Energy Blast – July 26, 2011

Vladimir Putin has sought to calm any worries stirred by the Kremlin’s fining of Enel-OGK5 for delays at a power station by praising E.On and Enel’s Russia activities and promising them ‘full support’ by video link.  Britain has approved the development of Breagh, a gas field in its North Sea which is 70% operated by Germany’s RWE.  BP’s second-quarter profits have been posted at $5.6 billion, lower than its forecast of $6 billion.  The company’s production dropped roughly 11% year-on-year thanks to divestitures and lack of activity in the Gulf of Mexico, says the WSJ, and investor confidence is flagging as a result.  Could Bahrain look as far afield as Russia to meet its growing demand for natural gas?  Azerbaijan’s state oil company SOCAR is in supply negotiations with Czech and Slovak representatives.  The FT discusses Canada’s need to end its reliance on the U.S. for crude, and its plans to develop Keystone XL, a pipeline that would bypass the Midwest and go straight to refining facilities in the Gulf of Mexico.  TNK-BP has boosted its profits by almost $1 billion in year-on-year Q2 results.