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MORNING ENERGY NEWS  |  06/03/2020
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We've been here the whole time.


Reuters (6/2/20) reports: "U.S. shale oil producers are beginning to reverse production cuts as prices recover from historic lows, underscoring shale’s ability to quickly adjust to pricing and posing a challenge to OPEC as it considers extending production curbs. U.S. producers slashed output in April and May as oil prices collapsed due to a supply glut and as restrictions on populations worldwide to slow the COVID-19 pandemic destroyed fuel demand. Shale producers Parsley Energy Inc and EOG Resources Inc on Tuesday disclosed plans to restore some or all of their output cuts. In North Dakota, state energy officials this week reduced by 7% an estimate of production shut-ins in the second-largest oil producing state...Unlike OPEC and its allies, shale producers do not participate in government-mandated production cuts. They cut their output only when prices make pumping oil unprofitable."

"EPA is returning the Clean Water Act certification process under Section 401 to its original purpose, which is to review potential impacts that discharges from federally permitted projects may have on water resources, not to indefinitely delay or block critically important infrastructure"

 

– Andrew Wheeler,
EPA Administrator 

Don’t call me Francis.


Washington Examiner (6/2/20) reports: "The fate of the clean energy transition depends on dramatically increasing the extraction, refining, and processing of critical energy minerals, the State Department’s top energy official said Tuesday. Francis Fannon, the U.S. assistant secretary of state for energy resources, co-hosted a virtual workshop with the International Renewable Energy Agency on the topic, which has been a chief focus of his, as well as an area of emphasis for Republicans. Renewables will stand as the only energy source to grow in 2020, Fannon said, touting recent projections from the International Energy Agency. 'This is in large measure the result of a global and very much bottoms-up call for cleaner forms of energy,' Fannon said. The problem: But the coronavirus has set back mining operations across the world, exposing the vulnerability of clean energy supply chains, he said, echoing warnings from the IEA."

Sorry King Cuomo, You Left the Admin No Choice...


Power Magazine (6/1/20) reports: "The Trump administration on June 1 moved to limit the ability of individual states to use provisions of the Clean Water Act (CWA) to block energy projects, a potential win for the power generation and other energy industry sectors that have battled lengthy licensing and permitting reviews and rejections based on climate change arguments...Thomas Pyle, president of the American Energy Alliance, in a statement shared with POWER said, 'President Trump and EPA Administrator Andrew Wheeler were left with no choice but to respond to the blatant misuse of the Clean Water Act by New York Governor Andrew Cuomo and others. Activist judges and environmental extremists continue to misuse the legal system to prevent the safe and responsible production and transportation of America’s energy. Today’s announcement will limit at least one of the weapons being used to abuse our legal system.'”

CDC takes a Mulligan.


New York Post. (5/29/20) reports: "MTA Chairman Pat Foye on Friday blasted a new CDC guidance that businesses encourage employees to avoid mass transit. 'The CDC’s latest guidance marks yet another confounding recommendation from the nation’s top health authority,' Foye said in a statement. 'Encouraging people, especially those without cars and in congested areas like New York, not to take public transit is misguided.' The new guidelines for re-opening office buildings suggest that companies 'offer employees incentives to use forms of transportation that minimize close contact with others, such as offering reimbursement for parking for commuting to work alone or single-occupancy rides.' But one transit official said the CDC recommendations were an anathema to dense cities like New York. 'The CDC clearly intends to encourage a gridlock traffic situation in urban areas,' said the official." 

Energy Markets

 
WTI Crude Oil: ↓ $36.67
Natural Gas: ↑ $1.82
Gasoline: ↑ $1.98
Diesel: ↑ $2.41
Heating Oil: ↓ $107.35
Brent Crude Oil: ↓ $39.19
US Rig Count: ↓ 315

 
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