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Iran is to set up (new) Petrochemical Hubs,  said NPC’s MD Mr. Abdolhossein Bayat on 18th April in an interview during Iran’ Oil Show.  Chahbahar, Sarakhs, Qeshm, Lavan and Kish are to be the new 5 Petrochemicals hubs, in addition to the existing Assaluyeh and Bandar Imam Khomeini hubs (zones). Here’s the link to the full interview: http://www.shana.ir/187626-en.html. I read this interview with “one eye smiling, another crying”. SMILING eye: indeed Iranian petrochemicals industry can boast significant achievements, especially after end of the imposed war with Iraq in 1988 until 2004. During this period and thank to county’s hard working and qualified experts and managers many complex projects were defined, planned, executed and brought, albeit with some delays and inefficiencies but overall successfully, on stream. Some international partners could also be attracted to co-invest based on some key attractive offers such as those of ample and low cost feedstock, supply of educated workforce and availability of domestic engineering and construction capabilities. Many other projects were planned for the upcoming years during the very same period as well. CRYING eye: since 2004 and due to ensuing domestic and international political troubles, rapid and frequent turn-over in the Ministry of Petroleum and NPC leadership, including in the ranks of middle to senior managers plus a myriad of other issues and inefficiencies … those successful developments were stalled abruptly and altogether.  Now reading that instead of taking a realistic stock and targeting at finishing the existing long-delayed projects in the two a/m existing hubs, there are talks about ‘5 new hubs’ and difficult-to-deliver promises, with an uncritical tone and as if current projects have been successfully delivered, existing capacities fully utilized,  rest of the related businesses well done and there’s just time to leapfrog forward ... Under different circumstance Iranian Petrochemical sector could have already been leading the regional pack and one of the top 5-10 in the world – something which Saudi Arabia and SABIC, starting later and even lacking some inherent advantages their Iranian peers have, proved achievable.

The debate of “Peak Oil” still on further heating : geopolitics versus geology and technology. Are the supply of the finite fossil fuels, or at least their cheap supply, coming to an end soon (“Peak Oil”)? By definition? Or by prevailing (and changing) circumstances? Peak-supply or peak-demand? which one coming first ? OPEC, OECD, emerging markets, break-even cost, breakthrough technologies, climate, geopolitics vs. geology … all the same factors are used by proponents and opponents, yet coming to different, sometimes diametrically opposing conclusions. I found this article in EER:  http://www.europeanenergyreview.eu/site/pagina.php?id_mailing=269&toegang=06138bc5af6023646ede0e1f7c1eac75&id=3641 and the subsequent debates around it a good example reflecting different expert views. I for myself think , as demonstrated by breakthrough commercialization of renewable energies’ and bio-based  as well as Gas-and-Coal-to-Liquid technologies – to just mention some key words- that the mankind can and must replace the fossil (hydro)carbons  as means of fuel supply, both as primary energy source, as well as in transportation. The remaining (hydro)carbons in the geological formations could still be partially used to address other non-fuel needs of the modern society:  chiefly to produce (petro)chemicals and novel materials. The latter, in turn, will enhance further replacement of fossil fuels by, e.g., availing more effective, lighter, hi-tech (e.g. in solar, renewable) and economical components. Making or breaking (threshold factors) are more policy questions and a function of “vested interests” than other common (but still important) factors in this debate.

Aman Amanpour conducts a condened petrochemical course few times next year, first one in Singapore - 26 to 28 March 2012  in cooperation with "the MBA Company" (Terrappin). For full program and registration click Here. The course is designed for those senior managers and professionals from across the industries, commerce, banks, governments and other institutions who have a vested interest in understanding the dynamics, interact successfully with and tap on the value chain of this vital 3-trillion-dollar industry.

Iraq central government withdrew on 31 January its opposition to a deal between ExxonMobil and the Kurdistan Regional Government (KRG).  A move which demonstrates the importance of and need for further developing the South Iraq oil resources. ExxonMobil leads the West Qurna-I consortium and is heavily involved in and leading major infrastructure projects, not least the massive water injection initiative into the depleting oil fields from which government but also all other parties (incl. IOC) will benefit. The government's  initial threat to displace ExxonMobil from the South projects in case of latter's going ahead with the massive E&P deal with KRG first narrowed down to "banning from future deals" and then completely removed. They simply couldn't afford to maintain any thereat, let alone any actual punishment due to the aforementioned vast dependency in the South. This move will though set a precedent for other oil companies eager to work with KRG and not having done so far to avoid blacklisting by Baghdad. This move also will strengthen to some extend the US influence post their forces withdrawal in the oil sector and in the domestic politics by proxy. Iran , with its strong position with Shia-led regime in Baghdad, may not have liked this move and would sure follow with interest the ensuing developments. Yet the other side of the coin for Iran would be to -indirectly and via proxy- access the top-notch Western and US technologies and operational excellence for their own purposes. This of course as long as their current close relations with and influence on Baghdad (and to some extend Erbil) can hold.

Published in European Energy Review: Following the Petrodollar in the Persian Gulf Crisis. The Myth of isolated Iran. Aman Amanpour comments. This is an excellent narrative, pointing to some key motives of the US/Western new campaign in the Persian Gulf - despite some inaccuracies (some details of energy deals involving Iran and other countries and misjudgements ( underestimating the impact of sanctions on Iran's economy and people, as well as provocative foreign policies of Iranian regime besides their repressive and disastrous domestic track records).

I would add another (though interrelated with those mentioned) motive: fear of Iran's increasing regional influence and gap-filling after US withdrawal from Iraq. This one in its own right makes the nuclear issue secondary. Even a non-nuclear but strong Iran is feared by US/Israel in that sense. Alas, again, Iranian regime's words (more than) and deeds) fuel further this fear, hence strengthening the drive for sanctions and war.
That the sanctions are the second best options to a apocalyptic US/Israeli war against Iran - in the eyes of "Europeans"- is indeed naive at best and sinister at worst: they could (and, alas, would) be sequential as we've seen in Iraq and other cases, with disastrous consequences for the whole world. I 
I very much welcome that EER has -to me belatedly- started to bring up this issue and I hope this crucial and urgent topic will be debated / enriched constructively in the direction of raising educated voices against repression and war, recoursing to more civilized ways of conflict resolution in the second decade of the third millenia ... Not least for the cause of uninterrupted flow of energy and trade - hence civilized and normal relations- between the nations. 

