MasterEnergy News

Europe’s biggest energy users warn soaring costs will hit competitiveness

Thu, 23 Dec 2021 14:49:11 GMT

Concerns rise as gas prices jumped to records this week after reduced Russian imports increased winter demand

Four trends that defined the 2021 energy sector

Thu, 23 Dec 2021 12:00:47 GMT

Plus, what Leonardo DiCaprio and Jennifer Lawrence’s space collision movie has to do with climate change

UK energy industry warns domestic bills may soar 50% next year and urges government action

Thu, 23 Dec 2021 11:57:00 GMT

"We need action from the UK Treasury on this huge inflationary risk to business and economic security, and for all the ordinary people who will be facing a 50% increase in their bill," said Emma Pinchbeck, head of Energy UK

Billionaire businessman targets UK listing for ‘caviar of iron ore’ project

Thu, 23 Dec 2021 11:47:39 GMT

Mining magnate Robert Friedland says London is the ‘natural place’ to list Nimba deposit

US Oil & Gas updates on funding effort

Thu, 23 Dec 2021 10:17:00 GMT

The company intends to cut certain costs by up to 80% from 31 December

China merges 3 rare earths miners to strengthen dominance of sector

Thu, 23 Dec 2021 09:23:55 GMT

New entity hailed as ‘aircraft carrier’ of its industry for its market power and strategic importance

Empyrean Energy set for 'exciting time' as drilling to start at Jade prospect in new year

Thu, 23 Dec 2021 08:30:00 GMT

Empyrean said preparations are on track for the start of drilling at its Jade prospect.

Plexus wins wellhead technology order from North Sea operator

Thu, 23 Dec 2021 07:27:00 GMT

The equipment is scheduled for delivery in the second quarter of 2022

Kinetiko Energy secures first offtake in transition to South African gas producer

Thu, 23 Dec 2021 01:43:00 GMT

“Sales of gas under the JV will substantially assist KKO’s target of converting its established 4.9 trillion cubic feet (TcF) contingent gas resource into first reserves,” says executive chair.

Gas price rises creating ‘national crisis’ in UK, energy companies warn

Wed, 22 Dec 2021 14:53:48 GMT

Good Energy and EDF press for urgent government intervention to protect customers and suppliers

Madagascar Oil set for quick cash flows as it advances a ‘big field with big potential’

Wed, 22 Dec 2021 14:52:00 GMT

“Currently we have a first strike plan to de-bottleneck the production facility to generate quick revenue and cash flow," said chairman Al Njoo.

Chariot raises US$2mln in significantly oversubscribed open offer

Wed, 22 Dec 2021 13:58:00 GMT

The open offer equity funding was very well supported by investors.

Rio Tinto adds to lithium business with $825m Argentina deal

Wed, 22 Dec 2021 13:10:15 GMT

Miner announces first major acquisition since purchase of ill-fated coal project in 2011

The search for climate-savvy board directors

Wed, 22 Dec 2021 12:00:35 GMT

Plus, the growing list of investors in tree-planting fintech Aspiration

Madagascar Oil on opportunity and plan to develop the field incrementally

Wed, 22 Dec 2021 09:02:00 GMT

Touchstone Exploration expands credit facility up to US$30mln

Wed, 22 Dec 2021 07:55:00 GMT

“The amended loan agreement provides enhanced financial flexibility at attractive after-tax pricing,” the company said

Advance Energy says 'transformational' drilling in East Timor well to begin 'within one week'

Wed, 22 Dec 2021 07:44:00 GMT

The Valaris JU-107 rig is now en-route to the site, investors were told

Europa Oil & Gas 'excited' by geothermal clean heat project at UK's West Firsby site

Wed, 22 Dec 2021 07:42:00 GMT

“This project has significant implications for Europa and could result in some of our well stock being repurposed to generate emission free geothermal energy," said Europa chief executive Simon Oddie

England’s water groups slashed investment in sewage network in recent decades

Wed, 22 Dec 2021 05:00:43 GMT

Spending on crucial infrastructure such as new pipes has fallen by up to a fifth since 1990s

The old lessons from gold’s new existential crisis

Wed, 22 Dec 2021 04:00:42 GMT

A combination of crypto and climate means the industry is left trying to justify its own existence

Kyrgyzstan says it seized mine over alleged environmental and safety breaches

Tue, 21 Dec 2021 18:58:37 GMT

Bishkek justifies taking control of Kumtor, the country’s most valuable asset, from Canadian owner

European gas prices shoot to new high as energy crunch worsens

Tue, 21 Dec 2021 18:47:55 GMT

‘Astounding’ rally comes after flows from key Russian pipeline stop and buyers rush to secure supplies

Aker BP agrees $14bn takeover of petroleum activities of rival Lundin

Tue, 21 Dec 2021 16:50:44 GMT

Cash and shares deal will create Europe’s largest independent oil producer

Ships carrying natural gas head for Europe as prices surge to new high

Tue, 21 Dec 2021 16:09:36 GMT

Vessels initially bound for Asia reroute mid-voyage as European supply crunch worsens

Touchstone Exploration extend well test at Royston as latest result indicates 'commerciality'

Tue, 21 Dec 2021 12:14:00 GMT

Persistent gender gap plagues the energy sector

Tue, 21 Dec 2021 12:00:41 GMT

Plus, after Manchin scuttled ‘Build Back Better’, what’s next for Biden’s clean energy plans?

Energy bills tipped to increase by over 50% to £2,000 in April

Tue, 21 Dec 2021 11:49:00 GMT

Since 26 August, 26 energy suppliers have gone bust in the UK, which has impacted approximately 4mln households and marks the worst crisis in the sector for 20 years

i3 Energy present their 2022 budget 'to maintain healthy cashflow and pay dividends'

Tue, 21 Dec 2021 09:39:00 GMT

Touchstone Exploration plans extended well test at Royston as latest result indicates commerciality

Tue, 21 Dec 2021 07:44:00 GMT

"This third test confirms the commerciality of the newly discovered light oil pool at Royston,” said chief executive Paul Baay.

US needs to lead the way in building a new energy supply chain

Tue, 21 Dec 2021 05:00:35 GMT

We can increase reliance on authoritarian regimes or take bold action to close the supply and demand gap for critical minerals

US-China gas deals defy tensions between world powers

Tue, 21 Dec 2021 00:31:34 GMT

Cnooc locks in 20-year LNG contract with exporter Venture Global as global fuel prices surge

Data For 12/20/21

Mon, 20 Dec 2021 23:31:48 GMT

Summary Excerpt:

Regular Gasoline Retail Price
(Dollars per Gallon)
3.295 .. U.S.
3.257 ... East Coast
3.384 .... New England
3.442 .... Central Atlantic
3.111 .... Lower Atlantic
3.051 ... Midwest
2.938 ... Gulf Coast
3.409 ... Rocky Mountain
4.146 ... West Coast
3.734 ... West Coast less California

States
4.503 .... California
3.286 .... Colorado
3.169 .... Florida
3.350 .... Massachusetts
3.072 .... Minnesota
3.438 .... New York
2.977 .... Ohio
2.890 .... Texas
3.749 .... Washington

Cities
3.350 .... Boston
3.383 .... Chicago
3.186 .... Cleveland
3.230 .... Denver
2.858 .... Houston
4.462 .... Los Angeles
3.168 .... Miami
3.387 .... New York City
4.647 .... San Francisco
3.892 .... Seattle

On-Highway Diesel Fuel Retail Price
(Dollars per Gallon)
3.626 .. U.S.
3.611 ... East Coast
3.633 .... New England
3.792 .... Central Atlantic
3.496 .... Lower Atlantic
3.492 ... Midwest
3.339 ... Gulf Coast
3.731 ... Rocky Mountain
4.381 ... West Coast
3.941 ... West Coast less California
4.768 .... California

ClearVue Technologies: 'Helping create more sustainable, energy efficient buildings of the future'

Mon, 20 Dec 2021 22:41:00 GMT

UK households’ typical energy bill could reach £2,000 a year, says Investec

Mon, 20 Dec 2021 18:47:01 GMT

Investment bank’s estimate is 5% higher than other recent forecasts

European natural gas prices rise further as freezing weather arrives

Mon, 20 Dec 2021 16:24:49 GMT

Declining flow through key Russian pipeline has also pushed prices higher, analysts say

Hurricane Energy sees another down day as bond deadline looms

Mon, 20 Dec 2021 14:30:00 GMT

A look at the major movers on the London market on Monday

Gore Street Energy posts “significant” NAV rise after strong portfolio growth

Mon, 20 Dec 2021 10:17:00 GMT

The energy storage fund said its deal pipeline stands at 1.2GW with 581MW actively under negotiation

Plexus Holdings can be “an essential contributor to the green revolution”

Mon, 20 Dec 2021 08:49:00 GMT

The services firm holds its AGM, as a closed meeting, later today.

Providence Resources says an appraisal well will be essential at Barryroe

Mon, 20 Dec 2021 08:44:00 GMT

“We anticipate that a new appraisal well will provide excellent technical information to enable execution of the first phase of development of hydrocarbon resources at Barryroe.”

Zephyr Energy expects to complete North Dakota acquisition in January

Mon, 20 Dec 2021 08:18:00 GMT

“I am exceptionally proud of the company's achievements in 2021 - it was a period of intense activity and tremendous progress," said chief executive Colin Harrington.

Helium One extends Tanzania seismic programme after encouraging early results

Mon, 20 Dec 2021 08:08:00 GMT

"We are delighted with progress at our extended Phase Il 2D seismic campaign," said chief executive David Minchin.

i3 Energy to invest US$47mln to drill new Canadian wells in 2022

Mon, 20 Dec 2021 07:54:00 GMT

“The programme will target low risk, high return production," highlighted chief executive Majid Shafiq.

Rolls-Royce secures £85mln Qatar investment in its small nuclear reactor business

Mon, 20 Dec 2021 07:54:00 GMT

With the new technology, a single power station will occupy just a tenth of the size of a conventional nuclear generation site and power around a million homes

Genel Energy inks farm-out deal for Somaliland exploration venture

Mon, 20 Dec 2021 07:44:00 GMT

"Somaliland is a highly-prospective and largely unexplored region, with a compelling technical case for the drilling of a well,” said Genel technical director Mike Adams.

Rolls-Royce wins Qatar backing for mini nuclear reactor project

Mon, 20 Dec 2021 07:25:26 GMT

Sovereign fund to take 10% stake in project that is part of UK push for net zero carbon emissions by 2050

Largest US natural gas producer pushes exports as ‘green initiative’

Mon, 20 Dec 2021 05:00:53 GMT

EQT boss Toby Rice urges more American LNG sales as global coal use soars

Oil majors under pressure as activists circle

Mon, 20 Dec 2021 05:00:53 GMT

Investor campaigns target likes of ExxonMobil and Shell over energy transition plans

Nest dumps ExxonMobil over climate change risks

Mon, 20 Dec 2021 04:00:52 GMT

UK state-backed pension fund divests from five fossil fuel companies

Kinetiko Energy intersects significant gas at South African project

Mon, 20 Dec 2021 01:00:00 GMT

The company observed significant gas flows under choked conditions, with gas sensed throughout the entire drilling of the production section from 130 metres onwards.

