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MORNING ENERGY NEWS  | 06/24/2021
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We can't use natural gas because of the Paris Agreement, China needs to use it because of the Paris agreement...


Natural Gas World (6/24/21) reports: "China is expected to increase the share of natural gas in its primary energy mix to 12% in 2030 from 8.7% in 2020, Reuters reported on June 24 citing an official from state-run CNPC. Zhu Xingshan, senior director, planning department CNPC told a conference on June 24 that the share of natural gas in energy consumption is expected to increase 'significantly' from 2030 to 2035. CNPC expects China to cut its coal use to 44% of energy consumption by 2030 and 8% by 2060 as the country aims to use more natural gas to achieve its climate change goals. Gas consumption has been rising steadily in recent years and usage in 2021 has been especially strong. Imports of LNG have also seen strong year-on-year growth. WoodMac last week said that strong demand for LNG means China will surpass Japan to become the world's biggest importer of chilled fuel this year...In 2020, China’s LNG imports were 67.13mn mt, up 11.5% from the previous year, the government said in January. The country’s LNG imports during the first five months of 2021 were up 31% yr/yr to 33.23mn mt. Meanwhile, Japan last year imported 74.46mn mt of LNG, down 3.7% yr/yr. "

"Now that summer and the extreme temperatures and high power demand it brings to Texas with it has arrived, it is painfully obvious that the managers at ERCOT have their jobs truly cut out for them to try to keep the lights and air conditioning on in the state until September." 

 

– David Blackmon, Forbes

Joe okays a Russian gas pipeline, but says we can't use it.


Bloomberg (6/23/21) reports: "The White House only backs the inclusion of natural gas in it’s proposed clean energy mandate if it’s coupled with carbon sequestration, Energy Secretary Jennifer Granholm says. 'I think that if you combined natural gas with carbon removal so that it was really clean and that you had zero carbon emissions, it could be' included in the administration’s Clean Energy Standard Act, Granholm says in response to a question at a Senate's subcommittee"

"No Tax Increases for anyone making below $400K per Year"  -- Joe Biden 


American Action Forum (6/14/21) blog: "The Biden Administration has declared climate policy to be its top priority. On Earth Day, the Biden Administration notified the United Nations about how it intends to reduce greenhouse gas emissions in the United States, which was necessary following the United States’ re-joining of the Paris Agreement on climate change...It should surprise nobody that the costs in these scenarios are very large. To make the transition, it would be necessary to increase investment in generation by 300 percent in the coming 14 years, yielding approximately $2 trillion of investment in capital and operations and maintenance costs. This sum is a lower bound because it does not include the costs of creating a nationwide grid to transport this clean energy. To bring the magnitude of the costs home, remember that electric utilities will have to do this investment, and that means their customers will have to foot the bill. The result is an additional $90 per month cost for electricity consumers. For perspective, in 2019, the average monthly bill in the United States was between $75 and $168 depending on the state, so that addition translates into a percentage rise of 45 to 120 percent. The benefits of removing all carbon emissions from electricity generation may well outweigh such costs, but first we have to fairly assess their scale. In this case, the costs will be massive."

Criminal neglect.


Washington Examiner (6/23/21) reports: "Interior Secretary Deb Haaland was evasive this morning responding to questions from House Republicans on whether the agency’s practices have changed since a judge ruled the Biden administration’s pause on new oil and gas leasing on federal lands and waters is illegal. Oil and gas industry groups and Republicans in Congress called on Interior to immediately begin new lease sales after a Louisiana-based federal district judge on June 15 granted a preliminary nationwide injunction to 13 states that sued the Biden administration over its leasing pause. But Haaland struggled to say definitively whether Interior is resuming leasing in budget testimony before her old colleagues at the Natural Resources Committee.  Rep. Garret Graves, a Louisiana Republican, asked whether the Interior Department is moving forward with a offshore lease sale in the Gulf of Mexico, expected in March, that it canceled. 'Is there a pause right now or not? Has anything changed?' Graves said. 'The judge said you can’t do that. It’s illegal.' Haaland replied that Interior’s Bureau of Ocean Energy Management has not published a notice of resuming the canceled sale in the Federal Register, and reiterated her comments she made last week that her agency’s lawyers are reviewing the court decision and plan to abide by it."

Energy Markets

 
WTI Crude Oil: ↓ $72.76
Natural Gas: ↓ $3.33
Gasoline: ~ $3.07
Diesel: ~ $3.22
Heating Oil: ↓ $214.72
Brent Crude Oil: ↓ $74.84
US Rig Count: ~ 534

 
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