GPCA Forum 2011: “Moving Downstream – Creating Added Value and Sustainable Growth’. Could the key requisites to achieving this motto be thoroughly addressed?  The 6th annual meeting was held, bigger and richer than ever, between 13th -15th December in Atlantis Hotel-Dubai where 1600 regional and global players met to speak, talk, listen, engage, exchange and not least understand … the what, how, why … of the current and upcoming dynamics of the industry – globally but also in the GCC / Middle East and address the main motto of the gathering:  “ ‘Moving Downstream – Creating Added Value and Sustainable Growth’.” It was not the first time that “Moving Downstream …” was dominating GPCA and other ME-related Petchem-Fora. I listened to plenty of high quality and to-the-point contributions and engaged in many interesting and relevant discussions, addressing conference’s main theme. Yet I felt the TWO MAJOR interlinked PRE-REQUISITES for its successful and sustainable implementation did not find the deserved attention, articulation and solution proposals to address them: GCC’s SOCIAL FABRIC / DEMOGRAPHICS and region’s COMPETITIVENESS in labor intensive downstream processing of performance and specialty chemicals vis-à-vis Asian giants such as China and India ! This despite (and perhaps because of!) powerful emphasis and recent significant achievements in the area of “degree level” (university) education and growing affluent population of youngsters, many of them un(or-ungainfuly)-employed. The problem seems straight-forward, not though the solution! Big emphasis on “degree level” comes from affluence, hence relative disdain for vocational training among GCC youngsters / their families who have ambitious managerial entry level targets and corresponding high salary expectation which in turn creates deficit in technicians and skilled workers and/or renders the cost-base uncompetitive. Guest workers could help less and less as this runs against the mandatory –in some places enforced quotas- governments’ “nationalization” policies of workforce. That 50% of local population (women) are not available for certain jobs due to cultural and religious consideration adds further to the challenge.  And finally GCC’s rather small domestic market size for finished goods which, if locally produced, must be able to compete with Asians - unless putting trade barriers which the region is currently complaining about as conducted in India, China, Europe against its petchem exports !

Current state of global economy and post Q3 projected outlooks for chemical industry. Aman Amanpour : 
After still healthy Q3/11 results, several Industry leaders  (Dow, BASF, LyondelBasel, just to name a few) have sent bullish messages. With different nuances, yet the common elements have been: “just a little correcting down growth forecast for this and next year, no/less risk of a double dip, two speed economies in developed and developing economies – the latter engine still pulling  strongly …” But how can the industry’s perspective, be so delinked from virtual (financial) and real economies, Euro crisis, US unemployment and public resentments (Occupy movement), high oil prices, Chinese slow-down, Middle Eastern wars and revolutions, new waves of trade barriers and protectionism … ?? The bosses give here no answer. I for myself believe, although some elements may have a familiar nature, leading us post events back to a new more or less familiar equilibrium, yet this time round we shall encounter some new and irreversible trends and outcomes. Thereafter and at best entering into a “new normal”. So at this stage I’d only say: let’s hope for the best and get prepared for the worst !

Aman Amanpour spoke at Middle East Chemical Week  in Ab-Dhabi (16th - 19th Oct/2011). The title of his speech was" "Development and Implementation of Industrial Culsters Programs in the GCC: Key Success Factors, Enablers and Challenges". The presentation was focus on the envisaged governments promoted "cluster programs" to boost the develoment of the downsteam of Petrochmicals industries to enhance the national economies, creating jobs and boosting further industrialization. The speech was followed by a lively discussion about the hitherto successes, for example in Saudi Arabia, whether there's a limit to further progress, region's domestic demand versus export, where are the stumbling blocks and show-stoppers, potential of regional integration and synergies as well as region's overall competitiveness regarging more sophisticated chemicals / polymers and fabricated materials in the fast changing and reshaping (petro)chemicals world.

Aman Amanpour spoke at and chaired the second day of MENA 9th Olefin and Polyolefin Conference in Dubai - 10 and 11th Oct/2011. The title of his speach was "Global Petrochemicals Markets Outlook". The speech highlighted the impact of some important emerging trends on the prospects of petrochemicals value chains, location and perspectives of future investments and the supply / demand picture. It was then followed by interesting debates about the health of the current petrochemicals markets and the propspects as we're going forward, especially in view of the current and emerging economic, technological, political and demographic trends and riks in the USA, Europe, Middle East, BRICS countries and - last not least- China.

 

 

BASF takes the top spot in CW's annual ranking of chemical makers by revenue for the fifth year in a row, with revenues of $63.2 billion (p. 21). BASF has opened a $10-billion lead over Dow Chemical and ExxonMobil, which have held the second and third. What is though more than eye catching is the strong, speedy and steady march of the Middle Eastern and Chinese players' close chase for the highest ranks. Even more interestingly is their close partnership and synergies which will no doubt be one of the major factors shaping up the future of this industry.

IMF applauded after its delegation’s visit to Iran early June:  “ … The subsidy reform program should considerably improve Iran’s medium term outlook by rationalizing domestic energy use, increasing export revenues, strengthening overall competitiveness, and bringing economic activity in Iran closer to its full potential”. I think IMF have been too quick and too shallow in their judgments. Indeed there have been an impact on fuel and energy consumption, reducing the demand and relieving the government from burden of importing gasoline in the wake of international sanctions. This plus some related positive impact on the environment, are perhaps the only targets achieved. Inflation though has risen from 12.5% just before the subsidy reforms in November 2010, to 25% in June/July 2011. The promised cash subsidies to producing industries to keep them whole, avoiding rises in their product prices, is apparently now happening or happening with hiccups. A significant portion of population are refusing to pay their utility bills which have been risen many folds. This, together with $ 45 government payment to each person (75 million Iranians receive it out of 77 millions), decline in oil production due to insufficient  investment / maintenance exacerbated by sanctions, plus recent decline in oil prices will certainly put pressure on government means and people sentiments. A more targeted distribution of funds to more needy people could have alleviated the issue, yet it seems to be too late to switch to such as system as once an entitlement is given, it’s difficult to withdraw. As repeatedly confirmed in different parts of the world, IMF’s “universal recipes” are more ideological and based on promoting the model of, “free market economy”, rather than targeting at addressing the real problems of the ailing economies and improvements of people’s living conditions.

