Oilweek Magazine online newsfeeds http://www.oilweek.com VIENNA, Austria _ The Russia-Ukraine natural gas dispute has hit Europe with the force of a winter storm, cutting or limiting supplies to nearly a dozen countries today.Tens of thousands of people were left without heat, and governments scrambled to find alternate energy sources.Shocked by how fast the shortages were spreading, the European Union demanded a quick end to the dispute.This is a sharp turnaround from the EU`s earlier stance, when officials tried to downplay the conflict between Moscow and Kyiv as primarily a business matter.But by this evening, Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey all reported a halt in gas shipments.Even France, Germany, Austria and Poland reported substantial drops in supplies from Russia. http://www.oilweek.com/news.asp?ID=20415 CALGARY _ A natural gas pipeline planned by Enbridge Inc. (TSX:ENB) and two partners will not likely hit the kind of snag that has hampered a competing project backed by TransCanada Corp. (TSX:TRP), an analyst said Tuesday.A week ago, two Texas-based natural gas shippers and processors backed out of their 50 per cent stake in TransCanada`s US$2-billion Pathfinder pipeline through northwestern Colorado.Enterprise Products Partners LP and Quicksilver Gas Services LP said they are seeking more economically viable projects in the wake of the global credit crunch.Enbridge Inc. and Fort Chicago Energy Partners LP (TSX:FCE.UN), along with Utah-based Questar Corp. are planning a natural gas pipeline called Rockies Alliance that will also originate in Colorado.FirstEnergy Capital analyst Steven Paget said he has not heard anything that would suggest Questar may be having doubts about shipping natural gas out of the U.S. Rockies.It really depends on their view on gas prices and you`ll notice that the TransCanada partners said `well, we have other more compelling projects,` Paget said.It`s about what does Questar see in front of it, in project terms?Paget noted that Questar has hedged about 60 per cent of its natural gas production in 2009.That probably means that they still have some security of cash flows, he said. http://www.oilweek.com/news.asp?ID=20414 COLUMBUS, Ohio _ Oil prices gave up early gains and returned below US$50 a barrel Tuesday as fresh signs of a deepening U.S. recession trumped tensions in the Middle East and worries over natural gas shortages in Europe.Light, sweet crude for February delivery rose six cents to US$48.87 a barrel in trading on the New York Mercantile Exchange.Prices had risen as high as $50.47, the highest point since Dec. 1, before the National Association of Realtors reported that pending home sales fell to the lowest level on record in November.The plummeting stock market and faltering economy has led potential buyers to hold back.In a separate report, the government said orders to factories fell for a record fourth straight month in November. The 4.6 per cent decline was nearly double the 2.5 per cent drop economists expected.Meanwhile, an index of activity in the U.S. services sector contracted at a slower pace in December as new orders and employment improved. The Institute for Supply Management, a trade group of purchasing executives, said its services sector index rose to 40.6 in December from 37.3 in November. A reading below 50 signals economic contraction, while a reading above 50 indicates growth.The weak economic readings were more than enough to offset the impact of global tensions and other factors that might disrupt or reduce global oil and natural supplies.Israeli forces continued their push into Gaza, edging closer to Gaza`s major population centers and attacking new sites.Prices also have been bolstered by signs the Organization of Petroleum Exporting Countries, which generates 40 per cent of the world`s oil production, is implementing production cuts of four million barrels a day that the group has announced since October.In Europe, a contract dispute between Russia and Ukraine shut off Russian gas supplies to six countries and reduced gas deliveries to several others.There are worries that the tensions in the Middle East could spread to oil-producing nations, said Jim Ritterbusch, president of Ritterbusch and Associates. The concern in Europe is that there will be more demand for fuel oil and a product similar to heating oil until the dispute is resolved, he said.But Ritterbusch said he believe prices will be headed back down as demand for energy remains weak. He said traders were looking to Wednesday`s government on inventory levels of oil supplies.Prices at