View this email in your browser
MORNING ENERGY NEWS  |  01/11/2021
Subscribe Now

The latest Unregulated Podcast is up and running. Spoiler alert: I only got two right in my picks this weekend, but only one of them really mattered. Go Bills! 

"As Chairman of the Senate Banking and Housing Committee, I will demand and push regulators, the administration, and the entire financial services industry to account for climate change's impact on the economy."

 

– Sen. Sherrod Brown (OH-D)

Peak consumer.


Wall Street Journal (1/8/20) column: "Ambitious green policies—from politicians and even the newly climate-conscious oil companies—suggest the world is moving at warp speed away from fossil fuels. But the transition might not be easy on consumers’ wallets, which is precisely why it could take a while. The idea of 'peak oil,' historically a reference to a fear that oil supply was running out, now means something entirely different. British energy giant BP suggested that oil demand might have already reached its apex in 2019 if one were to imagine a world that doubles down on policies that restrict carbon emissions. Others are more conservative...Transportation plays a key role in the timing of that peak; it accounts for the largest share of petroleum consumption globally. For electricity to crowd out oil as a transportation fuel, governments must either provide taxpayer subsidies that make electric vehicles more affordable or place a cost on not switching over, such as even higher taxes at the pump...Nobody likes paying more for energy. Policies that directly raise prices have a track record of sparking a backlash...As Bob McNally, president of Washington, D.C.-based consultancy Rapidan Energy Group, puts it: 'motorists are voters.'...Investors, politicians and corporations have all signaled a switch towards a future with less oil. Ultimately, though, the industry’s fate could come down to what consumers want. They don’t only vote at the ballot box - they vote with their wallets too."

The rain in Spain stays mainly on the plain (Except when it is -34.1 Celsius or 30 below Fahrenheit).


The Weather Network (1/7/21) reports: "Heavy snow and icy winds blasted Spain as temperatures plummeted to -34.1°C, the lowest ever recorded on the Iberian peninsula, the State Meteorological Agency said on Wednesday. The chilling temperature was recorded at Clot del Tuc de la Llanca in Aragon in the Spanish Pyrenees at 5:19 a.m., the agency said. This was two degrees lower than in 1956, when temperatures of -32°C were recorded in Estany-Gento, in Lleida, in northeastern Spain. More heavy snowfall is forecast for much of central and northern Spain with temperatures expected to fall -11°C."

When renewables fail you, blame markets.


Anadolu Agency (1/8/20) reports: "As temperatures plummeted across Spain, leaving much of the country blanketed with snow on Friday, the price of electricity reached historic highs. On Friday, the price of electricity per megawatt hour soared to nearly €95 ($116). That’s up 123% from prices last week and nearly three times higher than the 2020 average. Spain’s Minister for Consumption Alberto Garzon said he has asked the country’s regulatory body to investigate if there were any irregularities in the energy market. 'We are searching for definitive solutions for an energy rate that has regulated and protects especially the most vulnerable families,' said Garzon on Twitter. According to calculations by Catalan daily La Vanguardia, this surge in prices will translate to an average increase of 27% in the average user’s electricity bill. Meanwhile on Friday, Spain’s Environment Ministry pointed to several factors that have driven up the costs to heat and power households. 'One of the main factors is the evolution of the natural gas market at a global level, which, after many months of historically low prices, has suffered a price shock over the last weeks,' the ministry said in a statement. It also explained that the cold and stormy weather in Spain has reduced the contribution of renewable energy to Spain’s energy grid while driving up demand for heating." 

Finally, some good news...

Energy Markets

 
WTI Crude Oil: ↓ $51.93
Natural Gas: ↓ $2.64
Gasoline: ↑ $2.31
Diesel: ↑ $2.59
Heating Oil: ↓ $156.41
Brent Crude Oil: ↓ 55.37
US Rig Count: ↑ 408

 
Donate
Subscribe to AEA's Unregulated Podcast Subscribe to AEA's Unregulated Podcast
Subscribe to IER's Plugged In Podcast Subscribe to IER's Plugged In Podcast
Friend on Facebook Friend on Facebook
Follow on Twitter Follow on Twitter
Forward to a Friend Forward to a Friend
Our mailing address is:
1155 15th Street NW
Suite 900
Washington, DC xxxxxx
Want to change how you receive these emails?
update your preferences
unsubscribe from this list