A New Force Is Emerging In Asian Energy Markets (31 August 2021): By Felicity Bradstock - With Asia expected to contribute around 90 percent of the world’s growing oil demand over the next five years, we are seeing more and more regional partnerships being established. India and Malaysia are the latest of many forging links to ensure the future of energy in Southeast Asia. Malaysia’s state-owned Petronas is planning to partner with Indian Oil Corp. (IOC), to build liquefied natural gas (LNG) terminals and expand fuel retailing and gas distribution, expanding its existing role as an LPG exporter to India. The company also hopes to help shift India’s oil refining industry beyond predominantly national players. The joint venture, of which each state company owns 50 percent, will be called IndianOil Petronas Private Ltd., or IPP. IPP expects to retail transport fuels including diesel and gasoline, as well as managing city gas supply. (Source: Oil Price)
The EU’s Carbon Border Tax Could Deal A Devastating Blow To Russia’s Economy (30 August 2021): By Irina Slav - The European Union's carbon border tax, to enter into effect in five years, was conceived with the idea of leveling the playing field for European industrial producers and importers who manufacture their goods in much laxer emissions-related regulatory frameworks. But the border tax could have a welcomed side effect for Brussels: it could have a more devastating effect on Russia's economy than sanctions. This is the warning Rosneft's head, Igor Sechin, recently gave President Vladimir Putin in a letter detailing the steps that could be taken to address the emissions problem, per a report in business daily Kommersant. According to the letter, initially, the carbon border tax would affect Russia's exports of metals, fertilizers, electricity, and cement, but could later expand to oil products, of which Rosneft is the largest Russian exporter, Kommersant wrote. (Source: Oil Price)
Renewable Energy Consumption Has Tripled In 10 Years (29 August 2021): By Robert Rapier - Renewable energy was the one category that bucked the global trend of declining energy consumption in 2020. Despite the 4.5% decline of primary global energy consumption — the largest since World War II — global renewable energy consumption grew by 9.7% in 2020. That was a slight decline from its 12.2% pace the year before, but it’s remarkable given how significantly the pandemic impacted total energy demand. Over the past decade, renewable energy consumption has grown at an average annual rate of 13.4%. Renewables were the only category of energy that grew globally at double digits over the past decade. For perspective, in 2010 the world consumed 9.6 exajoules of renewable energy. In 2020, that had tripled to 31.7 exajoules. (Source: Oil Price)
It’s Only A Matter Of Time Before China Makes A Move On Afghanistan (26 August 2021): By Ag Metal Miner - While the world looks on with growing concern at the political play unfolding in Afghanistan with the takeover of the Taliban, another sidebar to this developing story that is slowly creeping into public consciousness is the vast treasure-trove of minerals in that country, and how the Taliban government will exploit it. One estimate by the U.S. Geological Survey (USGS) given years ago had pegged the worth of Afghanistan’s untapped mineral resources at U.S. $1 trillion. Some Afghan officials have said the actual figure could be three times more. Afghanistan’s mountains contain a wide range of critical resources, including copper, gold, oil, natural gas, uranium, bauxite, coal, iron ore, rare earths, lithium, chromium, lead, zinc, gemstones, talc, sulphur, travertine, gypsum, and marble. (Source: Oil Price)
80% Of Afghanistan’s Budget Has Disappeared Overnight (25 August 2021): By Safehaven.com - For governing a country, $1.6 billion in cash can’t be stretched too far. That’s how much comes in the coffers of the Taliban, which has now taken over Afghanistan. Now, banks and international organizations are cutting the cord. For the past two decades, some 80% of Afghanistan's budget has been financed by the U.S. and other international donors. Now, it’s all gone. Last week, the IMF decided that Afghanistan would no longer be able to access its resources, including the over $370 million set to arrive later this month. (Source: Oil Price)
India Won’t Be Giving Up On Fossil Fuels Any Time Soon (24 August): By Haley Zaremba - India’s population is projected to grow to 1.52 billion people by 2036, expectedly surpassing China to be the world’s most populous country around 2031. Despite the fact that India’s growth rate is slowing considerably -- this decade’s growth rate is estimated to be the lowest since the nation’s independence from Britain -- it is growing all the same. The monumental size of the subcontinent means that India’s trajectory for development will have a massive impact on the rest of the world as the global community struggles to come together to mitigate the impacts of climate change. (Source: Oil Price)
