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MORNING ENERGY NEWS  | 10/04/2021
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Biden's insistence that America beg foreign tyrants to increase production of energy we could be making at home is easily the least tolerable aspect of this administration, and that's saying something!


Oil World (9/30/21) reports: "Oil closed the month almost 10% higher after a tumultuous session where China was said to order its top energy companies to secure supplies at all costs, prompting the White House to reiterate its concern over rising prices. Futures in New York rose 0.3% Thursday, wiping out earlier losses of as much as 2.3%. Prices surged after China was said to order its top state-owned energy companies to secure supplies at all costs. The rally cooled somewhat after Reuters reported OPEC+ is considering boosting production even more than previously announced at its meeting next week. The rising price of oil 'is of concern for the U.S.,' said White House press secretary Jennifer Psaki. The U.S. has been in touch with OPEC about oil prices, she said at a press briefing. Heading into next week’s meeting between OPEC and its partners, there is increased speculation that the organization will consider raising production more than the previously announced hike of 400,000 barrels a day. 'With oil prices at multi-year highs, we think that OPEC will come under increasingly intense pressure from Washington to increase production,' RBC analyst Helima Croft said in report. The biggest monthly increase since June was spurred by ongoing supply disruptions in the U.S. Gulf of Mexico and an ongoing energy crunch that many expect will prompt a shift to burning oil for power generation as coal and natural gas prices skyrocket. Some options traders are even betting prices could reach $200."

"OPEC predicts the Middle East will make up 57% of crude exports by 2045, up from 48% in 2019. Liberals will dismiss the OPEC report as self-serving, but today’s energy shortages and price spikes are a blaring reminder that the world needs more, not less, oil and natural gas." 

 

– Wall Street Journal Editorial Board

What reporter will ask Boris Johnson or the UK government how they will balance the grid with a grid that is 100% nuke and renewables? It's a non-trivial challenge.


Bloomberg (10/4/21) reports: "The U.K. will produce electricity only from renewable and nuclear sources by 2035 under plans set out by Prime Minister Boris Johnson’s government. With the country grappling with a crisis that has driven natural gas and power prices to record highs and forced the collapse of a number of suppliers, Business Secretary Kwasi Kwarteng announced plans to further cut Britain’s reliance on fossil fuels. He told a conference of the ruling Conservative party on Monday that nuclear power has to be part of the solution in the U.K. energy mix.   Fossil fuel power generation in the U.K. has fallen to unprecedented low levels, as coal stations are shut down and investment in wind and solar power increases. More than half of the electricity now comes from low-carbon sources. But the country remains heavily reliant on gas, and Kwarteng wants that share to reduce. 'What we’re saying is that by 2035 we won’t have any fossil fuels,' he said, referring to power production. 'We’ll have removed gas hopefully, as well as coal.'"

Ray Mabus is and always has been a clown.

Greenflation: Natural gas production today is 1/3 what is was 20 years ago. Maybe that would help reduce natural gas prices and help people stay warm if European hadn't abandoned natural gas and decided to just buy it from Russia. 


CNN (10/1/21) reports: "Millions of people across Europe may not be able to afford to heat their homes this winter as gas and electricity prices soar. Experts, anti-poverty organizations and environmental campaigners are warning that the coronavirus pandemic and rising prices have intensified a longstanding problem tied to a combination of high energy costs, low household incomes and homes that aren't energy efficient.
Recent research led by Stefan Bouzarovski, professor at the University of Manchester and chair of energy poverty research network Engager, found that up to 80 million households across Europe were already struggling to keep their homes adequately warm before the pandemic. The European Union describes energy poverty as being unable to afford 'proper indoor thermal comfort.' Only four European countries — France, Ireland, Slovakia and the United Kingdom — have official definitions, but experts say the problem is widespread. Now, price hikes are putting even more households at risk of being disconnected from power and gas grids because they can't pay their bills. Many are vulnerable because their incomes dropped and bills rose during the pandemic. Workers in retail, hospitality and the airline sector were hit especially hard, and many have lost their jobs."

Energy Markets

 
WTI Crude Oil: ↑ $77.68
Natural Gas: ↑ $5.97
Gasoline: ↑ $3.20
Diesel: ↑ $3.35
Heating Oil: ↑ $243.21
Brent Crude Oil: ↑ $81.24
US Rig Count: ↑ 630

 
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