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MORNING ENERGY NEWS  |  07/23/2020
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While Joe is zooming about nostrils, China is building for the future.


Reuters (7/23/20) reports: "Congestion at China’s east coast oil ports that is adding to costs for shippers and importers is likely to run well into August, with crude shipments set to hit another record high this month, according to analysts and Refinitiv data. The massive inflows are straining offloading facilities, while refiners and port operators in Shandong province — home to a quarter of China’s refining capacity — are rushing to build new storage tanks. July seaborne arrivals into the world’s biggest oil importer are expected to surge to 14.4 million barrels per day, Refinitiv analyst Emma Li said, well above record imports of 12.9 million bpd in June. China waded into oil markets in April when prices collapsed to multi-decade lows, snapping up cargoes for delivery in coming months...At least nine crude oil storage projects are planned in Shandong province at Qingdao, Rizhao, Binzhou and Dongying ports, adding around 13.66 million cubic metres of tank space in 2020, according to Reuters calculations. That would be roughly equivalent to about 6% of China’s existing commercial storage, according to analyst estimates."

"The economic and environmental benefits of natural gas are significant. In the Caribbean, for example, increased use of natural gas will replace oil-based and other high-polluting electricity sources which are expensive and widespread."

 

– John Cicchitti,
The Lexington Institute 

These people will never be satisfied.


Real Clear Energy (7/21/20) reports: "U.S. District Court Judge James Boasberg’s recent decision to shut down the Dakota Access Pipeline (DAPL) is the latest act in the drama surrounding the beleaguered pipeline. Despite acknowledging the “disruption” this would cause, the judge nevertheless ordered DAPL to be shut down and emptied of oil by early August so that federal regulators can conduct further analysis on the already operational infrastructure. While environmentalists are cheering the decision handed down in a Washington, D.C. courtroom, the millions of Americans who depend on affordable and reliable energy may not be in such a celebratory mood. Judge Boasberg’s ruling may have been focused on a single pipeline, but the broader repercussions extend to the oil and gas industry’s ability to safely and affordably transport essential energy resources throughout the nation. Thankfully, the appeals court in Washington D.C. this week issued a temporary administrative stay allowing the pipeline to remain operational beyond Boasberg’s August 5 deadline until they make a final ruling on the appeal...At the end of the day, environmental concerns should be carefully considered in any infrastructure project. But that is exactly what took place with DAPL in its multi-year permitting and approval process overseen by the Army Corps and state regulators, and subsequent additional court-ordered review. When will it be enough?"

Remember back when Henry Ford lobbied Washington for taxpayer cash?


E&E News (7/22/20) reports: "Rivian is a new electric truck maker that has generated tremendous investment and publicity despite not yet producing a vehicle. In both Washington and the states, it also has become a lobbying force. What does Rivian want? In an interview with E&E News this month, James Chen, Rivian Automotive Inc.'s vice president of public policy, said it would be 'more of a challenge' to educate the Trump administration than a potential Biden administration. 'I think part of our role is to help the Trump administration understand that this is not an anti-Republican or anti-American story,' he said of electric vehicles. The company, which has a policy team of EPA and the Department of Energy veterans, also is pushing Congress for more tax incentives — and trying to block what Chen calls 'anti-EV' legislation that would raise fees. It's also waging a state-by-state battle for the right to sell its vehicles directly to customers."

We are way beyond fake news, folks.


Bjorn Lomborg (7/20/20) blogs: "Joe Stiglitz wrote a lengthy review of my new book for The New York Times. It is overwhelmingly negative, but also overwhelmingly false. The piece consists of Stiglitz enumerating four specific and compounding mistakes that I apparently make, and then another six separate observations...1. Stiglitz claims I draw heavily on Nordhaus for a high cost of 2°C and 1.5°C. This is false, because Nordhaus manifestly says it can’t be done. 2. Stiglitz claims that his report estimates “a moderate price” for reaching the Paris agreement. This is false. There is no estimate of the total economic cost in his High-Level Commission on Carbon Prices. 3. Stiglitz claims extreme weather has already become more expensive. This is demonstrably false. 4. Stiglitz claims that the US experienced 1.5% cost from extreme weather, suggesting this is because of climate change and is increasing. The fact is, it is mostly or entirely not because of climate change, and the trend is decreasing. False...Making 12 substantial criticisms of my book and that they are all false, is quite an achievement. It is hard not to conclude that Stiglitz’ review of my book is a deceptive and false hit piece. It is perhaps not surprising that Stiglitz actually said that he was going to give the book a bad review even before he read it. In many ways, it seems like he still hasn’t read it." 

Energy Markets

 
WTI Crude Oil: ↓ $41.88
Natural Gas: ↑ $1.69
Gasoline: ~ $2.18
Diesel: ~ $2.43
Heating Oil: ↑ $127.60
Brent Crude Oil: ↓ $44.22
US Rig Count: ↑ 284

 
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