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As a group, federal contractors are quickly getting obese at taxpayers' expense. Uncle Sam spent "an astounding $532 billion last (fiscal) year, shattering the previous year's record of $465 billion" on contracts, Sen. Joseph I. Lieberman (I-Conn.), chairman of the Senate Homeland Security and Governmental Affairs Committee, said yesterday. He called federal contracting "a black hole for taxpayer dollars" as he released the Government Accountability Office's latest "high-risk" report on Capitol Hill. This biennial update covers programs and policies that the agency says "are at high risk for waste, fraud, abuse and mismanagement or those in need of significant transformation."

The world's leading energy companies won rights to develop two major oil fields in Iraq at an auction on Friday. Royal Dutch Shell and Malaysia's Petronas were awarded the contract to exploit the Majnoon oil field in southern Iraq, one of the world's largest untapped oil fields with more than 12 billion barrels of proven reserves. They accepted a fee of 1.39 U.S. dollars per barrel.

The world's leading energy companies won rights to develop two major oil fields in Iraq at an auction on Friday. Royal Dutch Shell and Malaysia's Petronas were awarded the contract to exploit the Majnoon oil field in southern Iraq, one of the world's largest untapped oil fields with more than 12 billion barrels of proven reserves. They accepted a fee of 1.39 U.S. dollars per barrel.

Wildcat strikes spread to oil refineries and power plants across Britain on Tuesday, after hundreds of workers were sacked, media reports and company officials said. Thousands of workers demonstrated outside the Lindsey terminal in Lincolnshire, northeastern England, where almost 650 contract workers were sacked by French oil giant Total last week. "As far as we are concerned, they are victimised and locked-out people, and it is an official dispute from the moment those notices arrived," said Paul Kenny, head of the GMB union. In a statement, Total called for unions to resume talks over the sacking of 647 workers. "Total is actively encouraging talks to be opened between its contractors and the unions about how to facilitate the return to work of its contracting companies? former workforces," the French company said.

An Iraqi plan to award six no-bid contracts to Western oil companies, which came under sharp criticism from several United States senators this summer, has been withdrawn, participants in the negotiations said on Wednesday. Iraq's oil minister, Hussain al-Shahristani, told reporters at an OPEC summit meeting in Vienna on Tuesday that talks with Exxon Mobil, Chevron, Shell, Total, BP and several smaller companies for one-year deals, which were announced in June and subsequently delayed, had dragged on for so long that the companies could not now fulfill the work within that time frame. The companies confirmed on Wednesday that the deals had been canceled.

Federal investigators say government officials handling billions of dollars in oil royalties engaged in illicit sex with employees of energy companies, and received improper gifts. The alleged transgressions involve 13 Interior Department employees in Denver and Washington. Alleged improprieties include rigging contracts, working part-time as private oil consultants and having sexual relationships with - and accepting golf, ski trips and dinners from - oil company employees, according to three reports released Wednesday by the Interior Department's Inspector General.

SET Energy reports that China's power consumption has slumped dramatically as economic woes cut demand - China power generation falls record amount, keeping climate hope alive. Globalcoal.com reported today that Chinese power generation fell 7% in November from last year! Huge cuts in energy-intensive manufacturing (of aluminum, steel, etc.) and warmer than usual weather resulted in this record contraction in electricity production. The reduction in thermal plant output (mostly coal) fell an even more dramatic 14% from 2007. Thus greenhouse gas emissions in the 4th quarter of 2008 will probably be significantly below the year-ago level. This development brings hope that China, the world's largest carbon dioxide emitter, may be able to slow its greenhouse gas emission growth from the torrid pace of the past several years.

TomDispatch has a new article from Michael Klare on peak oil and America's upcoming energy challenges - America's Energy Crunch Comes Home. No other major power relies on getting so much of its energy from oil. Making that 40% figure especially daunting is this: the world supply of oil is about to contract. The competition for remaining supplies will then intensify, while most of what remains is located in inherently unstable regions, threatening to lead the U.S. into unceasing oil wars. Just how much of the world's untapped oil supply remains to be exploited, and how quickly we will reach a peak of sustainable daily world oil output, are matters of some contention, but recently the scope of debate on this question has narrowed appreciably.

One thing has been driving me crazy about this drilling debate - everyone seems to assume that if we drill for oil in the US, that we will get the oil. And hence, we won't be dependent on foreign oil anymore. But we won't get anything, Exxon-Mobil will. The oil that comes from that drilling will not be United States property (Republicans aren't suggesting we nationalize the oil companies, are they?). It will be the property of whichever oil company got the rights to that contract. They can then sell it to whoever they like - and they will. They will sell it on the world market, so the Chinese will have just as much access to the oil that comes out of the coast of Florida as we will.

A former colleague of the US Vice-President, Dick Cheney, has pleaded guilty to funnelling millions of dollars in bribes to win lucrative contracts in Nigeria for Halliburton, during the period in the Nineties when Mr Cheney ran the giant oil and gas services company. Albert Stanley, who was appointed by Mr Cheney as chief executive of Halliburton's subsidiary KBR, admitted using a north London lawyer to channel payments to Nigerian officials as part of a bribery scheme that landed some $6bn of work in the country over a decade.

Congress may outlaw elements of oil futures trading that lawmakers found distorted demand and contributed to the 69% surge in prices in the past year. US legislators are considering limits on the number of oil contracts an investor can hold and may increase disclosure requirements. Speculators such as Goldman Sachs Group use the practices to bet on price swings, which may drive up prices, though they have no intention of taking delivery of underlying goods, lawmakers say.

A group of American advisers led by a small State Department team played an integral part in drawing up contracts between the Iraqi government and five major Western oil companies to develop some of the largest fields in Iraq, American officials say.

"Russia is launching a new all-out offensive on the European energy market. President Dmitry Medvedev and Prime Minister Vladimir Putin have spent the past several days on individual tours through Europe, securing new natural-gas contracts and partners for Russian-built pipelines, clarifying Russian claims to oil and gas reserves in the Arctic, and searching for clients ready to pay for Russia's nuclear-plant technology. On April 27, Medvedev concluded a two-day trip to Oslo, where he and Norwegian leaders agreed on a plan to delimit their Arctic maritime border. The decision -- combined with recent melting of Arctic ice -- paves the way for the area to be opened for oil and gas exploration. The deal is a long-awaited achievement for Russia. In 2008, Medvedev called the Arctic "Russia's resource base of the 21st century." Some energy experts estimate that up to 25 percent of the planet's oil and gas reserves lie beneath the Arctic's Barents Sea. "

AP reports that falling natural gas prices in the US are making residential consumers happy for the time being, but notes that unconventional (shale) gas drilling has fallen off a cliff in recent months - Homes that use natural gas for heat could save big. The 60 million American homes that rely on natural gas for heat can expect substantially lower bills next winter thanks to a glut in supply and the weak economy. Just as distributors start to lock in contracts for the coming winter, natural gas prices have fallen almost 75 percent. Not all of that will show up as savings on the heating bill, but it should still mean noticeable savings. Utilities also generate about a fifth of the nation's electricity with gas, and many of their customers should notice price breaks as well.