 bcm. Another issue with Europe is that the liberalization of the EU gas markets has created a great uncertainty about the projections of the amount of gas needed in the future. If gas producers are to be in a position to mobilize the financial and technical means to explore for new gas and bring it to European customers they must be able to rely on guarantees regarding quantities.