Energy Roundup: Obama's Oil Dilemma, Iraq's 'Nam Flashback, Ethanol in Peril, and More

Fed to allow 1.9 million acres worth of shale development on public land… maybe — It’s a perfect illustration of the kind of dilemma that the incoming administration will face with energy policy, caught between the rock of energy independence and the hard place of environmental concern. On Monday the U.S. Department of the Interior announced regulations for the leasing of public lands for oil production from shale in Wyoming, Utah and Colorado. The department estimates the yield could be as high as of 800 billion barrels. The regulations will control development on 1.9 million acres of federal land. Because they were issued prior to Nov. 20, they should be finalized before Jan. 20, which makes it difficult — though not impossible — for the new administration to stymie the project out of environmental concerns. [Source: Platts.com]

Aramco to invite bids to develop Manifa, again — Aramco, the royal-family-run Saudi oil firm, is to invite companies to bid for contracts to develop the Manifa oilfield after the previous contract with Snamprogetti was canceled. The project is part of the $10 billion Manifa development program, which hopes to reach 900,000 barrels a day of crude production by the middle of 2011. [Source: Rigzone]

Vietnam + Iraq = axis of oil — Vietnam’s state-run oil company, Petrovietnam, is said to be holding talks with Iraq’s Oil Ministry to revive a contract it signed with the Gulf nation during Saddam Hussein’s regime. Back in 2002, Petrovietnam had inked the $300-million deal with the Iraqi dictatorship to develop the Amra oil field in Southern Iraq, but couldn’t follow-through because of U.N. sanctions. While sanctions were lifted after the U.S.-led invasion, the Hussein regime was no longer in power and the deal was considered void. Pre-war estimates said the project could yield some 80,000 barrels a day. Here’s a thought: Maybe Iraq could use some of its $79 billion in cash reserves to build the infrastructure necessary to exploit its own oil reserves, and educate its citizens on how to do it. [Source: Rigzone]

Premier oil to double development efforts in Vietnam — The U.K. explorer, Premier Oil, intends to double investment in Vietnam next year. The company will invest $515 million in development and exploration, up from $225 million. Premier has discovered commercial reserves at Chim Sao, one of three prospects it was exploring in Vietnam. Premier says it will focus on projects in Indonesia, Vietnam and Norway, increasing production to 50,000 barrels a day by 2010. [Source: Thanh Nien News]

Aventine suspends biorefinery construction, blames financial crisis — Aventine Renewable Energy Holdings is suspending construction of its new ethanol refinery Aurora, Neb., as well as extending the construction schedule of a biorefinery in Mount Vernon, Ind. The new Aurora plant was slated to produce 130 million gallons of ethanol per year. A slumping economy and “disappointing economics surrounding the production of ethanol” were blamed for the move. Though the company said that it supplied 690 million gallons in 2007, its shares have dropped 12 percent, to just under $1. [Source: Earth2Tech]

Solyndra inks $320 million “cool solar” deal — Solyndra, the company that makes clever, tube-shamed, thin-film rooftop solar arrays, had racked up yet another big deal. This one is a $320 million agreement with a division of Carlisle Construction Materials to supply 100 megawatts worth of panels over the next five years. Carlisle said it will work with an independent integrator to install the panels in conjunction with its Energy Star-certified, “cool roof” systems for commercial buildings. [Source: Earth2Tech]