Dominic Barton appointed Rio Tinto chair

Sun, 19 Dec 2021 22:27:43 GMT

Former McKinsey boss will succeed Simon Thompson after leaving his post as Canada’s ambassador to China

Shipping industry needs to pull on every lever to go green

Sun, 19 Dec 2021 11:43:17 GMT

Head of marine engine maker says there is no silver bullet for one of the most polluting industries

Italy’s wind turbine refuseniks given blunt message

Sun, 19 Dec 2021 05:00:30 GMT

Accept new infrastructure or the lights will go out, warns energy transition chief

Christmas week but can anyone enjoy it? UK GDP, Gore Street and of course Omicron to feature

Fri, 17 Dec 2021 15:35:00 GMT

It's going to be a quiet week so plenty of time for celebrating ...ah

Pantheon Resources sets out plans for Theta west and Taltiha projects on Alaska’s North Slope

Fri, 17 Dec 2021 14:55:00 GMT

QinetiQ looks attractive to Citi after contract problems

Fri, 17 Dec 2021 14:06:00 GMT

The high-tech defense group’s share price rose 4.7% on Friday to 256.4p

U.S. electric power sector's use of water continued its downward trend in 2020

Fri, 17 Dec 2021 13:00:00 GMT

The U.S. electric power sector's cooling water withdrawals fell 10.5% from 53.1 trillion gallons in 2019 to 47.5 trillion gallons in 2020, continuing the downward trend in withdrawals. The decline has been driven by the increased use of renewable and natural gas-fired generation in place of coal-fired generation, as well as less use of once-through cooling technologies.

ATOME Energy intends to be at the forefront of green hydrogen innovation

Fri, 17 Dec 2021 11:07:00 GMT

ATOME Energy is scheduled to start trading on 30 December on AIM with a value of £26mln

Meet the EQTEC Directors for their year in review: Growth in 2021

Fri, 17 Dec 2021 10:26:00 GMT

Pantheon Resources gets green light for Alaska development

Fri, 17 Dec 2021 08:31:00 GMT

“We are pleased to receive formal approval of our Plans of Operations at Theta West and Talitha and continue to work closely with the State of Alaska to finalise the remaining applications"

Empyrean Energy fully funded to drill Jade after £7.6mln raise

Thu, 16 Dec 2021 15:17:00 GMT

A placing at 6p raised £3.62mln with a further £4mln coming from a convertible loan

EIA forecasts U.S. natural gas production will establish a new monthly record high in 2022

Thu, 16 Dec 2021 13:00:00 GMT

In our December Short-Term Energy Outlook (STEO), we forecast that U.S. dry natural gas production will increase from 95.1 billion cubic feet per day (Bcf/d) in October 2021 to 97.5 Bcf/d by December 2022, a new record. The previous monthly record of 97.2 Bcf/d was set in November 2019.

Retail investors still keen on ESG funds, research finds

Thu, 16 Dec 2021 12:14:00 GMT

15% of those surveyed say they would invest in funds that have a strong ESG stance

Plexus and Schlumberger arm Cameron expand wellhead engineering arrangement

Thu, 16 Dec 2021 10:56:00 GMT

The variation agreement extends the territory of the licence to worldwide

AFC Energy expects to follow "transformational" year with raft of fuel cell deployments in 2022

Thu, 16 Dec 2021 09:56:00 GMT

The company said it “is now confident that it affords maximum optionality to its customers in fuelling in a way that no other fuel cell technology can”

Petrofac says Covid disruption continues to impact construction arm

Thu, 16 Dec 2021 09:38:00 GMT

Petrofac reports strong Earnings per share (EPS) performance in its pre-close trading update for the year ending 31 December 2021.

EQTEC strikes deal with H2 Energy Solutions and strengthens ties with MetalNRG

Thu, 16 Dec 2021 09:23:00 GMT

EQTEC and H2 will collaborate to develop opportunities for deployment of waste-to-hydrogen capabilities in Germany and Turkey

Europa Oil & Gas says Lincolnshire's Wressle well exceeds expectations

Thu, 16 Dec 2021 08:32:00 GMT

Europa said Wressle continues to exceed expectations

Schroders confirms talks with Greencoat Capital

Thu, 16 Dec 2021 08:29:00 GMT

Schroders confirms it's in talks with Greencoat Capital

Union Jack Oil says latest update reveals 'tangible confirmation of progress'

Thu, 16 Dec 2021 08:17:00 GMT

The highlight of the statement was the performance of the Wressle onshore well, which is performing well ahead of expectations in spite of flowing under a highly restricted choke

Chariot rig arrival highlights high-impact Anchois drilling says broker

Wed, 15 Dec 2021 15:20:00 GMT

Peel Hunt expects drilling operations on the Anchois 2 appraisal/exploration well to commence immediately.

Of the operating U.S. coal-fired power plants, 28% plan to retire by 2035

Wed, 15 Dec 2021 13:00:00 GMT

Although coal-fired power plants have no mandatory retirement age, power plant owners and operators have reported to EIA that they plan to retire 28%, or 59 gigawatts (GW), of the coal-fired capacity currently operating in the United States by 2035. As of September 2021, 212 GW of utility-scale coal-fired electric-generating capacity was operating in the United States, most of which was built in the 1970s and 1980s, according to our Preliminary Monthly Electric Generator Inventory.

Red Rock Resources' drilling campaign in Victoria, Australia, with NBGC JV begins

Wed, 15 Dec 2021 12:14:00 GMT

Red Rock Resources says NBGC jv started its maiden drilling campaign in Victoria, Australia

Wed, 15 Dec 2021 11:03:00 GMT

The joint venture was also granted a new 489 km2 exploration licence in Victoria

Energy companies face stress tests to avoid repeat of gas price chaos

Wed, 15 Dec 2021 08:55:00 GMT

Ofgem has been heavily criticised for its response to the UK energy crisis

Chariot says 'potentially transformational' two-well programme offshore Morocco set to kick off

Wed, 15 Dec 2021 07:52:00 GMT

The Stena Don drillship is now onsite, investors were told

EIA data show the U.S. manufacturing sector increasing energy efficiency and production

Tue, 14 Dec 2021 17:00:00 GMT

The U.S. manufacturing sector was using 26% less energy in 2018 to produce goods domestically than it was using in 1998, according to data from the U.S. Energy Information Administration's (EIA) Manufacturing Energy Consumption Survey (MECS). The U.S. manufacturing sector's gross output also increased 12% over the same period.

BAE Systems and QinetiQ downgraded by Wall Street bank on US defence sector concerns

Tue, 14 Dec 2021 15:35:00 GMT

The move by JP Morgan had only a modest impact on the respective share prices

Nu-Oil and Gas to delay closing of IPO amid rising Covid-19 restrictions

Tue, 14 Dec 2021 13:39:00 GMT

Admission to the standard segment of the London Stock Exchange is still expected to occur on or before 24 January

Higher wages in China increase consumer demand but have a limited effect on energy use

Tue, 14 Dec 2021 13:00:00 GMT

In the International Energy Outlook 2021 (IEO2021), Issues in Focus: Changes in Composition of Economic Growth in China, we compared the IEO2021 Reference case with the Higher China Wages case—a case in which we assumed that a smaller working-age population will result in a faster increase in wages through 2050. We compared these cases to better understand the potential economic outcomes in China and the associated energy use in each case.

EQTEC adds carbon credit partner to California forest project

Tue, 14 Dec 2021 12:57:00 GMT

It is the first forest biomass plant in California to join the Carbonfuture scheme

HSBC to phase out financing of thermal coal by 2030 in EU/OECD, by 2040 worldwide

Tue, 14 Dec 2021 12:39:00 GMT

The bank said it intends to reduce its exposure to thermal coal financing by at least 25% by 2025 and by 50% by 2030

Getech and SGN agree first hydrogen hub site in Inverness

Tue, 14 Dec 2021 12:02:00 GMT

The site will be built in Inverness and is expected to scale up to 8 tonnes of hydrogen per day

Teesside chosen for huge new battery storage facility

Tue, 14 Dec 2021 11:59:00 GMT

The Singapore-based group already owns around 1GW of power and storage assets in the UK

Challenger Energy seeks debt-free financial footing

Tue, 14 Dec 2021 06:58:00 GMT

BPC is a Caribbean and Atlantic margin focused oil and gas company, with a range of exploration, appraisal, development and production assets.

Challenger Energy Group to slash debt and recharge the company ready for a productive 2022

Tue, 14 Dec 2021 06:58:00 GMT

Arrow Exploration announces West Pepper Well near Edson, Alberta brought on stream

Mon, 13 Dec 2021 22:54:00 GMT

Anglo-US company gets $35mln funding from Shell, United Airlines and Amazon

Mon, 13 Dec 2021 16:31:00 GMT

United Airlines, which has taken a stake, said the 100% hydrogen-electric engines could be fitted to existing regional aircraft by as soon as 2028

Challenger Energy says balance sheet restructuring cuts debt by 85%

Mon, 13 Dec 2021 14:13:00 GMT

Shares jumped 21% as the oil and gas company said it has cut its payables, debts and potential liability exposure from US$22mln to US$2.5mln

Less production and more demand have reduced U.S. jet fuel inventories

Mon, 13 Dec 2021 13:00:00 GMT

On November 26, U.S. jet fuel inventories were at their lowest level since late 2014, according to data in our Weekly Petroleum Status Report. Refineries produced less jet fuel in October compared with this summer, and since August, jet fuel demand has increased to near pre-pandemic levels. This increased demand, along with reduced production, has caused inventories to decline.

EQTEC forecasts strong revenue growth despite project deferrals

Mon, 13 Dec 2021 08:41:00 GMT

Total revenues for 2021 are now expected in a range of €8-10mln (2020: €2.2mln)

Advance Energy says rig handover at the Buffalo project now scheduled for late December

Mon, 13 Dec 2021 08:33:00 GMT

"These delays are part and parcel of the industry,",” said Leslie Peterkin, the chief executive officer of Advance Energy

Proactive Oil & Gas weekly highlights: Zephyr Energy, Pantheon Resources, 88 Energy and more

Sat, 11 Dec 2021 09:00:00 GMT

The Brent crude oil price decline on November 26 was among the largest in years

Fri, 10 Dec 2021 13:00:00 GMT

The front-month futures price for Brent crude oil decreased by $9.50 per barrel, or nearly 12%, on November 26 after the World Health Organization designated the SARS-CoV-2 Omicron variant as a variant of concern. Daily Brent crude oil prices have fallen by at least 10% on only 8 days since 2000.

EIA expects short-term crude oil prices to remain lower than the highs of 2021

Tue, 07 Dec 2021 17:00:00 GMT

The U.S. Energy Information Administration (EIA) forecasts that global oil production will increase more quickly than demand in 2022, pushing crude oil and petroleum product prices lower than in late 2021. Brent crude oil prices averaged $81 per barrel in November, but they closed the month at $70 per barrel.

EIA analysis projects carbon fees would decrease U.S. carbon dioxide emissions through 2050

Wed, 17 Nov 2021 17:00:00 GMT

Carbon fees as high as $35 per metric ton could decrease U.S. energy-related carbon dioxide (CO2) emissions by as much as 19% compared to 2020 levels, according to analysis from the U.S. Energy Information Administration (EIA). In its Analysis of Carbon Fee Runs Using the Annual Energy Outlook 2021, EIA projects that U.S. energy-related CO2 emissions would decrease the most in the first 5-10 years but decrease at a significantly slower rate beyond that period.

#Trafigura chief asks Where’s the #Gas? Where’s the #Oil?

noreply@blogger.com (Unknown) — Tue, 16 Nov 2021 11:23:00 GMT

Europe is not storing enough gas to get it through a cold winter, leading Trafigura chief to warn of rolling power outages in Europe this winter.

As for Oil, "We are not seeing the replacement of reserves. Oil has gone from a 15-year reserve life to a 10-year reserve life in a short period of time," he said.

See the full article on the Financial Times here: https://on.ft.com/3HCuemX

bit.ly/MasterEnergyBlog

#Trafigura chief asks Where’s the #Gas? Where’s the #Oil?

noreply@blogger.com (Unknown) — Tue, 16 Nov 2021 11:23:00 GMT

Europe is not storing enough gas to get it through a cold winter, leading Trafigura chief to warn of rolling power outages in Europe this winter.

