Countries rich in oil, natural gas and coal can expect growth, as companies offering specialized equipment like deep-water oil rigs stand to benefit from full order books.

The higher energy prices clouding some Asian economic projections contain a silver lining along the supply chain.
Crude-oil prices have risen near $100 a barrel recently. Despite a decline in the past two weeks, energy prices are widely forecast to approach that level again. Crude oil for January delivery was trading at $88.10 a barrel Friday in New York, The Wall Street Journal reported.
Countries rich in oil, natural gas and coal can expect growth, as companies offering specialized equipment like deep-water oil rigs stand to benefit from full order books.
Meanwhile, as high prices make previously marginal energy reserves commercially viable, those with technical expertise in oil-field services and pipeline construction will be sought after, especially in “frontier“ or newer areas.
Jobs represent another positive spinoff. Energy remains a labor-hungry industry, and Asia’s rapidly growing and educated population is in a position to provide workers. The oil-driven economic boom in the Persian Gulf will also fuel demand for semiskilled domestic and construction workers from Asia, analysts say.
“The direct impact from higher oil prices [on the Asian economy] has been positive,“ said Chua Hak Bin, director of Asian-Pacific economics and market analysis at Citigroup in Singapore.
In June 2006, when oil cost $70 a barrel, Mr. Chua predicted that a resources boom could fuel, rather than hurt, Asia’s economic growth.
“What is different now...is that inflation risks have increased for some Asian countries. Oil prices breaching $100 could, therefore, test the comfort zones of some Asian central banks,“ he said.
Production companies have reaped unexpectedly high earnings. In some cases, state coffers have been swollen by the imposition of windfall taxes, which are based on profit. China, for instance, expects windfall tax revenue from oil to total 60 billion yuan (US$8.11 billion) this year.
But record oil prices can hurt Asian governments, which subsidize fuel prices, Citigroup’s Mr. Chua said. Governments may have to bail out refining companies, adding to the fiscal burden.
Some analysts say a recession is already under way in the US, the world’s largest per-capita energy consumer. “It’s not a large negative. But the worry is that if growth in the US and the European Union slows, then it could be a problem“ for Asian economies, said Tobin Gorey, commodity strategist at Commonwealth Bank of Australia in Sydney.
Others say they see global red flags only if oil prices stay above $100 a barrel for six months or longer.
“Whether we get to $100 or not, there will be steady demand for oil-and-gas development and for raw materials,“ said Peter Beutel, president at US-based energy-trading advisory firm Cameron Hanover.
The rewards are already flowing in for net oil exporters Malaysia and Brunei; for suppliers of natural gas, particularly in its liquefied form, like Indonesia; and for major coal exporters like Australia, Indonesia, and Vietnam.
Among companies riding upstream oil growth are Singapore’s Keppel Offshore & Marine Ltd., a unit of Keppel Corp., and SembCorp Marine Ltd.
Their order books for sophisticated drilling rigs and related equipment are filled beyond this decade. The two companies command about 90% of the world’s rigs. Keppel’s order book alone is valued at more than S$13 billion (US$9 billion).
World-wide, there are more than 50 deep-water rigs under construction, with the bulk due for delivery in 2009 and 2010.
Competing for a slice of the lucrative capital-equipment and construction pie are firms in Japan, South Korea, whose shipbuilding sector is flourishing, and China.
Later this month, state-owned China National Petroleum Corp. is due to complete on schedule a 1,600-kilometer gas pipeline in India--its first in South Asia-- with which it hopes to cement its reputation and its overseas order book.
China’s exports of oil equipment like rigs, pipelines, and parts jumped 67% to US$3.25 billion in the first nine months of 2007, with 32% going to the U.S.
Firm oil prices will also boost the flow of Middle East money repatriated to the Philippines, Pakistan, India, and Bangladesh by oil workers and domestic staff.
Filipinos now send home around US$14 billion a year, twice what they sent five years ago, and as some of this is used to start businesses as well as support families, the economic knock-on impact is considerable.
The country’s gross domestic product grew 6.6% in the quarter ended September, as increased remittances fueled spending.
Oil demand in the Asian-Pacific region is forecast to be a robust 25.8 million barrels a day in 2008, nearly 30% of the global total, according to the International Energy Agency, a rise of 3.2% from the previous year and well above the expected 2.5% growth in 2007.