How Will The Taliban Finance Afghanistan? (23 August 2021): By Safehaven.com - Once the excitement of taking over a country settles, such as checking out the presidential gym and enjoying some fun on bumper cars, Afghanistan’s new Taliban authorities will face the same issues any other government will: how to finance the country. Following the Taliban's takeover of the country last weekend, many international financial institutions have blacklisted the new government, and the currency is in freefall. On Thursday, the International Monetary Fund (IMF) decided that Afghanistan would no longer be able to access its resources. The lender said that resources of over $370 million had been set to arrive later this month. The funds were approved last November and intended to support Afghanistan’s recovery from the Covid-19 pandemic, anchor economic reforms, and spur donor financing. (Source: Oil Price)
China Wants Huge New Green Hydrogen Plant Operational In 2023 (22 August 2021): By Felicity Bradstock - China offers promise for clean energy in a world dominated by fossil fuel-driven hydrogen projects through its new green hydrogen mega-plant. China is planning a huge green hydrogen project using solar and wind power for its Inner Mongolia region. A cluster of plants will be constructed in the cities of Ordos and Baotou, expected to use 1.85 GW of solar power and 370 MW of wind power to produce approximately 66,900 tonnes of green hydrogen every year, according to the Hydrogen Energy Industry Promotion Association. If used for Fuel cell electric vehicles (FCEVs) it would replace the need for as much as 180 million gallons of gasoline a year, which would help China on its way to achieving its aim of 10,000 CVEVs and 74 hydrogen filling stations by 2025 in Beijing alone. (Source: Oil Price)
LNG shipments to Europe might not cover strong winter demand (19 August 2021): By ANNA SHIRYAEVSKAYA - MOSCOW (Bloomberg) - Europe’s vast network of liquefied natural gas terminals can’t save it from a winter supply crunch. LNG supplies entering European grids in July fell to the lowest for that month in three years and the outlook for this month is even grimmer. Just one cargo is scheduled to arrive in the UK in August and traders who have the fuel stored in Spain are set to export six cargoes to capture higher prices in Asia. All of that comes as Russia has been flowing less gas to Europe, setting the continent up for a very difficult winter should freezing temperatures hit. With inventories at their lowest level in more than a decade, gas prices in Europe have been volatile. Records have been broken day after day, with the market on edge for updates on new supply that will come through the yet-to-be completed Nord Stream 2 pipeline linking Russia and Germany. (Source: World Oil)
Oil Prices Unlikely To Collapse Any Time Soon (18 August 2021): By Ag Metal Miner - You wouldn’t believe the oil price had been quietly falling since early July when you went to fill up your tank this summer. Gasoline demand is nearly back to pre-pandemic levels from 2019. As a result, pressure on refiners has been so marked that prices have risen sharply enough to make the Biden administration urge Russia and Saudi Arabia to pump more oil to ease a perceived tightness. But the reality is the tightness is in refined products — not crude oil. OPEC+ is unlikely to ramp up output to appease the U.S. — or anyone else, for that matter. (Source: Oil Price)
The Afghanistan Crisis Could Destabilize The Region (17 August 2021): By Eurasianet - Governments across Central Asia appear as stunned as the rest of the international community in the face of the rapid disintegration of order in neighboring Afghanistan. Some leaders have held snap consultations with security officials and defense allies. Others are choosing to remain mute in the face of rapidly unfolding events. The potential for spillover looks limited for the time being, but multiple episodes of flight by defeated Afghan soldiers may be a troubling omen. A representative of the Afghan Embassy in Dushanbe told Eurasianet that more than 140 servicemen flew into Bokhtar airport in Tajikistan on August 15 onboard at least 16 different aircraft. He said the pilots had commandeered the aircraft to ensure they did not fall into the hands of the Taliban. (Source: Oil Price)
Clean Energy Investment In Australia Drops (12 August 2021): By Tsvetana Paraskova - Australia saw just three new projects reaching the stage of financial commitment in the second quarter of 2021, the second-lowest tally for quarterly project commitments since early 2017, The Sydney Morning Herald reports, citing data from Australia’s industry group Clean Energy Council. The constant changes in Australia’s energy policies over the past year, as well as its resistance to commit to a net-zero by 2050 target like many industrialized nations, are part of the obstacles that solar and wind power projects in the country face, the Clean Energy Council and opposition politicians tell The Sydney Morning Herald’s Peter Hannam. “Investment in clean energy has fallen to levels not seen for several years as a result of the increased risks facing investors, including from grid connection and network constraints as well as the ongoing unpredictable and unhelpful government policy interventions and market reforms,” Kane Thornton, Chief Executive of the Clean Energy Council, told The Sydney Morning Herald. (Source: Oil Price)