As for Oil, "We are not seeing the replacement of reserves. Oil has gone from a 15-year reserve life to a 10-year reserve life in a short period of time," he said.

See the full article on the Financial Times here: https://on.ft.com/3HCuemX

bit.ly/MasterEnergyBlog

EIA expects volatile natural gas prices this winter because of uncertainty about weather

Tue, 09 Nov 2021 17:00:00 GMT

After extreme cold in February led to lower-than-average natural gas storage levels in the United States through the summer, concerns about winter weather are contributing to volatile natural gas prices as the winter heating season begins. In its November Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) estimates that U.S. natural gas storage levels had built to within 3% of the previous five-year average at the end of October.

#GreenEnergy’s First Big #Energy Shock

noreply@blogger.com (Unknown) — Mon, 18 Oct 2021 09:39:00 GMT

The first big energy shock of the green era | The Economist

The Transition to #Renewables' Bumpy Road Ahead

Since May the price of a basket of oil, coal and gas has soared by 95%.

- Britain, host of the COP26 summit, has turned its coal-fired power stations back on

- Vladimir Putin just reminded Europe that its supply of fuel relies on Russian goodwill.

- US Gas prices have hit $3 a gallon

- Blackouts have engulfed China and India.

From The Economist

Green Energy's First Energy Shock

NEXT MONTH as world leaders gather at the COP26 summit pledging to set a course for net global carbon emissions to reach zero by 2050, the first big energy scare of the green era is unfolding before their eyes.

The panic is a reminder that modern life needs abundant energy: without it, bills become unaffordable, homes freeze and businesses stall.

The panic has also exposed deeper problems as the world shifts to a cleaner energy system, including inadequate investment in renewables and some transition fossil fuels, rising geopolitical risks and flimsy safety buffers in power markets. Without rapid reforms there will be more energy crises and, perhaps, a popular revolt against climate policies.

The idea of such a shortage seemed ridiculous in 2020 when global demand dropped by 5%, the most since the second world war, triggering cost-cutting in the energy industry. But as the world economy has cranked back up, demand has surged even as stockpiles have run dangerously low. Oil inventories are only 94% of their usual level, European gas storage 86%, and Indian and Chinese coal below 50%.

Tight markets are vulnerable to shocks and the intermittent nature of some renewable power. The list of disruptions includes routine maintenance, accidents, too little wind in Europe, droughts that have cut Latin American hydropower output, and Asian floods that have impeded coal deliveries. The world may yet escape a severe energy recession: the glitches may be resolved and Russia and OPEC may grudgingly boost oil and gas production. At a minimum, however, the cost will be higher inflation and slower growth. And more such squeezes may be on the way.

That is because three problems loom large. First, energy investment is running at half the level needed to meet the ambition to reach net zero by 2050. Spending on renewables needs to rise. And the supply and demand of dirty fossil fuels needs to be wound down in tandem, without creating dangerous mismatches. Fossil fuels satisfy 83% of primary-energy demand and this needs to fall towards zero. At the same time the mix must shift from coal and oil to gas which has less than half the emissions of coal. But legal threats, investor pressure and fear of regulations have led investment in fossil fuels to slump by 40% since 2015.

See the full article online here: https://www.economist.com/leaders/2021/10/16/the-first-big-energy-shock-of-the-green-era?

bit.ly/MasterEnergyBlog

#GreenEnergy’s First Big #Energy Shock

noreply@blogger.com (Unknown) — Mon, 18 Oct 2021 09:39:00 GMT

The first big energy shock of the green era | The Economist

The Transition to #Renewables' Bumpy Road Ahead

Since May the price of a basket of oil, coal and gas has soared by 95%.

- Britain, host of the COP26 summit, has turned its coal-fired power stations back on

- Vladimir Putin just reminded Europe that its supply of fuel relies on Russian goodwill.

- US Gas prices have hit $3 a gallon

- Blackouts have engulfed China and India.

From The Economist

Green Energy's First Energy Shock

The panic is a reminder that modern life needs abundant energy: without it, bills become unaffordable, homes freeze and businesses stall.

See the full article online here: https://www.economist.com/leaders/2021/10/16/the-first-big-energy-shock-of-the-green-era?

bit.ly/MasterEnergyBlog

EIA forecasts higher U.S. heating bills this winter

Wed, 13 Oct 2021 17:00:00 GMT

The U.S. Energy Information Administration (EIA) expects that U.S. households will spend more money on heating costs this winter and consume more energy to keep homes warm. In its Winter Fuels Outlook, EIA forecasts an increase in average heating prices this winter for all regions of the United States and all heating fuels under a wide variety of weather conditions.

Another #Chart Ruined 🙄 #NatGas

noreply@blogger.com (Unknown) — Fri, 08 Oct 2021 13:55:00 GMT

HT @EdVanDerWalt

Here’s non log #Crude #Oil #charts $CL #OOTT pic.twitter.com/SmAyPKxocQ
— MasterEnergy (@MasterEnergyRSS) October 6, 2021

__________________________________

https://bit.ly/MasterEnergyBlog
https://bit.ly/MasterEnergyRSS

Another #Chart Ruined 🙄 #NatGas

noreply@blogger.com (Unknown) — Fri, 08 Oct 2021 13:55:00 GMT

HT @EdVanDerWalt

Here’s non log #Crude #Oil #charts $CL #OOTT pic.twitter.com/SmAyPKxocQ
— MasterEnergy (@MasterEnergyRSS) October 6, 2021

__________________________________

https://bit.ly/MasterEnergyBlog
https://bit.ly/MasterEnergyRSS

EIA projects increases in global energy consumption and emissions through 2050

Wed, 06 Oct 2021 17:00:00 GMT

The U.S. Energy Information Administration (EIA) projects that, absent significant changes in policy or technology, world energy consumption will grow by nearly 50% between 2020 and 2050. In its International Energy Outlook 2021 (IEO2021), EIA projects that strong economic growth, particularly with developing economies in Asia, will drive global increases in energy consumption despite pandemic-related declines and long-term improvements in energy efficiency.

Media Advisory: EIA leaders discuss findings of International Energy Outlook 2021

Tue, 05 Oct 2021 17:00:00 GMT

U.S. Energy Information Administration (EIA) Acting Administrator Stephen Nalley will present findings from the International Energy Outlook 2021 (IEO2021) during a virtual event hosted by the Center for Strategic and International Studies (CSIS) in Washington, DC, on October 6, at 9:00 a.m. ET.

Crude #Oil & #Gas Prices as per September 28, 2021 #OOTT

noreply@blogger.com (Unknown) — Wed, 29 Sep 2021 09:38:00 GMT

1 Month
While crude oil has jumped 10% in the past month, gasoline prices in the US remain relatively flat.

3 Month

6 month

1 year

2 years

3 years

5 years

10 years

bit.ly/MasterEnergyBlog

Crude #Oil & #Gas Prices as per September 28, 2021 #OOTT

noreply@blogger.com (Unknown) — Wed, 29 Sep 2021 09:38:00 GMT

1 Month
While crude oil has jumped 10% in the past month, gasoline prices in the US remain relatively flat.

3 Month

6 month

1 year

2 years

3 years

5 years

10 years

bit.ly/MasterEnergyBlog

#Wind power: not such a breeze for investors

noreply@blogger.com (Unknown) — Mon, 27 Sep 2021 10:38:00 GMT

Slow wind speeds are one of the factors responsible for surging natural gas prices. This has revived nervousness over renewables encapsulated in the old question "how will we keep the lights on when the wind doesn't blow and the sun won't shine?"

See the whole article on the Financial Times here:

https://www.ft.com/content/91d1e900-9711-4e15-99cd-17e60fa61c88

#Wind power: not such a breeze for investors

noreply@blogger.com (Unknown) — Mon, 27 Sep 2021 10:38:00 GMT

See the whole article on the Financial Times here:

https://www.ft.com/content/91d1e900-9711-4e15-99cd-17e60fa61c88

EIA releases new data on U.S. commercial buildings

Tue, 21 Sep 2021 17:00:00 GMT

Commercial buildings in the United States are getting larger, and they more commonly include features like LED lighting and emerging technologies such as electric vehicle (EV) charging stations. According to the U.S. Energy Information Administration's Commercial Buildings Energy Consumption Survey (CBECS), the number of U.S. commercial buildings grew 6% from 2012 to 2018, and the total floorspace of commercial buildings increased by 11%.

#Nigeria enacts long-delayed law cutting taxes on #energy companies in its push to almost triple production in just over three years!?!

noreply@blogger.com (Unknown) — Thu, 09 Sep 2021 12:25:00 GMT

Nigeria finally enacted a long-delayed law cutting taxes levied on energy companies to more globally competitive levels, in its push to increase Oil production more than 2X by 2025 (!).

Something that is quite doubtful that it could be achieved: To almost triple production in just over three years!?!

Production royalties will now range from 5% to 15%, depending on where fields are located, down from the previous range of 7.5% to 20%.

Nigeria currently pumps about 1.5 million barrels of oil a day. That's down from a peak of 2.5 million in 2005.

The decline is attributed to a lack of investment in new wells, oil theft and its adherence to quotas set by OPEC.

The country attracted just 4% of the $70 billion committed to Africa's oil and gas sector from 2015 to 2019, partly due to uncertainty over its regulatory environment, according to accounting firm KPMG.

President Muhammadu Buhari's administration is banking on an influx of capital to boost production to 4 million barrels a day by 2025. Any such increase could cause heat with other members of OPEC+, which limits supply to keep prices up. —And is quite doubtful it could be achieved in just over three years!?!

See the whole article on Bloomberg here: Nigeria Races to Extract Its Oil Before It's Too Late -https://www.bloomberg.com/news/articles/2021-09-02/nigeria-races-to-extract-its-oil-before-it-s-too-late-quicktake?

#Nigeria enacts long-delayed law cutting taxes on #energy companies in its push to almost triple production in just over three years!?!

noreply@blogger.com (Unknown) — Thu, 09 Sep 2021 12:25:00 GMT

Nigeria finally enacted a long-delayed law cutting taxes levied on energy companies to more globally competitive levels, in its push to increase Oil production more than 2X by 2025 (!).

Something that is quite doubtful that it could be achieved: To almost triple production in just over three years!?!

Production royalties will now range from 5% to 15%, depending on where fields are located, down from the previous range of 7.5% to 20%.

Nigeria currently pumps about 1.5 million barrels of oil a day. That's down from a peak of 2.5 million in 2005.

The decline is attributed to a lack of investment in new wells, oil theft and its adherence to quotas set by OPEC.

EIA expects higher natural gas prices as production reductions remain following Hurricane Ida

Wed, 08 Sep 2021 17:00:00 GMT

The U.S. Energy Information Administration expects that natural gas prices will remain higher in the coming months following Hurricane Ida. In its September Short-Term Energy Outlook (STEO), EIA forecast fourth-quarter Henry Hub spot prices to average $4.00 per million British thermal units (MMBtu), a 16% increase from its August forecast.

#Venezuela's #PDVSA cedes stake in Dominican #oil refinery in #debt swap

noreply@blogger.com (Unknown) — Fri, 20 Aug 2021 19:19:00 GMT

Far below the $135 million PDVSA paid for the minority stake in Refidomsa in 2010 as part of former Venezuelan President Chavez' efforts at boosting the OPEC member's influence in the Caribbean through petrodiplomacy.

Venezuelan state oil company PDVSA has given up its 49% stake in a Dominican refinery as part of a swap for some of its defaulted bonds, the Dominican Republic's finance ministry and Venezuela's oil minister said in statements thsi week.

