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MORNING ENERGY NEWS  |  06/22/2020
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A big hand to the state legislators for standing up to PA's governor dictator... 


Epoch Times (6/21/20) reports: "State lawmakers in Pennsylvania are poised to vote on a bipartisan bill that would prevent Gov. Tom Wolf from imposing carbon emissions taxes without their approval. They oppose the governor’s measure on two grounds: a constitutional objection that the governor doesn’t have the authority to act without legislative approval, and concerns about the merits of the proposal. State Rep. Pam Snyder, a Democrat representing the 50th District in Carmichaels, has joined with state Rep. Jim Struzzi, a Republican representing the 62nd District in Indiana County, on HB 2505, which has already advanced out of the House Environmental Resources and Energy Committee and may be up for a full vote in the House as early as this week...Pennsylvania’s lawmakers 'have good reason to be concerned' about Wolf’s attempt to draw the state into RGGI, says Bonner Cohen, a senior fellow with the National Center for Public Policy Research. 'Not only does Wolf’s unilateral action circumvent the legislature, it places tremendous financial burdens on ordinary Pennsylvanians—at the worst possible time,' Cohen said. 'Every state that has joined RGGI has wound up imposing significantly higher electricity costs to families and businesses. If one were to devise a scheme to guarantee outmigration of people and businesses, membership in RGGI would be one of the first steps.'"

"The proponents of the all-renewable vision grossly under-estimate the costs of integrating renewable energy sources into the electricity system. The additional costs of backup generation, storage, load balancing and transmission would be enormous."

 

– Robert Lyman, Friends of Science

The truth will come out.


CBC (6/18/20) reports: "Letter from officials says banks may be discriminating against people who depend on the industry. Alaska's congressional delegation has asked federal regulators to investigate possible discrimination against Alaska Natives by large banks refusing to fund Arctic oil and gas projects. Sens. Lisa Murkowski and Dan Sullivan and Rep. Don Young issued a letter Tuesday saying banks may be discriminating against Alaska Natives who depend on the oil and gas industry for their livelihoods, The Anchorage Daily News reported Wednesday. The Republican members of Congress sent the letter to the head of the Federal Reserve, the comptroller of the currency and the chair of the Federal Deposit Insurance Corp.  There was no immediate response from the agencies. Five major American banks and several international banks have announced policies since November prohibiting or limiting investment in new oil and gas projects in the Arctic, including the Arctic National Wildlife Refuge. The banks include Citigroup Inc., Wells Fargo & Co., The Goldman Sachs Group Inc., JPMorgan Chase & Co., and Swiss bank UBS."

If the government is mandating and subsidizing your product, financing will be cheap.


Yahoo Finance (6/17/20) reports: "Spending on renewable power is set to overtake oil and gas drilling for the first time next year as clean energy affords a $16 trillion investment opportunity through 2030, according to Goldman Sachs Group Inc. Renewables including biofuels will account for about a quarter of all energy spending next year, up from about 15% in 2014, Goldman analysts including Michele Della Vigna said in a June 16 note. This is in part driven by diverging costs of capital, as borrowing rates have risen to as high as 20% for hydrocarbon projects compared with as little as 3% for clean energy. Clean energy could drive $1-$2 trillion a year in infrastructure investment and create 15-20 million jobs globally. Meanwhile the high cost of capital for fossil fuel developments is leading to underinvestment, which could lead to higher oil and gas prices that in turn spur a faster energy transition. 'Renewable power will become the largest area of spending in the energy industry in 2021, on our estimates, surpassing upstream oil and gas for the first time in history,' Goldman said in the note." 

Building energy infrastructure is essential for energy security.


Forbes (6/18/20) reports: "In picturesque Tioga County, Pennsylvania, a truck loaded with super-cooled liquefied natural gas pulls away from an oil and gas well and makes for the highway, on its way to New England. In most circumstances, this would be a highly unusual arrangement. It’s much faster and cheaper to transport natural gas—the odorless, colorless stuff that is burned in power stations to produce one-third of the nation’s electricity—by pipeline rather than by truck.  But in Pennsylvania, West Virginia and parts of New York and Ohio, home to the natural gas-rich Marcellus Shale basin, there are simply not enough pipelines to transport all the natural gas to other parts of the country. So some producers are resorting to long-haul trucking to sell it to areas of higher demand along the East Coast, in the Midwest and the Southeast. If that’s not feasible, they sometimes simply burn it off into the atmosphere. Oil and gas companies spy a juicy opportunity if they can unlock the natural gas that is stranded inside the Marcellus Shale region. Unless firms manage to mobilize an army of natural gas-carrying trucks—which would probably be uneconomical—that means one thing: building more pipelines."

Energy Markets

 
WTI Crude Oil: ↓ $39.68
Natural Gas: ↑ $1.69
Gasoline: ↑ $2.13
Diesel: ↓ $2.43
Heating Oil: ↑ $121.73
Brent Crude Oil: ↑ $42.24
US Rig Count: ↓ 295

 
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