People have to accept that wind energy would have to be used to solve the current climate issues.

Wind turbines could be scattered across the Times Territory skyline to counter global warming.
That was the message given at a Datchworth Climate Change Group meeting, in which the pros and cons of harnessing wind energy to generate electricity was discussed, according to Whtimes.co.uk.
Robert Somerville, who chaired the meeting, told the WHT that people had to accept that wind energy would have to be used to solve the current climate issues.
“In this country (UK) we don’t seem to be using the resources that we have.
“Across Europe, especially in Germany, wind energy is used as a power source, yet in this country--the one that has the most windy conditions in Europe--we have hardly any.“
The gathering was attended by 60 people including a wind turbine owner, Simon Saggers, from Cambridgeshire, who gave an account of his views about the alternative form of power supply.
He said he was completely satisfied with the investment. He found that it did not intrude on his quality of life, although it was situated quite near the family house.
The 35ft turbine and a solar energy panel produced all the electricity he needed domestically and to run his organic smallholding business.
Nick Rau from the Friends of the Earth, also took part and gave a national overview to explain why our electricity supply methods would have to be radically changed if severe problems due to climate change were to be avoided.
Robert added: “We did not discuss the proposed Benington wind turbines directly; it was mainly to give people a good background behind the whole topic.“
Alan Massam, who is a member of the climate change group, said: “It was interesting to hear how Simon Saggers’ turbine powered his needs.
“Overall the meeting was really positive; there were many different types of ideas heard, including nuclear and thermal biological energy resources.
“What was really good was that no one seemed to have a negative input. However, it was clear that we need to address the situation and I could see a wind turbine to power the community of Datchworth coming in the next five or 10 years.“
The answer isn’t blowing in the wind
“The answer,“ wrote Bob Dylan in his famous 60s protest song, “is blowing in the wind.“ But for one 21st century singer, it’s the potential problem that’s blowing in the wind.
The teenager has penned a protest song against three huge wind turbines planned for a spot near the village of Benington.
Becky Godlee, 16, was moved to song after the Beane Valley skyline was earmarked for the 120 metre masts.
In her song Beauty Corruption she implores: “Put it on a motorway, where it can be forgiven“.
Last month the WHT reported that more than 200 protesters, joined by best-selling novelist and east End Green resident Frederick Forsyth, marched against the turbines.
At the time the Day of the Jackal author said: “If a national competition were held to find the most utterly unsuitable place for three gigantic eyesore windmills, over 400 feet high, the prize would have to go to the historic village of Benington in the ancient and dreamy Beane Valley.“
Becky said: “I wrote this as a protest song when a windfarm was proposed for my village. I am not against wind energy just put it in the right place!“
Becky said the video had been withdrawn from YouTube and the song will be released in the coming weeks.