The transaction represents a small breakthrough between the company and its creditors as U.S. sanctions, aimed at ousting Venezuelan President Nicolas Maduro, complicate efforts to restructure billions of dollars in debt that PDVSA and the government have defaulted on amidst an economic collapse.

As part of the deal, PDVSA subsidiary PDV Caribe S.A. first swapped its shares in the 34,000 barrel-per-day (bpd) Refidomsa refinery for bonds held by a company named PATSA Ltd, a unit of Dominican cocoa company Grupo Rizek, which the finance ministry described as a "facilitator" of the transaction.

PATSA then immediately sold the shares to the Dominican government, which already owned the remaining 51% stake in the plant, for 74 million euros ($88.1 million). The plant is now fully-owned by the Dominican government.

That was far below the $135 million PDVSA paid for the minority stake in Refidomsa in 2010 as part of the late former Venezuelan President Hugo Chavez' efforts at boosting the OPEC member's influence in the Caribbean through petrodiplomacy. PDVSA has neither sent crude to the refinery, nor received refined products from the plant, for several years.

Venezuelan oil minister Tareck El Aissami said in a statement posted to Twitter that Venezuela and PDVSA reduced its outstanding debt as a result of the deal, without providing details.

________________________

Venezuela's PDVSA cedes stake in Dominican oil refinery in debt swap:

#Venezuela's #PDVSA cedes stake in Dominican #oil refinery in #debt swap

noreply@blogger.com (Unknown) — Fri, 20 Aug 2021 19:19:00 GMT

Venezuelan oil minister Tareck El Aissami said in a statement posted to Twitter that Venezuela and PDVSA reduced its outstanding debt as a result of the deal, without providing details.

________________________

Venezuela's PDVSA cedes stake in Dominican oil refinery in debt swap:

U.S. large-scale battery storage power capacity increased 35% in 2020

Mon, 16 Aug 2021 17:00:00 GMT

The United States continued a trend of significant growth in large-scale battery capacity, with U.S. battery power capacity reaching 1,650 megawatts (MW) by the end of 2020. According to EIA's report, Battery Storage in the United States: An Update on Market Trends, U.S. battery power capacity grew by 35% in 2020 and has tripled in the last five years.

EIA expects 7% increase in U.S. energy-sector carbon dioxide emissions as economic activity increases during 2021

Tue, 10 Aug 2021 17:00:00 GMT

Increased economic activity and a changing fuel mix in the electric power sector in 2021 will lead to a significant increase in energy-related carbon dioxide emissions this year, according to the U.S. Energy Information Administration's (EIA) August Short-Term Energy Outlook (STEO). After decreasing by 11% in 2020, U.S. energy-related CO2 emissions will increase by 7% to reach 4.9 billion metric tons this year.

Crude #Oil & #Gasoline Prices for August 09, 2021 #OOTT

noreply@blogger.com (Unknown) — Mon, 09 Aug 2021 08:25:00 GMT

Crude and gas prices traded sideways this past week. Will we see more price action this week after #Gold's flash crash?

https://masterenergyblog.blogspot.com/p/oil-prices.html?

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Crude #Oil & #Gasoline Prices for August 09, 2021 #OOTT

noreply@blogger.com (Unknown) — Mon, 09 Aug 2021 08:25:00 GMT

Crude and gas prices traded sideways this past week. Will we see more price action this week after #Gold's flash crash?

https://masterenergyblog.blogspot.com/p/oil-prices.html?

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Crude #Oil Price for August 2, 2021 #MasterEnergy #OOTT

noreply@blogger.com (Unknown) — Mon, 02 Aug 2021 10:40:00 GMT

Crude's 10% rise in the last month has been barely noticeable in the retail price for gasoline in the US.
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MasterEnergy
@MasterEnergyRSS

Crude #Oil Price for August 2, 2021 #MasterEnergy #OOTT

noreply@blogger.com (Unknown) — Mon, 02 Aug 2021 10:40:00 GMT

Crude's 10% rise in the last month has been barely noticeable in the retail price for gasoline in the US.
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MasterEnergy
@MasterEnergyRSS

EIA expects growth in electricity sales and generation from renewables through 2022

Wed, 07 Jul 2021 17:00:00 GMT

EIA forecasts U.S. retail sales of electricity will increase by 2.8% in 2021, led by a 5.1% increase in sales to the industrial sector. In the most recent release of our Short-Term Energy Outlook (STEO), we forecast electricity sales will also grow in the commercial sector, though at a slower rate of 2.1%, as many workers continue working from home.

#Crude #Oil &#Gasoline Prices

noreply@blogger.com (Unknown) — Fri, 25 Jun 2021 08:19:00 GMT

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#Crude #Oil &#Gasoline Prices

noreply@blogger.com (Unknown) — Fri, 25 Jun 2021 08:19:00 GMT

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EIA expects Brent crude oil prices to stabilize then decline as global oil production increases

Tue, 08 Jun 2021 17:00:00 GMT

EIA forecasts in the June release of its Short-Term Energy Outlook (STEO) that global Brent crude oil prices will stabilize in mid-2021 and average about $68 per barrel (b) in the third quarter before decreasing to an average of $60/b in 2022. Brent crude oil prices averaged $68/b in May, a 25% increase from January's average.

#Crude #Oil & #Gasoline Prices Continue their Rally Into the Reopening June 03, 2021 #OOTT

noreply@blogger.com (Unknown) — Thu, 03 Jun 2021 12:05:00 GMT

Prices Continue their Rally Into the Reopening

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#Crude #Oil & #Gasoline Prices Continue their Rally Into the Reopening June 03, 2021 #OOTT

noreply@blogger.com (Unknown) — Thu, 03 Jun 2021 12:05:00 GMT

Prices Continue their Rally Into the Reopening

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#China’s new tax narrows #Venezuela’s @PDVSA #oil export options

noreply@blogger.com (Unknown) — Wed, 19 May 2021 09:48:00 GMT

from Argus media:

The new oil tax system announced by three Chinese government agencies on 14 May slaps a levy equivalent to nearly $30/bl on "diluted bitumen", the category through which Venezuelan crude is imported into China. Because Venezuelan crude is already subject to steep discounts reflecting sanctions risks and quality issues, the tax would wipe out a chunk of the sales margin for Venezuelan state-owned PdV and the intermediaries through which it operates. Even if Merey or look-alike grades such as Singma were rebranded as crude to avoid the new tax, the crude import quotas to which independent refiners are subject limits their ability to buy it.

https://www.argusmedia.com/en/news/2215810-new-chinese-tax-narrows-venezuelas-oil-export-options

#China’s new tax narrows #Venezuela’s @PDVSA #oil export options

noreply@blogger.com (Unknown) — Wed, 19 May 2021 09:48:00 GMT

from Argus media:

https://www.argusmedia.com/en/news/2215810-new-chinese-tax-narrows-venezuelas-oil-export-options

EIA expects changes in electricity generation and increased electricity use as economy improves

Tue, 11 May 2021 17:00:00 GMT

EIA expects U.S. electricity generation will look different this summer compared with last summer as rising natural gas costs drive many electricity generators to switch to renewables and coal.

#Crude #Oil Price. April’s been a great month! #OOTT

noreply@blogger.com (Unknown) — Fri, 30 Apr 2021 13:18:00 GMT

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#Crude #Oil Price. April’s been a great month! #OOTT

noreply@blogger.com (Unknown) — Fri, 30 Apr 2021 13:18:00 GMT

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#JPMorgan $JPM Pledges $2.5 Trillion Towards #GreenEnergy, Sustainability Effort

noreply@blogger.com (Unknown) — Sun, 18 Apr 2021 22:22:00 GMT

JPMorgan (JPM) Embarks on $2.5 Trillion Climate, Sustainability Effort - Bloomberg

- JPMorgan Chase & Co. 10 Year Goal includes $1 trillion for "green solutions"
- In 2020, JPMorgan facilitated $220 billion of financing to drive action on climate change and sustainable development, including more than $55 billion toward green initiatives
- Citigroup Inc. said it would back $1 trillion of similar efforts by 2030.

JPMorgan, Citi Pledge Trillions Toward Climate, Sustainability

Hannah LevittApril 15, 2021, 12:00 PM GMT+2

U.S. banks boost efforts to fight climate change amid pressure

JPMorgan Chase & Co. set a goal to finance $2.5 trillion in initiatives that combat climate change and advance sustainable development over the next 10 years, while Citigroup Inc. said it would back $1 trillion of similar efforts by 2030.

Combined with previous announcements by Bank of America Corp., the three largest U.S. lenders have all committed to backing more projects that advance a low-carbon economy amid calls by the White House for businesses to do more to curb pollution.

JPMorgan's commitment includes $1 trillion for projects that bolster cleaner energy sources, it said Thursday in a statement. The bank will also support developing countries as well as initiatives that advance economic inclusion. Citigroup said half its pledge will go toward environmental projects, including renewable energy, water conservation and sustainable agriculture. Much of the rest is aimed at education, affordable housing, gender equality and racial and ethnic diversity.

Eliminating emissions has become a major talking point for bank executives this year as the finance industry attracted greater scrutiny for funding the world's biggest emitters. Goldman Sachs Group Inc., Citigroup and Bank of America have all set net-zero greenhouse-gas emissions targets in their financing activities.

"Climate change and inequality are two of the critical issues of our time, and these new efforts will help create sustainable economic development that leads to a greener planet and critical investments in underserved communities," Jamie Dimon, JPMorgan's chief executive officer, said in the statement.

Still, JPMorgan remains the biggest funder of fossil-fuel companies globally, financing about $189 billion since the 2015 Paris climate agreement, according to data compiled by Bloomberg. Dimon wrote in his annual shareholder letter last week that "the solution is not as simple as walking away from fossil fuels."

JPMorgan said its commitment will also enable it to provide clients in the corporate and investment bank and commercial-banking businesses with centralized access to sustainability-focused financing, research and advisory s

Low-Carbon Transition

"It is important to set expectations around where we want to see our clients' emissions head over the next 10 years, but it's also really important that we support them in their low-carbon transition," Marisa Buchanan, JPMorgan's global head of sustainability, said in an interview. "That means coming to the table with capital."

In 2020, JPMorgan facilitated $220 billion of financing to drive action on climate change and sustainable development, including more than $55 billion toward green initiatives, according to the statement.

Read the whole piece on Bloomberg here:

https://www.bloomberg.com/news/articles/2021-04-15/jpmorgan-embarks-on-2-5-trillion-climate-sustainability-effort

#JPMorgan $JPM Pledges $2.5 Trillion Towards #GreenEnergy, Sustainability Effort

noreply@blogger.com (Unknown) — Sun, 18 Apr 2021 22:22:00 GMT

JPMorgan (JPM) Embarks on $2.5 Trillion Climate, Sustainability Effort - Bloomberg

- JPMorgan Chase & Co. 10 Year Goal includes $1 trillion for "green solutions"
- In 2020, JPMorgan facilitated $220 billion of financing to drive action on climate change and sustainable development, including more than $55 billion toward green initiatives
- Citigroup Inc. said it would back $1 trillion of similar efforts by 2030.

JPMorgan, Citi Pledge Trillions Toward Climate, Sustainability

Hannah LevittApril 15, 2021, 12:00 PM GMT+2

U.S. banks boost efforts to fight climate change amid pressure

Low-Carbon Transition

Read the whole piece on Bloomberg here:

https://www.bloomberg.com/news/articles/2021-04-15/jpmorgan-embarks-on-2-5-trillion-climate-sustainability-effort

EIA expects U.S. motor fuel consumption to increase this summer, but remain below 2019 levels

Tue, 06 Apr 2021 17:00:00 GMT

The U.S. Energy Information Administration (EIA) forecasts an increase in demand for petroleum products during the 2021 summer driving season as the impacts of COVID-19 diminish in the United States. EIAs annual Summer Fuels Outlook, released today with EIAs Short-Term Energy Outlook (STEO), expects a 15% increase in U.S. highway travel this summer but still less highway travel than in the summer of 2019.

