In this edition, a look at Chinese and Canadian M&A in the FT’s “China bids $15bn for Canada’s Nexen,” and The Wall Street Journal’s “Shale Gas May Be the Answer for Energy-Hungry China.” Climate Spectator, meanwhile, offers, “What Gillard should have said about the carbon tax.”

Quote of the Day:

“The government is in danger of botching its plans to boost clean energy, because the Treasury is refusing to back new contracts to deliver investment in nuclear, wind, wave and carbon capture and storage.”

–Tim Yeo, chair of the Energy and Climate Change Committee, a group of Members of Parliament (MPs) who scrutinise the government’s work on energy, in Reuters’ “UK risks ‘botching’ clean energy market reform-MPs”

Lead Stories

China bids $15bn for Canada’s Nexen
FT.com
China’s Cnooc has agreed to buy Calgary-based oil group Nexen for $15.1bn plus debt, a bold step that marks the increasing confidence of Chinese energy groups expanding overseas.
http://jlne.ws/ME7o0x
**RKB — One result of long Canadian-China courtship after Keystone rejection.

China Push in Canada Is Biggest Foreign Buy
The Wall Street Journal
Cnooc Ltd. CEO -4.34% swept into Canada with China’s biggest overseas acquisition yet, a $15.1 billion deal to buy one of that country’s largest energy producers that reignites a debate over the role of Chinese state players in North America’s energy industry.
http://jlne.ws/LJv39N

Shale Gas May Be the Answer for Energy-Hungry China
The Wall Street Journal
Underscoring Cnooc Ltd.’s massive $15.1 billion deal for Canada’s Nexen Inc. is an uncomfortable fact for Beijing’s policy makers: China’s economy remains intensely energy hungry.
http://jlne.ws/NsqIgQ

Canada Shifts Toward China With $15 Billion Nexen Bid
Bloomberg
Cnooc Ltd. (883)’s $15.1 billion cash takeover bid for Nexen Inc. (NXY) signals a Canadian shift toward China and away from the U.S. as the nation’s traditional oil and natural-gas partner and main export market.
http://jlne.ws/LJybm0
**RKB — The piece makes the point that U.S. tech and development money was the partial driver that grew this industry so attractive to China today.

The American Shale Conundrum Facing China’s Energy Champions
The Wall Street Journal
Oil firms have to go where the oil (and gas) is. Increasingly, that place is the U.S.
http://jlne.ws/O1XJjF

Trillium CNG and AMP Americas Announce Ambitious Joint Venture to Build Compressed Natural Gas (CNG)
Stations Across the US
Press Release
Trillium CNG, a business unit of Integrys Energy Group and AMP Americas announced today a joint venture, AMP
Trillium, focused on building a network of CNG stations across the US.
**No link.

Gillard’s Labor Loses Support After Australia Carbon Tax Enacted
Bloomberg
Australian Prime Minister Julia Gillard’s administration saw public support fall as it implemented taxes on carbon output and mining that stirred opposition from business leaders.
http://jlne.ws/PNPPXn

Loading the Climate Dice
Paul Krugman in The New York Times
A couple of weeks ago the Northeast was in the grip of a severe heat wave. As I write this, however, it’s a fairly cool day in New Jersey, considering that it’s late July. Weather is like that; it fluctuates.
http://jlne.ws/SR7Jf7

UK risks ‘botching’ clean energy market reform-MPs
Reuters
The British government’s proposals to decarbonise the country’s electricity market are flawed and ministers should rework the suggested market mechanism over the summer to salvage the reform, an influential group of politicians said on Monday.
http://jlne.ws/Ok9VsM

U.K. Preparing to Announce Renewable Subsidy Cuts
Bloomberg
The U.K. is nearing an agreement on cuts for renewable energy subsidies and may announce a decision as early as this week, dashing concerns a rift between the Treasury and Energy Department will hold up investment.
http://jlne.ws/Od9suk

Lobbyists, GOP get cracking on ‘embryonic’ energy platform
The Hill’s E2 Wire
GOP lawmakers, aides and an array of energy industry lobbyists huddled at Republican National Committee (RNC) headquarters Monday to lay the groundwork for the party’s official energy platform at August’s national convention.
http://jlne.ws/NssP4c

Events

Carbon Forum North America
October 1-2, 2012
Washington, DC
http://jlne.ws/zDe43B

Sustainability Summit – Innovation Challenge
October 9, 2012
New York
http://jlne.ws/wKbX7U

Carbon

Two Notable Events Prompt Examination of an Important Property of Cap-and-Trade
Energy Collective
In December of 2010, a group of economists and legal scholars gathered at the University of Chicago to celebrate two notable events. One was the fiftieth anniversary of the publication of Ronald Coase’s “The Problem of Social Cost” (Coase 1960).  The other was Professor Coase’s 100th birthday.  The conference resulted in a special issue of The Journal of Law and Economics, which has just been published (although it is dated November 2011).
http://jlne.ws/OVdK5H

