Nearly

Without counting the ongoing switch to alternative transportation fuels such as natural gas, nearly 80% of current oil consumption used for transportation worldwide could be eliminated in the next 40 years through aggressive fuel efficiency programs, according to two reports released in Paris by the International Energy Agency (IEA), an autonomous nonprofit organization. The IEA reports conclude that the “right policies and technologies” could improve vehicular fuel efficiency by 50% by the middle of the century. According to the IEA, the transportation sector accounts for 20% of world energy consumption and increased demand in the sector is expected to comprise all future growth in oil use globally. However, the reports contend that there is “massive potential” for fuel efficiency improvements to reduce transport fuel demand. One report, “Technology Roadmap: Fuel Economy for Road Vehicles,” outlines technologies to make vehicles much more efficient by 2030, and the second, “Policy Pathway: Improving the Fuel Economy of Road Vehicles,” outlines policy changes in fuel economy labeling, standards and fiscal policies.

Royal Dutch Shell, which has spent nearly $5 billion over the past seven years to drill in Alaska’s offshore, suspended its plans to drill for oil and natural gas in Arctic waters this year due to damage to a containment system caused by sea ice.

The physical market bounded sharply higher Tuesday, prompted by a strong screen and low inventories at some points. Nearly all points recorded double-digit gains. At the close of futures trading, October had added 18.0 cents to $2.992 and November had climbed 16.3 cents to $3.104. October crude oil gained 63 cents to $97.17/bbl.

Corridor Resources Inc. and partner Petrolia Inc. are conducting a three-part exploration program on Anticosti Island in the Gulf of Saint Lawrence to advance the “exploration and development potential of the vast shale oil prospect” on the 3,050 square-mile island, Corridor said.

FERC has approved Transwestern Pipeline Co. LLC’s application to abandon by sale to affiliate Lone Star NGL Pipeline LP a nearly 60-mile segment of its system in West Texas.

Nearly three weeks after ruling that portions of Pennsylvania’s omnibus Marcellus Shale law, Act 13, were unconstitutional, the state’s Commonwealth Court ordered an injunction against the preemption provision to remain in place pending appeal while a provision affecting setback waivers was lifted.

The Pennsylvania Department of Environmental Protection (DEP) has notified Cabot Oil & Gas Corp. that the company has satisfied the terms of a 2010 settlement and may resume hydraulic fracturing (fracking) and completion activities at seven Marcellus Shale natural gas wells in Dimock Township. However, the producer is still barred from drilling new wells in the area.

Southern California Edison Co. (SCE) plans to eliminate nearly one-third of the staff at its troubled San Onofre Nuclear Generating Station (Songs) along the Pacific Coast in the northern-most end of San Diego County, CA. The staff reductions had already been articulated in SCE’s pending general rate case, but with the two 2,200 MW Songs units out of service since January, the move is sure to spark more speculation about the long-term future of the plant. Both units have turned up excessive wear in part of the tubing on newly installed steam generators on both units (see Daily GPI, Feb. 7). The length of the outage has caused a re-emphasis on natural gas-fired generation in a state, which already relies on gas-fired power for the bulk of its in-state generation (see Daily GPI, Aug. 14). As part of the explanation for the staff reduction to 1,500 from the current levels above 2,100 positions, a utility spokesperson said the Songs steam generator issues “require SCE be prudent with its future spending while [the utility] and regulators review the long-term viability of the nuclear plant. The reality is that the Unit 3 reactor will not be operating for some time.”

Nearly three weeks after ruling that portions of Act 13, Pennsylvania’s new omnibus Marcellus Shale law, were unconstitutional, the Commonwealth Court on Wednesday ordered that an injunction against the law’s preemption provision will remain in place pending appeal, while one affecting setback waivers is lifted.