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MORNING ENERGY NEWS  |  04/20/2020
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Green New Deal supporters to the workers of the world: "22 Million Unemployed Not Enough!  We need 33 Million!"


E&E News (4/17/20) reports: "A growing number of prognosticators expect that global carbon dioxide emissions could fall 5% this year as a result of the coronavirus pandemic, amounting to the largest annual reduction on record. But climate researchers say there is little reason for celebration, for people or the planet. CO2 is a long-lived gas. An annual drop in emissions, even one of historic proportions, is unlikely to dramatically change the concentrations of carbon dioxide swirling around Earth's atmosphere. Then there is the nature of the reductions. Few think draconian economic lockdowns, like those implemented to halt the virus's spread, represent a viable decarbonization strategy. Mostly, the emissions projections show just how much work the world needs to do to green the economy. Holding global temperature rise below 1.5 degrees Celsius, for instance, would require annual emission reductions of 7.6%, according to the United Nations'" 

"Producers are already shutting in the least profitable wells, the way a free market should work...Global markets are so interconnected, it would be easy for capital dollars to be moved to lesser basins with less regulation...Operations are best able to make decisions, not regulators."

 

– Lee Tillman, Marathon

The math doesn't lie.


International Journal of Sustainable Energy (4/16/20) pusblishes: "As windfarms spread, so have the discussions concerning their economics. Some argue from a basic definition of Levelised Cost of Energy (LCOE), that wind energy is more cost-effective than other energy sources. The opponents argue that the LCOE must be estimated taking a systemic view including opportunity costs, which changes the picture. The opportunity costs are assessed in this paper using a novel approach based on a simulation model to estimate the number of windfarms that will achieve a certain nameplate output. Then, this is combined with the LCOE of dispatchable energy sources to estimate the opportunity cost. A Monte Carlo simulation is run to estimate the effects of uncertainty and variations. The results are clear – windfarms are not cost-effective when a certain output must be guaranteed as major opportunity costs are introduced. However, as a supplementary source of energy in specific situations, windfarms can be useful."

Going Green means giving green....to Red China. 


Washington Times (4/16/20) reports: "Rep. Alexandria Ocasio-Cortez’s Green New Deal has been decried as an economy killer, but a study released Thursday found that the sweeping climate change resolution would come as an enormous boon to the mining industry. A report by the free-market Heartland Institute said that replacing fossil fuels and nuclear power with renewable energy sources such as solar, wind and electric vehicles would come at an environmental cost by driving a 'massive worldwide increase' in mining...Those minerals include lithium, cobalt, copper, iron and aluminum. More than 70% of rare-earth elements are now mined by Chinese-controlled companies or in China, which has dismal records on environmental protection and working conditions."

It's got to go somewhere.


Reuters (4/17/20) reports: "Traders are storing an estimated record 160 million barrels of oil on ships - double the level from two weeks ago as they seek to tackle a glut of stocks created by a slide in global demand from the coronavirus, shipping sources say. Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have agreed a record cut in output from May of 9.7 million barrels per day, or almost 10% of global supply, to help support prices and curb oversupply. At the same time traders have rushed to find storage on land and at sea in what is believed to be the biggest oil glut in history. Shipping sources said oil held in floating storage on tankers had reached at least 160 million barrels including 60 supertankers, known as very large crude carriers (VLCCs), which can each hold 2 million barrels. This compared with 25 to 40 VLCCs already chartered with storage options at the start of April and fewer than 10 VLCCs in February, the sources said."

Energy Markets

 
WTI Crude Oil: ↓ $11.59
Natural Gas: ↓ $1.73
Gasoline: ↓ $1.81
Diesel: ↓ $2.49
Heating Oil: ↓ $92.22
Brent Crude Oil: ↓ $26.32
US Rig Count: ↓ 498

 
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