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MORNING ENERGY NEWS  |  06/15/2020
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Is Gavin pulling a Galt on purpose?


Yahoo Finance (6/13/20) reports: "Blackouts that hit millions of Californians in 2019 could be doubly calamitous this year with tech giants Google, Twitter Inc. and Facebook Inc. among the many companies keeping offices closed until the fall or later in response to the global Covid-19 pandemic. If utilities cut power again, home offices set up during the pandemic could go dark and stay dark for days, and they’ll have no corporate offices to flee to for power. In October 2019, more than 3 million people were affected by a series of rolling blackouts over more than a week as PG&E Corp. and Edison International tried to prevent live wires from sparking wildfires. Call it a collision of crises. Blackouts could limit California’s push to revive an economy largely paralyzed by stay-at-home orders this spring. The state, utilities and individual companies are all seeking ways to deal with blackouts before a wildfire season forecast to be worse than normal. Hewlett Packard Enterprise Co., for one, has 'long contemplated this type of scenario,' according to spokesman Adam Bauer...'We’re going to have people sheltered in place and without power,' said Carl Guardino, chief executive officer of the Silicon Valley Leadership Group lobbying organization, which represents many of the region’s biggest companies. Guardino’s own home lost electricity for 5 days last year, he said. He ended up moving his family into a hotel. he said. Now, though, even that solution is unlikely given the coronavirus shutdowns."

"This next package I view as more as 'all right, how do we deal with the economic recovery?' And so we need to be looking at jobs. We need to look at where we have lost those jobs and how we can work to regain or to breathe some light into these and we absolutely have opportunities when it comes to the clean energy space."

 

–Senator Lisa Murkowski, (R-Alaska)

A tax on energy is a tax on food.


The Star (6/12/20) reports: "Grain farmers are adamant that Agriculture Minister Marie-Claude Bibeau was wrong when she said this week grain farmers were, at most, paying $819 a year in carbon tax to dry their products, so they don’t need a break on the federal carbon tax. 'The estimates range from $210 to $819 per farm and 0.05 per cent to 0.42 per cent of total farm operating expenses,' Bibeau said in a news conference Tuesday. Markus Haerle, chair of the Grain Farmers of Ontario, says the carbon-tax bill for drying corn from his 800-hectare farm in St. Isidore, Ont., was $8,500 last fall, and that he is not alone. Late Friday, Bibeau’s spokesperson said the figures Bibeau gave were averages that vary by province, and particular farmers might pay much more. Ontario farmers, along with grain-growers in Alberta, Saskatchewan and Manitoba, are asking Bibeau to reconsider her determination not to exempt grain-drying from the carbon tax. Ottawa does exempt fuel used to run farm vehicles, and partially exempt fuel to heat commercial greenhouses, mainly because of competitive pressures with American farmers who don’t pay the carbon tax, plus a lack of greener alternatives."

Attention woke California:  When push comes to shove, the energy that works is the energy we use. 

Bloomberg (6/11/20) reports: "Despite environmental concerns, California will allow PG&E Corp. to use diesel-powered mobile generators to keep some electricity flowing when the utility proactively cuts power to prevent live wires from sparking fires in high wind. State regulators signed off Thursday on PG&E’s plan to use about 450 megawatts of diesel generation to power homes, businesses, hospitals and other critical facilities as part of the utility’s effort to reduce disruptions during the shutoffs. Last fall, regulators criticized PG&E for intentionally blacking out millions of customers to prevent power lines from sparking fires during dry, windy conditions. Some clean-energy groups opposed the company’s request to use diesel generators given California’s goal to wean itself off fossil-fuels by 2045. The California Public Utilities Commission said it was only permitting the practice this year and directed PG&E to look for cleaner alternatives starting in 2021."

Don't let the door hit you on the way out.


E&E News (6/15/20) reports: "New York's top clean energy official and a key pilot of the state's 100% carbon-free electricity push has announced she will step down from her post, raising new questions about the state's progress on its landmark 2019 climate law. Alicia Barton, who was appointed president of the New York State Energy Research and Development Authority in 2017, will leave the agency on June 26 to take a position in the private sector in Boston, said NYSERDA spokespeople. It was not immediately clear who would succeed her. The agency did not provide an estimate of how long it would take to find a new president, although spokesperson Claudette Thornton wrote in an email that NYSERDA's executive leadership is 'well-equipped to lead' and 'continue driving progress on climate and clean energy' in the meantime. Barton's departure comes just over a year after New York's passage of the Climate Leadership and Community Protection Act (CLCPA), a climate law that ranks as among the nation's most ambitious by requiring the state to be carbon neutral by 2050. Some energy analysts and environmental activists have raised concerns about whether the state is moving fast enough to carry out the law." 

Energy Markets

 
WTI Crude Oil: ↓ $34.73
Natural Gas: ↓ $1.70
Gasoline: ↑ $2.10
Diesel: ↑ $2.42
Heating Oil: ↓ $109.58
Brent Crude Oil: ↓ $37.76
US Rig Count: ↓ 302

 

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