environment muddle oil

A global economic downturn, lower but lately rising oil prices and an aggressive U.S environmental agenda have made for one of the most bewildering energy investment landscapes in decades.

Oil prices whipsawed from nearly $150 a barrel to $30 a barrel in a matter of months and have climbed back up around $65, amid signs of economic recovery that could revive demand.

But big oil companies like Exxon Mobil (XOM.N) say it's still too early to declare an end to the economic slump and the first plunge in world energy demand in a quarter century.

"The price collapse was so sudden that a lot of them got caught flat-footed," said Nauman Barakat, senior vice president of Macquarie Futures USA.

"They're going to be a lot more reluctant this time around even if prices jump back to $70 or $80," Barakat said. "The concern will be, 'Is this going to be fleeting or a little bit longer lasting?'".

Meanwhile, the Obama administration has been pushing U.S. climate, alternative energy and fuel efficiency proposals that could fundamentally change the sector's economic equation.

"The biggest market for fossil energy in the world is about to become the second biggest market for emissions allowances in the world," said Kevin Book, a managing director and senior analyst at ClearView Energy Partners LLC.

Obama is asking Congress for the first-ever U.S. limits on heat-trapping carbon dioxide emissions as well as fuel changes to reduce vehicle emissions. "It changes your price structure," Book said

With these questions looming, more than 40 top industry officials will meet with Reuters journalists in Houston, London and Singapore next week for an exclusive, in-depth discussion.

Among the top guests are U.S. Energy Secretary Steven Chu representing the world's top energy consumer and OPEC Secretary General Abdullah al-Badri representing the cartel of nations that produce about a third of the world's oil.

The industry faces questions about where and how to invest in future supply as its biggest market, the United States, becomes less dominant and places like China and India become more important in the world economy and energy markets.

"The message is look to your global markets. The growth now is going to be somewhere else. Play defense at home and go on offense overseas," Book said.

The path forward is more difficult because Obama's energy and environment programs have "built-in conflicts," Barakat said. Exporting countries are being asked to deliver more oil and gas at the same time the United States is trying to cut fossil-fuel dependence.

"If you're encouraging diversification and a move away from OPEC and oil, what incentive is there for, say, Saudi Arabia to sink billions of dollars into new exploration and production?" Barakat said.

Still, economic recovery should make investment easier because energy demand is not going away, he said.

"As economies improve, that should pull up oil prices, should help producers sink more money in," Barakat said. But when that will happen "is a huge question mark,".

Commemorate World Environment Day at Singapore Zoo

Singapore - Annually on 5 June, people around the world join hands to commemorate World environment Day with activities that stimulate worldwide awareness of the need to protect our environment. This year, Singapore Zoo will also be doing its part to promote understanding and change attitudes towards environmental issues.

Visitors get a chance to learn about how the increase of greenhouse gases affects global temperatures and how its effects hit home and affect everyone. Starting from 5 to 7 June, visitors will see more than just the usual animal exhibits at the zoo. They will get to come up close with some species threatened by climate change. What can we do to save these animals from being extinct forever? Let the volunteers at the zoo show you how – from reusing common items like bottles, magazines and plastics bags to creating your own natural recycling system at home. Every effort, regardless how small, goes a long way in saving our environment.

While at the zoo, visitors can also pick up some green tips and learn how to take care of some popular local plants like Lipstick Plant (Aeschynanthus lobbiana), Rabbit's Foot Fern (Davallia denticulata) and Spiral Flag (Costus speciosus). Last but not least, take part in the Wheel for Conservation game, answer some questions and bring home a prize that will reduce your carbon footprint!

Practicing the 3Rs – reducing, reusing and recycling is fun and easy. Experience it at the Singapore Zoo to believe it!

Details
1) Interpretive on Greenhouse effect, Global Warming and Climate Change
2) Get Up Close to Live Animals
3) Ideas on Reusable Items
4) How to Make Good Use of Magazines
5) Natural Recycling
6) Plant for Life
7) Wheel for Conservation

Look to the future

As emissions from the largest known sources of acid deposition—power plants and automobiles—are reduced, EPA scientists and their colleagues must assess the reductions to make sure they are achieving the results that Congress anticipated when it created the Acid Rain Program in 1990. If these assessments show that acid deposition is still harming the environment, Congress may begin to consider additional ways to reduce emissions that cause acid deposition. It may consider additional emission reductions from sources that have already been controlled, or methods to reduce emissions from other sources. Congress may also focus on energy efficiency and alternative energy. Implementation of cost-effective mechanisms to reduce emissions and their impact on the environment will continue to evolve.

Restore a damaged environment

Acid deposition penetrates deeply into the fabric of an ecosystem, changing the chemistry of the soil and streams and narrowing—sometimes to nothing—the space where certain plants and animals can survive. Because there are so many changes, it takes many years for ecosystems to recover from acid deposition, even after emissions are reduced and the rain pH is restored to normal. For example, while visibility might improve within days, and small or episodic chemical changes in streams improve within months, chronically acidified lakes, streams, forests, and soils can take years to decades, or even centuries (in the case of soils) to heal. However, there are some things that people can do to bring back lakes and streams more quickly. Limestone or lime (a naturally occurring basic compound) can be added to acidic lakes to “cancel out” the acidity. This process, called liming, has been used extensively in Norway and Sweden but is not used very often in the United States Liming tends to be expensive, has to be done repeatedly to keep the water from returning to its acidic condition, and is considered a short-term remedy in only specific areas, rather than an effort to reduce or prevent pollution. Furthermore, it does not solve the broader problems of changes in soil chemistry and forest health in the watershed, and it does nothing to address visibility reductions, materials damage, and risk to human health. However, liming does often permit fish to remain in a lake, allowing the native population to survive in place until emissions reductions reduce the amount of acid deposition in the area.