1 of 4. U.S. President Barack Obama delivers remarks on energy at the Argonne National Lab near Chicago, March 15, 2013.

LEMONT, Ill./WASHINGTON | Fri Mar 15, 2013 6:39pm EDT

LEMONT, Ill./WASHINGTON (Reuters) - President Barack Obama tried to move past partisan fights over energy policy on Friday with a modest proposal to fund research into cars that run on anything but gasoline.

Obama toured the Argonne National Laboratory outside of Chicago, known for its research into advanced batteries used in electric cars, then delivered a speech highlighting the need to find more ways to wean vehicles off oil.

The United States has a newfound wealth of oil and natural gas resources made possible by hydraulic fracturing and other drilling advancements, but consumers still face high prices at the pumps because gasoline prices are tied to world markets.

"The only way to break this cycle of spiking gas prices for good is to shift our car and trucks entirely off oil," Obama said in Argonne's advanced photon facility, which says it produces the brightest source of X-rays in the Western Hemisphere, used for an array of research projects.

The Democratic president proposed a fund that will draw $2 billion over 10 years from royalties the government receives from offshore drilling in the Outer Continental Shelf.

The research would be aimed at new ways to lower the cost of vehicles that run on electricity, biofuels, natural gas or other non-oil fuel sources.

Obama first mentioned the Energy Security Trust fund in his State of the Union address last month.

The White House touted the idea as bipartisan, saying it came from retired military and business leaders, including some Republicans, who belong to a policy group called Securing America's Future Energy.

"This is not a Democratic idea or a Republican idea," Obama said, standing in front of three cars designed to run on alternative fuels. "This is just a smart idea."

But Republican approval was far from assured.

"For this proposal to even be plausible, oil and gas leasing on federal land would need to increase dramatically," said Brendan Buck, a spokesman for Republican House of Representatives Speaker John Boehner. "Unfortunately, this administration has consistently slowed, delayed, and blocked American energy production."

By choosing to focus his first energy speech on research - an issue that appeals equally to Republicans and Democrats, industry and environmental groups - Obama is seeking to build common ground on energy, which has been a divisive policy issue.

"In order for something like this to pass the Hill, it will need votes from both sides," said Michael Levi, an energy fellow at the Council on Foreign Relations. "That makes it wise for the president to start with something that Congress can work from."

IS CONGRESS WILLING?

The research trust fund will require consent from Congress, which is grappling with federal budget cuts. Senator Lisa Murkowski of Alaska, the top Republican on the Senate Energy Committee, had proposed a similar idea. But her version called for expanded drilling, which Obama's proposal does not include.

Murkowski's spokesman Robert Dillon said the president's plan relied on royalties that have already been factored into the budget, "which could mean either deficit spending or less funding for the Land and Water Conservation Fund."

"There's a better way that not only funds investment in research, but also addresses our need for affordable and abundant energy," Dillon said, referring to expanded drilling.

White House officials said the president's plan would not add to the deficit because they expect leasing revenues to grow in coming years for several reasons, including changes the administration plans to make to leasing policy.

White House spokesman Josh Earnest said the administration is willing to work with Congress on the research fund plan.

"If there are different ideas people want to offer up, we'll certainly have a conversation with them about that," he said.

Mark Kennedy, the director of George Washington University's Graduate School of Political Management, said despite the misgivings expressed by some Republicans, the White House may be able to negotiate a deal that pleases both sides.

"I think this is the opening bid," Kennedy said. "This is the beginning of the conversation."

In his first term, Obama pushed for laws that would use market forces to reduce climate-changing carbon pollution, but the "cap and trade" bill was opposed by industry and failed in Congress.

His administration pumped $90 billion in economic stimulus funds into clean energy and "green jobs" projects, helping to dramatically expand renewable energy production in America.

But some projects failed, including a California solar panel maker called Solyndra that had received a $527 million government loan. Critics excoriated his administration for that failure, as well as for delaying approval of the Keystone XL crude oil pipeline from Canada.