Democratic leaders working on an energy bill were trying to forge compromises to increase the use of renewable fuels both in cars and by electric utilities after reaching a deal earlier that would raise vehicle fuel economy by 40 percent.
But they also faced another thorny issue: How to cover up to $3 million a year in lost revenue if motorists buy less gas because of the more fuel efficient cars and SUVs, meaning less revenue for highway upkeep and construction, Gardian.co.uk reported.
Congressional rules require any revenue losses from new legislation to be offset with new revenues, so lawmakers will have to craft a tax package to deal with the shortfall.
Meanwhile, the White House expressed concern over the renewable fuels and auto efficiency provisions and at the hint of new taxes as part of the energy package.
“It appears Congress may intend to produce a bill the president cannot sign,’’ Allan Hubbard, director of the president’s National Economic Council, wrote House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid of Nevada. He urged them to work with the administration to pass a bill acceptable to the White House.
Pelosi, D-Calif., met with Hubbard and “had a thorough discussion“ about the energy legislation, said Drew Hammill, her spokesman. He said Pelosi was hopeful the president could support the final package.
With motorists irate about $3-plus gasoline and record high winter heating bills, House and Senate Democratic leaders hoped to pass their energy bill before departing for the Christmas recess.
They took a giant step toward that by reaching a compromise with Rep. John Dingell, D-Mich., chairman of the Energy and Commerce Committee and a staunch protector of the auto industry, on requiring automakers to boost the average fuel economy to 35 miles per gallon by 2020.
It would be the first increase in the federal vehicle fuel standard in 32 years.
But it won’t become law unless agreements on the other thorny issues are worked out.
Among the most contentious matter are concerns
how much renewable fuel-wind, solar power or biofuels--utilities should use to produce their power.
Pelosi is described as adamant in wanting to include a requirement--already passed once by the House--for utilities to produce 15 percent of their electricity from renewable energy sources.
Environmentalists have lobbied aggressively for the provision, calling it key to future growth of solar, wind and other renewable technologies. But opponents argue utilities in the Southeast and parts of the Midwest wouldn’t be able to meet the requirement without raising the price of electricity.
“For all of us in the Southeast, that’s a mandatory rate increase, and would produce a lot of difficulty,“ Senate Republican leader Mitch McConnell of Kentucky said Monday, adding that if the electricity mandate and tax provisions were excluded “it could be smoother sailing.“
The mandate has been strongly opposed by the Edison Electric Institute, which represents investor-owned utilities, and the Southern Co., the Atlanta-based energy company which has utilities across much of the Southeast.
Hubbard in his letter called the renewable standard for electricity “unfair ...overly prescriptive“ by excluding “many low-carbon technologies.“
While he did not mention a specific technology, some Republicans have argued that nuclear energy, the source of 20 percent of US electricity and emits no carbon, should be included under such a mandate.
Supporters of the renewable fuel mandate say there’s enough flexibility for utilities to avoid large electric price increases. The proposal includes the ability to purchase credits if renewable fuels are not available and allows efficiency programs as a partial substitute.
“We think (the opponents) overstate the cost and understate the benefits,’’ said Marchant Wentworth, a lobbyist for the Union of Concerned Scientists.
Democrats also were still trying to work out the details of a mandate to use more ethanol as a motor fuel.
Some lawmakers argue the Senate proposal, which Pelosi favored as recently as last week, may be going too far. It would require the annual use of 36 billion gallons of ethanol by 2022, a sevenfold increase.

Energy prices are climbing in an uncertain world, and people everywhere are looking to their leaders to see what can be done.
So, if leaders of the oil and natural gas industry in Oklahoma got to call the shots, what would they suggest?
That question was posed recently to the heads of four big-time energy companies based in the Sooner State at the Oklahoma Energy Summit 2007 in Oklahoma City, newsok.com reported.
Summit participants mainly spent the day looking at potential alternative energy sources for both Oklahoma and the nation. Participants included environmentalists, consumers and advocates for various types of energy.
While some provided more detailed answers than others, they shared the view that the US needs to better use its existing energy sources.
Larry Nichols suggested nurturing existing energy sources by relaxing drilling restrictions, making those sources more environmentally friendly and avoiding the temptation to latch onto every new alternative energy source as the solution.
He used ethanol as an example.
“As a natural gas producer, we love ethanol,“ said Nichols, chairman and chief executive of Devon Energy Corp.
That’s because plants making ethanol operate nearly entirely on natural gas. But Nichols added that corn consumes more fertilizer than other crops, causing environmental problems. He said making ethanol requires a significant amount of water.
And making ethanol is hard on the poor because using corn to make ethanol means the corn isn’t being used to make food, which drives its costs up, too.
Besides, ethanol does not make the nation energy independent, he said.
“At best, it is break-even, consuming as much fuel as it produces,“ Nichols said.
H.G. “Buddy“ Kleemeier, president and chief executive of Tulsa-based Kaiser-Francis Oil Co., argued for the government to make more exploration possible.
“Good policy says we should open more land to exploration, and we have been saying that to our government, both Republican and Democratic administrations, but nothing has happened,“ he said.
Kleemeier said the US uses about 60 billion cubic feet of natural gas every day. It produces about 52 billion cubic feet of that.