Why Oil Prices Fell After OPEC+ Announced Deeper Output Cuts (30 November 2023): By ZeroHedge - Initial leaks from the OPEC+ meeting suggested that the voluntary nature of additional output cuts is likely contributing to the negative market sentiment. "Drowning in detail" is how another trader MSG'd as producers are going to have to come up with some hard numbers to convince the market that the cuts are real, and not just a repackaging of previously agreed measures. The 36th OPEC and non-OPEC Ministerial Meeting (ONOMM), was held via videoconference, on Thursday November 30, 2023. The Meeting welcomed HE Alexandre Silveira de Oliveira, Minister of Mines and Energy of the Federative Republic of Brazil, which will join the OPEC+ Charter of Cooperation starting January 2024. ... (Source: Oil Price)
Ten Steps to a Faster Energy Transition (29 November 2023): By Rystad Energy - The global energy system is at a tipping point on its path to a net-zero emission future. With the COP28 conference kicking off this week, Rystad Energy is outlining the 10 critical steps required to accelerate the transition, limit global warming and ensure a clean and reliable energy future. The transition from fossil fuels to clean energy sources is gaining momentum, with notable progress in the adoption of clean technologies around the world. Despite current progress, an even quicker expansion is required, and global government and business leaders will play a foundational role when it comes to setting the pace. ... 1. Fast-track renewable developments; 2. Double down on energy efficiency; 3. Meaningful action on methane; 4. Put a price on carbon; 5. Scale up clean tech investments; 6. Optimize grid utilization; 7. Embrace electrification of road transport; 8. Reduce, reuse, recycle; 9. Cut inefficient fossil fuel subsidies; 10. Avoid trade tensions setting back progress ... (Source: Oil Price)
U.S. Gas Grid Needs Upgrade. It Might Never Get It. (28 November 2023): By Irina Slav - A small California town in the San Francisco Bay Area is planning to unhook a whole block from the gas network. This is the town of Albany’s approach to decarbonization, and it is using $200,000 in federal government money to do it. The thing is, Albany is not the only town that wants to get rid of its gas network and switch to electricity. New York recently became the first state to ban gas stoves—and heaters—in new residential buildings, with the ban set to begin coming into effect in 2026. Others, cities and states, have also been mulling over a squeeze for gas used for cooking and heating. In fact, there were enough of these gas stove ban candidates to prompt action from Congress, which in June passed a bill to block federal bans on gas stoves. This, however, does not mean local bans cannot be effected. This raises an important question for utilities: should they invest the billions of dollars that need to be invested in repairs and upgrades of the gas grid? ... (Source: Oil Price)
ESG Loan Bubble Close To Bursting (27 November 2023): By Irina Slav - Sustainability-linked loans, or SLLs, have only been around for a few years. In that short time, they have ballooned into a market worth $1.5 trillion. But now, as scrutiny comes for sustainability claims with no substance, that market faces a reckoning. And so do the banks that lent those money. The first sustainability-linked loan was the work of Dutch ING Groep and was closed in 2017. Since then, sustainability-linked loans have become the second-largest ESG market in the world, after so-called green bonds. The essence of SLLs is that the borrower can benefit from a slightly lower interest rate in exchange for undertaking commitments in the environmental department—a principle that’s pretty similar to how ESG investment funds operate. But just like ESG investment funds, regulators—and investors—have now started to question the validity of sustainability-related claims by bond issuers and bank borrowers. ... (Source: Oil Price)
Why Nuclear Power Expansion Predictions Failed (26 November 2023): By Brian Westenhaus - A University of Reading team of researchers looked back at a model that predicted nuclear power would expand dramatically in order to assess the efficacy of energy policies implemented today. Results published in the journal Risk Analysis showed the team found simulations that inform energy policy had unreliable assumptions built into them and that they need more transparency about their limitations. To improve this they recommend new ways to test simulations and be upfront about their uncertainties. This includes methods like ‘sensitivity auditing’, which evaluates model assumptions. The goal is to improve modeling and open up decision-making. The widespread adoption of nuclear power was predicted by computer simulations more than four decades ago. But a new study has shown the continued reliance on fossil fuels for energy need improvement. ... (Source: Oil Price)
