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Triple Crunch Log                                                                                                            

to 6.2% of total electricity supply.514

29.6.10. High concentrations of methane gas identified around the BP oil spill, raising fears of a dead zone. Some concentrations are up to 1m times the normal concentration of 1-2ppm. The concern is that the methane, which is around 40% of the leak, will be a nutrient for algal blooms resulting in an oxygen-depleted zone where marine life cannot survive. Texas A&M University has found the high methane in an area 6 miles square round the leak. There is already a 17,000 sq km dead zone off the Mississippi, caused by alagal growth resulting from nutrients in runoff.515

Anadarko approved many of the controversial suspected cost-cutting decisions BP made. “What we knew was that the design, the long string and the use of centralisers all met industry standards if executed correctly. The problems were caused by BP’s execution of each of these,” Anadarko says. (A long string is a cheaper way of lining a well but one that gives less protection against gas leaks than using multiple layers, including liners and casings. Centralisers stabilise a well before it is cemented). The two partners remain in conflict over the details wioth respect to responsibility. For Anadarko, already holding junk-rated bond status, the outcome could easily be a life or death issue. Mitsui is a third partner on the well.516

Obama’s effort to leverage Senate support on climate change from the Gulf spill falls flat. He fails to rally a group of Democratic and Republican senators around an energy and climate change law. Guardian: “The standoff suggests the Senate would formally give up on climate change law, and recast energy reform as a Gulf oil spill response, that would roll in far more limited proposals such as a green investment bank, or a measure to limit greenhouse gas emissions that would apply only to electricity companies.517

FSA says auditors were insufficiently sceptical in run up to credit crisis. The Guardian understands that the FSA has already referred some of the practices it has found to the Accountancy & Actuarial Disciplne Board, which investigates accountants and has the power to take action if it finds wrongdoing( (unlike the FSA), and the to the Financial Reporting Council, which oversees corporate accounting.”518

Martin Wolf likens the financial crisis to simulataneous games of pass the parcel, set to end badly. His cites four of these games: “The first is played within the financial sector: the aim of each player is to ensure that bad loans end up somewhere else, while collecting a fee for each sheet unwrapped along the way. The second game is played between finance and the rest of the private sector, the aim being to sell the latter as much service as possible, while ensuring that the losses end up with the customers. The third game is played between the financial sector and the state: its aim is to ensure that, if all else fails, the state ends up with these losses. Then, when the state has bailed it out, finance can win by shorting the states it has bankrupted. The fourth game is played among states. The aim is to ensure that other countries end up with any excess supply. Surplus countries win by serially bankrupting the private and then public sectors of trading partners. It might be called: “beggaring your neighbours, while feeling moral about it”. It is the game Germany is playing so well in the eurozone. What have these four games to do with the G20 summit? In a word, everything. The first game scattered toxic assets across the financial system. The second left the non-bank private sector with a debt overhang and deleveraging. The third duly damaged the finances of states. The fourth helped cause the crisis and is now an obstacle to recovery. Above all, these games are all linked to one another and so have to be changed together. The G20 does understand this, but only up to a point.”519

Naomi Klein urges people to “take no orders to slash and burn from this G20 club.” “My city feels like a crime scene, and the criminals are all melting into the night, fleeing the scene. No, I'm not talking about the kids in black who smashed windows and burned cop cars on Saturday. I'm talking about the heads of state who, on Sunday night, smashed social safety nets and burned good jobs in the middle of a recession. Faced with the effects of a crisis created by the world's wealthiest and most privileged strata, they decided to stick the poorest and most vulnerable people in their countries with the bill.”520

30.6.10. First hurricane of the season expected to disrupt BP’s oil-spill effort for days to come. Waves as high as 3.6 metres will delay additions to the oil-capture system system, but not relief well drilling.521

Abuse heaped on BP petrol station franchisees in US. Apart from vanadalism and “hate” incidents,  including gunshots through windows at one Mississippi station, business has dropped 10-20%.522

BP shares surge 9% on suggestions that the company’s days in the US are numbered. A Cazenove note suggesting either Exxon or Shell could take BP over starts investors piling in.523

UK government subsidises deep-water drilling without transparency on drilling risk. Guardian: “The British government is subsidising one of the world's largest and riskiest oil-drilling projects in the Atlantic Ocean and would be liable for tens of millions of pounds if a major accident took place.  Documents seen by the Guardian show that UK trade ministers underwrote loans taken out by the Brazilian state-run energy company Petrobras in 2005 in order that Rolls Royce and other companies could contribute to the building of the giant P-52 platform. The platform is now operating 125km off the coast of Brazil in 1,798 metres (5,900 feet) of water - deeper than BP's Deepwater rig that exploded in April and led to the disastrous oil spill in the Gulf of Mexico. But the 14-page environment report prepared by the UK’s Export Credits Guarantee Department (ECGD) and obtained under freedom of information rules by watchdog group Corner House, makes no mention of blowouts or the equipment needed to prevent them. Ministers have edited out all ECDG's comments assessing the risks involved in deep-sea drilling in the Atlantic.”524

UK Climate Change Committee: urgent government action needed if UK is to hit emissions targets. The committee’s second annual report says that action is needed within a year, beyond the “light touch” interventions to date, in electricity (efficiency), renewables, electric cars, and action to cut the footprint of farms. The 8.6% reduction in emissions last year was almost entirely the result of recession.525

Banks repay €442bn to the ECB, easing fears, lifting euro and shares. More than 1,000 banks borrowed this huge sum a year ago, with repayment due today.526

1.7.10. BP aims to raise $9bn from sale of South American assets to Chinese as Russians also eye assets: CNOOC is interested in the 60% BP stake in PanAmerican energy and TNK-BP wants to buy BP assets.527

The 95 islanders of Eigg win the top Ashden award for their 90% renewable electricity use, near halving of energy efficiency, and plans to do more. Using hydro, wind and solar, they cap electricity use at 5 kW for homes and 10 kW for businesses, using e-mail alerts to notify people of low supply.528

Solar roofs could generate up to 40% of the EU’s electricity demand by 2010, the Building Integrated Photovoltaics conference of the European Photovoltaics Industry Association concludes. Some 40% of EU

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