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MORNING ENERGY NEWS  | 06/02/2021
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Paying people to buy worse products they don't want, very innovative Joe... 


Washington Times (6/2/21) reports: "President Biden’s goal of transitioning the country from gasoline-powered vehicles to electric cars is fraught with challenges from sticker shock for consumers to the knotty logistics of recharging batteries. Nevertheless, Mr. Biden’s climate change agenda depends on a retooling of the transportation sector, which accounts for 29% of the country’s annual greenhouse gas emissions...More problematic is the lower driving range for electric cars on one full battery charge. The electric Ford F-150 will have a total range of slightly more than 300 miles per battery. Its gas counterpart can go nearly 600 miles on one tank of gasoline, according to the company. 'The price and efficiency differential is one reason for why electric cars will struggle to overtake gas-powered vehicles,' said Dan Kish, a senior fellow at the Institute for Energy Research. 'People don’t want to pay for something more expensive and less reliable just because it’s green.'"

"Biden’s energy and climate policies seem, like the policies of the past, like the pursuit of failure." 

 

– Peter Z. Grossman, The Hill

Shot...


Wall Street Journal (6/1/21) reports: "Oil prices hit multiyear highs above $70 a barrel after OPEC and its allies forecast higher demand and boosted output—punctuating a global economic reawakening that has raised the prices of a broad range of commodities. The move by a group of oil producers led by Saudi Arabia and Russia amounted to a continued unwinding of steep cuts they made at the start of the pandemic. Recent oil-price milestones come alongside similar ones hit by commodities from tin and copper to lumber. They have all soared too amid pent-up demand that has producers of the stuff struggling to keep up. 'It is a good, old-fashioned reflation trade,' said Tom Price, head of commodities strategy at investment bank Liberum, describing expectations of a burst of economic activity that boosts assets. Mr. Price said such a broad grouping of commodities hasn’t risen simultaneously for so long since the economic recovery that followed the 2008-09 financial crisis. Members of the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed Tuesday to a previously planned output increase of about 450,000 barrels a day, starting next month. Saudi Arabia, meanwhile, agreed to continue easing separate, unilateral cuts of one million barrels a day that it put in place earlier this year."

Chaser.


Wall Street Journal (6/1/21) reports: "The Biden administration on Tuesday suspended oil leases in the Arctic National Wildlife Refuge in Alaska, blocking plans for the first-ever drilling program in the pristine 19-million-acre wilderness. The Interior Department said the program will be on hold until it completes a comprehensive analysis under the National Environmental Policy Act. The review could ultimately lead to the leases being voided altogether, the department said. 'Today marks an important step forward fulfilling President Biden’s promise to protect the Arctic National Wildlife Refuge,' Gina McCarthy, the White House national climate adviser, said in a statement. Drilling could change “the character of this special place forever,' she added. The decision is the latest twist in more than 30 years of fights, often highly partisan, over how to manage what many consider some of the country’s last unspoiled wilderness. Republicans and oil interests are still adamantly pushing for industry’s right to explore this remote northeast corner of Alaska."

It's time for some self-reflection if you find yourself saying adding more reliable, affordable sources of energy to the grid is 'fighting the future'


Bloomberg (6/1/21) reports: "The power grid serving nearly 20% of the U.S. population is about to throw a roadblock in President Joe Biden’s plan to decarbonize the electricity sector. PJM Interconnection LLC, which keeps the lights on for 65 million people from Chicago to Washington, D.C., is expected to clear a fleet of new natural gas plants-- and even extend the lives of some coal plants -- when it releases the results of its massive electricity auction Wednesday. That’s because Trump-era changes to the way the auction is structured give a leg up to fossil fuels, at the expense of zero-carbon sources such as nuclear, wind and solar. 'The market has been trending toward renewables, but this is pulling it back,' said Ari Peskoe, director of Harvard Law School’s Electricity Law Initiative. 'It’s fighting the future.' As much as 4 to 6 gigawatts of new gas capacity and several clunker coal plants could clear the auction, according to some estimates, while nuclear and renewables are expected to be the big losers. Such an outcome would further entrench fossil fuels in the biggest U.S. power market, and runs counter to the president’s goal of eliminating greenhouse gases from the power industry by 2035."

Energy Markets

 
WTI Crude Oil: ↑ $68.21
Natural Gas: ↓ $3.10
Gasoline: ~ $3.04
Diesel: ~ $3.18
Heating Oil: ↑ $208.70
Brent Crude Oil: ↑ $70.79
US Rig Count: ↓ 532

 
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