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MORNING ENERGY NEWS  |  10/22/2020
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PA needs its energy producers, not unelected autocrats setting tax rates.


Real Clear Energy (10/21/20) column: "Pennsylvania stands out among its neighboring states as an energy powerhouse that has made smart use of its vast supplies of natural resources. But that could all change if Governor Tom Wolf circumvents the commonwealth’s general assembly to join the Regional Greenhouse Gas Initiative, a multistate compact widely known as RGGI. Pennsylvania is now the largest net exporter of electricity in the U.S.; it delivered an average of 58 million megawatt-hours annually between 2013 and 2017. Pennsylvanians enjoy electricity prices below the national average, largely thanks to the fracking boom started in the mid-2000s, which reinvigorated the state’s natural gas industry and helped much of western Pennsylvania stave off the worst effects of the Great Recession. The Keystone State is also the nation’s second-largest producer of natural gas, third-largest producer of coal, 16th-largest producer of crude oil, and third-largest producer of electricity in general, according to the U.S. Energy Information Administration. Instead of having Pennsylvania join RGGI, other states that are now part of RGGI should start to follow Pennsylvania’s lead and implement pro-energy policies that would benefit average citizens who are still reeling from the economic effects of COVID-19."

"Bribing Americans to buy electric cars hasn’t worked, so now Democrats plan to use government coercion to force them. Wall Street whizzes will make a nice buck while other Americans pay up."

 

– Wall Street Journal Editorial Board

Chinese solar panels, coming from a labor camp to a state-mandated solar farm near you.


S&P Global (10/21/20) reports: "The solar industry's growing dependence on China's autonomous Xinjiang region for a critical raw material poses mounting risks to a wide range of companies as the U.S. government moves to confront Beijing over alleged human rights abuses there. In 2019, when solar ranked as the world's top source of new power generating capacity, about one-third of the polysilicon the industry used to make solar panels came from Xinjiang, according to Johannes Bernreuter of Bernreuter Research. China as a whole accounts for about 80% of global capacity. With polysilicon-makers boosting production in Xinjiang, Richard Winegarner, a former industry analyst who retired in late 2019, said the region is poised to become 'even more important' to the solar market in the coming years...Analysts said the XPCC's role in Xinjiang's economy underscores the difficulty companies face trying to ensure their supply chains in the region are not in jeopardy. 'Even if the company that is producing the semi-finished product that you're using as an input for your production of solar panels' is not implicated in labor abuses, 'you don't know what's upstream from them,' Allen said."

Democrats are coming for your car.


E&E News (10/21/20) reports: "Democrats yesterday unveiled legislation to ban the sale of new gasoline-powered cars nationwide by 2035 — elevating the controversial climate goal from the state of California to the halls of Congress. The 'Zero-Emission Vehicles Act of 2020,' from Sen. Jeff Merkley (D-Ore.), would for the first time establish a federal zero-emission vehicle standard. The standard would require that battery electric vehicles and fuel-cell vehicles account for 50% of new passenger cars sold in the country by 2025, and ultimately 100% by 2035. The legislation is co-sponsored by Sens. Sheldon Whitehouse (D-R.I.), Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.) and Cory Booker (D-N.J.). Rep. Mike Levin (D-Calif.) led the introduction of the companion bill in the House, where it has 15 co-sponsors. The measure mirrors a recent executive order from California Gov. Gavin Newsom (D) aimed at banning sales of new gas- and diesel-powered cars in the Golden State by 2035. Merkley and Whitehouse previously introduced a version of the bill, S. 1487, last year. That version had a less aggressive timetable, calling for ZEVs to account for 50% of new car sales by 2030 and 100% by 2040."

They should plan on being financially solvent instead.


Power Magazine (10/19/20) reports: "American multinational conglomerate General Electric has announced its plan to become carbon-neutral across its facilities and operations by 2030. The plan does not address the emissions associated with its products. The news follows an announcement made by General Electric this past September of the company’s intention to exit the new build coal power market. Russell Stokes, the CEO of General Electric Power Portfolio said, 'With the continued transformation of GE, we are focused on power generation businesses that have attractive economics and a growth trajectory. As we pursue this exit from the new-build coal power market, we will continue to support our customers, helping them to keep their existing plants running in a cost-effective and efficient way with best-in-class technology and service expertise.' Environmental protection non-profit organization As You Sow had filed a shareholder resolution on behalf of Amalgamated Bank asking General Electric to report on whether and how it plans to modify its business plan in alignment with the Paris Climate Agreement goals." 

Where should we send your yellow vest, Senator, the Anchorage, or DC office?


E&E News (10/22/20) reports: "Senate Energy and Natural Resources Chairwoman Lisa Murkowski said carbon pricing "is worth putting on the table" if Congress looks to craft a climate bill next year. 'I know that a price on carbon is one that makes Republicans more than a little bit nervous,' the Alaska Republican said yesterday during an event with Sen. Sheldon Whitehouse (D-R.I.) sponsored by the Stanford Institute for Economic Policy Research. 'But I do think that can be and that should be one of the options that is on the table for discussion, in terms of how you can move policies forward,' she said. Murkowski has made similar comments about carbon pricing before, including last year after a hearing in her committee, when four out of five witnesses said they support the policy. She also suggested in 2009 that a carbon tax would be worth considering, as Congress was mulling whether to proceed with the failed Waxman-Markey cap-and-trade bill. But now, lawmakers, particularly Democrats, are increasingly contemplating how climate policy could take shape in a closely divided Senate should Democrats take the Senate and White House in the elections next month. Murkowski, long a swing vote on various issues in the Senate, could be an important voice in shaping the Republican side of that conversation. At the same time, Whitehouse said Democrats would look to skirt the GOP if it doesn't come to the table." 

Energy Markets

 
WTI Crude Oil: ↑ $40.37
Natural Gas: ↓ $3.00
Gasoline: ~ $2.16
Diesel: ~ $2.37
Heating Oil: ↓ $114.27
Brent Crude Oil: ↑ $42.06
US Rig Count: ↑ 332

 
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