Archives for October 2017

“Regarding the production of uranium in the kingdom, this is a program which is our first step towards self-sufficiency in producing nuclear fuel,” Hashim bin Abdullah Yamani, the head of the King Abdullah City for Atomic and Renewable Energy (KACARE) – the Saudi government agency tasked with the country’s nuclear program development – said at an international nuclear power conference in Abu Dhabi. He quickly added that Riyadh wants to develop its nuclear program for peaceful purposes only.

Oil price at 2yr-high as Saudi Arabia remains committed to output cuts

The use of nuclear energy could help Saudi Arabia diversify its energy supply and boost its economy, Yamani said, adding that uranium procurement alone would be already economically beneficial. “We utilize the uranium ore that has been proven to be economically efficient,” he said, as cited by Reuters.

The Saudi nuclear agency chief announced the kingdom would award a construction contract to some foreign companies for its first two nuclear reactors by the end of 2018.
Saudi Arabia has already contacted potential vendors from South Korea, China, France, Russia, Japan and the US to discuss their potential involvement in constructing the reactors, according to Reuters.

The kingdom considers nuclear energy to be “an important source for stability and sustainable growth.” Riyadh says its nuclear program development runs in tandem with its Vision 2030 strategy championed by Crown Prince Mohammed bin Salman, as reported by the Saudi state SPA news agency.

In late September, SPA reported that Yamani held separate high-level meetings with representatives of Russian, US, Japanese and South Korean delegations on the sidelines of the 61st General Conference of the International Atomic Energy Agency (IAEA) in Vienna. The discussion centered on the their possible participation in Saudi Arabia’s “National Atomic Energy Project.”

The talks involved issues such as “localization of the nuclear and renewable energy industries in the Kingdom,” according to SPA. Yamani, however, did not elaborate on whether Riyadh plans to enrich and process uranium to get nuclear fuel all by itself.
Uranium enrichment opens up the possibility of military use of nuclear materials, and is one of the key issues that lie at the heart of the crisis around the nuclear program of Saudi Arabia’s regional rival – Iran.

Saudi Arabia plans to build $500bn high tech mega city 33 times bigger than NY

Under the 2015 nuclear deal, Iran agreed to retard its nuclear program for fifteen years in exchange for an easing of the pre-existing sanctions imposed on Tehran by a number of countries. Yamani announced that Saudi Arabia will adopt the necessary laws and finalize regulations for its nuclear agency by the third quarter of 2018, as reported by Reuters.

He also said the kingdom had asked the IAEA to review its program and to assess efforts to prepare Saudi infrastructure “to introduce nuclear power for peaceful purposes.”
“The IAEA also has been requested to conduct an integrated review of our nuclear infrastructure during the second quarter of 2018,” he said.

Saudi Arabia plans to build nuclear power plants capable of producing some 17.6 gigawatts of energy, which is equivalent to 17 reactors, according to Reuters. Its chief atomic energy officer, Maher al Odan, also declared in early October that the Kingdom has natural reserves amounting to around 60,000 tonnes of uranium ore, according to preliminary studies.

Saudi Arabia will not be the first country in the Gulf region to embrace nuclear energy, as the United Arab Emirates is expected to launch its first South Korean-built reactor in 2018. The UAE has pledged, however, not to enrich uranium itself and also not to process spent fuel.

Article source: https://www.rt.com/business/408262-saudi-arabia-extract-uranium-nuclear/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

As the Independent reports, planes running on the mixture of renewable and traditional fuel will start flying next year from Geneva in Switzerland. The airport wants biofuel to have a one percent share of sales at the airport for a start, according to Matti Leivonen, the CEO of Finnish company Neste that produces the fuel.

Lufthansa tested the company’s fuel on more than 1,000 flights in 2011 with a 50-50 blend of biofuel to kerosene. “It worked amazingly well,” Lievonen told the British newspaper.

Volkswagen taps Russia’s Gazprom to fuel its gas-powered cars

“Engine performance improved. We have a very good track record in aviation, and it’s an exciting growth area for us,” he said.

Neste claims its fuel emits up to 40 percent less particulate matter, 10 percent less Nitrous Oxide and up to 90 percent fewer carbon emissions. The company says its fuel also comes in a form suitable for any traditional diesel engine, meaning it can be used in cars.

The main reason why vegetable and other sorts of oil are not widely used in aviation is that they do not have an extremely low freezing point, as it turns solid at about 5°C, while safety standards require it to remain liquid down to -40°C. Some additives improve the cold weather tolerance of such fuels, but only by a few degrees.

While aviation biofuel can be produced, it is still more expensive than oil-based jet fuel.

The world’s first commercial biofuel flight was performed by KLM, carrying 171 passengers from Amsterdam to Paris and running on waste vegetable oil.

Article source: https://www.rt.com/business/408231-planes-biofuel-vegetable-oil-fat/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The company was founded in 2013 near the city of Tula, 200 kilometers south of Moscow. The microphones are all handmade in Soyuz’s facility in the village of Mendeleevsky. The company has a staff of 12 local people along with one of the company’s two founders Pavel Bazdyrev.