Clean Energy Investment In Australia Drops (12 August 2021): By Tsvetana Paraskova - Australia saw just three new projects reaching the stage of financial commitment in the second quarter of 2021, the second-lowest tally for quarterly project commitments since early 2017, The Sydney Morning Herald reports, citing data from Australia’s industry group Clean Energy Council. The constant changes in Australia’s energy policies over the past year, as well as its resistance to commit to a net-zero by 2050 target like many industrialized nations, are part of the obstacles that solar and wind power projects in the country face, the Clean Energy Council and opposition politicians tell The Sydney Morning Herald’s Peter Hannam. “Investment in clean energy has fallen to levels not seen for several years as a result of the increased risks facing investors, including from grid connection and network constraints as well as the ongoing unpredictable and unhelpful government policy interventions and market reforms,” Kane Thornton, Chief Executive of the Clean Energy Council, told The Sydney Morning Herald. (Source: Oil Price)
New Energy Companies Post Mixed Earnings Despite Pivot To Renewables (11 August 2021): By Alex Kimani - Oil and gas companies have been shooting the lights out this earnings season, with the energy sector recording the highest growth of any of the U.S.' 11 sectors. The sector has so far reported Q2 revenue growth of 112.8% Y/Y, more than three times the growth clip by the second-placed Materials sector. Big Oil has been particularly impressive, with ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), Shell (NYSE:RDS.A) and TotalEnergies (NYSE:TTE) all swinging to large profits after a dismal showing a year ago. Unfortunately, the same cannot be said about Big Oil's green energy peers. Top solar names First Solar (NASDAQ:FSLR) and Enphase Energy Inc. (NASDAQ:ENPH) have easily topped Wall Street's expectations; however, the latest spate of green earnings has been a mixed bag. (Source: Oil Price)
Peak Oil: Is This Top U.S. Refiner Ditching Oil For Batteries? (10 August 2021): By Charles Kennedy - Refiner Phillips 66 is betting on EV batteries for the future because it thinks we have already reached peak oil demand. The company has announced a strategic investment in an Australian lithium-ion battery materials supplier, saying, “This strategic investment enables Phillips 66 to directly support the development of the U.S. battery supply chain.” “It advances our commitment to pursue lower-carbon solutions while leveraging our leadership position and expertise in the specialty coke market and supporting NOVONIX’s emerging position in U.S.-based anode production,” Phillips 66 chairman and chief executive Greg Garland also said. Under the terms of the deal, the refiner will pay $150 million for a minority stake of 16 percent in Novonix and nominate a director for its board. (Source: Oil Price)
Nuclear Energy Is Staging A Comeback (9 August 2021): By Irina Slav - Nuclear energy had been falling further and further out of favor amid falling costs for renewable energy installations. But suggestions of its death have been highly exaggerated. The $1-trillion bipartisan deal that the Senate approved earlier this month envisages $6 billion to support nuclear power. And some utilities are considering mini reactors to support their emission reduction efforts. There is perhaps no better proof that nuclear power would be needed in the net-zero world than the fact that the infrastructure bill—which runs for 2,700 pages—seeks to support existing nuclear plants that are becoming uneconomical in competition with cheap gas and renewables. Apparently, these projects need to be made economical again in order to secure future electricity supply for an economy that, if plans pan out, will run overwhelmingly on electricity. (Source: Oil Price)
Will A Federal Clean Electricity Standard Become Reality? (8 August 2021): By Irina Slav - The energy transition has been enjoying center stage in the energy news flow for over a year now, and things are showing no signs of changing anytime soon. Yet, the paths to net-zero that are being discussed are multiplying. The idea of taxing carbon emissions in order to motivate the companies that generate them to clean up their act is one dominant path to net zero. Recently, however, another one has emerged, and some believe it is the better way to deal with emissions. Congress Democrats have so far introduced two bills that focus on what is commonly called a clean electricity standard and which is effectively a system for punishing fossil fuel plant operators and rewarding renewable energy companies. Ultimately, however, both bills are about creating a carbon credit trading system. (Source: Oil Price)