the pump, which had been steadily falling since peaking at US$4.114 a gallon in July, are now rising. Prices rose 1.6 cents overnight to $1.688 (44 cents per litre), according to auto club AAA, the Oil Price Information Service and Wright Express. That price is down 4.5 cents from a month ago and $1.418 from a year ago.In Canada, the national average was 74.45 cents Cdn per litre on Tuesday, up from 73.59 cents on Monday and down from C$1.01 per litre a year ago, according to Gasbuddy.com.In other Nymex trading, gasoline futures fell less than a cent to $1.19 a gallon. Heating oil slid 4.97 cent to $1.626 a gallon while natural gas for February delivery fell 1.7 cents to $6.05 per 1,000 cubic feet.In London, February Brent crude rose 71 cents to $50.33 a barrel on the ICE Futures exchange. http://www.oilweek.com/news.asp?ID=20413 Some of the nano materials that have already made it to store shelves:Nano products: There are more than 800 items on the market that advertise nanotechnology behind their making. About 80 per cent are available to Canadians through retail stores, distributors and the Internet.The good: Socks and gym towels that don`t get smelly, germ-free toilets, extra-strong hockey sticks, scratch-resistant car paint, wrinkle- and stain-free clothing, self-cleaning windows.The bad: There`s not enough research to know what risks, if any, are posed by nano materials. One scientist suggests staying away from nano products for children, such as anti-bacterial baby soothers and bottles.The future: The U.S. army is working on an electromagnetic cloak that bends light and could make tanks invisible.The cost: About $147 billion was spent creating nano products worldwide in 2007. That figure is set to climb to $3.1 trillion by 2015.Quote: It is huge. It is going to possibly affect all aspects of our lives. _ Elizabeth Nielsen, scientist and consultant with the Consumers Council of Canada. http://www.oilweek.com/news.asp?ID=20412 They`re tinier than ants in your pants, smaller than specks of dirt on your living-room window.And with amazing powers once thought possible only in the space-age world of the Jetsons, particles created through the magic of nanotechnology are making our pants resist stains and wrinkles and helping windows in our homes miraculously clean themselves.From socks and jock straps that don`t get smelly to germ-free toilets and kitchen utensils, cutting-edge skin creams and strong-as-steel hockey sticks, products created through this relatively new science are probably already a part of your life, even though you may not know it.Or they soon will be.It is huge. It is going to possibly affect all aspects of our lives, scientist Elizabeth Nielsen, a consultant with the Consumers Council of Canada, said in an interview with The Canadian Press.(Nanotechnology) comes along as a foundation technology, like the industrial revolution and electricity.Nanotechnology involves the manipulation of molecules at the atomic level. Special microscopes and equipment create devices with unique properties. The smaller the matter, the more reactive it can be and the easier it can move through the body, air and water.For instance, titanium dioxide and zinc oxide used in sunscreens become transparent when they are cut down to nano size, but they can still absorb and reflect ultraviolet light.While nanotechnology means that such materials can do things never before thought possible, critics are warning that not nearly enough is known about how these altered materials might affect the human body and the environment.That uncertainty has fuelled a type of nanophobia, as the New York Times recently called it, that has prompted companies that once proudly displayed the use of the technology in their products to remove the word from their advertising for fear of alienating consumers.Not long ago, the nano name was a huge selling feature for cosmetics in Europe, Nielsen says. But after fiction-writer Michael Crichton released his book Prey in 2002, all references to nanotechnology were removed from their labels. The novel is about a scientist who unwittingly unleashes a swarm of deadly nanoparticles into the world.Nielsen agrees that consumers should be wary of some nano products. There simply isn`t enough research happening to know what risks, if any, are posed by them, she says.It`s really buyer beware in many cases right now.Until research can catch up with the exploding nano market, she suggests consumers at least stay away from nano products for children.They don`t really know what the impact would be on children who are a much more vulnerable