Oil Companies See Windfall From EU Carbon Scheme

Oil firms are set to receive a windfall of millions of euros thanks to a new EU carbon dioxide trading scheme aimed at fighting climate change, official data showed on Tuesday.

Published: 09-Jun-2005

To the chagrin of environmentalists, figures released by the UK government indicated oil and gas producers in the North Sea will receive more allowances to emit CO2 than they need to cover current emissions.

They will be entitled to sell the surplus allowances on the new CO2 market, which the government described as "one of the main components in the fight against climate change.".

According to Reuters' analysis of the government data, offshore oil and gas firms will receive the right to emit over 175,000 tonnes of CO2 equivalent more annually over the coming three years than they did in 2003.


Visits to China, India, Malaysia and Pakistan are significant because the trip spells out the Saudi Kingdom's Look East policy, representing a new reorientation in its foreign policy that was heavily tilted toward the West.

The worst two scenarios suggest a drastic decline in output to 875,000 barrels a day by the end of 2007 and to just 520,000 a day by the end of 2008.

Bush said he envisioned a future in which a plug-in hybrid car could drive 40 miles on a lithium-ion battery, then stop at a filling station for ethanol, a fuel usually made from corn, similar to HyMotion Prius pictured below.


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