#Crude #Oil Price for March 29, 2021

noreply@blogger.com (Unknown) — Mon, 29 Mar 2021 11:57:00 GMT

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#Crude #Oil Price for March 29, 2021

noreply@blogger.com (Unknown) — Mon, 29 Mar 2021 11:57:00 GMT

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U.S. Energy Information Administration to release new monthly biofuels data

Thu, 25 Mar 2021 17:00:00 GMT

The U.S. Energy Information Administration (EIA) announced today that it will release expanded monthly biofuels data through a new report—the Monthly Biofuels Capacity and Feedstocks Update. On March 31, 2021, EIA plans to publish the first edition of this report, which will contain January 2021 data. EIA will also modify petroleum and biofuel volumetric balances in the interactive Supply and Disposition summary data table in its Petroleum Navigator.

#Oil Executives Weigh Return to #Venezuela

noreply@blogger.com (Unknown) — Tue, 23 Mar 2021 23:58:00 GMT

Promises of more autonomy to tap the world’s biggest crude reserves are drawing the oil industry to meetings with the Nicolas Maduro regime.

Whether Maduro will succeed in luring some investment is still unclear. But one thing is certain: Oil companies have never had such leverage with him to negotiate a piece of the country’s more than 300 billion barrels of crude

Maduro’s government says his new energy law alone will allow oil companies to get back in business as they assume control of Venezuelan assets. That’s because the U.S. only bans doing business with PDVSA, the regime and those who help it. Oil ventures run by independent oil companies, in theory, wouldn’t be barred from developing crude reserves in the country.

Major oil companies would probably wait for sanctions to be lifted regardless, but others could jump in as soon as they can claim they’re operating independently from PDVSA and Maduro’s regime, and therefore not subject to sanctions

At a Hotel in Caracas, Oil Executives Weigh a Return to Venezuela

19 March 2021, 12:00 CET Updated on 19 March 2021, 17:03 CETA

Inside a chic lounge, oil lobbyists and executives rub shoulders as Spanish, French and Italian can be heard in the halls. This isn’t the ZaZa boutique hotel in Houston, where global energy top brass like to stay. It’s the Cayena Hotel in the Venezuelan capital of Caracas.

Drawn by promises of privatization and more autonomy to tap the world’s biggest crude reserves, they’re meeting with the Nicolas Maduro regime and state-owned Petroleos de Venezuela SA to best position themselves when doing business there is possible again. Bigger producers like Chevron Corp., France’s Total SE and Italy’s Eni SpA would probably wait until U.S. sanctions are lifted, but smaller players might get started whenever new rules opening up the industry for private enterprise take effect.

“I want to tell investors from the U.S. and around the world that Venezuela’s doors are open for oil investment,” Maduro said in a recent televised address.

The Cayena Hotel in the La Castellana neighborhood of Caracas.Photographer: Carolina Cabral Fernandez/Bloomberg

It’s a make-or-break moment for an impoverished nation that’s running out of fuel to haul food and cash to pay for imports of basic necessities. Whether Maduro will succeed in luring some investment is still unclear. But one thing is certain: Oil companies have never had such leverage with him to negotiate a piece of the country’s more than 300 billion barrels of crude.

“There is some easy potential to increase production if sanctions enforcement declines,” said Francisco Monaldi, a Venezuelan-American lecturer in energy economics at Rice University’s Baker Institute for Public Policy, and an expert on Venezuela’s oil industry. “After that, you need significant investments.”

The successor of the late Hugo Chavez, who infamously seized assets from Exxon Mobil Corp. and ConocoPhillips, is promising to pass a law that will officially end an oil monopoly in the hands of PDVSA, as the country’s ruined oil cash cow is known.

Executives representing oil companies are holding meetings to discuss what the terms would be under the new legislation, according to people with knowledge of the talks, who asked not to be named because they’re not authorized to comment on them in public.

Chevron, for one, is even getting in touch with contractors to assess how fast they could help the San Ramon, California-based company restart operations in the South American nation, one person said.

“Chevron will continue to comply with applicable laws and regulations in relation to the activities that it is authorized to undertake in Venezuela,” a spokesperson for the company said. “We remain committed to the integrity of our joint venture assets, the safety and wellbeing of our employees and their families, and the company’s social and humanitarian programs during these challenging times.”

Total didn’t return requests for comment, as didn’t Maduro’s Information Ministry, the Oil Ministry and PDVSA. Eni said none of its executives visited Caracas.

Maduro’s government says his new energy law alone will allow oil companies to get back in business as they assume control of Venezuelan assets. That’s because the U.S. only bans doing business with PDVSA, the regime and those who help it. Oil ventures run by independent oil companies, in theory, wouldn’t be barred from developing crude reserves in the country.
A cyclist rides past a mural of oil pump jacks on the Boulevard de Sabana Grande in Caracas.Photographer: Carlos Becerra/Bloomberg

There are people close to the government “eager to get some oil fields; I would expect there to be some privatizations,” Monaldi said. “They will try to invest in the wells that are the easiest to connect.”

Wilmer Ruperti, a Venezuelan-born shipping magnate, is among less-known entrepreneurs who have sought to do business with PDVSA in the past despite sanctions. Ruperti didn’t reply to requests for comment on potential investments under the proposed new rules.

Restoring Venezuela’s oil industry back to its former glory would likely take tens of billions of dollars, and that might never happen, but any business activity would help the country.

Once a prosperous OPEC-founding member that produced more than 3 million barrels a day of crude, the nation is now pumping less than half a million.

Oil Minister Tareck El Aissami recently vowed to boost production to 1.5 million this year, and that would be difficult to achieve without help. Monaldi estimates more than $100 billion and a decade of work would be required to get output past 2 million barrels a day.

“This means you need a ton of private investment,” he said.

An increase in oil output would not only buoy the economy but also raise capital to ultimately pay off creditors holding roughly $60 billion of defaulted obligations.

So, executives from the oil industry and capital markets have also been pleading their case to officials in Washington, people familiar with those discussions said. Their message: If others are going to play ball, let’s get in on the action, too.

“The big question is if the oil companies have enough political clout for an easing in sanctions,” said Raul Gallegos, a Bogota-based director at Control Risks, an international consulting firm. “They are interested in the flexibility that Maduro is offering.”

The U.S. Treasury’s Office of Foreign Assets Control, which enforces the sanctions, didn’t immediately reply to requests for comment.

With bigger issues to tackle, from the coronavirus to tension with Russia and trade with China, U.S. President Joe Biden’s administration hasn’t yet made a significant pivot from President Donald Trump’s strategy on Venezuela. The U.S. government officially recognizes opposition leader Juan Guaido as Venezuela’s interim president until there’s a free and fair election.

If the new U.S. government at least moves to let companies resume swaps of diesel for Venezuelan crude, that would help the country avert collapse. The fuel is needed for trucks to take imported food, medicines and other products from ports to cities, as well as to haul goods from farms and factories.

``The onus is on the U.S. to decide if sanctions make sense going forward,'' Gallegos said.

Without investments in the country’s crumbling energy infrastructure, though, that would be just a stopgap solution.

— With assistance by Peter Millard, Patricia Laya, Francois De Beaupuy, and Kevin Crowley

(Adds comment from analyst in penultimate paragraph.)

See the article on Bloomberg here: At a Hotel in Caracas, Oil Executives Weigh a Return to Venezuela:

#Oil Executives Weigh Return to #Venezuela

noreply@blogger.com (Unknown) — Tue, 23 Mar 2021 23:58:00 GMT

Promises of more autonomy to tap the world’s biggest crude reserves are drawing the oil industry to meetings with the Nicolas Maduro regime.

At a Hotel in Caracas, Oil Executives Weigh a Return to Venezuela

19 March 2021, 12:00 CET Updated on 19 March 2021, 17:03 CETA

“I want to tell investors from the U.S. and around the world that Venezuela’s doors are open for oil investment,” Maduro said in a recent televised address.

The Cayena Hotel in the La Castellana neighborhood of Caracas.Photographer: Carolina Cabral Fernandez/Bloomberg

Total didn’t return requests for comment, as didn’t Maduro’s Information Ministry, the Oil Ministry and PDVSA. Eni said none of its executives visited Caracas.

Maduro’s government says his new energy law alone will allow oil companies to get back in business as they assume control of Venezuelan assets. That’s because the U.S. only bans doing business with PDVSA, the regime and those who help it. Oil ventures run by independent oil companies, in theory, wouldn’t be barred from developing crude reserves in the country.
A cyclist rides past a mural of oil pump jacks on the Boulevard de Sabana Grande in Caracas.Photographer: Carlos Becerra/Bloomberg

Restoring Venezuela’s oil industry back to its former glory would likely take tens of billions of dollars, and that might never happen, but any business activity would help the country.

Once a prosperous OPEC-founding member that produced more than 3 million barrels a day of crude, the nation is now pumping less than half a million.

“This means you need a ton of private investment,” he said.

An increase in oil output would not only buoy the economy but also raise capital to ultimately pay off creditors holding roughly $60 billion of defaulted obligations.

The U.S. Treasury’s Office of Foreign Assets Control, which enforces the sanctions, didn’t immediately reply to requests for comment.

``The onus is on the U.S. to decide if sanctions make sense going forward,'' Gallegos said.

Without investments in the country’s crumbling energy infrastructure, though, that would be just a stopgap solution.

— With assistance by Peter Millard, Patricia Laya, Francois De Beaupuy, and Kevin Crowley

(Adds comment from analyst in penultimate paragraph.)

See the article on Bloomberg here: At a Hotel in Caracas, Oil Executives Weigh a Return to Venezuela:

#Geopolitics in the Age of #GreenEnergy

noreply@blogger.com (Unknown) — Tue, 16 Mar 2021 10:19:00 GMT

What Countries Will Fight Over When Green Energy Dominates - Bloomberg

You need a new geopolitical model, you cannot simply put renewables into the old coal and oil model.

A soldier atop a humvee scans the horizon in Kuwait, dotted with oil well fires set by retreating Iraqi military forces, during the Gulf War. In a world dominated by green energy, security researchers predict, a latter-day Saddam Hussein would have little reason to invade Kuwait to seize its solar parks, as he did in 1990 for its oil wells.

Photographer: Allan Tannenbaum/The LIFE Images Collection

What Countries Will Fight Over When Green Energy Dominates

In what seems to be a question of when, not if, the global economy will shift away from fossil fuels and towards a future powered by Green Energy, researchers, corporations and governments are gaming out what that means for international geopolitics.

Power Surge

Renewables share of global power capacity and generation, 2007-2019

Source: : UNEP, Frankfurt School-UNEP Centre, BloombergNEF

Note: Renewables figure excludes large hydro. Capacity and generation based on BloombergNEF totals

Some experts even predict that the end of an era defined by uneven access to fossil fuel deposits will produce a security dividend, similar to the one that followed the end of the Cold War. After all, a latter-day Saddam Hussein would have little reason to invade Kuwait to seize its solar parks, as he did in 1990 for its oil wells, because there would no longer be anything special about Kuwait's patch of desert. It would be cheaper to buy panels to put on his own.

"Anyone can now become an energy player, that is the nature of renewable energy,'' says former Iceland President Olafur Ragnar Grimsson, who chaired an international commission on the geopolitics of the energy transition. Grimsson has already seen the green future. Iceland's energy mix is 85% renewable, and all its electricity is generated from clean sources. The last time his island nation saw conflict with another country over resources, it was about fish.