The Renewable Future.  Nairobi - Renewable energy triggers sharply polarized views. For some, it is a costly white elephant; for others, it is humanity’s savior, promising to emancipate us (and our environment) from the “folly” of fossil fuels. So a hardheaded, credible, and, above all, impartial analysis, which would provide a much-needed dose of pragmatism and realism to the debate, is long overdue. The new report by the United Nations Intergovernmental Panel on Climate Change (IPCC), involving more than 120 scientists, economists, and technology specialists, provides that long-overdue assessment. It adopts a global perspective and reconciles developed and developing countries’ interests, while weighing the broader economic, environmental, and social issues at stake.

The summary, signed by representatives of the more than 190 countries meeting this week in the United Arab Emirates, concludes that renewable energy is an increasingly practical and highly promising option. Costs are falling – and are likely to fall even further as innovation accelerates and global energy demand continues to rise. The researchers have painstakingly sifted more than 160 scenarios, including in-depth examinations of four. The most optimistic of these predicts that renewables could account for close to 80% of total energy supply by mid-century, thereby cutting greenhouse-gas emissions by around one-third. Of course, only time will tell whether or not this figure will be reached. Some of the six renewable-energy technologies evaluated, such as those that generate electricity from the oceans, will require more research, development, and incubation before they reach commercial maturity. But others, such as wind, solar, and geothermal, are in some circumstances already cost competitive – or nearly cost competitive – with fossil fuels. The IPCC report also underscores what some development experts and economists have been saying for years: energy choices should take into account wider benefits. Renewables cut air pollution, which is costing the global economy billions of dollars a year in health-care costs alone. Photovoltaics can be rapidly deployed in rural areas without the need for installing an expensive grid system – Bangladesh is a pioneering case in point. And we are only just coming to grips with the cooling costs of thermal power plants in terms of finite water resources – let alone the future price of unchecked climate change. The ball is now firmly in politicians’ court. The IPCC assessment points out that renewables are already growing. In 2009, installed capacity of wind and PVs increased by more than 30% and 50%, respectively. But the really big numbers are unlikely to be reached without the kinds of supportive public policies that have catalyzed the expansion of renewables in countries such as China and Germany. Smart and forward-looking national policies are imperative. Kenya’s new feed-in tariff has triggered a rapid expansion of geothermal capacity, and, at 300MW, the largest wind-farm project in sub-Saharan Africa.
But diverse national policies can achieve only so much. International policies, including the lending decisions of the World Bank and regional development banks, must evolve, as do the strategies of the UN and bilateral donors.
The importance of moving forward to a new global climate agreement in Durban, South Africa, this year cannot be underestimated. A comprehensive agreement would bring certainty to the carbon markets and strengthen the various mechanisms that are already encouraging renewables in developing economies and pump-priming private-sector investments. The Rio+20 meeting in Brazil next year is another opportunity to spark the transition to a global green economy. Technical challenges remain: seamlessly managing an array of very different energy sources will require investment in better national and regional grids. Yet the opportunities – to keep the global temperature rise this century to under two degrees Celsius, and to generate decent employment in clean-tech industries for millions of people – far outweigh the challenges. Clean and renewable energy will be an indispensable component of the fight against poverty worldwide. The IPCC estimates that the costs of triggering a renewable revolution could range from $3 trillion to more than $12 trillion between now and 2030. That sounds pricey – and it is. But so are fossil-fuel subsidies, which, with barely a murmur of protest, are currently running at more than $600 billion a year.
The IPCC report has provided a solid, scientific foundation for a low-carbon, resource-efficient future. Governments now have a clearer perspective on how to empower the lives and livelihoods of the world’s seven billion people (9-10 billion by 2050), while keeping humanity’s footprint, including climate change, within the planet’s boundaries of environmental sustainability. For more information on full and summary report visit the IPCC's special website for this report

Dow Chemical’s recent announcement of a world-scale cracker, together with previous announcements –brown and Greenfield expansions- by several majors, would take the US capacity additions to more than 4.5 million tons / year by 2017. These are all on the back of the euphoria of cheaper ethane feedstock from “shale gas revolution”. A welcome rebound, one could say, in light of recent US producers’ giving up on base chemicals in general and ethylene/derivatives in particular due to latter’s centre of gravity having been shifted to Middle East and Asia? Yes and no. Sure the US consumption growth of 2% on the existing large base would mean another 3.5 mtpa within the same time frame (till 2017). Yet it would be quite a gamble if the US producers would count on exporting, of whatever excess to domestic growth, especially to Asia, targeting at displacing ME producers. First: the fate, sustainability and equilibrium cost base of shale-based ethane are yet to be firmer than what today’s status is. Second: the Middle-Eastern producers are not that easy to displace due to their –even post shale- still significant advantage, as well as other integrated deals with Chinese/Asians. And third: as China is growing, shifting to alternative energy sources and resorting to “clean coal” including for chemicals value chain, less and less of an export market it will be anyway – for anyone: US or ME producers equally. This fact, together with other macro-economic factors, is among the reasons why the ME producers are already shifting their priority and upcoming investments towards performance products and specialties destined for domestic/regional consumptions. Unless a super-healthy growth at US home, together with South American sustained market growth could offer a home to substantial (base) petrochemicals produced in North America, such  euphoria could lead to a bitter awakening in the second half of this decade.

