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MORNING ENERGY NEWS  |  06/05/2020
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Our friends from Australia want help storing their oil down under.


E&E News (6/4/20) reports: "The Department of Energy entered into a leasing agreement with Australia yesterday that would enable the country to store crude oil in the United States' Strategic Petroleum Reserve. The agreement, nearly two years in the making, marks the first such time the United States has opened its reserve to storage from an international partner in the SPR's more than 40 years of history. It also comes at a time when the global oil and gas industry has struggled to contend with a historic oil glut caused by the extended slowdown in demand from the coronavirus pandemic response and the aftereffects of a Russian/Saudi price war that resulted in overproduction. 'We are thankful that you chose to be the first country to demonstrate the benefits of leasing storage space in the United States SPR,' Energy Secretary Dan Brouillette said during the virtual signing ceremony that featured Australia's minister of energy and emissions reduction, Angus Taylor. Brouillette said, 'Oil producers will also be thankful for these purchases during a time of oversupply and imbalance.'"

"The collapse of the global demand for fossil fuels and of the consistently unprofitable fracking industry presents an unprecedented opportunity to end the pollution, injustice, and global heating driven by our fossil fuel reliance."

 

–Democratic National Committee Council on the Environmental and Climate Crisis

If irony were an Olympic sport, Mr. Musk would be taking home the gold.


Electrek (6/4/20) reports: "Germany has increased electric vehicle incentives as part of their post-pandemic stimulus package. One measure is going to boost sales of lower-priced EVs like Tesla Model 3 and VW ID.3. The country already had an EV incentive plan that stood out in Europe. Germany’s EV incentive program is different than others because they negotiated it with the auto industry who contribute half of them. When Germany first introduced its new plan to boost electric vehicle adoption through new incentives, including a €4,000 discount at the time of purchase, Tesla claimed that they were purposely left out of the program because of a cap on vehicles with a starting price of less than €60,000 negotiated by the government and the German auto industry. The California-based automaker later adjusted its price in order to take advantage of the subsidy."

Censorship is wrong. But so is capturing large market share through political favors rather than value creation. 

That's one way to social distance.


Reuters (6/5/20) reports: "The $1 trillion container shipping industry is in a slowdown. Literally. Some shipping lines, whose retail customers are being hammered by the coronavirus pandemic, are reducing sailing speeds and taking longer routes around Africa, avoiding Suez canal passage fees, according to the companies and ship-tracking specialists. Many are also cutting down the number of voyages and providing short-term storage for clients as the industry, which includes heavyweights like Maersk, MSC and Hapag-Lloyd, faces its biggest downturn since the 2008 financial crisis. The new tactics not only save on costs, but also help adapt to the needs of cash-crunched retailers - among their biggest customers - who are stuck with huge inventory surpluses thanks to COVID-19 store closures and a collapse in consumer demand...Indeed, the outlook for retail is dim: Euromonitor forecasts that U.S. retail sales will fall more than 6% this year. James Conroy, CEO of California-based clothing company Boot Barn Holdings, told analysts it faced “several headwinds. 'High unemployment, extremely depressed oil prices and a shift toward online shopping will present challenges for us as we progress through the next six to 12 months,' he said." 

If you oppose a carbon tax, please contact us and take a stand.

Tom Pyle, American Energy Alliance
Myron Ebell, Competitive Enterprise Institute
Phil Kerpen, American Commitment
Andrew Quinlan, Center for Freedom and Prosperity
Tim Phillips, Americans for Prosperity
Grover Norquist, Americans for Tax Reform
George Landrith, Frontiers of Freedom
Thomas A. Schatz, Citizens Against Government Waste
Richard Manning, Americans for Limited Government
Adam Brandon, FreedomWorks
Craig Richardson, E&E Legal
Benjamin Zycher, American Enterprise Institute
Jason Hayes, Mackinac Center
David Williams, Taxpayers Protection Alliance
Paul Gessing, Rio Grande Foundation
Seton Motley, Less Government
Nathan Nascimento, Freedom Partners Chamber of Commerce
Isaac Orr, Center of the American Experiment
David T. Stevenson & Clint Laird, Caesar Rodney Institute
John Droz, Alliance for Wise Energy Decisions
Jim Karahalios, Axe the Carbon Tax
Mark Mathis, Clear Energy Alliance
Jack Ekstrom, PolicyWorks America

Energy Markets

 
WTI Crude Oil: ↑ $39.39
Natural Gas: ↑ $1.85
Gasoline: ↑ $2.00
Diesel: ↑ $2.41
Heating Oil: ↑ $113.62
Brent Crude Oil: ↑ $42.28
US Rig Count: ↓ 313

 
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