Offshore Gas Field Could Help Gaza Recovery (23 November 2023): By Charles Kennedy - A gas field offshore Gaza with more than a trillion cubic feet in reserves could become a future revenue stream for the Palestinian economy. There have been suggestions that this gas is the reason for the war between Israel and Hamas, with the Israeli government eyeing control of the Gaza Marine field. Still, the U.S. has now signaled the gas belongs to the Palestinian people and is theirs to exploit. For that to happen, however, peace must be restored. During a recent visit to Israel, President Biden's energy security advisor Amos Hochstein said that the Gaza Marine field could go a long way towards helping the Palestinian economy grow. ... (Source: Oil Price)
Rystad Energy: Fossil Fuel Emissions Will Peak Within Two Years (22 November 2023): By Alex Kimani - Over the past few years, there’s been plenty of buzz around the time when global oil demand will hit its highest before entering terminal decline. Some bearish energy agencies like the IEA have predicted that the zenith is nigh while other more bullish ones like the EIA say that point is decades away. Indeed, peak oil demand is expected to be the bone of contention when COP28 is held in the United Arab Emirates from 30 November until 12 December 2023. However, not much has been said about the real elephant in the room: whether or not the global energy transition is bearing fruit in the effort to cut greenhouse gas emissions to avert dire climate change scenarios. Well, several energy and climate experts have weighed in, and the prognosis is good for clean energy buffs. Norwegian energy consultancy Rystad Energy says the world is very close to the inflection point for fossil fuel carbon dioxide (CO2) emissions, with the firm predicting emissions will peak in just two years. According to Rystad, global CO2 emissions are poised to hit about 39 gigatonnes per year (Gtpa) in 2025 before settling into a steady annual decline going by the current global trajectory of announced policies, projects, industry trends, and expected technological advancements. The firm notes that emissions hit a record high in 2022 after many countries ditched their climate goals and turned to more carbon-intensive fuels as a short-term solution to their energy security crises following Russia’s invasion in Ukraine. ... (Source: Oil Price)
The Battle for America's Energy Future: Oil, Gas, and National Security (21 November 2023): By ZeroHedge - Fifty years ago this week, legislation authorizing construction of the Trans-Alaska Pipeline passed both houses of Congress and was signed into law by President Richard Nixon. The whole process took all of five days. Not only was the timeline unprecedented, but so was the fact that the act specifically halted all legal challenges against the planned pipeline. Furthermore, it prohibited federal and state agencies from regulating the construction of the project. The legislation led to a flurry of construction, and since the first oil flowed through the Trans-Alaska Pipeline in June, 1977, more than 18 billion barrels have been delivered to its Valdez terminus from Alaska’s North Slope. The benefits to our state are clear: more than one-sixth of all Alaskan private-sector jobs are tied to oil and gas development throughout the state, and Alaska’s economy is driven by oil revenues and investment decisions made via Alaska’s Permanent Fund, which increases each via oil and gas royalties. ... (Source: Oil Price)
Clean Energy Start-ups Are Struggling As They Wait For Federal Aid (20 November 2023): By Tsvetana Paraskova - Some American clean energy and technology startups are struggling to keep afloat while waiting for the U.S. Administration to disburse the pledged loans and funds under the landmark Inflation Reduction Act (IRA). Several startups have already filed for bankruptcy, others have flagged the ability to continue as a going concern or hired advisors to evaluate financing and strategic alternatives as soaring construction costs and high interest rates challenge their initial plans and timelines for having production sites up and running. The IRA, passed in August last year, has nearly $370 billion in climate and clean energy provisions, including investment and production credits for solar, wind, energy storage, critical minerals, funding for energy research, and credits for clean energy technology manufacturing such as wind turbines and solar panels. ... (Source: Oil Price)
