Energy Blast – June 23, 2009

During his trip to Africa, President Medvedev will attempt to secure energy deals in Egypt, Nigeria, Namibia, and Angola.  Gazprom Neft may issue up to $1 billion in bonds and is considering possible acquisitions in Russia, Kazakhstan and Slovenia.  The Prime Minister of Slovakia, a gas transit country, has said he believes it likely that gas supplies through Ukraine will be cut again in the first week of July.  Gazprom has said it is too early to talk about cutting supplies. The EU, the IMF and the European Bank for Reconstruction and Development are discussing a $4 billion loan to Ukraine to ensure supplies.  Surgutneftegaz has said it added 105 million tons of crude oil to its reserves last year as resources exceeded production.  Oil and gas companies will cut spending by around 15% this year because of the drop in North American natural gas prices.   The UN climate panel says that fears that cuts in greenhouse gas emissions will have a deleterious effect upon the economy are hyperbolic.  Bloomberg has a feature about a new book written by economist Jeff Rubin that analyzes how oil prices affect the global economy.