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MORNING ENERGY NEWS  |  06/17/2020
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Shhhh! We have to hide what we're up to! 


Reuters (6/15/20) reports: "The Democratic National Committee’s council on climate change irked party leadership when it published policy recommendations this month that ventured beyond presidential candidate Joe Biden’s plan, according to three people familiar with the matter. The party tension shows the tricky nature of climate politics as Biden seeks to court young and more progressive voters without turning off voters in energy-producing swing states like Pennsylvania and Ohio, where a boom in shale gas drilling had created blue-collar jobs. Members of the DNC Environment and Climate Crisis Council, formed last year, published proposals for the party’s four-year platform on June 4 in a press release, calling for up to $16 trillion in spending to shift the U.S. economy away from fossil fuels while banning hydraulic fracturing and oil and gas exports. The council’s proposals far exceed Biden’s current climate plan, which bans new oil and gas permits on public lands and dedicates $1.7 trillion to accelerate the transition to renewable energy, but allows continued fracking and exports in the meantime."

"A key lesson of the U.S. energy revolution is that resource abundance will only get the Australian economy so far. A variety of factors such as institutional arrangements, property rights, free markets, infrastructure development, and regulatory and policy settings must all play a critical role."

 

– Alex Robson, University of Sydney

American shale, the king of rebounds.


Wall Street Journal (6/16/20) reports: "The coronavirus pandemic will hammer global growth and oil demand this year, but supply cuts from producers and a record rebound in demand next year will help to rebalance the oil market, the International Energy Agency said. In its monthly oil-market report Tuesday, the IEA said that while the world’s demand for crude will drop by 8.1 million barrels a day this year—slightly less than forecast in last month’s report—demand in 2021 will rebound by a record 5.7 million barrels a day. The emergence in recent weeks of parts of the global economy from coronavirus lockdowns that did unparalleled damage to global economic growth has spurred a recovery in crude demand. China’s oil demand in April was almost back at levels seen a year previously and Indian demand climbed in May."

Green dreams and municipal legal fees, something every tax payer should fear.


TownHall (6/16/20) column: "Cities and states are suing energy companies in a desperate attempt to erase their poor spending choices. Local officials argue oil and gas companies contribute to climate change and must be held accountable, but beneath this façade, leftist politicians are trying to win the lawsuit lottery to stave off fiscal insolvency. Government officials keep pursuing these suits because they can’t figure out how to fix the budget deficits they have created. Suing big corporations in friendly jurisdictions is an escape hatch to avoid the repercussions of decades of wasteful spending. Unfortunately, these efforts hurt the wallets of everyday Americans who have money invested in energy companies, and if successful, energy costs would likely rise across America... Cities and states that have racked up debt because of profligate spending are trying to avoid spending cuts. Local officials are playing the lawsuit lottery by filing exaggerated and meritless claims against energy companies in hopes of finding a sympathetic judge. Instead of dragging energy companies to court and threatening to punish the consumer for city officials’ irresponsibility, these bureaucrats need to focus on repairing their fiscal health."

Just what we needed, another threat to the grid.


E&E News (6/17/20) reports: "The spread of electric vehicles is melding parts of the U.S. power and transportation sectors — and posing a unique problem for grid cybersecurity, experts warn. The two industries are connected by powerful chargers, known as electric vehicle supply equipment (EVSE), that could offer ways for hackers to disrupt the grid. 'You do reach a tipping point where you've got so much load on the grid provided by these chargers, that if you could control it and manipulate them in aggregate, you would start to see power system problems,' said Jay Johnson, principal manager of technical staff at Sandia National Laboratories. Johnson and his team at Sandia are exploring ways to prevent such a grid attack, which would take a difficult and coordinated effort to pull off. Hacking enough chargers could theoretically cause blackouts, though experts say there isn't enough EVSE installed right now for a feasible attack on the power grid" 

Energy Markets

 
WTI Crude Oil: ↓ $37.88
Natural Gas: ↑ $1.62
Gasoline: ↓ $2.10
Diesel: ↓ $2.42
Heating Oil: ↓ $117.23
Brent Crude Oil: ↓ $40.57
US Rig Count: ↓ 294

 

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