West’s different treatments of Libya and Bahrain: But is “Oil” the common factor? Aman Amanpour comments.
“"Whenever you intervene in a country, whatever your intentions, you are intervening on someone’s side. In this case, the United States, France and Britain are intervening in favor of a poorly defined group of mutually hostile and suspicious tribes and factions that have failed to coalesce, at least so far, into a meaningful military force. The intervention may well succeed. The question is whether the outcome will create a morally superior nation. It is said that there can’t be anything worse than Gadhafi. But Gadhafi did not rule for 42 years because he was simply a dictator using force against innocents, but rather because he speaks to a real and powerful dimension of Libya”", so opines a US-based ‘Intelligence’ think-thank. And I would add: No matter how one feels about Libya today and the role of the Gadhafi government; regardless of how one evaluates the Libyan opposition, a Western-led war or intervention in Libya is a disaster for the Libyan people, and for peace and stability in the region, including the lomger-term security of energy supply, and around the world.
And Bahrain ? To me, IT VIVIDLY EXPOSES THE MYTH ABOUT "PREVENTING ATTACKS ON CIVILIANS. The U.S. and its allies are repeating over and over that they are trying to "prevent attacks on civilians" in Libya and are acting from humanitarian motives. Yet, consider these “humanitarians” and how they react to Bahrain! The U.S. Fifth Fleet is based in Bahrain. Its people have been valiantly but peacefully demonstrating for democratic changes for weeks. They had some initial success. The regime responded initially with deadly repression and later with hints at reform. On March 14, however, hours after US Secretary of Defense Gates visited Bahrain, the Bahraini government commenced a brutal crackdown, backed up by Saudi Arabian troops. Helicopters, tear gas, rubber bullets, and live ammunition were used, killing and injuring many people. Nearly all of Bahrain's security forces are foreign mercenaries. Unlike the Libyan rebels, the Bahraini people have absolutely no arms. But there has been no talk of a no-fly zone over Bahrain, of course let alone attacks on the Bahraini and their Allies’!
Is this confirming the conventional wisdom that the real motivation for the West in both Bahrain and Libya, and indeed the whole region, is to control the ‘OIL’?  Is this West’s main strategic interest and a primary financial interest for big business? If not, what other plausible justifications could be offered to the young and bright minds in the region and the world? I don’t know. But if it is really for ‘OIL’, then I at least know that  this will defeat the purpose longer-term. Look at “Project Iraq”: eight years down the road of invasion, which led then to occupation by self-driven military machine till today, much blood has flown, yet not much ‘OIL’ yet. And it will not flow, sustainably, until people of Iraq take democratic control of their land and fate.

The collapse of the Old Oil Order ?? Professor Michael T. Klare's article is laud and clear, with its two-line summary: "Whatever the outcome of the protests, uprisings, and rebellions now sweeping the Middle East, one thing is guaranteed: the world of oil will be permanently transformed. Consider everything that's now happening as just the first tremor of an oilquake that will shake our world to its core". Here's the full article : http://www.europeanenergyreview.eu/index.php?id=2796.
To me, comments Aman Amanpour, there are some real and strong elements of truth in this analysis: historical realities, hard facts, familiar patterns, current revolutionary waves and hence the projected (harsh) expectations. Yet I would continue the thought process: there are some mitigations too: other substantial sources of (hydro)carbon: oil, gas, coal, biomass ... outside of MENA region and virtually all over the world. For reasons of proven technological advancements, I won't differentiat greatly whether the origin is liquid, gas or solid: GTL/XTL, DME, Clean Coal, LNG are here some key words. As to geographical and other alternatives to MENA resources: Brazil, Russia's Arctic & Deepwater, oil sand, Australia, CBM, hydrates, shale oil/gas, other Arctic ... Short-to-medium-term, all these resources  will be economical, hence abundantly on-stream, if the price of conventional oil (equivalent) goes to and sustains, as the analyis expects, at 3-digits.  Looking at the half-full of the glass and for longer-term : all these would be also more than a welcome combination as to further boosting alternative / clean energies: solar, wind, geothermal, hydrogen, 2nd-generation-biofuel, even (new) nuclear ... which, in turn, would help creating and accelerating independence from fossil fuels, nasty international politics and regional dictators ? Would be good for environment, economies, peace, stability, hence for entire world and humanity. But, admittedly, bad for: ... ? Most of the reades of these lines, I'm sure, could easily fill into the ...

Latest Export Statistics on Iran’s Petrochemicals: Iran’s PCC announced http://www.shana.ir/166822-en.html on 28th February that Iran’s petrochemicals product exports hit 12.8 million tons in the 11 months of the current Iranian year (starting 21 March). However, and reading further, comments Aman Amanpour, the news reveals that the top products exported have been LPG (propane, ethane) and “heavy cuts”, followed by methanol and urea. Such products, especially the formers, comprising 33% of total exports tonnage, are valuable yet, when sold as such on international markets, certainly undervalued feed-stocks for further processing in customers’ own petrochemicals plants. Also Methanol and Urea, another 25% of total export tonnage could find much enhanced uses in the value chain of the domestic industries and agriculture in terms of overall economic value and job creation potentials for the young Iranian society. The balance (deducting the above: ca. 42% of total tonnage) of exported products are expected to be mainly: Polyethylene, Aromatics, some other Intermediates. Even these derivatives are semi-finished products which, in a smoothly run economy, could create a much higher domestic value when compared to export alternatives. The real pride of and in the industry should come when the story would simply reverse: extracting domestic (and even importing when feasible) resources (including human and technological), process them domestically for maximum value creation / societal development, then export the finished goods & services beyond internal demand!  Alas, the current country’s state of affairs is not allowing the required initiatives and investments in the related sectors - not even at the level and pace of previously and recently envisaged and planned. 

Libya’s political strife has already begun to impact its energy production, and this is just the beginning.
Unlike energy produced in most African states, nearly all of Libya’s oil and natural gas is produced onshore. This reduces development costs but increases the chances that political instability could impact output — and Libya has been anything but stable of late. Libya’s 1.8 million barrels per day (bpd) of oil output can be broken into two categories. The first comes from a basin in the country’s western extreme and is exported from a single major hub just west of Tripoli. The second basin is in the country’s eastern region and is exported from a variety of facilities in eastern cities. At the risk of oversimplifying, Libya’s population is split in half: Leader Moammar Gadhafi’s power base is in Tripoli in the extreme west, the opposition is concentrated in Benghazi in the east, with a 600 kilometer-wide (370 miles) gulf of nearly empty desert in between. Read more: Unrest and Libya's Energy Industry | STRATFOR

The International Year of Chemistry 2011 (IYC 2011) is a worldwide celebration of the achievements of chemistry and its contributions to the well-being of humankind. Under the unifying theme “Chemistry—our life, our future,” IYC 2011 will offer a range of interactive, entertaining, and educational activities for all ages. The Year of Chemistry is intended to reach across the globe, with opportunities for public participation at the local, regional, and national level. The launch of the International Year of Chemistry is a great opportunity to get the message across to the public that chemistry is a provider of solutions to global challenges, rather than simply a cause of pollution. Aman Amanpour has just joined the IYC 2001-Network. To get more information visit: http://www.chemistry2011.org