OPEC Said To Consider Additional 1 Million Bpd Output Cut (17 Novembwe 2023): By ZeroHedge - Two days ago, JPMorgan’s head of energy strategy Christyan Malek warned that amid the recent plunge in oil prices, driven as much by shorting CTAs (who today are in full-blown short squeeze panic mode) as the Biden admin, the oil market was underestimating the chances of deeper supply cuts during this month's Nov 26 OPEC+ meeting. “The market’s probably assuming very little chance of that happening, I’d say it’s much higher than that – not as a base case but as a scenario” Malek told Bloomberg in an interview, adding that deeper curbs would be "in order to get ahead of potential weakness in the first half of next year." “We may need to see” a cut “given where the balances are, particularly given the demand trending.” And while “there’s a view that Saudi is tapped out", Malek said that he doesn't believe that: "I think there’s more flex if they wish to cut. We could see them do sizable cuts from here; having said that, I think it’s more likely they’ll want to socialize them among their OPEC peers – a collective cut rather than one on their own.” ... (Source: Oil Price)
Private Sector Takes Lead in Nuclear Fusion Race (16 November 2023): By Haley Zaremba - Nuclear fusion is closer than ever to becoming a commercial reality as the private sector takes over research and development. For decades, nuclear fusion research lay outside the scope of private enterprise, as the leading technology used to conduct such experiments were so prohibitively expensive that only public funding could reasonably be expected to foot the bill. But now, thanks to a breakthrough from one of those state-funded projects, nuclear fusion has become far more accessible, and venture capitalists have wasted no time jumping into the nascent market. Nuclear fusion – the natural process that powers our sun – is often touted as the holy grail of clean energy research because of its ability to produce near-infinite amounts of completely carbon-free energy. But reproducing such a process here on Earth has proven difficult and costly. Some experiments have had some success in achieving a nuclear fusion reaction, but creating a sustained reaction that emits more energy than went into it is another story. ... (Source: Oil Price)
Ocean Thermal Energy: The Future of Renewable Power? (15 November 2023): By Haley Zaremba - Ocean thermal energy conversion (OTEC) is the oldest renewable energy technology you’ve never heard of. The idea for the technology, which exploits the differing temperatures in different layers of ocean water to create energy, is almost 150 years old, but is only now gaining traction for practical application. While OTEC will likely never take over the energy industry, it could become an essential source of energy for island nations and other coastal communities in the decarbonization era. London company Global OTEC plans to bring the first commercial-scale ocean thermal energy generator online as soon as 2025. And just last week oil supermajor Shell Technology signed a deal with Makai Ocean Engineering to test and develop “potentially transformative proprietary technologies” including an OTEC system. ... (Source: Oil Price)
Green Ammonia Breakthrough to Transform Fuel and Fertilizer Industries (15 November 2023): By Brian Westenhaus - Researchers at University of New South Wales Sydney and their collaborators have developed an innovative technique for sustainable ammonia production at scale. With a prototype unit nearing production of ammonia for fertilizers, in a market that has one of the largest carbon footprints among industrial processes, will soon be possible on farms using low-cost, low-energy and environmentally friendly technology. Ammonia also has immense potential as an optimal hydrogen carrier for fuel cells. Up until now, the production of ammonia has relied on high-energy processes that leave a massive global carbon footprint with production temperatures of more than 400o C and pressures exceeding 200 atmospheres that account for 2 percent of the world’s energy and 1.8 percent of its CO2. ... (Source: Oil price)
Geothermal's Growing Role In The Global Energy Mix (14 November 2023): By Felicity Bradstock - The U.K. has long had big plans for geothermal energy, having assessed the potential of converting old coal plants into geothermal facilities in recent years. But now other parts of the world are catching up, including several European states and some countries across Africa. As governments seek to diversify their green energy portfolios, many are now looking to geothermal energy as a potential alternative energy source to fossil fuels and already well-established renewable options, such as wind and solar power. In Yorkshire, in the U.K., a former fracking site could provide the space for a new geothermal facility. This marks a huge turnaround, as just seven years ago, Third Energy was given permission to carry out a fracking project at an existing well, but plans were halted after the U.K. upheld a ban on fracking. Now, CeraPhi Energy, a group consisting of former oil and gas veterans plans to use their experience in the industry to develop a geothermal energy site. The Kirby Misperton project is in the final phase of testing with so far positive results. ... (Source: Oil price)
