Energy Roundup: Exxon Can Borrow, Iraq Offers 2nd Round, and More
Exxon's AAA rating: it's good to be the king -- Commenting on how the credit crunch may affect its big Papua New Guinea natural gas project, an Exxon official said that it would be "foolish" to suggest that it wouldn't pose difficulties. Difficulties, schmifficulties: Exxon's got a triple-A credit rating and is plowing ahead to borrow the $10 billion it needs to fund the project. Societe Generale will act as adviser on the deal, while Australia's Oil Search Ltd., Santos, Japan's Nippon Oil Corp., and Papua New Guinea's MRDC are also involved. Guess $14,830,000,000 in 2008 Q3 earnings is good for something after all. [Source: Dow Jones via Rigzone]
Iraq to offer 14 fields in second round -- Iraqi officials said that the country will offer 14 oilfields in a second licensing round to be announced by year's end, or in early 2009. Iraq is currently offering six oilfields and two natural gas fields to foreign companies. It is the war-torn country's first ever oil-licensing round. The Iraqi government hopes that the first licensing round will increase the country's oil pumping capacity by 1.5 million barrels per day to a total of around 4.0 to 4.1 million barrels per day by 2012. Iraq is currently pumping about 2.5 million barrels per day. [Source: Dow Jones Newswires via Rigzone]
Chesapeake trolling for dollars -- Chesapeake Energy may issue up to $2 billion in common shares in order to raise much needed operating cash and fund drilling leases that the New England natural gas producer is attempting to renegotiate. The issuance could dilute shareholders' investment, even though Chesapeake has fallen about 70 percent since July. [Source: WSJ]
SunPower inks 100 megawatt agreement -- California-based solar system manufacturer, SunPower, has inked a contract with Germany's City Solar Kraftwerke, a solar power plant integrator. SunPower will over three years supply City Solar with solar panels and commercial rooftop and ground mounted systems, including at least 100 megawatts worth of its SunPower T10 Solar Roof Tile solar panels. (Don't confuse Kraftwerke with Kraftwerk.) [Source: Energy Current]
How much should the U.S. spend to greenify? -- Over at Grist, "Cooling It" author, Gar Lipow, asks that question and answers it citing a plethora of sources. His final answer? "The total cost of a complete transition to 95 percent (or better) emissions-free energy in the U.S. would be about $1.7 trillion annually, if financed at 5 percent over 30 years," most of it through government public works programs. That's a whole lotta clams, to be sure. Is it worth it? [Source: Grist]