Four years ago, Bazdyrev teamed up with Californian musician David Brown, who often toured Russia with his band Brazzaville. The two started an enterprise making top-end musical equipment in Bazdyrev’s home city, which is historically a home to Russian defense industry plants.

“Before the creation of this company I worked for a large western company and I liked it. But I always dreamed about something else, something more interesting. And I wanted to work for myself,” Pavel Bazdyrev told RT.

All the parts for the Soyuz microphones are Russian-made and are bought from Moscow suppliers, according to the entrepreneur. The precision machinery needed to make the microphones come from the Russian city of Izhevsk.

“I personally feel there are huge opportunities in Russia. I think the potential is vast because there are certain skill sets and certain resources available there, that are fantastic,” said David Brown.

Finding investors was the most challenging part of starting a business, according to Bazdyrev. The task was accomplished thanks to Brown, who found investment for the project.

Since 2016 Soyuz microphones have been sold to 17 countries, from Chile to China. According to the firm, the breakthrough occurred when one of its products appeared in a music video by British rock band Coldplay.

The firm sells up to 80 microphones per month with top-of-the-range costing $3,500 against the $8,000 for competitive models. The company has five models with the cheapest costing $600.

Article source: https://www.rt.com/business/408216-russia-soyuz-retro-microphones-radiohead/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Brent crude moved up seven cents to $60.51 per barrel, while the US West Texas Intermediate gained three cents, trading at $53.93.

Crude far from dead says Rosneft head

“With strong compliance to OPEC’s production curbs already supporting prices, comments from the Saudi Arabian Crown Prince that suggested the production cut agreement should be extended added to gains,” ANZ bank said, as quoted by Reuters.

In December, OPEC, Russia and other major producers agreed to curb production by 1.8 million barrels per day (bpd) for six months from January 1 to support the market and push prices to $60 per barrel.

Last Thursday Saudi Arabia’s Crown Prince Mohammad bin Salman told Reuters the Kingdom will adhere to production cuts until the end of 2018.

“We are committed to work with all producers, OPEC, and non-OPEC countries… We will support anything to stabilize the oil demand and supply,” he said.

Given the possible extension of the deal and a forecast surge in demand, oil could reach $70 per barrel.

Oil price collapse cost OPEC countries over $1tn

“If we consider the forecasts for consumption growth in 2017 and 2018, which will amount to no less than 1.3 million barrels per day each, it becomes clear that there is a good potential for oil prices to go up from the current $50-$60 price range to the $60-$70 range, which is considered more fair by OPEC,” said Forex Club analyst Valery Polkhovsky in an email to RT.

The countries participating in the OPEC+ deal have fulfilled their obligations by 120 percent, OPEC reported earlier in October.

Top producer Russia has not yet decided whether to extend the deal but is prone to say no, if current prices remain.

“We proceed from the fact that the market is being balanced,” said Energy Minister Aleksandr Novak in September. “We see stable prices around $50 per barrel, less volatility, a decline in inventories.”

“If suddenly the market becomes unbalanced and we will see a risk to the market, then we will discuss with colleagues such options as a renewal of the production cut deal,” Novak said.

Article source: https://www.rt.com/business/408213-oil-prices-opec-production/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

IMF issues damning report on eurozone fiscal policy

The European Commission plans to give more responsibility to the European Stability Mechanism (ESM) which helps eurozone countries to borrow money. The ESM will monitor and enforce compliance with bailout programs while continuing to disburse funds.

“The euro area is more resilient now than in years past… I believe the ESM should now progressively graduate into a European Monetary Fund which, however, must be firmly anchored in the European Union’s rules and competences,” Jean-Claude Juncker, European Commission president, told lawmakers in September.

Analysts say by creating its own IMF the eurozone will deepen links within the union and thereby become more resilient to financial shocks. The move would also make Europe independent from the IMF each time a euro currency country needs financial rescue.

The eurozone wants to build up its own “firefighter” for potential future sovereign crises, chief economist at ING, Carsten Brzeski told CNBC.

“An EMF (European Monetary Fund) would also leave eurozone problems to be solved by the eurozone and not by outsiders,” he said.

IMF slammed by own watchdog over ‘political’ handling of eurozone crisis

The ESM could act as a fiscal authority on the countries of the euro, experts claim. Given the fact it will be inter-governmental and free from political interference, the fund could be the answer to Germany’s call to see European fiscal rules applied effectively, they add.

“They worry the commission is likely to be unwilling to push member states hard enough when they break the rules. The EMF would be less afraid of being unpopular and so more willing to impose discipline,” said Erik Jones, professor of European studies at John Hopkins University.

The eurozone and the IMF had significant policy differences during the Greek crisis and are still at loggerheads over the issue. The IMF urged European creditors to “be far more specific” in their commitment to a debt relief package for cash-strapped Greece while some eurozone governments wanted the fund to participate in the country’s third bailout for credibility reasons.

Article source: https://www.rt.com/business/408190-europe-wants-replace-imf/?utm_source=rss&utm_medium=rss&utm_campaign=RSS