The Rand Corporation's been designing war games with the Pentagon since the 1950s.

Photographer: Leonard McCombe/The LIFE Picture Collection

"You need a new geopolitical model, you cannot simply put renewables into the old coal and oil model," Grimsson says.

Until renewable dominance is reached, though, oil could have a long and destructive tail. For about three centuries, access to fossil fuels has shaped the rise and fall of great powers. Plentiful, well-located coal mines helped fire Britain's industrial revolution and the expansion of its empire. Oil and gas fueled the former Soviet Union's military power and shaped "the American century," including U.S. alliances and fleet deployments.

"We're not even close to a world dominated by renewables,'' says Andreas Goldthau, who heads a project at German's University of Erfurt that seeks to figure out the systemic impacts of the shift to clean energy.

Changing such a fundamental driver of the global pecking order could have multiple consequences. Vladimir Putin might struggle to sustain Russia's rise as an "energy superpower." An implosion of the U.S. shale industry, combined with China's dominance in renewables manufacturing, could define the 21st century's great superpower contest. The rationale for American alliances and military bases in the Middle East would weaken. A sudden loss of oil revenues could trigger Arab Spring-style revolts against the most brittle petrostate autocracies.

The one thing we know about transitions, Goldthau says, is that "they are never, never linear.'' Think of the post-Cold War Yugoslav conflicts, or the shift away from planned economies that the former communist bloc began in the late 1980s. Many ex-republics, from Ukraine to Turkmenistan, remain in turmoil or stalled well short of market democracy 30 years later.

Nor do transitions necessarily end with a neatly tied bow. The Canadian scientist Vaclav Smil has mapped out coal's fall from 95% of primary energy use in 1900, to just 26% a century later. Yet in absolute terms, global consumption rose from an estimated 800 million tons a year in 1900 to about 5.5 billion tons today. Though the same might not happen to oil, the fuel is likely to burn much longer than most climate scientists would prefer.

Coal's Long Tail

Oil provided a lower % of global primary energy consumption until 1960s

Source: Vaclav Smil, Energy in the 20th Century: Resources, conversions, costs, uses and consequences

It's hard to see a smooth, rapid energy transition taking place in the current competitive and nationalistic environment, says Eirik Waerness, chief economist of Norway's state-owned energy giant Equinor ASA. He took part in Grimsson's commission, and generally agrees with its optimistic conclusions. "For the energy transition to happen fully, we probably need a relatively benign geopolitical climate," Waerness says. "There is to some extent a virtuous circle we have to create here."

While the sources of clean energy are available to everyone, the battle will be over who profits from the products used to harness them. Solar panels, wind turbines and batteries will be in such demand that countries are already jostling to make sure they get their share of the pie. Many will get left behind.

The production line at the Longi plant in Xi'an, China.

Photographer: Qilai Shen/Bloomberg

About 60% of solar panels are manufactured by Chinese companies, a level of market influence the Organization of Petroleum Exporting Countries can only dream of when it comes to oil. That creates a big trade advantage, but not one President Xi Jinping can easily leverage for geopolitical ends.

"What are you worried about? You buy it, you run it and once you have what you have they can't take it away from you," says Karen Smith Stegen, a professor of political science at Jacobs University in Bremen, Germany, who has examined the potential of 165 countries to emerge from the transition as political winners and losers.

Global inequalities and rivalries will instead likely center on access to technology and finance, standard setting and control of key raw materials. China controls more than 90% of some of the rare earth metals needed for electric vehicles and offshore wind turbines. It already used that monopoly power once, cutting off Japan's supply after a 2010 clash near islands both nations claim to own. Japan has since reduced the share of its rare earth imports that come from China by more than a third to reduce its exposure.

In November, Johnson's U.K. will host the COP26 climate summit in Glasgow, Scotland, where countries will negotiate the rules for the road ahead. Leaders want to make sure everyone else is doing their fair share to cut emissions, and that their countries don't lose out.

That fear could lead to what German economist Hans-Werner Sinn has called the "green paradox." He argues the transition could prompt oil producers—especially those with high extraction costs or shallow reserves—to start pumping as fast as they can while demand lasts. The increased supply would boost carbon emissions and also lower the price of crude, making it more competitive with renewables and slowing the move to cleaner energy.

Cheap oil could also decimate the budgets of fragile regimes before they have time to find other sources of revenue. A February study by U.K. think tank Carbon Tracker found that 40 fossil-fuel dependent governments would suffer an average 51% drop in oil and gas revenues if global climate targets are met. That could destabilize governments and leave the likes of Nigeria or Iraq unable to afford security to deal with threats from terrorist organizations such as Boko Haram and Islamic State.

Hooked on Oil

Oil and gas revenue as a percent of total government revenue, 2015-2018 average

A report last month by the European Council on Foreign Relations concluded that rich countries will have to help plug the financial holes. The EU's Green Deal, in particular, it said could have as great an effect on regional geopolitics as on the Earth's climate. The bloc produces less than 10% of global CO₂ emissions, but neighbors such as Algeria, Azerbaijan, Russia and Turkey depend on its market to buy a large share of their exports. Many of these are carbon intensive and vulnerable to the EU's planned carbon border tax.

And there's no guarantee that making nations more energy self-sufficient will reduce conflict. Oil is the most actively traded commodity on the planet, and any steep decline in demand would reduce those interactions. "What we know is trade is a good thing," says Goldthau at the University of Erfurt. "When states are interdependent they have a lower appetite for conflict."

Russia's planned Nord Stream 2 natural gas pipeline to Germany beneath the Baltic Sea fuels worries in the U.S. and other countries that the link could give the Kremlin new leverage over NATO allies and further ability to manipulate the energy market. Insurers, certifiers and other companies working on the project are subject to U.S. sanctions.

Photographer: Ulrich Baumgarten/Getty Images

Back at Rand, senior policy researcher Benjamin Preston has divided the world into three categories:

The first consists of countries such as Iceland, which already made the transition and have little more at stake.

The second are the export-dependent Petrostates that have most to lose.

The third and least-studied cohort is the array of countries in between that are both producers and consumers of fossil fuels. The temptation for these hybrid cases will be to decarbonize their own economies, while maximizing revenue from exports of oil, gas and coal, Preston says. That's a wild card with potential to impact both international politics and the duration of the transition.

Take China, which has installed more solar capacity than the rest of the world combined, but is also exporting even more coal-fired generation capacity. In one case, it literally dismantled an aging plant in Hunan province to reconstruct it in Cambodia.

Australia, another solar success story, recently opened a new coal mine to supply India, and greenlit the development of another $1 billion facility aimed at the Asian market.

The U.S., meanwhile, is hardly shutting down the fracking industry that for more than a decade has boosted its economy. Meghan O'Sullivan, director of Harvard's geopolitics of energy initiative, has argued that shale also gives the U.S. significant foreign policy freedom. The added supply reduced potential for blowback from oil-price effects when America levied sanctions against Iran, blocking its oil from the global market.

As renewables expand, jobs and revenues in the U.S. and other hybrid nations will become increasingly dependent on decisions that other countries make about whether to go on importing their fossil fuels, according to Rand's Preston. That's unlikely to fast-track a more peaceful renewable future. The trick, he says, will be to "enable safe landings for all the countries that have this kind of dependency on existing fossil fuels, but without shutting down the transition altogether."

— With assistance by Akshat Rathi, and Laura Millan Lombrana

See the article on Bloomberg Green here: https://www.bloomberg.com/news/features/2021-03-16/what-countries-will-fight-over-when-green-energy-dominates?sref=VxHCy32x

bit.ly/MasterEnergyBlog

#Geopolitics in the Age of #GreenEnergy

noreply@blogger.com (Unknown) — Tue, 16 Mar 2021 10:19:00 GMT

What Countries Will Fight Over When Green Energy Dominates - Bloomberg

You need a new geopolitical model, you cannot simply put renewables into the old coal and oil model.

Photographer: Allan Tannenbaum/The LIFE Images Collection

What Countries Will Fight Over When Green Energy Dominates

In what seems to be a question of when, not if, the global economy will shift away from fossil fuels and towards a future powered by Green Energy, researchers, corporations and governments are gaming out what that means for international geopolitics.

Power Surge

Renewables share of global power capacity and generation, 2007-2019

Source: : UNEP, Frankfurt School-UNEP Centre, BloombergNEF

Note: Renewables figure excludes large hydro. Capacity and generation based on BloombergNEF totals

The Rand Corporation's been designing war games with the Pentagon since the 1950s.

Photographer: Leonard McCombe/The LIFE Picture Collection

"You need a new geopolitical model, you cannot simply put renewables into the old coal and oil model," Grimsson says.

Coal's Long Tail

Oil provided a lower % of global primary energy consumption until 1960s

Source: Vaclav Smil, Energy in the 20th Century: Resources, conversions, costs, uses and consequences

The production line at the Longi plant in Xi'an, China.

Photographer: Qilai Shen/Bloomberg

Hooked on Oil

Oil and gas revenue as a percent of total government revenue, 2015-2018 average

Photographer: Ulrich Baumgarten/Getty Images

Back at Rand, senior policy researcher Benjamin Preston has divided the world into three categories:

The first consists of countries such as Iceland, which already made the transition and have little more at stake.

The second are the export-dependent Petrostates that have most to lose.

Australia, another solar success story, recently opened a new coal mine to supply India, and greenlit the development of another $1 billion facility aimed at the Asian market.

— With assistance by Akshat Rathi, and Laura Millan Lombrana

See the article on Bloomberg Green here: https://www.bloomberg.com/news/features/2021-03-16/what-countries-will-fight-over-when-green-energy-dominates?sref=VxHCy32x

bit.ly/MasterEnergyBlog

#Crude #Oil Prices per March 08, 2021 #OOTT

noreply@blogger.com (Unknown) — Mon, 08 Mar 2021 10:38:00 GMT

Monthly Average Oil & Gasoline Prices

1 Month

3 Month

6 month

1 year

2 years

3 years
5 years
10 years

crude oil price

#Crude #Oil Prices per March 08, 2021 #OOTT

noreply@blogger.com (Unknown) — Mon, 08 Mar 2021 10:38:00 GMT

Monthly Average Oil & Gasoline Prices

1 Month

3 Month

6 month

1 year

2 years

3 years
5 years
10 years

crude oil price

“You can’t have #GreenEnergy without #Mining.”

noreply@blogger.com (Unknown) — Wed, 03 Mar 2021 03:28:00 GMT

There aren't enough raw materials being produced to replace millions of ICE vehicles with #EVs

See the whole post here: “You can’t have #GreenEnergy without #Mining.” There aren't enough raw materials being produced to replace millions of ICE vehicles with #EVs:

“You can’t have #GreenEnergy without #Mining.”

noreply@blogger.com (Unknown) — Wed, 03 Mar 2021 03:28:00 GMT

There aren't enough raw materials being produced to replace millions of ICE vehicles with #EVs

See the whole post here: “You can’t have #GreenEnergy without #Mining.” There aren't enough raw materials being produced to replace millions of ICE vehicles with #EVs:

Sheik #Yamani, Legendary #Oil Man, dies at 90, RIP

noreply@blogger.com (MasterMetals) — Wed, 24 Feb 2021 21:25:00 GMT

Sheikh Ahmed Zaki Yamani, has died at age 90.

Yamani served as Saudi Arabia's Oil Minister from 1962 until 1986, when he was dismissed by Saudi King Fahd over differing opinions on the Kingdom's oil policies.

