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MORNING ENERGY NEWS | 05/21/2020
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** At least this whole ordeal is helping put what is really important back in perspective.
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E&E News ([link removed]) (5/21/20) reports: "The coronavirus pandemic threatens to derail any progress made in recent years to deal with the climate change crisis, organizers of the annual gathering of business and political elites in the Swiss ski resort of Davos said Tuesday. In a survey of industry professionals that reassesses the risks to the global outlook in light of the pandemic, the World Economic Forum said that 'years of progress' on addressing climate change could be undone and that it is important for countries to make sure environmental issues are at the heart of recovery plans. 'We now have a unique opportunity to use this crisis to do things differently and build back better economies that are more sustainable, resilient and inclusive,' said Saadia Zahidi, the WEF's managing director. The WEF warned that 'omitting sustainability criteria in recovery efforts or returning to an emissions-intensive global economy risks
hampering the climate resilient low-carbon transition.'"
** "It’s so bad for America, that one might wonder if the Communist Party of China wrote the Green New Deal for us."
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– Andrew F. Puzder, Michigan Live ([link removed])
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Homer said it best...
** E&E News ([link removed])
(5/21/20) reports: "Wind farms often produce less power when they age past the 10-year mark because the loss of federal tax credits halts maintenance — a finding that could shift policymakers' plans for climate policy, according to a new study from Lawrence Berkeley National Laboratory. The research, published in the journal Joule last week, is the first comprehensive account of how wind turbines across the United States degrade over time, according to researchers. Wind made up close to 8% of the nation's power last year, when it overtook hydropower as the largest generator of renewable electricity. The lab found that after the first 10 years of operation, wind turbines tended to experience an 'abrupt decline' in performance, which continued as time went on. They produced less electricity than possible given wind conditions at a specific site. The sudden drop-off suggested that the plants' operators were doing something different: Since they could no longer profit from the decadelong
production tax credit (PTC), companies were doing less to protect against wear and tear, having apparently decided it no longer made good financial sense, according to the paper. After 17 years, the lost energy was equivalent to taking away 1 out of every 10 turbines in a wind farm, said Dev Millstein, a scientist at LBNL and co-author of the study. The finding could lead some policymakers to reconsider how they value wind in the future, researchers said."
** ([link removed])
Nothing will help fight the pandemic quite like a continent-wide tax break on electric vehicles.
** Bloomberg ([link removed])
(5/20/20) reports: "The European Union is poised to announce the world’s greenest recovery package next week, as it seeks to curb pollution and save its economy from the coronavirus pandemic. European Commission President Ursula Von Den Leyen is set to transform her Green Deal strategy to reach net zero greenhouse gas emissions by 2050, into a coronavirus economic rescue plan that’ll rapidly drive private investment and create jobs across the continent, according to a draft document with details of the proposal seen by Bloomberg. The plan is part of the package that the EU executive will unveil on May 27 for the bloc’s jointly financed response to the pandemic-induced recession. The package will include a proposal for the EU’s next trillion-euro budget for the years 2021-2027 and a “recovery instrument” of at least half-a-trillion euros specifically designed to cushion the economic blow from the outbreak.'These sums would dwarf any green stimulus announcements to date and signal that the
EU really wants to align its economic recovery strategy with the Green Deal,' said Victoria Cuming, head of global policy at BloombergNEF. Selected proposals (subject to change): 60 billion euros to 80 billion euros to boost electric vehicle sales and a doubling of investment in charging networks, Option to exempt electric vehicles from VAT, 91 billion euros a year in grants and guarantees for sealing up drafty buildings - including plans to offer home buyers green mortgages, 10 billion euros to leverage finance for 7.5 gigawatts of new renewable energy projects over the next 2 years, 10 billion euros a year in a fund administered by the European Investment Bank to boost renewables and hydrogen infrastructure, As much as 30 billion euros from the EU’s existing Innovation Fund for the development of green hydrogen that can curb emissions in some of the hardest to tackle industries, like steel and cement making."
Slow and steady.
** Energy Information Administration ([link removed])
(5/20/20) reports: "Producers were operating the fewest oil and natural gas drilling rigs on record in the United States at 339 on May 12, the lowest level in the Baker Hughes Company’s rig count data series that dates back to 1987. The number of active rigs began sharply decreasing in mid-March as crude oil prices fell: rigs have fallen by 56% (433 rigs) since March 17. Most of the decrease was in oil-focused geologic plays, but natural gas-focused plays also saw significant decreases. Since March 17, 71% (308 rigs) of the rigs taken out of service were in the top three U.S. crude oil-producing regions: the Permian region in southeastern New Mexico and western Texas, the Eagle Ford region in southern Texas, and the Bakken region in Montana and North Dakota. Drilling in oil-focused plays has declined as the impact of mitigation efforts for the 2019 novel coronavirus (COVID-19) have caused declines in petroleum demand and the resulting fall in crude oil prices. In mid-March, the Permian
region had 405 operating rigs. By May 12, that number had fallen by 57% to 175 rigs. The Eagle Ford and Bakken regions saw similar declines in their rig counts, of 64% and 69%, respectively, in that time."
Energy Markets
WTI Crude Oil: ↑ $34.43
Natural Gas: ↓ $1.73
Gasoline: ↑ $1.92
Diesel: ~ $2.41
Heating Oil: ↑ $100.72
Brent Crude Oil: ↑ $36.83
** US Rig Count ([link removed])
: ↓ 346
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