group.People with children take note. Anti-bacterial baby bottles and soothers and stain-resistant plush toys sound wonderful and they are already on the market, but they might deserve a second look.Colin Finan with the Project on Emerging Nanotechnologies, based out of the Woodrow Wilson International Center for Scholars in Washington, D.C., says the amount of money being used to create products with nanoscale materials is set to skyrocket.Roughly $147 billion was spent around the globe in 2007. He says that figure is expected to soar to $3.1 trillion by 2015.The project has listed more than 800 nano products already on the market, and three to four new ones are added every week. Most of them, an estimated 80 per cent, are available to Canadians through retail stores, distributors or the Internet. The inventory includes pencils that release aromas while you write, plastic beer bottles that keep beer fresher for longer and cigarette filters that provide cleaner taste and reduce toxins.There are also the female foam condom, baseball caps with germ-free bands, static-free tuques and speedier Speedo swimsuits.Not enough yet? How about stronger tennis rackets, hockey sticks, golf clubs, bicycles and snowboards.For the car, there`s scratch-resistant paint, tires that grip the road better and windshield cleaner that can repel snow, bugs and grime.Look to the kitchen for containers that keep food fresher longer and other packaging that changes colour to warn if food is contaminated. Nano particles are even in some of the foods we eat, making chocolate ice cream creamier and diet shakes work faster.All kinds of nano products are available, says Nielsen, but most shoppers have no clue that nanotechnology played a role in their making. Some tags on clothing and labels on paint cans and tools advertise nanotechnology, but many other items don`t.Milana Segal with Green Earth Nano Science in Toronto promises that her company`s nano product is entirely safe. It`s a special coating that reacts with the sun on the outside of buildings to keep them clean and free of mould and mildew. On the inside, another coating can be applied to walls and ceilings to deodorize, purify the air and prevent the spread of bacteria.The product is only in the pilot stage, says Segal, but she predicts within a decade it will be everywhere.We want to see it in homes. We want to see it in hospitals. We want to see it in schools.Nanotechnology, she suggests, will change life for everyone. It`s like when the Internet came out 10 years ago and nobody knew what it was. Today everybody needs it.And it would seem that the future holds no bounds. Researchers in the United States announced last year that they are working on an invisible, electromagnetic cloak that can bend light around itself. That work, which is funded by the U.S. army, holds the potential of making armoured tanks invisible. http://www.oilweek.com/news.asp?ID=20411 TORONTO _ Investors snapped up beaten down shares in the commodity and financial sectors late in the morning, sending the Toronto stock market higher for a sixth session.New York markets were little changed as early strong gains disappeared following the release of worse-than-expected data on U.S. factory orders and housing.Toronto`s S&P/TSX composite index was also off early levels but was still ahead 52.36 points to 9,337.87.New York`s Dow Jones industrial average was ahead just 9.7 points to 8,962.6.It`s been an auspicious start to 2009 for the Toronto market, with the main index up about four per cent so far as investors hope that a bottom has been reached and the second half of the year will see a lessening of pressure on global economies.But some analysts say that sentiment is likely misplaced.I don`t think the price increases that you`re seeing are sustainable over the long term, said Chyanne Fyckes, chief investment manager Stone Asset Management, who calls this current runup a bear-market rally.I think that`s going to be the big surprise, how weak it is going to be in the second half of the year. This is going to be more prolonged than people are talking about.The TSX energy sector has been a star performer in early 2009, already up more than seven per cent since Dec. 31 and was up another 1.25 per cent Tuesday morning.Crude oil has surged 25 per cent in the past week amid signs OPEC is implementing production cuts while Israel`s offensive in Gaza keeps tensions high in the oil-rich Middle East. But the February crude contract on the New York Mercantile Exchange backed off late in the morning after rising as high as US$50.47, down 77 cents