Energy Blast - July 21, 2009

Oil prices are hovering around the $63 mark, with the market 'see-sawing based on people's perception of the US economy -- they don't really know if the recovery is durable', says Bloomberg.  Gazprom borrowed more than $11 billion in the first six months of 2009, with $4.5 billion coming from Sberbank.  Apparently its core earnings decreased by 50% in the first quarter.  The state gas giant may issue a 10-year eurobond.  The European Commission is requiring Naftogaz Ukrainy, Ukraine's state-run energy firm, to conduct an independent audit of its gas reserves to be able to prove eligibility for a loan.  Bloomberg reports on how oil refiners worldwide are planning to shut or sell plants with the drop in oil demand, with energy analysts arguing that surviving the financial crisis 'is all about how competitive your refinery is'.   Climate change nexus Tuvalu, one of the world's smallest islands, has revealed plans to be entirely powered by renewable energy by 2020.  Algeria's Energy and Mines Minister has stated that OPEC will need to reduce output when it next meets in September if there is not enough demand for its oil.