The energy trust fund "is a more pragmatic approach to try to continue investments in green energy given the degree to which the (clean energy) brand has been damaged," said Kennedy, a former Republican congressman from Minnesota.

(Editing by Doina Chiacu and Mohammad Zargham)

View the original article here

BRUSSELS | Fri Jan 11, 2013 10:24am EST

BRUSSELS (Reuters) - EU officials are to debate a new set of tax proposals to promote clean fuel and erode fiscal advantages that have made diesel relatively cheap, a document seen by Reuters showed.

The Commission has long been seeking to change energy taxation, but some member states have repeatedly thwarted progress and are likely to continue to do so.

Taxation law in the European Union requires the unanimity of all 27 member states, which is almost impossible to achieve.

Luxembourg, for instance, has been generating revenue through particularly low taxes on diesel, meaning vehicles, notably lorries carrying freight, stop in the centrally located nation to refuel.

Ahead of a working party meeting on January 23 that will bring together representatives of member states, an internal European presidency note dated January 9 on minimum rates for energy products revives the idea of taxing fuels according to carbon dioxide emissions and energy content.

For now, fuel is taxed based on volume.

While trying to lower carbon emissions, the Commission, the EU executive, has said it is "fuel neutral" when it comes to setting minimum taxation levels.

Because a liter of diesel contains more energy and more carbon than a liter of gasoline, the changes under discussion, if agreed, could mean minimum tax rates per liter of diesel would eventually be higher than for gasoline.

Currently diesel is cheaper than petrol in nearly all EU states, with Britain a notable exception.

While offering some exemptions, the new proposals would over time provide incentives for sustainable biofuels, as well as natural gas and liquefied petroleum gas (LPG).

DIESEL WORRIES

Diesel use is a major concern for the Commission because the European Union's refineries cannot produce enough of it and the bloc often has to import diesel, while exporting surplus gasoline, sometimes at a loss.

Diesel fumes have also been named as a cancer risk by the World Health Organization.

Earlier this week, Environment Commissioner Janez Potocnik said it was crucial to reduce diesel emissions as part of efforts to improve air quality.

He is pressing to improve the accuracy of vehicle testing because, especially for diesel vehicles, there are major discrepancies between emissions recorded in the laboratory and "real-world" emissions generated in day-to-day use.

Algirdas Semeta, the European commissioner in charge of taxation policy, has sought to fend off potential opposition to any tax changes from diesel-engine giants, such as Volkswagen, saying a slow phase-in would give plenty of time to adapt engine requirements.

Environmental groups agree diesel needs to be taxed more.

A group of non-governmental organizations in December wrote to EU finance ministers in a letter seen by Reuters calling on them "to support a significant increase in the minimum levels of taxation of diesel fuel for transport purposes".

Luxembourg's diesel rates are good for generating revenue for it, but so-called "tank tourism" was negative for the nation's neighbors, said the letter, signed by more than 30 campaign groups.

Environment groups have also raised concerns about whether biofuels classed as sustainable really are.

The European Commission last year approved a scheme that would certify as sustainable transport fuel made from palm oil, which has been condemned by environmental groups as one of the most damaging sources of biodiesel.

View the original article here

LONDON | Wed Dec 26, 2012 7:47pm EST

LONDON (Reuters) - The UK is on track to meet its 2020 renewable energy targets after low-carbon electricity generation grew more than a quarter in the year to end-June 2012, thanks largely to new solar and offshore wind projects, a government report said.

The Department of Energy and Climate Change (DECC) said renewable energy accounted for over 10 percent of total electricity supplied in the 12 months to end-June.

Renewable power output grew 27 percent from July 2011, according to the UK's latest Renewable Energy Roadmap status report released on Thursday.

"Renewable energy is increasingly powering the UK's grid, and the economy too," Energy Secretary Edward Davey, who heads DECC, said in a statement that accompanied the report.

"It's a fantastic achievement that more than 10 percent of our power now comes from renewables, given the point from which we started," he said.

Britain has a target to produce 15 percent of its energy, including electricity, heat and transport, from renewable sources by 2020 in a bid to cut climate-warming emissions.

