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MORNING ENERGY NEWS  | 08/23/2021
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Natural gas bans will hurt American consumers.


Hart Energy (8/20/21) reports: "Restrictions on new natural gas hookups are a costly and unnecessary imposition on American energy consumers and the bans are contributing to problems of energy reliability and affordability in states where they are prominent, according to a recent report by the Institute for Energy Research (IER). On May 17, the Biden administration announced a building decarbonization policy to accelerate electrification of the nation’s residential and commercial buildings. The next day, the International Energy Agency urged policymakers to ban fossil fuel furnace sales by 2025 and adopt building codes that would eliminate the use of natural gas use in buildings."

"Politics is about managing contradictions. And there sure are a lot of them in Mr. Biden’s desire to make climate policy a central focus of his administration, while keeping oil cheap and plentiful." 

 

– Editorial Board
The Globe and Mail

Business ain't easy even with the governments helping to sell your product.


Wall Street Journal (8/23/21) reports: "The world’s appetite for green energy is greater than ever, but that isn’t translating into big profits for some of the companies behind the boom. Top wind-turbine makers are struggling with lower earnings as rising raw- material costs, problems shipping the hulking machines, and uncertainty over the future of U.S. subsidies pressure their businesses. Siemens Gamesa Renewable Energy SA and Vestas Wind Systems A/S, two of the largest global manufacturers, reduced profit forecasts for the remainder of the year. General Electric Co. GE 0.63% , another leading turbine manufacturer, reported year-over-year growth in turbine sales but hasn’t turned a profit in that segment this year."

We have been making this point for years, Europe’s energy prices are a drag on their economy.


Mises Institute (7/12/21) opinion: "Despite an endless chain of monetary and fiscal stimuli, the eurozone consistently disappoints in growth and job creation. One of the reasons is demographics. No monetary and public spending stimulus can offset the impact on consumption and economic growth of an aging population, as Japan can also confirm. However, there is an especially important factor that tends to be overlooked: the lack of competitiveness of the eurozone industry due to rising and noncompetitive power prices. Residential electricity prices in the European Union between 2010 and 2014 averaged nearly $240 per megawatt hour (MWh), whereas the US averaged nearly $120/MWh, or less than half of EU prices. The EU average gasoline and gasoil prices were also twice as high compared with the United States. This trend has not improved. In 2020, the average residential consumer’s electricity price in Europe showed an increase of 13 percent over the average price ten years before."

How is getting rid of reliable baseload working out for you?


Bloomberg Green (8/22/21) reports: "One of Germany’s biggest challenges in the fight against climate change is to keep the lights on. As Europe’s biggest economy shuts its last nuclear reactor next year and utility RWE AG warns that coal plants may close earlier than planned, critics say green energy isn’t being added quickly enough. Germany’s ability to meet peak demand is poised to shrink rapidly over the next two years, increasing the risk of blackouts. In a last push to save her fading reputation as ‘The Climate Chancellor’ before stepping down after next month’s election, Angela Merkel announced Europe’s strictest emissions goals. But the green power revolution she fronted for almost two decades is running out of steam just as the electrification of the economy will increase demand."

Energy Markets

 
WTI Crude Oil: ↑ $64.74
Natural Gas: ↓ $3.89
Gasoline: ↓ $3.16
Diesel: ↓ $3.28
Heating Oil: ↑ $197.67
Brent Crude Oil: ↑ $67.80
US Rig Count: ↑ 593

 
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