After U.S. Withdrawal, Orsted Pulls Out Of Norway Wind Bidding (13 November 2023): By Charles Kennedy - Danish offshore wind developer Orsted has officially withdrawn from a consortium set to bid on Norwegian offshore wind projects just days after pulling out of two U.S. offshore wind projects, Reuters reports, citing one of the consortium partners. The withdrawal comes just two days before Norway’s November 15 deadline to submit pre-qualification interests for the building of up to 1.5 gigawatts of offshore wind capacity. "Orsted has informed us that due to a prioritisation of investments in the portfolio, it will withdraw from pursuing participation in offshore wind developments in Norway, and therefore their participation in the partnership will discontinue," Norway's Bonheur ASA (BONHR.OL) said in a statement to Reuters. Separately, Orsted told Reuters by email that it was no longer prioritizing offshore wind development in Norway. ... (Source: Oil Price)
Watchdog Has Grim Winter Warning: There May Be Blackouts (12 November 2023): By Irina Slav - As much as two-thirds of the United States could experience blackouts in peak winter weather this and next year, the North American Reliability Corp has warned. These warnings have become something of a routine for the regulatory agency lately. Earlier this year, NERC issued a blackout warning for some parts of the U.S. over the summer, citing extreme temperatures. This latest warning also has to do with extreme temperatures. Yet it's not just the temperatures themselves that are the problem. It's the power generation mix that is making the grid more vulnerable. In its latest assessment, NERC cited recent data showing that up to a fifth of generating capacity could be forced offline in case of a cold snap over areas that do not normally get this kind of weather. ... (Source: Oil Price)
How Abandoned Oil Rigs Could Help Fight Climate Change (9 November 2023): By Haley Zaremba - The world’s oceans are home to tens of thousands of abandoned offshore oil rigs. There are more than 32,000 in United States waters alone, and the United Kingdom’s North Sea hasn’t fared much better, with more and more rigs being decommissioned all the time as developed oil fields age out and global energy markets and energy policies increasingly shift away from fossil fuels. These abandoned platforms can pose serious environmental risks if improperly or inadequately managed. International convention Ospar dictates that these rigs must be removed from our waters worldwide – but some scientists are finding that, if properly decommissioned, maintained, and/or retrofitted, these oil rigs can potentially offer some considerable environmental benefits. In the United States, more than half – approximately 58% – of the 55,000 wells managed by the Bureau of Ocean Energy Management (BOEM) are either permanently or temporarily abandoned. This is a massive figure. For context, the BOEM manages more than 2,000 active oil and gas leases across 10.9 million acres of North America’s Outer Continental Shelf. ... (Source: Oil Price)
China And India Challenge EU Over New Carbon Tax (8 November 2023): By Metal Miner - Both India and China continue to denigrate the Carbon Border Adjustment Mechanism (CBAM), or “carbon tax” as it has come to be known, proposed by the European Union. Meanwhile, the EU claims the new scheme is integral to its plan to achieve zero emissions across six earmarked industries. The new tax regime recently moved into what some experts dub the “transition phase.” Starting on October 1, importers of commodities, including steel, into the EU need to report the carbon emissions of those products. Beginning in 2026, those importers will also be subject to fees. The EU aims to impose the new tax on countries with significant carbon emissions. And while the carbon tax’s stated aim is to put EU producers on an even keel with their counterparts elsewhere, it will also add to the cost of steel, aluminum, and other goods. ... (Source: Oil Price)
