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MORNING ENERGY NEWS  | 06/15/2021
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Not good in the cold, not great in the heat. When exactly is wind power supposed to be a boon to the grid? 🤔


Forbes (6/14/21) reports: "The Electric Reliability Council of Texas (ERCOT) stunned Texas electric customers again on Monday when it issued yet another warning of potentially inadequate generation capacity. The quasi-public agency blamed the need to issue the warning on 'A significant number of forced generation outages and potential record electric use for the month of June,' and asked Texans to reduce electricity usage as much as possible through Friday, June 18...So, if the wind stops blowing in West Texas – which it does on a regular basis, even during the summer months - then the grid has a problem. Given that 3,000 of the 11,000 MW offline on Monday were renewable sources, the vast majority of which in Texas comes from wind power, it appears Mr. Lasher’s 'fourth primary scenario' arrived a little earlier than expected. Some power generators in Texas and advocates for renewables continue to push the fiction that the Texas grid does not lack adequate dispatchable (natural gas or coal) generating capacity. The fact that ERCOT has had to issue inadequate capacity warnings three times before summer even begins would appear to any disinterested observer to indicate otherwise."

"There is no clean energy, or green energy, or whatever else you want to call it without fossil fuels." 

 

– PA State Sen. Gene Yaw 

"Love Thy Neighbor" becomes "Screw Thy Neighbor" in California.


E&E News (6/14/21) reports: "California electricity bills are surging as the state seeks a green grid and works to prevent wildfires. A benefit aimed at growing renewable energy is increasing electricity prices for many Golden State residents, California Public Utilities Commission officials said during a webinar last week. Meanwhile, utilities are upgrading equipment to lower the risk of their lines sparking catastrophic wildfires, which have killed scores of Californians in recent years. Under net-metering policies, Californians with rooftop solar earn electricity bill credits for power they send to the grid. That forces other residents to fund a larger share of utility costs to maintain transmission and distribution systems. 'At a high level, what we see are steady and significant rate increases across all" of the largest utilities 'over the course of the next decade," Ankit Jain, a senior analyst in CPUC's Retail Rates group, said in the webinar on the state's goal of carbon neutrality by 2045. "Rate increases are expected to outpace inflation.' San Francisco-based Pacific Gas and Electric Co. (PG&E) bills are projected to rise an average 3.7% annually through 2030, CPUC data shows. Los Angeles-based Southern California Edison Co. (SCE) customers can expect a 3.5% yearly bump. San Diego Gas & Electric Co. (SDG&E) rates are set to spike fastest, jumping about 4.7% each year."

I guess these guys haven't seen the IEA report that insists people will simply stop needing freedom molecules in 15 years.


Offshore Technology (6/9/21) reports: "GlobalData’s latest report, ‘Global Capacity and Capital Expenditure Outlook for LNG Liquefaction Terminals, 2021–2025 – North America Dominates Global Capacity Additions and Capex Spending,’ indicates that global liquefied natural gas (LNG) liquefaction capacity is expected to grow by 70% over the next four years, from 460 million tonnes per annum (Mtpa) in 2021 to 780Mtpa in 2025 from new build and expansion projects. Among regions, North America leads global liquefaction capacity additions from new build and expansion projects, contributing about 63% of the total global total additions or 206Mtpa during 2021-2025. The Former Soviet Union (FSU) and the Middle East follow with capacity additions of 58.2Mtpa and 33.5Mtpa, respectively. Among countries, the US leads globally with 150Mtpa of liquefaction capacity additions by 2025. Russia and Qatar follow, with capacities of 58Mtpa and 32Mtpa, respectively.."

What? Coal is still cheaper than renewables even after the E.U.'s green tax refime? Someone needs to tell the G7 about this!


Bloomberg (6/15/21) reports: "Europe is so short of natural gas that the continent -- usually seen as the poster child for the global fight against emissions -- is turning to coal to meet electricity demand that is now back to pre-pandemic levels. Coal usage in the continent jumped 10% to 15% this year after a colder- and longer-than-usual winter left gas storage sites depleted, said Andy Sommer, team leader of fundamental analysis and modeling at Swiss trader Axpo Solutions AG. As economies reopen and people go back to the office, countries like Germany, the Netherlands and Poland turned to coal to keep the lights on. Europe has long been at the forefront of the battle to reduce global warming. The continent has the world’s largest carbon market, charging the likes of utilities, steel producers and cement makers for polluting the environment. But even with record carbon prices this year, low gas reserves mean burning coal -- the dirties of fossil fuels -- has become more widespread again."

Energy Markets

 
WTI Crude Oil: ↑ $71.74
Natural Gas: ↓ $3.34
Gasoline: ↓ $3.07
Diesel: ~ $3.21
Heating Oil: ↑ $211.89
Brent Crude Oil: ↓ $73.62
US Rig Count: ↓ 507

 
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