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MORNING ENERGY NEWS | 05/13/2020
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** The frivolous gets cut, even in the People's Republic of California.
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E&E News ([link removed]) (5/13/20) reports: "California's climate programs face a major threat as the state grapples with a potential budget deficit of $54.2 billion brought on by the COVID-19 pandemic. The deficit announced last week by the state's Department of Finance means major cuts to Gov. Gavin Newsom's (D) draft $222 billion budget for fiscal 2020-21. Newsom plans to unveil an overhaul of that blueprint tomorrow. Some of the state's climate efforts paid for through the budget's general fund likely will get cut, postponed or eliminated this fiscal year. The state also invests more than $2 billion annually in climate programs through its carbon cap-and-trade program. But that program is poised to see its upcoming revenues shrink, threatening investments in clean cars, a planned high-speed rail line, local rail and transit programs, and wildfire prevention programs. The next cap-and-trade auction is scheduled for May 20, two months
into an economic lockdown that stands to send carbon proceeds plummeting. Businesses won't need to buy as many so-called allowances for their emissions, because they aren't operating at full capacity. California's nearly 8-week-old stay-at-home order remains largely in place."
** "Policies to further disadvantage the fuels we need to power economic growth and force consumers and businesses to spend more instead of less on energy will only prolong the economic pain."
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– Ellen R. Wald, Ph.D., The Atlantic Council ([link removed])
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How not to do energy policy.
** Reuters ([link removed])
(5/12/20) reports: "The head of Germany’s largest energy company E.ON on Tuesday urged the German government to increase funds for green power infrastructure and cap costs to consumers as the demand drop following the coronavirus outbreak saps existing finance. A fall in wholesale prices because of the collapse in energy use during lockdowns means consumers effectively have to pay more to top up a green fund that guarantees earnings for the utilities that provide renewable power. In an earnings call on Tuesday, Chief Executive Johannes Teyssen said the bills consumers faced were likely to “go through the roof” unless the government allocated money from the federal budget to cap the amount they pay in green subsidies and to cut energy taxes. 'We must ensure green power remains affordable, being the key element of climate protection,' Teyssen said during an earnings call. 'At the same time we must promote the sustainable electrification of sectors like transport and heat through investments
for the time after corona.'"
Corn mafia finds their new capos.
** Bloomberg ([link removed])
(5/12/20) reports: "A $3 trillion coronavirus stimulus bill proposed by House Democrats Tuesday includes aid of 45 cents a gallon for domestic biofuel producers, according to the bill text. Payment through 'Renewable Fuel Reimbursement Program' is similar to Volumetric Ethanol Excise Tax Credit that lapsed at the end of 2011 and would be applicable for volumes produced between Jan. and May of 2020. Bill also would provide lesser payments to biofuel producers 'unable to produce' as determined by Agriculture Sec."
Even a broken clock...
** CBS News ([link removed])
(5/12/20) reports: "Telsa CEO Elon Musk continued to defy California and Alameda County authorities by restarting production at the company's Fremont assembly plant Monday, saying he was ready to be arrested himself if necessary, CBS San Francisco reported. The announcement came days after Musk filed a lawsuit against the county to reopen the factory, which is Tesla's only vehicle assembly plant in the U.S. Shift workers were seen streaming in and out of the sprawling plant in the pre-dawn hours, filling up the employee parking lot. The company reportedly has deployed additional PPE masks and taken other measures similar to those used to reopen the automaker's plant in Shanghai, China. Verve, quoting two unnamed workers, said production had actually restarted on a limited basis over the weekend and around 200 Model Y and Model 3 vehicles had rolled off the assembly line."
Energy Markets
WTI Crude Oil: ↓ $25.76
Natural Gas: ↓ $1.72
Gasoline: ↑ $1.86
Diesel: ~ $2.41
Heating Oil: ↓ $84.68
Brent Crude Oil: ↓ $29.94
** US Rig Count ([link removed])
: ↓ 369
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