European Commission To Assess 10 Countries For EU Membership (7 November 2023): By RFE/RL staff - The European Commission's long-awaited annual enlargement report is set to be released on November 8. The release has been constantly postponed, as the report was originally expected to come out in early October. The delay was due to a number of factors. Firstly, there was a wish from EU member states that the enlargement report wouldn't be released ahead of the EU summit in Brussels on October 26-27, with fears that it could "hijack" discussions on other issues such as the bloc's budget and migration. Secondly, the enlargement report is huge, with assessments on 10 countries -- Albania, Bosnia-Herzegovina, Georgia, Kosovo, Moldova, Montenegro, North Macedonia, Serbia, Turkey, and Ukraine. There is a lot of ground to cover and EU member states -- the ultimate arbiters in the enlargement process -- have to study the documents before making a decision. ... (Source: Oil Price)
Oil Industry Under Pressure As Net Zero Goals Loom (6 November 2023): By City A.M - Energy giants BP and Shell unveiled sharp downturns in their usual earnings last week in a rocky third quarter for the sector, with the oil and gas industry failing to match last year’s record profits. While oil prices have recently rallied following Hamas’ attack on Israel and gas prices have bounced amid sustained industrial action at Australian LNG plants, commodity prices have cooled significantly since Russia’s invasion of Ukraine – which is now being reflecting in the bottom lines of fossil fuel majors. London-listed contenders BP and Shell were not immune to this slide in profits, posting year-on-year downturns of 60 percent and 38 percent respectively. BP and Shell have sought to keep shareholders sweet as markets normalise, handing out a combined £4bn to investors in recent days. ... (Source: Oil Price)
Japanese Scientists Reinvent Fuel Cells With Graphene Breakthrough (5 November 2023): By Brian Westenhaus - A University of Tsukuba research team has successfully developed a new method that can prevent the crossover of large fuel molecules and suppress the degradation of electrodes in advanced fuel cell technology using methanol or formic acid. The successful sieving of the fuel molecules is achieved via selective proton transfers due to steric hindrance on holey graphene sheets that have chemical functionalization and act as proton-exchange membranes. The research reporting paper “Suppression of Methanol and Formate Crossover through Sulfanilic?Functionalized Holey Graphene as Proton Exchange Membranes,” has been published in the journal Advanced Science. ... (Source: Oil Price)
Big Oil Investors May Not Win From M&A Streak (2 November 2023): By Leonard Hyman & William Tilles - The International Energy Agency (IEA) predicts that fossil fuel consumption will peak within a decade. But ExxonMobil and Chevron, the American oil giants just announced two gigantic acquisitions of oil and gas properties. They put their money where their mouths are. They are doubling down on oil and gas. So what does the IEA know? Before we get into the specifics of our suspicions, let’s set out a ten-year report card for the oil companies. They are entities supposedly established as businesses with the intent to make profits for their shareholders. Successful firms earn returns commensurate with or in excess of the risk undertaken. Shareholders do not measure returns based on what the corporate books show. They measure it based on the total of dividends and stock price appreciation. So, let’s look at the annual price appreciation and the total returns (price plus dividend) for the 10 years ended October 30, for five S&P 500 industry sectors (in %). ... (Source: Oil Price)
Europe’s Renewables Landscape Transforms With Rooftop Solar Adoption (1 November 2023): By Rystad Energy - Europe's solar installation levels are exceeding expectations, with the amount installed in October 2023 already matching the total installed in all of last year. Rystad Energy modeling forecasts new solar capacity additions will grow 30% this year versus 2022, surpassing 58 gigawatts direct current (GWDC) of new panels by the end of the year. This year, rooftop solar installations have taken the lead, accounting for 70% of all newly installed solar in Europe. This underscores the continent's commitment to clean energy and the adaptability of solar photovoltaic (PV) technology, which can be deployed quickly with comparatively few regulatory hurdles, relative to large-scale, ground-mounted projects. After briefly conceding top position to Spain last year, Germany is surging ahead with a projected 84% annual growth this year, reaching a record high of 13.5 GWDC of total solar PV capacity. By contrast, Spain faces challenges in maintaining momentum this year, despite its record-breaking performance in 2022. Other key emerging markets include Poland and the Netherlands, with their growth primarily fueled by a surge in rooftop installations, a trend that is gaining traction across the continent. ... (Source: Oil Price)