BP – Rosneft partnership: IOCs changing gears again – returning to “MRH” from OECD ?
It was just few years years ago that major IOCs were turning back to the resources in the OECD countries as a safer bet compared to technically easier and cheaper oil, yet in politically shaky-risky major-resource-holding (MRH) countries. Now it seems that the page is being turned again. The News of BP-Rosneft partnership is significant.  The significance of the deal has not been sufficiently appreciated by mainstream media. The agreement signals the start of a new M&A frenzy in the upstream sector, as international oil companies (IOC’s) are rapidly stepping up their attempts to realise joint-ventures with national oil companies (NOC’s). This rush to Russia and other MRH countries is a direct result of the “Macondo” oil spill. ‘The disaster in the Gulf of Mexico has turned traditional notions of political risk on their head. Ironically, Russia is now deemed a safer and potentially more rewarding bet than a politically capricious country like the US! Read the full story from the interesting contribution by Matthew Hulbert in the European Energy Review:  http://www.europeanenergyreview.eu/index.php?id=2731

Iran to produce DME as a clean fuel. TEHRAN January 31 (Shana): Head of the Petrochemical Research and Technology Company, Gholamreza Joukar reported of achieving the knowledge of converting methanol to dimethyl ether (DME) as a clean fuel and suitable alternative to gas oil production. See the full story from the Shana website: http://www.shana.ir/165382-en.html
Here are Aman Amanpour comments:
""Actually DME is an already known alternative Mogas supplement. Being an Ether, the molecule is not as hazardous (for health and environment) as compounds such as Aromatics (e.g. Benzene). Being an "oxygenate", it could even help cleaner burning of gasoline, reducing NOx/SOx and smog-building potential, pretty much like MTBE. The latter was -to me and many others- a much better fuel component than e.g. Ethanol which was promoted as alternative, displacing MTBE -mainly in US and some other countruies- years ago. More of framers' lobby (in the USA) and related politics than sound science. Although the water-solubility of MTBE had led to some underground water contaminations (more taste/smell than health issue due to low odor threshold of ethers even at few ppm concentrations) in the areas which are more dependent on underground water tables than other water sources. But then again and even there: this was more of tackling the problem of leaking underground gasoline tanks rather than anything else. Actually other Mogas components (again: such as aromatics at % levels) are much more hazardous if leaked into water, yet they don't taste/smell - i.e. lack the 'warning signals' which Ethers have- until at high and dangerous concentrations. DME could exhibit similar behaviours as MTBE. One difference is its lower molecular weight, hence higher vapor pressure (comparable to that of Ethanol) which could make trouble in blending and pipeline / transportation stages - although it may not be as hygroscopic (water-absorbing) as Ethanol, creating lesser issues ... (this I need to re-look at and confrirm).
Feasibility / Economics:
Another positive aspect with DME : it's virtually a way of gas liquefaction (Natural Gas -> Methanol -> DME), chemically, rather than physically (LNG) - pretty much comparable with GTL (Fischer-Tropsch conversion), with the difference that here you'd make ('clean') Mogas component with DME, rather than "clean diesel" with GTL. The technology is known / proven. It just may need some scale-ups to take it to new world-scale capacity. Further, the huge Methanol capacities (on stream and planned) in Iran has the potential to render this conversion economic -  together with and emanating from some a/m and other potentials, as well as when compared to the cost of other alternatives (in general but also specific to Iran under sanctions).
In short: this would be a totally different game compared to pouring valuable but highly hazardous petchem feedstocks / intermediates into the mogas pool!""

Germany’s Upcoming Energy Revolution. Germany’s Environment Minister Norbert Röttgen calls the new German energy strategy a ‘civil revolution’, but he could just as well have described it as the making of a future civil energy war. The extremely ambitious strategy is pitting the coddled renewable energy sector against the neglected gas sector. It requires the building of large new power grids, which are being sharply opposed by the public. And it is setting up Germany’s four major utility companies, which demand an EU-wide renewable energy policy, against the German Environment Ministry, which wants to create renewable energy jobs – in Germany.

The super-targets set by the German energy strategy:

* boost the share of renewables to 80% of the electricity consumption, and 60% of the primary energy consumption by 2050
* reduce CO2 emissions by 40% by 2030 and 80% by 2050 
* halve Germany’s primary energy consumption by 2050 
* double the yearly rate of building upgrades to increase energy efficiency in the built environment from 1% to 2% per year 
* reduce energy consumption in the transport sector by 40% until 2050 
* use all the additional income – an estimated €2 billion per year – from the emissions trading scheme, which comes into full force in 2013, for measures to boost climate protection, energy efficiency and renewable energy research 
* launch a monitoring scheme that is to check every three years whether the strategy is on track
Get the full stroy from the European Energy Review site: http://www.europeanenergyreview.eu/index.php?id=2702
This indeed could be seen as a revolutioary and quite progressive manifesto. However and as I noted in my comment there: " It's indeed amazing if (?) Germans would have ignored gas in their long-term energy strategy. How could they? Even if they wanted to move away from gas to renewables or whattever else, they need to deal with and have a position / transion plan on/for it, like they have one on nuclear. This especially in light of all exciting things happening in the gas world and other countries (US, EU, China, rest of the West & East...) scrambling to adapt and understand: Shale, LNG, Pipeline, GTL, Russia, ME, Caspian ... Aman Amanpour"

Obama’ State of Union message, 25/1/2011
http://www.whitehouse.gov/the-press-office/2011/01/25/remarks-president-state-union-address
WASHINGTON --The US energy sector on Wednesday was sharply critical of President Barack Obama’s “state of the union” address, charging that the president was trying to demonise the petroleum industry and that he would stifle much-needed job growth.
In his annual address to Congress on Tuesday, Obama called for new government spending on biomedical research, information technology “and especially clean-energy technology” to help spur employment.
“We need to get behind this innovation.  And to help pay for it, I’m asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies.  (Applause.)  I don’t know if -- I don’t know if you’ve noticed, but they’re doing just fine on their own.  (Laughter.)  So instead of subsidizing yesterday’s energy, let’s invest in tomorrow’s”
Now, clean energy breakthroughs will only translate into clean energy jobs if businesses know there will be a market for what they’re selling.  So tonight, I challenge you to join me in setting a new goal:  By 2035, 80 percent of America’s electricity will come from clean energy sources.  (Applause.)
The National Petrochemical and Refiners Association (NPRA) charged that Obama was trying to vilify the nation’s petroleum producers and refiners.
“If his attack demonising the petroleum industry succeeds, it will destroy jobs instead of creating them,” said NPRA president Charles Drevna.
He said that in singling out the oil industry for higher taxes, the president would only succeed in “raising costs for consumers instead of lowering them, and require billions in taxpayer dollars to fund unending subsidies for untested technologies unable to survive on their own”.
“It makes no sense to destroy existing jobs held by hard-working Americans today in hopes of creating new jobs that may never materialise tomorrow,” Drevna added.
But how credible and fair are these abrupt challenges and, in part, attacks? To me they’re not at all. Whatever one thinks about Obama’s intentions and abilities to deliver on them, he said the ‘right things’ in his speech about innovation and new energies which, of course, are to some extend “untested technologies" (to borrow Mr. Drevna’s words). Yet by saying so, is he claiming that the current mainstream technologies, including those of fossil energies, were “tested” before their innovation / development , that they haven’t enjoyed governments’ support and subsidies during that phase and even up till today ??