When Yamani began his role as oil minister in 1962, the United States was the leading oil producer, with Saudi Arabia producing less than 2 million barrels per day. And Exxon and Chevron had control of most of the oil in Saudi Arabia. But that quickly changed as Saudi Arabia moved to nationalize its oil industry. Saudi Arabia's oil production quickly reached 10 million bpd during Yamani's tenure.

Chart courtesy of Dr. Anas Alhajji

See the whole article on Oilprice.com here:

https://oilprice.com/Latest-Energy-News/World-News/Saudi-Arabias-Longest-Serving-Oil-Minister-Dies-At-90.html

__________________________________

bit.ly/MasterEnergyBlog
bit.ly/MasterEnergyRSS

Sheik #Yamani, Legendary #Oil Man, dies at 90, RIP

noreply@blogger.com (MasterMetals) — Wed, 24 Feb 2021 21:25:00 GMT

Sheikh Ahmed Zaki Yamani, has died at age 90.

Yamani served as Saudi Arabia's Oil Minister from 1962 until 1986, when he was dismissed by Saudi King Fahd over differing opinions on the Kingdom's oil policies.

Chart courtesy of Dr. Anas Alhajji

See the whole article on Oilprice.com here:

https://oilprice.com/Latest-Energy-News/World-News/Saudi-Arabias-Longest-Serving-Oil-Minister-Dies-At-90.html

__________________________________

bit.ly/MasterEnergyBlog
bit.ly/MasterEnergyRSS

#Spain's #Renewables: The #Chinese are Coming In Big…

noreply@blogger.com (Unknown) — Mon, 22 Feb 2021 18:09:00 GMT

The Chinese are Coming In Big…

• Deal could value renewable assets at up to 500 million euros

• Deal includes more than 400 megawatts of operational plants

• State-owned Chinese firm continues acquisition drive in Europe after buying X-Elio Spanish solar assets in 2020

Three Gorges to Buy Billionaires' Spanish Renewable Portfolio

Bloomberg News

22 February 2021, 15:22 CET

State-owned Chinese firm continues acquisition drive in Europe
Deal includes more than 400 megawatts of operational plants

China Three Gorges Corp. agreed to buy Spanish renewable assets from a group of billionaires, as the Chinese energy giant seeks to double down on the southern European country.

State-owned Three Gorges will acquire 100% of a portfolio of more than 400 megawatts of operational plants from a consortium led by Corporacion Masaveu, backed by the wealthy Spanish family of the same name, it said in an emailed statement received Monday. The assets include 11 wind farms and one solar plant, according to the statement.

Bloomberg News reported earlier this month that the Chinese company was in advanced talks to buy the assets. Other sellers include Korys Group, the investment arm of Belgium's billionaire Colruyt family, as well as Exus Management Partners and a group of Portuguese minority investors, the statement shows. The deal is expected to be completed before the end of the second quarter.

Three Gorges had been discussing a valuation of about 400 million euros ($486 million) to 500 million euros for the portfolio, people with knowledge of the matter have said. The Chinese group worked with FTI Capital Advisors on the deal.

The investment follows Three Gorges's purchase last year of 13 Spanish solar park assets with more than 500 megawatts of capacity from X-Elio Energy SL, which is owned by Brookfield Renewable Partners LP and buyout firm KKR & Co.

The Chinese company was also among the final bidders for Grupo T-Solar, a green energy firm with a presence in Spain and Italy, which was acquired in December by Cubico Sustainable Investments Ltd. for 1.5 billion euros.

Three Gorges is the biggest shareholder in EDP-Energias de Portugal SA, in which the Masaveu family also holds a minority stake, according to data compiled by Bloomberg. Three Gorges issued a statement last month reiterating its commitment to EDP after selling a 2.5% stake in the company. The sale raised 534 million euros, leaving the state-owned firm with a 19% stake.

— With assistance by Manuel Baigorri, and Dong Cao

https://www.bloomberg.com/news/articles/2021-02-22/three-gorges-to-buy-billionaires-spanish-renewable-portfolio?sref=VxHCy32x

bit.ly/MasterEnergyBlog

#Spain's #Renewables: The #Chinese are Coming In Big…

noreply@blogger.com (Unknown) — Mon, 22 Feb 2021 18:09:00 GMT

The Chinese are Coming In Big…

• Deal could value renewable assets at up to 500 million euros

• Deal includes more than 400 megawatts of operational plants

• State-owned Chinese firm continues acquisition drive in Europe after buying X-Elio Spanish solar assets in 2020

Three Gorges to Buy Billionaires' Spanish Renewable Portfolio

Bloomberg News

22 February 2021, 15:22 CET

State-owned Chinese firm continues acquisition drive in Europe
Deal includes more than 400 megawatts of operational plants

China Three Gorges Corp. agreed to buy Spanish renewable assets from a group of billionaires, as the Chinese energy giant seeks to double down on the southern European country.

— With assistance by Manuel Baigorri, and Dong Cao

https://www.bloomberg.com/news/articles/2021-02-22/three-gorges-to-buy-billionaires-spanish-renewable-portfolio?sref=VxHCy32x

bit.ly/MasterEnergyBlog

#Texas’s #Blackout, Or When All The Inherent Problems Present In The US’s #Energy #Infrastructure Create The #PerfectStorm

noreply@blogger.com (Unknown) — Wed, 17 Feb 2021 12:25:00 GMT

In Texas's Black-Swan Blackout, Everything Went Wrong at Once - Bloomberg

Wouldn't say it was a #BlackSwan, as most of the problems could have been mitigated.

"wind shutdowns accounted for 3.6 to 4.5 gigawatts -- or less than 13% -- of the 30 to 35 gigawatts of total outages, Ercot's Woodfin said. Gas produced 35% of the power in January.

"Natural gas played an outsize role in the disaster."

"Everyone wants to blame someone, so they blame Ercot"

In Texas's Black-Swan Blackout, Everything Went Wrong at Once

Rachel Adams-Heard

Natural gas output malfunctioned as wind turbines froze

The finger-pointing began immediately: It was the frozen wind turbines that foolishly replaced traditional sources. No, fossil fuels were at fault. No, Texas's deregulated power market, unique in the country, had allowed companies to skimp on maintenance and upgrades.

As the hours ticked by and millions more were plunged into frozen darkness, a more sober reality emerged. The greatest forced blackout in U.S. history, as this event has almost certainly become, was the result of a systemic and multifaceted failure. There are no promises of when power will be restored and little likelihood that the episode won't be repeated in a corner of the country hard hit by climate change.

"This feels like a technical design failure," said Michael Webber, who founded the Webber Energy Group at the University of Texas at Austin and serves as chief science and technology officer at French utility Engie.

Power plants weren't fully weatherized, wiping out generation capacity. The ones that were still standing struggled to get enough fuel, with shale wells experiencing so-called freeze-offs. Many wind turbines stopped spinning. Texas, with a grid notoriously isolated from the rest of the U.S., was unable to call on neighboring states for help.

Still, as the pressure dropped last week and frigid air descended from the north, some saw what was coming and felt like they were witnessing a train crash.

They lay part of the blame on Ercot, the Electric Reliability Council of Texas, which manages the flow of power to consumers and says the extreme nature of the weather made it hard to be ready.

"We were woefully unprepared for this kind of cold," said Texas State Representative Ron Reynolds, whose own house is without power. "They got caught with their pants down and now millions of Texans have no power. This is a matter of life and death."

Adam Sinn, owner of Aspire Commodities LLC, a power and gas trader, was one of those wondering why so little was being done. He said that a week ago, when the seven-day outlook hit, Ercot's own projections showed too little supply to meet soaring demand.

"We were looking at this week thinking, they are going to have to cut 10,000 megawatts of consumers," he said. "I really think Ercot is to blame on this one." He said there were spare megawatts that weren't brought online. For example, Vistra Corp., a large generator, had 4,000 megawatts off line for maintenance in four plants that could have been turned on quickly, he said, citing data from Genscape Inc.

Sinn said either Ercot failed to order the megawatts back on or was told no, which should have generated publicity so residents could prepare.

Ercot and Genscape didn't respond to requests for comment. Vistra declined to comment.

A parked car covered in snow in McKinney, Texas, on Feb. 16.

Photographer: Cooper Neill/Bloomberg

If Ercot knew what was in store, it wasn't apparent in its messaging to Texans. Over the weekend, recommendations from its official Twitter account included closing the blinds and unplugging unused kitchen gadgets. "Laundry on Valentine's Day?" it said in another post. "No."

On Tuesday, Dan Woodfin, a senior director for Ercot, attributed the main factors to frozen instruments at natural gas, coal and nuclear plants. He and other Ercot officials said they believed generators had prepared better for such cold.

Ercot's authority is somewhat limited. In 2011, the last time freezing weather caused rolling outages, it released best practices for power generators to follow, but it couldn't require anything, said Adrian Shelley, Texas office director of Public Citizen, an advocacy group.

Federal energy regulators also issued a 357-page report that recommended generators winterize their equipment, including insulating pipes.

"The financial incentive isn't there to harden that infrastructure," he added. "From a generator perspective, the only incentive is to bring energy to market as cheaply as possible."

Power prices spiked on several days to the price cap in Texas -- a staggering $9,000 a megawatt-hour.

A 100-megawatt wind farm in the state that might have normally made almost $40,000 over a two-day period in February could reap more than $9.5 million on Monday and Tuesday alone, Nicholas Steckler, a power-markets analyst at BloombergNEF, said. On Monday, electricity sales likely totaled $10 billion, according to Wood Mackenzie.

While some pointed to wind power as a culprit, as of early Tuesday wind shutdowns accounted for 3.6 to 4.5 gigawatts -- or less than 13% -- of the 30 to 35 gigawatts of total outages, Ercot's Woodfin said. Gas produced 35% of the power in January.

Others said Texas's problems were wide-ranging.

Electric service trucks line up after a snow storm in Fort Worth, on Feb. 16.

Photographer; Ron Jenkins/Getty Images

"Everyone wants to blame someone, so they blame Ercot," Webber said. "But if the gas can't come out of the ground, is that Ercot's fault? If we have sloppy building codes that don't properly insulate homes, is that Ercot's fault?"

He suggests a combination of upgrades and expansions nationally at a cost of trillions of dollars over decades. Roughly 10% of that will need to take place in Texas. That's a lot of money, which is why little was done the last time Texas saw a major test of its grid in the cold a decade ago.

Texas lacks the long-term planning processes that other parts of the country employ. In the east, grid operators run capacity markets that act like insurance policies. Generators are paid to guarantee that their supplies will be available on the most extreme hot and cold days. If they don't show up, they face stiff penalties. Texas has instead left it up to prevailing prices and industry.

That deregulated and competitive nature of the markets stands to exacerbate massive price run-ups. More than 100 electric suppliers compete for customers who churn power companies like credit cards. They take big risks to attract new customers, offering incredibly low rates and allowing unlimited power use on weekends. But when the wholesale markets backfire, they bail on them.

The state also refuses to connect its grid with neighbors in part out of fear that the system will fall under federal oversight and regulation. But its politicians are coming to realize that independence has a down side.

Permian Basin in Midland, Texas, on Feb. 13.

Photographer: Matthew Busch/Bloomberg

Natural gas played an outsize role in the disaster. As early as last Thursday, Energy Transfer LP sent a warning to customers on its Transwestern natural gas pipeline: It was going to be cold, and if producers' shipments were to deviate from their normally scheduled flows, they needed to let the operator know.

Maybe the North Dakota oil field could withstand frigid temperatures, but the infrastructure that connects the Permian Basin in West Texas and southeastern New Mexico is exposed to the elements. Drilling liquids freeze inside pipes, forcing wells and gas processing plants shut.