to US$49.82.The Canadian dollar moved up 0.77 cent to 84.8 cents US after higher oil helped boost the loonie up about one and three-quarters cents Monday.The TSX Venture Exchange climbed 11.1 points to 885.59.In Canadian economic news, the prices of products leaving the factory gate dropped by a record amount in November, along with the cost of raw materials, as oil prices plummeted. Statistics Canada said the November industrial product price index fell 2.6 per cent and the raw materials price index dropped 13.4 per cent.In New York, the Nasdaq composite index rose 11.91 points to 1,639.94 and the S&P 500 index climbed 2.05 to 929.5 after the Commerce Department said factory orders declined by 4.6 per cent in November, nearly double the 2.5 per cent drop economists expected.The weakness in November reflected a big drop in demand for commercial aircraft. Weakness also was seen in autos, primary metals such as steel, and defence communications equipment.The U.S. National Association of Realtors says pending home sales fell to the lowest level on record in November, as the plummeting stock market and faltering economy caused buyers to put their purchases on hold.The trade group`s seasonally adjusted index of pending sales for existing homes fell four per cent to 82.3, worse than the reading of 88 that economists expected.The Institute for Supply Management`s December index on the service sector came in at 40.6, still showing contraction but much better than the 37 reading that had been expected.In the afternoon, investors will be focusing on minutes from the Federal Reserve`s December meeting, where policymakers slashed the key interest rate to a record low range of zero to 0.25 per cent.TSX energy sector winners included Suncor Energy Inc. (TSX:SU) ahead $1.27 to $28.67. But sector leader EnCana Corp. (TSX:ECA) lost early momentum to move down 95 cents to $61.47.The base-metals sector ran ahead 4.5 per cent with Sherritt International (TSX:S) ahead 43 cents to $4.42 and FNX Mining (TSX:FNX) up 49 cents to $4.39 while Teck Cominco Ltd. (TSX:TCK.B) shed 32 cents to $7.88.The financial sector edged up 1.5 per cent with Bank of Montreal (TSX:BMO) ahead 69 cents to $33.32.Shares in Royal Bank of Canada (TSX:RY, NYSE:RY) climbed 29 cents to $37.50 after it said it is issuing $200 million worth of preferred shares paying 6.25 per cent.Toronto-Dominion Bank (TSX:TD) Monday announced it was issuing preferred shares to raise $225 million.Fairfax Financial Holdings Limited (TSX:FFH) shares added $1.69 to $364.72 after it raised its annual dividend to US$8 per share from $5.The telecom sector was the major decliner on the TSX as shares in Rogers Communications Inc. (TSX:RCI) were down $2.25 to $34.94 after the company said Apple`s iPhone helped boost the number of new wireless subscribers to 199,000 in the fourth quarter of 2008.The gold sector is also a drag, down 1.4 per cent as the February bullion contract on the Nymex gave back $11.60 to US$846.20. Barrick Gold Corp. (TSX:ABX) declined $1.30 to $39.48.Dow Chemical Co. said it will pursue legal action against a state-owned Kuwaiti company that pulled out of a joint venture last week. Dow had expected to get more than $7 billion in cash from the transaction with Petrochemical Industries Co., some of which would have helped pay off its $15.3 billion buyout of Philadelphia-based Rohm & Haas Co.In Asian trading, Japan`s Nikkei stock average rose 0.4 per cent while Hong Kong`s Hang Seng index dipped 0.4 per cent.Britain`s FTSE 100 and Germany`s DAX index rose 0.8 per cent, and France`s CAC-40 rose 0.43 per cent. http://www.oilweek.com/news.asp?ID=20410 BARRIE, Ont. _ An agreement to merge two electric utilities that provide power to some 310,000 southern Ontario homes and businesses has been completed.The merger of Barrie Hydro Distribution Inc. and PowerStream Inc. creates the second-largest local electricity distribution company in Ontario.The new entity, which will be called PowerStream, will serve customers in Simcoe County and York Region.The merged company is jointly owned by the cities of Barrie and Vaughan and the Town of Markham.It will be co-branded PowerStream Barrie Hydro Distribution in the former Barrie Hydro service area for roughly the first year.Toronto Hydro is the province`s largest local electricity distributor, with some 678,000 customers.Hydro One is the largest electricity distribution company in Ontario, with some 1.3 million customers provincewide. http://www.oilweek.com/news.asp?ID=20409 TORONTO _ The Toronto stock market is positive for a sixth session mid-morning with