Energy Blast – May 5, 2009

Crude oil inventories are ‘bursting at the seams’ as record amounts of unused oil are being put in storage around the world, threatening to flood the market; Goldman Sachs has predicted that storage capacity may be full by June.  Developing a ‘southern corridor’ for gas transit by increasing ties with Iraq and Turkey will be a priority at an EU European and Central Asian countries summit this week.  The ailing US steel industry has beseeched Washington to re-enforce trade laws concerning foreign dumping and also said that climate change laws will have a deleterious effect upon domestic steel manufacturers.  China will invest $293 billion in the alternative energy sector from now through to 2020 and is planning a ‘stimulus package’ to more than double the output of alternative energy targeted for 2020.  The world’s second biggest energy consumer also plans to close down small scale oil refineries and antiquated metal smelters.  Shell is facing the possibility of a shareholder outcry over bonuses, following the company’s admission that it failed to meet its targets.  Shell Australia hopes to restart its Clyde refinery by July, which has been closed since last November.