By Friday, temperatures had dropped to 24 degrees in Dallas. Texans were told to start conserving energy. Physical gas prices soared to more than $500 in Oklahoma from less than $4 at the start of the week. As of Tuesday, they had doubled to roughly $1,000 per million British thermal units. Texas Governor Greg Abbott asked a major gas exporter to limit their intake.

All of this is to speak nothing of the human toll.

See the whole article in Bloomberg Green here: https://www.bloomberg.com/news/articles/2021-02-17/in-texas-s-black-swan-blackout-everything-went-wrong-at-once?utm_source=url_link&sref=VxHCy32x

___________________________-https://bit.ly/MasterEnergyBlog

#Texas’s #Blackout, Or When All The Inherent Problems Present In The US’s #Energy #Infrastructure Create The #PerfectStorm

noreply@blogger.com (Unknown) — Wed, 17 Feb 2021 12:25:00 GMT

In Texas's Black-Swan Blackout, Everything Went Wrong at Once - Bloomberg

Wouldn't say it was a #BlackSwan, as most of the problems could have been mitigated.

"wind shutdowns accounted for 3.6 to 4.5 gigawatts -- or less than 13% -- of the 30 to 35 gigawatts of total outages, Ercot's Woodfin said. Gas produced 35% of the power in January.

"Natural gas played an outsize role in the disaster."

"Everyone wants to blame someone, so they blame Ercot"

In Texas's Black-Swan Blackout, Everything Went Wrong at Once

Rachel Adams-Heard

Natural gas output malfunctioned as wind turbines froze

Still, as the pressure dropped last week and frigid air descended from the north, some saw what was coming and felt like they were witnessing a train crash.

They lay part of the blame on Ercot, the Electric Reliability Council of Texas, which manages the flow of power to consumers and says the extreme nature of the weather made it hard to be ready.

Sinn said either Ercot failed to order the megawatts back on or was told no, which should have generated publicity so residents could prepare.

Ercot and Genscape didn't respond to requests for comment. Vistra declined to comment.

A parked car covered in snow in McKinney, Texas, on Feb. 16.

Photographer: Cooper Neill/Bloomberg

Federal energy regulators also issued a 357-page report that recommended generators winterize their equipment, including insulating pipes.

"The financial incentive isn't there to harden that infrastructure," he added. "From a generator perspective, the only incentive is to bring energy to market as cheaply as possible."

Power prices spiked on several days to the price cap in Texas -- a staggering $9,000 a megawatt-hour.

Others said Texas's problems were wide-ranging.

Electric service trucks line up after a snow storm in Fort Worth, on Feb. 16.

Photographer; Ron Jenkins/Getty Images

Permian Basin in Midland, Texas, on Feb. 13.

Photographer: Matthew Busch/Bloomberg

All of this is to speak nothing of the human toll.

See the whole article in Bloomberg Green here: https://www.bloomberg.com/news/articles/2021-02-17/in-texas-s-black-swan-blackout-everything-went-wrong-at-once?utm_source=url_link&sref=VxHCy32x

___________________________-https://bit.ly/MasterEnergyBlog

EIA's Annual Energy Outlook 2021 explores the long-term impact of COVID-19 on the U.S. energy mix through 2050

Wed, 03 Feb 2021 17:00:00 GMT

The United States will likely take years to return to 2019 levels of energy consumption and carbon dioxide emissions following the impact of COVID-19 on the U.S. economy and global energy sector, according to projections in the U.S. Energy Information Administration's (EIA) Annual Energy Outlook 2021 (AEO2021).

#Exxon posts 1st annual loss as a public company on COVID-19 blow, Write-Down of $20BN For #Shale #Gas Assets $XOM

noreply@blogger.com (Unknown) — Tue, 02 Feb 2021 14:07:00 GMT

Reduces value of shale gas properties by more than $20 billion in Q4.
Exxon cut up to 15% of its workforce and delayed oil and gas projects after accepting oil prices could remain below $60 a barrel for years.
Added $22 billion to its debt last year to cover its dividend and project spending.

Exxon posts first annual loss as a public company on COVID-19 blow

(Reuters) -Top U.S. oil producer Exxon Mobil on Tuesday posted its first annual loss as a public company as the COVID-19 pandemic hammered energy prices and it reduced the value of its shale gas properties by more than $20 billion in the fourth quarter.

Exxon cut up to 15% of its workforce and delayed oil and gas projects after accepting oil prices could remain below $60 a barrel for years. It added $22 billion to its debt last year to cover its dividend and project spending.

The company reported a net annual loss of $22.44 billion for 2020, compared with a full-year profit of $14.34 billion in 2019.

Exxon posted four straight quarters of losses in 2020 and is under fire from activist investors pushing for board changes and a better strategy for a global transition to cleaner fuels.

See the whole story on Reuters here:

https://www.reuters.com/article/us-exxon-mobil-results-idUSKBN2A21LN

#Exxon posts 1st annual loss as a public company on COVID-19 blow, Write-Down of $20BN For #Shale #Gas Assets $XOM

noreply@blogger.com (Unknown) — Tue, 02 Feb 2021 14:07:00 GMT

Reduces value of shale gas properties by more than $20 billion in Q4.
Exxon cut up to 15% of its workforce and delayed oil and gas projects after accepting oil prices could remain below $60 a barrel for years.
Added $22 billion to its debt last year to cover its dividend and project spending.

Exxon posts first annual loss as a public company on COVID-19 blow

The company reported a net annual loss of $22.44 billion for 2020, compared with a full-year profit of $14.34 billion in 2019.

Exxon posted four straight quarters of losses in 2020 and is under fire from activist investors pushing for board changes and a better strategy for a global transition to cleaner fuels.

See the whole story on Reuters here:

https://www.reuters.com/article/us-exxon-mobil-results-idUSKBN2A21LN

Media Advisory: EIA leaders discuss Annual Energy Outlook 2021 and long-term impact of COVID-19 on the U.S. energy mix

Thu, 28 Jan 2021 17:00:00 GMT

The U.S. Energy Information Administration (EIA) will release its Annual Energy Outlook 2021 (AEO2021) at a virtual public event hosted by the Bipartisan Policy Center. The report contains projections for the U.S. energy sector through 2050. EIA releases its Annual Energy Outlook each year to provide updated long-term projections of U.S. energy markets.

Shell $RDS Buys #UK’s Largest #EV #BatteryCharging Network from #Ubitricity

noreply@blogger.com (DJ Petro) — Mon, 25 Jan 2021 17:19:00 GMT

Acquisition of Ubitricity comes as oil major expands presence along power supply chain

Street charging is expected to expand rapidly as customers who lack private driveways and those that wish to charge their vehicles overnight seek greater options

Royal Dutch Shell has agreed to buy Ubitricity, owner of the largest public charging network for electric vehicles in the UK, as the oil major expands its presence along the power supply chain.

Shell said on Monday it would buy 100 per cent of the company for an undisclosed amount. Ubitricity, founded in Germany, is a leading European provider of on-street charging for electric vehicles.

The company, which integrates electric car charging into street infrastructure such as lamp posts, has more than 2,700 charge points in the UK, giving it a market share of 13 per cent.

Shell said the acquisition would help it expand into on-street charging. It already has more than 1,000 fast and ultrafast charging points at 430 Shell retail stations and a greater number including those owned by partners and affiliates at forecourts and motorway service stations.

Shell buys UK’s largest electric vehicle charging network:

Shell $RDS Buys #UK’s Largest #EV #BatteryCharging Network from #Ubitricity

noreply@blogger.com (DJ Petro) — Mon, 25 Jan 2021 17:19:00 GMT

Acquisition of Ubitricity comes as oil major expands presence along power supply chain

Shell buys UK’s largest electric vehicle charging network:

#Venezuela doing anything it can to restart #Oil production

noreply@blogger.com (Unknown) — Sun, 17 Jan 2021 11:23:00 GMT

Venezuela proposes deals allowing private companies to operate oil fields -sources | Reuters

- Latest proposal is to let small domestic oilfield contractors operate fields owned by PDVSA, including allowing them to sell the #Oil.

- Aim is to get Oil production back to 1.5MM BOPD-ie. to less than 50% of where it stood when the Chavista #Kleptocrats took over 20+ years ago..

- Government recently passed "anti-blockade" law allowing oil deals to be signed confidentially, due to the risk of sanctions

Venezuela proposes deals allowing private companies to operate oil fields -sources

(Reuters) - Venezuelan officials have met in recent months with small domestic oilfield contractors to propose letting them operate fields owned by state-owned PDVSA while pocketing part of the proceeds, according to six people with knowledge of the talks.

FILE PHOTO: A state oil company PDVSA's logo is seen at a gas station in Caracas, Venezuela May 17, 2019. REUTERS/Ivan Alvarado/File Photo/File Photo

The talks show President Nicolas Maduro, facing a collapse in crude output and U.S. sanctions aimed at ousting him, is seeking to attract investments to the OPEC nation by offering even sweeter terms than a 2018 plan that walked back elements of the country's nationalist oil industry platform.

It was unclear whether any companies have actually signed the contracts under discussion. Any attempted opening to the private sector faces numerous obstacles including wariness about working with Petroleos de Venezuela after years of late payments, and concerns about Washington's sanctions.

So far, companies showing interest in the new deals are relatively small, including S&B Terra Marine Services, based near Lake Maracaibo in western Venezuela, and Arco Services, based in eastern Monagas state, according to three of the people, who spoke on the condition of anonymity.

Neither company responded to requests for comment, and neither did PDVSA nor Venezuela's oil ministry.

The government recently passed an "anti-blockade" law allowing oil deals to be signed confidentially, due to the risk of sanctions. In addition, members of the ruling socialist party - which recently gained control of the National Assembly in a disputed vote - have pledged to reform laws to allow greater private participation in the oil industry.

"We aim to increase production to 1.5 million barrels [per day] with new mechanisms of production, financing and commercialization," Maduro said in a Tuesday evening annual address to the National Assembly, without providing details.

That would restore production to 2018 levels after it slumped to just 434,000 barrels per day (bpd) in November.

Vice President Delcy Rodriguez said in a Wednesday state television interview that "various agreements" had been reached for oil investment as part of the anti-blockade law, without providing details.

PLUNGING OUTPUT

The OPEC nation's crude output has plunged to the lowest level in decades due to years of underinvestment and mismanagement, as well as U.S. sanctions. The drop has exacerbated a humanitarian crisis in which some 5 million people have emigrated.

"Since the government is closed out of many channels, they want to delegate responsibility to private companies and justify that delegation through the sanctions, the blockade, and the humanitarian impact," said one of the people.

While details of the proposed arrangements were not available, two of the people said they differed from the "joint services agreements" signed with a handful of little-known companies in 2018, allowing them to take charge of financing and equipment procurement. [reut.rs/3huB7dh]

Those companies, which only got paid if production increased, had little known oil industry experience, the people said.

The contracts now under discussion, with experienced PDVSA contractors, lack any output boost requirement, the people said.

Another key difference is that the current proposals would allow private companies to sell crude or refined products themselves as a form of compensation, three of the people said, adding the details were not yet clear. U.S. sanctions would likely complicate efforts by private companies to export oil.

The government has also been focusing on fields owned solely by PDVSA for the new arrangements, rather than its joint ventures with private companies, such as Chevron Corp and China National Petroleum Corp Ltd.

However, PDVSA has recently informally granted its minority partners at the joint ventures operational control of their fields.

Reporting by Luc Cohen and Corina Pons; Additional reporting by Deisy Buitrago; Editing by Christian Plumb and David Gregorio

See the story on Reuters here: https://www.reuters.com/article/us-venezuela-oil-deals/venezuela-proposes-deals-allowing-private-companies-to-operate-oil-fields-sources-