Australian Mining Giant BHP Is Shutting Down 40% Of Its US Shale Wells
Take home: Hydraulic fracturing of shale gas (“Fracking”) appears to be economically unsustainable due to the low dollar price of oil.
Read more: http://www.businessinsider.com/bhp-shuts-shale-operations-2015-1#ixzz3PRDb1CFC
SA top renewable-energy investment destination, says global firm
Take home: In spite of South Africa’s labour volatility, a weakened currency and unpredictable policy, the vast amount of natural resources available in South Africa, the country’s severe energy shortage and the implementation of initiatives, such as the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), are key reasons why international investors are showing continued interest in renewable-energy investments.
Read more: http://www.polity.org.za/article/sa-top-renewable-energy-investment-destination-says-global-firm-2015-01-20
Referral not an ‘open sesame’ ‘for MPRDA change
Take home: Summary: this progression looks to be hard on the mining companies, but good for the energy sector.
- The referral back of the MPRDA Amendment Bill by the president, to SA’s national assembly does not open the door to allow “wholesale” changes to the Bill.
- The referral back has delayed the creation of much needed policy/regulatory certainty by parliament
- The Chamber of Mines is thus bitterly disappointed: “It feels that several years of hard bargaining, and some progress, would be replaced by more regulatory uncertainty.”
- The are significant practical implications for mining companies who were waiting for certainty and more streamlined processes, as set out in the bill
- “The major beneficiaries may well be the oil and gas companies which have been seeking to undo the free-carry the amendments propose be given to the South African government for new projects.”