This means that 30 percent of the UK's electricity must come from renewables by the end of the decade, the government said, with wind playing a leading role.

"Right now, getting new infrastructure investment into the economy is crucial to driving growth and supporting jobs across the country ... I am determined that we get ahead in the global race on renewables and build on the big-money investments we've seen this year," Davey said.

DECC has identified around 12.7 billion pounds ($20.6 billion) of confirmed and planned renewable investment by companies between April 1, 2011 and July 31, 2012, potentially creating around 22,800 jobs.

The department, which expects the growth in renewables to continue or accelerate, predicts the industry will support 400,000 direct jobs by 2020, up from around 110,000 jobs currently.

Government subsidies have played a key role in encouraging investment, however, and economic difficulties have put pressure on support schemes.

Government departments have reined in spending, though officials say the falling costs of the technology mean that less support is required to encourage take-up.

Offshore wind power capacity grew by 60 percent to 2.5 gigawatts (GW), while onshore wind grew by 24 percent to 5.3 GW, according to figures in the Renewable Energy Roadmap report.

Solar photovoltaics recorded the highest growth with an increase of five and a half times to 1.4 GW in capacity by the end of June 2012, the report said.

Industry group RenewableUK welcomed the findings of the report.

"The update is spot on. It highlights the sector's dynamic growth and the healthy pipeline of wind, wave and tidal projects to come," RenewableUK Deputy Chief Executive Maf Smith said.

"It's right to note that costs are falling steadily, so renewables will continue to offer even better value for money for all of us," he said, adding that it will help stabilize the price of energy.

In November, Britain set out plans to triple support for low-carbon power generation by 2020 in order to help replace ageing fossil fuel power plants with less polluting alternatives.

The outlay will be clawed back through higher energy bills.

Under the agreed Levy Control Framework, spending on low-carbon power generation will increase to 7.6 billion pounds a year in real terms by 2020, from the current 2.35 billion pounds, to reduce dependence on gas.

(Reporting by Oleg Vukmanovic; editing by Jane Baird)

View the original article here

Russia's President Vladimir Putin gestures during a news conference after their meeting with Turkey's Prime Minister Tayyip Erdogan in Istanbul December 3, 2012.

BRUSSELS | Fri Dec 21, 2012 8:02am EST

BRUSSELS (Reuters) - Russian anger at an EU energy law blocked progress at talks between Russian President Vladimir Putin and European Union leaders on Friday.

Putin, on his first visit to Brussels since his re-election as president in May, was greeted by four topless women, protesting against civil rights curbs in Russia and shouting "Putin, go to hell". They were bundled away by police.

Relations between the 27-nation bloc and Russia, its main external supplier of energy and a key trading partner, have long been poisoned by rows over gas pipelines.

Europe relies on Russia to cover around a quarter of its natural gas needs, but over the past decade Moscow has had a series of disputes with its ex-Soviet neighbors - Ukraine and Belarus - that disrupted its gas exports to Europe.

Those disputes increased the EU's determination to diversify supply away from Russia.

Adding to the grievances are simmering trade disputes over everything from cars to pigs, and European leaders' condemnation of the jailing of members of the band Pussy Riot, seeing it as part of a trend of squashing personal freedoms.

For Russia, which sits on the world's largest natural gas reserves and supplies more than a quarter of the European Union's natural gas imports, energy is the major issue.

In opening comments, Putin referred to EU energy law as "uncivilized".

POTENTIAL

"Of course the EU has the right to take any decisions, but as I have mentioned ... we are stunned by the fact that this decision is given retroactive force," Putin told reporters on the sidelines of a Russia-EU summit in Brussels. "It is an absolutely uncivilized decision."

He was referring to EU legislation to create a single energy market and prevent those that control supply, such as Russia's Gazprom, also dominating distribution networks.

From the European Union side, European Commission President Jose Manuel Barroso said there was "huge potential for cooperation" to the benefit of both sides.

"I think we should in fact be able to transform what is today an interdependence by necessity into an interdependence by choice, a political choice," he said. "That's what requires political leadership on both sides."