gains led by energy stocks as oil traded above the US$50 a barrel level.New York markets were positive but down sharply from early highs following the release of worse-than-expected data on U.S. factory orders and housing.Toronto`s S&P/TSX composite index was also off early levels as gains in the financial sector largely melted away and was ahead 52.68 points to 9,342.8.New York`s Dow Jones industrial average gained 34.7 points to 8,987.6.The TSX energy sector has been a star performer in early 2009, already up more than seven per cent since Dec. 31 and was up another 2.5 per cent Tuesday morning.Crude oil has surged 25 per cent in the past week amid signs OPEC is implementing production cuts while Israel`s offensive in Gaza keeps tensions high in the oil-rich Middle East. The February crude contract on the New York Mercantile Exchange climbed $1.01 to US$49.82 this morning after rising as high as US$50.47.The TSX Venture Exchange climbed 14.59 points to 889.08. The Canadian dollar moved up 0.77 cent to 84.8 cents US after higher oil helped boost the loonie up about one and three-quarters cents Monday.In Canadian economic news, the prices of products leaving the factory gate dropped by a record amount in November, along with the cost of raw materials, as oil prices plummeted. Statistics Canada said the November industrial product price index fell 2.6 per cent and the raw materials price index dropped 13.4 per cent.In New York, the Nasdaq composite index rose 15.75 points to 1,643.78 and the S&P 500 index climbed 5.45 to 932.9 as the Commerce Department said factory orders declined by 4.6 per cent in November, nearly double the 2.5 per cent drop economists expected.The weakness in November reflected a big drop in demand for commercial aircraft. Weakness also was seen in autos, primary metals such as steel, and defence communications equipment.The U.S. National Association of Realtors says pending home sales fell to the lowest level on record in November, as the plummeting stock market and faltering economy caused buyers to put their purchases on hold.The trade group`s seasonally adjusted index of pending sales for existing homes fell four per cent to 82.3, worse than the reading of 88 that economists expected.The Institute for Supply Management`s December index on the service sector came in at 40.6, still showing contraction but much better than the 37 reading that had been expected.In the afternoon, investors will be focusing on minutes from the Federal Reserve`s December meeting, where policymakers slashed the key interest rate to a record low range of zero to 0.25 per cent.TSX energy sector winners included EnCana Corp. (TSX:ECA), up 58 cents to $63 and Suncor Energy Inc. (TSX:SU) ahead $1.97 to $29.37.The base-metals sector ran ahead 6.25 per cent with Sherritt International (TSX:S) ahead 51 cents to $4.50 and FNX Mining (TSX:FNX) up 55 cents to $4.45.The financial sector edged up 0.2 per cent with Bank of Montreal (TSX:BMO) ahead 78 cents to $33.31.Shares in Royal Bank of Canada (TSX:RY, NYSE:RY) climbed two cents to $37.23 after it said it is issuing $200 million worth of preferred shares paying 6.25 per cent.Toronto-Dominion Bank (TSX:TD) Monday announced it was issuing preferred shares to raise $225 million.Fairfax Financial Holdings Limited (TSX:FFH) shares dipped $2.11 to $360.92 after it raised its annual dividend to US$8 per share from $5.Telecoms were the major drag on the TSX as shares in Rogers Communications Inc. (TSX:RCI) were down $1.22 to $35.97 after the company said Apple`s iPhone helped boost the number of new wireless subscribers to 199,000 in the fourth quarter of 2008.The gold sector is also a drag, down 1.25 per cent as the February bullion contract on the Nymex gave back $10.10 to US$847.70. Barrick Gold Corp. (TSX:ABX) declined $1.26 to $39.52Dow Chemical Co. said it will pursue legal action against a state-owned Kuwaiti company that pulled out of a joint venture last week. Dow had expected to get more than $7 billion in cash from the transaction with Petrochemical Industries Co., some of which would have helped pay off its $15.3 billion buyout of Philadelphia-based Rohm & Haas Co.In Asian trading, Japan`s Nikkei stock average rose 0.4 per cent while Hong Kong`s Hang Seng index dipped 0.4 per cent.Britain`s FTSE 100 rose 1.35 per cent, Germany`s DAX index rose 1.6 per cent, and France`s CAC-40 rose 0.88 per cent. http://www.oilweek.com/news.asp?ID=20408 TORONTO _ Energy stocks helped take the Toronto stock market higher in early trading as oil prices continued to rise.New York markets were also positive ahead