Abu Dhabi has chosen Occidental as its partner in the giant Shah sour gas project: a major coup for the US independent, which industry sources say had been lobbying hard to join the scheme since ConocoPhillips pulled out last April. Under the terms of the deal, Oxy is poised to take on Conoco's 40% share of the project, which aims to produce 1 billion cubic feet of ultrasour nonassociated gas at a cost of more that $10 billion. State Abu Dhabi National Oil Co. (Adnoc) will hold the remaining 60%, the sources told International Oil Daily on Tuesday.Oxy clinched the deal by basically accepting the commercial terms Conoco had agreed to prior to pulling out, which industry onlookers unanimously describe as being extremely tough. Conoco had proposed to hand over 540 MMcf/d of sales gas free of charge, while recouping money from its share of 4,400 tons per day of natural gas liquids, 9,200 tons/d of sulfur and 35,000 barrels per day of condensate. Conoco walked away from the headline upstream project because of cash constraints and the thin commerciality prospects offered by the project (IOD Apr.29,p1). 
"I would not propose the project to go ahead under those terms," said an industry source, whose company considered the project. Another source was also surprised, saying: "They are doing some real nonprofit work in the region."
Oxy not only wins a signature project in the hydrocarbon-rich emirate, it has also landed an opportunity to prove itself ahead of the expiry of Abu Dhabi's coveted onshore concession in 2014, as well as its offshore concession in 2018. Abu Dhabi still has not yet determined which companies will operate the fields, which will produce some 2.7 million b/d by 2018.
Another key to Oxy's win was its ability to engage Abu Dhabi at its highest levels, with Oxy Chief Executive and Chairman Ray Irani meeting with Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed a few weeks earlier, said another source. Since mid-December, Adnoc had been negotiating exclusively with one company in an attempt to iron out all the details before announcing the deal.  
Royal Dutch Shell, which has studied the field and knows it well, was the other main contender, although Exxon Mobil was also in the mix. The Anglo-Dutch supermajor's technical team was confident about joining the project, but insisted that the commercial terms needed to be improved. Abu Dhabi decided it was not willing to revisit the existing contract to meet Shell's asking price, according to an Abu Dhabi-based source. Shell and Oxy had been considered front-runners for Shah back in 2007 before Conoco made Adnoc an offer it could not refuse.
Since the shock withdrawal of Conoco, Adnoc has tried to find a replacement without sacrificing its bargaining position among the very limited pool of qualified suitors able to handle the highly complicated development (IOD Nov.2,p1). Adnoc insisted it could do the project alone if necessary -- a notion most industry experts dismissed -- but to drive the point home it drilled five wells at Shah and awarded nearly $6 billion of engineering procurement and construction contracts in the second half of last year.
By picking Oxy, Abu Dhabi is gambling that the smaller company will be able to deliver on terms that confounded Conoco, rather than choosing a safer, but more expensive, pair of hands in Shell. The management and operation of the massive project, which includes handling gas with a deadly 23% hydrogen sulfide content, is going to be a "very challenging project for anyone," said the Abu Dhabi source.

Deepwater Horizon Oil spill panel blames lax oversight, poor safety standards: WASHINGTON — Lulled by success, the U.S. wasn't prepared for a catastrophe the size of the Deepwater Horizon oil spill, and it needs additional government regulation and tougher industry self-policing to improve the safety of deepwater drilling, the presidential commission investigating the Gulf of Mexico disaster found.
The commission, which issued its final report Tuesday, blamed government regulators and the oil and gas industry for failing to address the growing risks of deepwater drilling adequately over the past two decades. That complacency led to the explosion April 20 that killed 11 people and allowed an estimated 4.1 million barrels of oil to gush into the Gulf over three months, the commission found.
It strongly condemned the U.S. for lax oversight of offshore drilling at a time when the nation will continue to draw increasing amounts of its domestic oil and gas from deeper and more distant waters.
The country was "lulled into a sense of inevitable success, an illusion which masked the dramatic increase in risk which accompanied the deepwater move," said one of the commission's co-chairs, Bob Graham, a Democratic former Florida governor and senator. "On April 20th, after a long period of rolling the dice, our luck ran out."
Graham said that although the commission found "significant errors and misjudgments" by the three companies involved in the drilling rig operation — BP, Halliburton and Transocean — the disaster wasn't "the product of a single rogue company." "We believe they unveil systemic failures within the oil and gas industry and within the regulation by the federal government of that industry," he said.
The commission also noted that 21 years after the Exxon Valdez oil spill in Alaska, the same "blunt response" technologies were used to limit the Gulf spill, including boom, dispersants and skimmers. The response technology must improve, the commission said, as should the weaknesses revealed in the local, state and federal coordination of cleanup resources.
The 380-page report calls for stricter government oversight, tougher requirements for each drilling rig based on the specifics of each case, more scientific research and better oil spill plans before drilling in deep water and other little-explored areas, such as the Arctic. The recommendations include:
_ Congress should create a safety agency in the Department of Interior to oversee offshore drilling. The industry, rather than taxpayers, should pay for the regulation.
_ At the same time, however, the president should seek “significantly increased funding” for the agencies that oversee oil spill responses, including the Coast Guard and the National Oceanic and Atmospheric Administration.
_ The oil and gas industry should establish a safety institute _ similar to those created by other high-risk industries such as the nuclear power and chemical industries _ to enforce safety standards.
_ Oil and gas companies should be required to show that they've evaluated all the risks associated with each specific well.
_ Government environmental review should be led by a scientist.