What Gillard should have said about the carbon tax
Climate Spectator
Confusion continues on how the carbon tax will hit the electricity bills of Australian households.
http://jlne.ws/MXVUid

Airline carbon tax talks with EU stall
China Daily
Beijing remains firm on its stance of settling the carbon tax dispute with the European Union through a multilateral approach, a Chinese official said.
http://jlne.ws/MErkfY

Wood-Fired Plants Generate Violations
Wall Street Journal
BLUE LAKE, Calif.—Malodorous brown smoke from a power plant enveloped this logging town on April 29, 2010, and several hundred residents fled until it passed.
http://jlne.ws/P6V4E1

New system allows farmers to manage nitrogen in exchange for carbon credits
Eco Seed
American farmers will soon be able to earn greenhouse gas offsets for reducing the amount of nitrogen they use to fertilize their crops, with the aid of a system developed by Michigan State University researchers.
http://jlne.ws/SR6EE5  

Natural Gas/Coal

TEXT-S&P: E & P industry outlook still split between oil and gas
S&P/Reuters
Standard & Poor’s Ratings Services said in a report that credit quality for the U.S. oil sector should remain relatively stable for the rest of 2012, but that it remains cautious for natural gas-weighted producers. The industry economic and ratings outlook is titled “Exploration And Production Industry Is Still A Tale Of Two Commodities.”
http://jlne.ws/OVfHz4

Chesapeake Energy selling Barnett Shale acreage
Reuters
Chesapeake Energy Corp (CHK.N), a U.S. oil and gas company facing funding shortfalls this year and next, is selling 3,300 acres in the Barnett Shale in north Texas as part of its effort to limit exposure to low-priced natural gas.
http://jlne.ws/M6vReW

Frackers Fund University Research That Proves Their Case
Bloomberg
Pennsylvania remains the largest U.S. state without a tax on natural gas production, thanks in part to a study released under the banner of the Pennsylvania State University.
http://jlne.ws/NO7b9g

Power

Rousseff ‘very worried’ about Brazil economy, plans steps
Reuters
President Dilma Rousseff is pessimistic about Brazil’s chances for a meaningful economic recovery this year and is pushing ahead with new measures aimed at lowering taxes and increasing investments, hoping they might give the economy a lift by 2013, government officials told Reuters.
http://jlne.ws/MTrCy6
**RKB — Includes pledge to lower electricity costs for manufacturers, says top official.

Christie Signs Solar Bill Increasing N.J. Energy Requirement
Bloomberg
New Jersey utilities will be required to buy more solar energy under legislation signed today by Governor Chris Christie.
Utilities including Public Service Electric & Gas and Jersey Central Power & Light will need to get 2.05 percent of their electricity from solar projects in 2014, up from less than 0.5 percent now.
http://jlne.ws/NHolUX

Reports

Per capita CO2 emissions in China reached European level (July 18, 2012)
http://jlne.ws/NAjBQQ

The Interim Regulation of Voluntary Greenhouse Gases Emission Trading in China (Posted July 10, 2012)
The Climate Group
http://jlne.ws/Mhv62s

Measure for Management: C40 Cities (July 9, 2012)
Carbon Disclosure Project
http://jlne.ws/L9LC37

Characterizing Pivotal Sources of Methane Emissions from Unconventional Natural Gas Production (Posted June 4, 2012)
API, ANGA
http://jlne.ws/M6RzMQ

Vulnerability of US and European electricity supply to climate change (Posted June 4, 2012)
Nature Climate Change
http://jlne.ws/L3Slcb

Developing Dimension: State of the Voluntary Carbon Markets 2012 (Posted May 31, 2012)
Ecosystem Marketplace
http://jlne.ws/JQ18Bv

Tackling exposure: placing disaster risk management at the heart of national economic and fiscal policy (Posted May 22, 2012)
http://jlne.ws/JArFwf

Fossil fuel price shocks and a low carbon economy (Posted May 21, 2012)
Oxford/DECC
http://jlne.ws/JgVKG9

Using the Allowance Value from California’s Carbon Trading System: Legal Risk Factors, Impacts to Ratepayers and the Economy (Posted May 17, 2012)
Next10
http://jlne.ws/KEYcW5.

Inclusive Green Growth: The Pathways to Sustainable Development (Posted May 9, 2012)
World Bank
http://jlne.ws/IJXP8B

Meeting Canada’s 2020 Climate Change Commitments (Posted May 8, 2012)
Office of Auditor General
http://jlne.ws/K9Lxvd

View all reports >

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