Big Oil Continues To Ramp Up Investments In South America (5 August 2021): By Matthew Smith - The threat of peak oil demand arriving sooner than predicted and the aggressive push to decarbonize the world economy in a post-Paris Agreement world is creating considerable uncertainty for the global oil industry. Big oil after considerable pressure from environmental groups, investors, and governments with many global energy supermajors is committing to become net carbon neutral. Aside from the push to reduce carbon emissions, the sulfur content of fuels is under intense scrutiny. That has seen governments, as well as various regulatory bodies across the world, clamp down on the sulfur content of fuels to reduce environmentally harmful emissions. The most recent measure was the January 2020 introduction of IMO 2020 which substantially reduced the sulfur content of maritime fuels. For these reasons, big oil is avoiding developing or operating petroleum projects that are carbon-intensive and produce low-quality crude oil grades with the potential for being processed into high emissions fuels. (Source: Oil Price)
Big Oil Unjustly Under Fire For ‘Dirty’ Hydrogen (4 August 2021): By Felicity Bradstock - Everyone’s talking about hydrogen, the magical clean energy that will propel us into a future beyond oil and gas. But is this all just big oil spinning a tale to appease international agencies and activists as pressure to make the shift to renewables mounts? Is the current hydrogen boom really all it's set out to be or is it another case of greenwashing? Several countries from around the world have put hydrogen at the top of their energy strategies for the next decade, as they strike the balance between continued oil and gas production and the introduction of alternative energy forms. From Europe and Russia to Asia and the Middle East, everyone’s looking at how to produce and promote hydrogen. In addition to several countries introducing hydrogen strategies, big oil has also made hydrogen a top priority. BP, Royal Dutch Shell, and TotalEnergies have all announced plans for multimillion-dollar hydrogen projects. This is not surprising as BP forecasts that hydrogen production could account for as much as 16 percent of global energy consumption by 2050. (Source: Oil Price)
There’s A New Battery King And It’s Minting Billionaires Faster Than Google (3 August 2021): By Alex Kimani - After an almost surreal 15-month stretch that saw its market value balloon 17-fold, Tesla Inc. (NASDAQ:TSLA) has come back to earth this year and appears in desperate need of some inspiration to get going again. TSLA, along with the majority of its green energy peers, has been seriously lackluster in 2021, managing a mere 0.6% gain in the year-to-date as the stock continues to consolidate after crazy gains in 2020. Even the company’s latest earnings report has only managed to elicit a small post-earnings afterglow despite Tesla enjoying yet another strong quarter in the pivotal Chinese market. Tesla is no longer hot, but that does not mean it has completely lost its Midas touch. Chinese electric vehicle battery maker, Contemporary Amperex Technology (CATL) has turned on the afterburners and is minting billionaires faster than Silicon Valley stalwarts Google or Facebook ever did. (Source: Oil Price)
Oil Prices Continue To Fall On Delta Variant (2 August 2021): By Julianne Geiger - Oil prices started August in the red, and kept falling into the afternoon, with both benchmarks trading down more than 3% near Monday’s close. The price of a WTI barrel slipped $2.54 (-3.43%) per barrel on Monday at 4:30 p.m. EDT, end the day at $71.41, while the Brent crude benchmark was trading down $2.35 (-3.12%) at $73.06. The catalyst for the sharp Monday drop is a surge in the number of Delta variant coronavirus cases in the world’s largest oil importer, China. Any dent in oil demand in this large of an importer will be felt in the global oil market. (Source: Oil Price)
The Hydrogen Hype Is Real, But Is It Justified? (01 August 2021): By Tsvetana Paraskova - Amid all the hype hydrogen is getting lately as an energy source, the reality is that this fuel faces significant challenges in scaling up in the global energy system. That’s the lead conclusion of the Innovation Insights Briefing prepared by the London-based World Energy Council (WEC) in collaboration with the Electric Power Research Institute (EPRI) and PwC. Hydrogen, especially green hydrogen made of water electrolysis using electricity from solar or wind, has been gaining momentum in recent years. Hydrogen now features in nearly every strategy of Big Oil and can be seen in many government plans for industry decarbonization. Hydrogen is expected to play a prominent role in lowering the carbon emissions from energy-intensive industries. (Source: Oil Price)