A key feedback from GPCA: shifting from commodity to specialty petrochemicals: One of the main topics was the “commodity vs. specialty” debate, fostered by the powerful speech of Aramco’s CEO, Mr. Khalid Al-Falih, an obvious tension with some other players as a prominent private sector made his public commentary . Due to its importance here are some highlights:
Basically Al-Falih called on producers to move away from gas-based feedstocks and look at refinery petrochemical integration, stating that such a move offered product diversification and added value.  “Aramco’s solution to product diversification is to develop industrial clusters around its two major in-kingdom petrochemical joint ventures. The clusters will move the kingdom’s chemical industry further downstream by supplying specialist chemicals to the automotive, pharmaceutical, textile, electronic, construction and agricultural industries.” “The time has come for chemicals to step up and take their rightful place as a pillar industry by growing the petrochemicals downstream in a variety of ways that I have highlighted, with the aim of more rapidly expanding and diversifying our economies,” Al-Falih said.
Al-Falih also told delegates that the Middle East should use petrochemicals as the base on which to build its economic growth over the next decade. The official named four targets he believed petrochemicals had to hit by 2020.
1. For the region’s petrochemical industry to grow by a factor of five – from the current level of $40bn per annum to between $150bn and $200bn by 2020.
2. To increase the chemical workforce by a factor of 10 in 10 years.
3. To raise research and development spending from 1.5 per cent of sales to 5 per cent by 2020,
4. Invest in nurturing local talent. Increasing the number of scientists in the region from 500 to 20,000.
The Aramco CEO’s words were greeted with cautious optimism by delegates at the conference, although some expressed reservations that such ambitious targets could be hit within a relatively short time span of a decade. “There are two ways of operating if you want to be successful in the petrochemicals industry,” a GCC-based industry expert says. “You either build your plant close to the market or close to the feedstock.”“However, if this region wants to grow at the rate [al-Falih] suggests, then there needs to be a market for the products in this region. The further downstream you move, the harder it is to ship the products.”

This message was fully reflective of Aman Amanpour's opinion ("New wave..." see below) written couple of month ago on "the shift".

Massive Growth and Immense Potential of Mideast to Be Showcased at Fifth Annual GPCA Forum in Dubai. Driving Innovation for Future Growth Key Theme of Global Petrochemicals Conference
Global ethylene capacity is seeing dramatic change with concentration moving from developed countries such the United States and European countries to the Middle East and China. More than 19 million tons per annum of ethylene capacity will come on stream in the Mideast by 2015. The region will, as a result, be among the leading producers of a range of petrochemicals and plastics, including ethylene glycol (EG), polyethylene (PE), and polypropylene (PP). The Middle East has overtaken North America as the leading ethylene glycol (EG) producer, accounting for about one-third of the global EG capacity. The region will also become the leading producer of polyethylene (PE) by 2015 when its share of global capacity will rise to about 20%. The region’s share of global polypropylene (PP) capacity will reach 14% in 2015, placing us behind Asia/Pacific, which will have a 23% share, China with 17%, and Western Europe with 14%.
Led by Saudi Arabia, and boosted by Qatar, Kuwait, Abu Dhabi and Oman, the region has built massive petrochemicals production facilities that are among the most cost competitive in the world. Thanks to these developments, the Middle East will not only be the main petrochemical production hub in the future, it is expected to become the main arbitrage point for polymers worldwide, supplying up to 40% of incremental Asian demand for polyolefins in the medium term.It is this phenomenal growth and potential that will be celebrated at next month’s Fifth Annual GPCA Forum, taking place 7-9 December 2010 at the Intercontinental Festival City, Dubai, two days of top-notch speakers, top-calibre networking receptions and special events all focused on growing in this extremely important petrochemical region.Shifting focus away from crisis management to driving innovation for future growth, delegates can look forward to hearing insight and experience from leaders of major global and Middle Eastern companies who will discuss the future of the industry, growth areas, and what companies can invest in innovation centres to enhance their competitiveness in an increasingly competitive marketplace.
Delegates will be addressed by Mohamed H. Al-Mady, Vice Chairman and CEO, SABIC and chairman of GPCA, while Khalid Al-Falih, President & CEO, Saudi Aramco, will also be sharing his thoughts on how innovative partnerships further globalization.“It is a tribute to the vital role played by the petrochemical industry in the Middle East that in terms of production it is now par with the US and Europe. I find it extremely gratifying that the GPCA will use its forum effectively to promote the priorities of this sector and give delegates an exceptional opportunity to interact with the industry’s leaders and decision-makers, as well as share the latest marketplace intelligence,” said Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA.
“Just as much as it is a platform to celebrate successes, the Annual Forum also gives us an opportunity to address burning issues and how they must be effectively tackled to ensure that they do not hinder growth and progress,” he added. The surge in remedy cases and protectionist actions in 2009 brought by several countries in Asia, and Europe and its potential impact on regional and global industry will very much be on the agenda. The Gulf industry remain committed to free trade and anticipate respect for WTO rules by all countries, added GPCA Secretary General.Year after year the Forum sees significant increases in attendance with attendance jumping manifold since its inception in 2006. GPCA expects significant growth yet again in 2010. Last December, the Fourth Annual GPCA Forum drew 1,082 attendees from 43 different countries from several global majors including SABIC, Borouge, TASNEE, Equate, BASF, ExxonMobil, Dow Chemicals, Reliance, Shell and more. 
“This year’s programme is of a very high calibre and it is reasonable to assume that the forum will perform at a much higher level with an unparalleled line-up of speakers and an agenda designed to promote strategic dialogue,” added Lyn Tattum, Publisher and Group Vice President, Chemical Week.
The Fifth Annual GPCA Forum will be held December 7-9, 2010 at the Intercontinental Festival City, Dubai, UAE. For the latest event information please visit www.gpcaforum.net