Expectations for Friday's talks have always been low, but Russian and EU sources both see the need for continued dialogue.

The EU's executive Commission added to tensions between Europe and Moscow in September when it opened an investigation into suspected anti-competitive market practices by Russia's state-dominated Gazprom.

Trade disputes are also high on the agenda. EU Trade Commissioner Karel De Gucht said this month time was running out for Russia to settle trade disputes with the EU on everything from pigs to cars and he threatened to take Moscow to the WTO.

Putin also complained about lack of agreement on travel visas, saying Russia was being unfairly treated compared with other nations.

"I have a long list of states here with me which have a visa-free regime with the EU. There is Venezuela, Honduras, Mauritius, Mexico, seems everyone else is there," Putin said.

(Additional reporting by Adrian Croft and Justyna Pawlak)

View the original article here

Chesapeake Energy Corporation's 50 acre campus is seen in Oklahoma City, Oklahoma, on April 17, 2012.

ATLANTA | Thu Aug 9, 2012 8:03pm EDT

ATLANTA (Reuters) - Chesapeake Energy said it is the subject of a U.S. government investigation over possible criminal antitrust violations related to the purchase and lease of oil and gas properties in Michigan.

Chesapeake has received a subpoena from the antitrust division of the Justice Department's Midwest field office, requiring the company to produce documents before a grand jury in the Western District of Michigan, according to a filing with U.S. regulators on Thursday.

In June, Reuters reported that Chesapeake plotted with its top competitor, Canada's Encana Corp, to suppress land prices in the Collingwood shale in Northern Michigan.

Emails between Chesapeake and Encana showed the two companies repeatedly discussed how to avoid bidding against each other in a public land auction in Michigan two years ago and in at least nine prospective deals with private land owners.

The Justice Department is "moving criminally," said Darren Bush, a former antitrust attorney for the Department of Justice and a professor of antitrust law at the University of Houston. "They are working their way through the grand jury process to potentially serve up indictments."

Chesapeake's disclosure indicates the Justice Department has moved swiftly on the matter. Reuters published its story on June 25. Just four days later, on June 29, the subpoena was served on Chesapeake, according to the company's quarterly report filed with the Securities and Exchange Commission.

The Reuters report showed Chesapeake and Encana executives, including Chesapeake Chief Executive Aubrey McClendon, exchanged emails about dividing up the nine Michigan counties and landowners in an effort to prevent "acreage prices from continuing to push up," and establishing "bidding responsibilities" ahead of an October 2010 Michigan state land auction.

A spokesman for Encana was not immediately available to comment. A spokesman for Chesapeake declined comment, but the filing said the company is cooperating with the investigations. Chesapeake also said its board of directors is conducting an internal review of the matter.

Price-fixing, bid-rigging and market allocations by competitors are illegal in the United States under the Sherman Antitrust Act, and companies can be fined up to $100 million for each offense.

Chesapeake acknowledged in June that it held talks with Encana but said the two companies never consummated any agreement and never bid jointly. Encana said it held talks with Chesapeake without reaching an agreement on a joint venture. The Canadian company has begun an internal inquiry led by the chairman of its board of directors.

Chesapeake said in the filing with the U.S. Securities and Exchange Commission that it has also received demands for documents and information from state governmental agencies in connection with other probes relating to oil and gas rights transactions.

A spokeswoman for the Michigan Attorney General's office, which has also opened an investigation into possible collusion between Chesapeake and Encana, declined to comment. A Justice Department spokeswoman did not immediately respond to a request for comment.

Chesapeake has been operating under a cloud of legal and governance issues following Reuters investigations showing potential conflicts of interest on the part of McClendon as well as the collusion allegations.

Shares of Chesapeake fell 2.5 percent to $19.80 from a New York Stock Exchange close of $20.31 in post market trading.

(Reporting By Michael Erman and Joshua Schneyer in New York, Scott Haggett in Calgary and Anna Driver in Houston; Editing by David Gregorio and Carol Bishopric)

View the original article here