of key economic reports later in the session, including minutes from the Federal Reserve meeting last month.Toronto`s S&P/TSX composite index rose 86.16 points to 9,371.67 after rising 51 points yesterday, which was its fifth positive session in a row as investors snap up stocks that were beaten down last year. New York`s Dow Jones industrial average gained 61.01 points to 8,013.9 after dropping 82 points yesterday.The TSX energy sector has been a star performer in early 2009, already up more than seven per cent since Dec. 31 and is rising another 2.5 per cent this morning.Crude oil has surged 25 per cent in the past week amid signs OPEC is implementing production cuts while Israel`s offensive in Gaza keeps tensions high in the oil-rich Middle East. The February crude contract on the New York Mercantile Exchange climbed $1.27 to US$50.08 this morning.The TSX Venture Exchange climbed 13.04 points to 887.53. The Canadian dollar moved up 0.56 cent to 84.59 cents US after higher oil helped boosted the loonie up about one and three-quarters cents yesterday.In Canadian economic news, the prices of products leaving the factory gate dropped by a record amount in November, along with the cost of raw materials, as oil prices plummeted. Statistics Canada said the November industrial product price index fell 2.6 per cent and the raw materials price index dropped 13.4 per cent.In New York, the Nasdaq composite index rose 13.73 points to 1,641.76 and the S&P 500 index climbed 8.26 to 935.71.Investors expect the Institute for Supply Management`s December index of non-manufacturing activity to come in little changed from last month _ deeply in contraction. They are also looking for November factory orders to show a 2.2 per cent decline.And another dollop of grim housing data is expected as pending home sales figures for November are released.And in the afternoon, investors will be focusing on minutes from the Federal Reserve`s December meeting, where policymakers slashed the key interest rate to a record low range of zero to 0.25 per cent.TSX energy sector winners included EnCana Corp. (TSX:ECA), up 49 cents to $62.91 and Suncor Energy Inc. (TSX:SU) ahead $1 to $28.40.The TSX is also getting support from the financial sector, which rose 1.25 per cent with Bank of Montreal (TSX:BMO) ahead 81 cents to $33.34.Shares in Royal Bank of Canada (TSX:RY, NYSE:RY) climbed 25 cents to $37.46 after it said it is issuing $200 million worth of preferred shares paying 6.25 per cent.Toronto-Dominion Bank (TSX:TD) yesterday announced it was issuing preferred shares to raise $225 million. Its shares advanced 60 cents to $45.93.The base-metals sector ran ahead six per cent with Sherritt International (TSX:S) ahead 48 cents to $4.47 and Teck Cominco Ltd. (TSX:TCK.B) up 50 cents to $8.70.Shares in Rogers Communications Inc. (TSX:RCI) were down 44 cents to $36.75 after the company said Apple`s iPhone helped boost the number of new wireless subscribers to 199,000 in the fourth quarter of 2008.Dow Chemical Co. said it will pursue legal action against a state-owned Kuwaiti company that pulled out of a joint venture last week. Dow had expected to get more than $7 billion in cash from the transaction with Petrochemical Industries Co., some of which would have helped pay off its $15.3 billion buyout of Philadelphia-based Rohm & Haas Co.In Asian trading, Japan`s Nikkei stock average rose 0.4 per cent while Hong Kong`s Hang Seng index dipped 0.4 per cent.Britain`s FTSE 100 rose 1.5 per cent, Germany`s DAX index rose 1.6 per cent, and France`s CAC-40 rose 1.45 per cent. http://www.oilweek.com/news.asp?ID=20407 BURNABY, B.C. _ Solar module maker Day4 Energy Inc. (TSX:DFE) says a weak economy has prompted the company to lay off 95 employees.The Burnaby, B.C. company said Tuesday it expects to incur a restructuring charge of $700,000 on its books this year for the streamlining at its B.C. plant.While it is always a difficult decision to let people go, it is equally important to ensure the company is best positioned to meet the realities of the new solar economy, said George Rubin, president of Day4 Energy.We are seeing continued strength in demand for our product in Europe and remain confident in our contracted sales for 2009, however, given the broader economic environment and seasonal weather patterns we are being proactive in managing our business to avoid inventory build-up.Day4 Energy Inc. is Canada`s largest manufacturer of high performance photovoltaic modules for residential, commercial and utility scale installations around the world. http://www.oilweek.com/news.asp?ID=20406