New wave of Petrochemical investments and srtategy in the ME/GCC: What to make ?  How to add value? What Business Model? Opportunities and Challenges.
Since 1960’s and particularly mid 1970’s to date, the region has gone through at least two distinct waves of investments which have transformed it to the world’s centre of gravity for the basic chemicals’ production and export, particularly for ethylene and its derivative. But the current third wave, ongoing since mid-2000’s, is (and has to be) different. Ethane supply as cheap and ample feedstock of choice is constrained, there is a risk of chronic oversupply in the export markets of olefin/derivatives and other commodity base chemicals, there is a desire and drive in the region’s countries to tap on the value chain, adopting higher technologies, boosting national economies, creating  jobs, building sophisticated and modern industrial clusters … all leading to going further downstream to produce  more of specialties and performance products. 
To me this new tendency, as a matter of course, makes complete sense. So far the windfall profits from making and exporting base chemicals and poly-olefins have been extremely lucrative in terms of micro-economics of individual investors – private or state- , it has though clearly lacked to further industrialize the societies at the desirable pace and create jobs for the fast growing and young populations, especially in the cases such as Iran and Saudi Arabia.  However, there are in this space specific challenges on the way to successful transforming the old strategy / business model and adopting a new one. Some key words are:
• More expensive feedstock mix, technology access, attraction for foreign partners, country’s industrial culture, availability of trained and ample work-force, competition with industrialized, as well as emerging economies such as China & India, low degree of synergies with other chemicals plants, refineries and upstream , less experience in higher-value product-businesses, adopting the infrastructure (export vs. domestic)
Yet the opportunities do exist for some ME Petchem producers and countries – though not for all due to unfit demographic and lack of other socio-economic requisites-  to monetize on the new approach as well as boosting their national economy. Some key words are:
• Availability of advantaged, if not cheap, feedstock (C3, C4, condensate, naphta),  conducive government policies for new strategy, availability of young educated human resources, sizeable local markets, some potential refinery-petchem synergy , emerging novel feedstocks and value chain plays (GTL, gasification, upstream links)
The transition from old / current to new strategy is underway at full speed. It will not be an easy one as witnessed by several canceled (e.g. Conoco-Philips Yanbu’s refinery, ExxonMobil’s Qatari project) or transformed and delayed (e.g. Dow-Aramco's project, Abu-Dhabi’s Chemaweyaat) schemes, not to speak about several Iranian projects  with perpetual delays due to domestic and foreign (geo)politics. Yet we also observe some bold and successful examples of embracement of the new strategy e.g. by Saudi’s SABIC and Sipchem.

The Oil & Money Conference – whose 31st edition was held last week in London – is one of the best known annual gatherings of the oil industry. It brings together representatives from the “western” oil majors (ExxonMobil, Shell, Chevron Total, ENI, Statoil, etcetera – there was no one from BP this year) as well as their financiers, consultants and service companies. As such, the conference provides a good indication of the prevailing mood in the industry. That mood can best be characterized as: between hopes and fears. The conference focused on what the organizers described as ‘new game changers in global energy’. The organizers – the Energy Intelligence Group and the International  Herald Tribune – identified four of these: 1- the Macondo (BP) oil spill in the Gulf of Mexico, 2- Iraq’s upstream potential, 3- the shale gas revolution and 4- the power shift from the west to Asia. At first glance, these four earth-shaking developments seem to have very little connection to each other. Yet it is no coincidence that the conference organizers happened to select them as major catalysts of change. Each in its own way connects to the deepest hopes and fears that are currently gripping the western oil industry. Read the whole story from here

Iraq and Iran both announce higher Oil Reserves within a span of one week . Just within a span of one week, Iraq and then Iran announced by their respective oil ministers an increase in their proven oil reserves of 30% and 9% respectively. It started with Iraq when Dr Shahristani announced on 4th October that Iraq's proven oil reserves now stood at 143 vs. 110 bln barrels before. A week later on 11th October, Dr Mirkazemi stated: "Based on the latest revision of oil and gas fields explorations, Iran’s crude oil reserves amounts to 150.310 billion barrels and the figure will rise up to year end". Regarding the gas reserves, he further announced: "...the (gas) volume amounted to 33.1 thousand billion cubic meters noting oil and gas reserves of the country are being reviewed and announced monthly by a board at the petroleum ministry’s department of planning and supervision on hydrocarbon resources". http://www.shana.ir/159276-en.html. The natural questions corssing minds here being: 1) are these neighboring countries' announcement within a week a pure co-incidence? 2) are these new figures reliable? 3) the timing and objectives of the annoucement? These questions paticularly in view of the difficult domestic and international circumstances (each of their own) both countries are currently facing ...?

The future structure of Europe’s flagship climate instrument, its emission trading scheme (ETS), is currently being pieced together in Brussels. Starting in 2013, the power sector will have to buy CO2-allowances for some €15 billion a year at current CO2-prices. The industrial sector will get part, though not all, of its allowances for free, at least until 2020. Power companies complain that it is taking too long for the auctioning of allowances to get started. Industry sources complain that the ETS is going to drive up costs and hamper innovation. How effective the ETS will be in stimulating low-carbon investment remains to be seen. Established in 2005, the Emission Trading Scheme (ETS) is the world’s first political measure to impose a price on carbon emissions. It does this by setting a ceiling, or cap, on the carbon emissions of some 10,000 power plants and industrial installations in the EU. EU member states hand out a certain number of carbon emission permits (“allowances”) to each installation on the basis of “national allocation plans”. Installations emitting less than their cap can sell their spare allowances, those emitting more must buy extra allowances. The price per tonne of carbon is set through this artificially created market.
The idea behind the ETS is that the price put on carbon works as an incentive for companies to cut their emissions. The first two phases of the carbon trade scheme, however, which ran from 2005 to 2007 and 2008 to 2012, have yielded meagre results so far. In the first phase the carbon price crashed because too many allowances were distributed. The price collapsed from highs of around €30 per tonne at the end of 2005 to zero at the end of 2007. The second phase, which is currently taking place, is grappling with a similar over-supply problem, caused this time by the recession, which has led to sharply reduced emissions. Nevertheless, the CO2-price has been fairly stable since the end of 2008 at around €15 per tonne. It is not clear, however, if and to what extent this price is driving investments in emission reductions. Policymakers are now pinning their hopes on the upcoming third phase, from 2013-20. This is when the ETS is expected to really start to bite.
The UK, Germany, Spain and Poland formed a blocking minority and got their way: member states may choose to opt out of the new common EU platform and set up their own. This could add to the complications in implementation and monitoring. Moreover, say some in the industry associations, 'the ETS favours products with low added-value, as higher-end products are more energy intensive, hence causing more emissions, while we need to innovate to keep Europe competitive’. With 2013 fast approaching, it is clear that although the ETS puzzle has not been completed, many of the pieces are now falling into place. After two relatively relaxed phases, industry and power companies will really start to feel the pressure of the CO2 emission scheme bearing down on their businesses. Whether this will actually lead to lower emissions, drive low-carbon investment, and stimulate innovation and efficiency, as the proponents of the ETS believe, is still an open question. See more details here

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