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MORNING ENERGY NEWS | 10/08/2021
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** The end of an epoch. England, the birthplace of modern steel, can no longer economically produce one of the world's most important products. Energy is the lifeblood of the modern world.
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The Guardian ([link removed]) (10/6/21) reports: "Wholesale gas prices hit new all-time highs on Wednesday, prompting warnings that factories could be forced to shut down over winter or switch to more polluting fuels just as the UK hosts the Cop26 climate conference next month. The crisis has already forced a wave of collapses among energy suppliers that has led to warnings of 'desperate choices' for households likely to face higher bills as a result. As power-hungry sectors such as steel, glass and chemicals fight their own battle with soaring gas and electricity costs, they warned of further shocks to both industry and consumers, including higher prices of goods and factories being forced to temporarily close...But leading figures from energy-intensive industries said serious ramifications were already on the cards unless the government heeded
their call for measures to reduce energy costs. Trade body UK Steel said it was now 'uneconomic' to make steel at certain times in the UK, with British firms facing double the electricity prices paid by rivals in Germany, France and the Netherlands. British Steel, based in Scunthorpe, has begun adding surcharges of up to £30 a tonne to its products to recoup higher energy costs, increasing costs for customers in the construction and automotive sectors."


** "If the 'climate movement' doesn’t have the intellectual honestly for debate then odds are it’s not a scientific movement, it’s a political one (I.e. coercive)
The literal definition of science is the ruthless and unwavering questioning of hypotheses."
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– Max Gagliardi, Talk Energy ([link removed])

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It’s tough to take the “existential crisis” crowd seriously when they refuse to support efforts to increase the materials needed for their preferred energy sources.

** Yahoo News ([link removed])
(10/6/21) reports: "Spain's untapped rare earths are stoking tensions between mining companies and environmentalists and farmers who fear the devastating impact from extracting the minerals considered as essential for a high-tech and low-carbon economy. The group of 17 minerals are -- despite their name -- widely distributed across the globe, but exist in such thin concentrations that extracting even small quantities requires the processing of enormous quantities of ore. Still, they are key ingredients in a range of high-tech and cutting-edge products, from wind turbines and electric vehicles to smart phones, medical devices and missile-guidance systems.With China having a stranglehold on global supply and demand surging to meet the transition to a low-carbon economy, the political pressure -- and financial incentive -- to put strategic interests ahead of the environment is growing. 'Spain has the largest amount of rare earths in Europe after Finland. There is real potential,' said Vicente
Gutierrez Peinador, president of the National Confederation of Mining and Metallurgy Companies (Confedem)."

Many investors don't want to invest in oil and gas, but $542 billion is needed unless we want really, really, really high oil and natural gas prices.

** Bloomberg ([link removed])
(10/7/21) reports: "Oil explorers need to raise drilling budgets by 54% to more than half a trillion dollars to forestall a significant supply deficit in the next few years, according to Moody’s Investors Service Inc. Crude and natural gas drillers chastened by last year’s unprecedented collapse in demand and prices haven’t responded to the recent market rebound as the industry typically does by expanding the search for untapped fields. While international crude and U.S. gas have risen more than 50% and 120% this year, respectively, drilling outlays are only forecast to increase by 8% globally, Moody’s said in a report Thursday. That’s too little to replace what those companies will pump from the ground in 2022, setting the stage for even tighter supply scenarios, Moody’s analysts including Sajjad Alam wrote in the report. Any such squeeze would come atop the current crises afflicting Asian and European economies scrambling to shore up fuel stockpiles as winter approaches and prices
seemingly break records on an almost-daily basis. 'The industry will need to spend significantly more, especially if oil and gas demand keeps climbing beyond pre-pandemic levels through 2025,' the Moody’s analysts wrote."

Greens looking for who is responsible for the impending energy disaster in Europe...

** Commentary ([link removed])
(10/6/21) column: "New York Times columnist Thomas Friedman is concerned. Energy prices are spiking all over the globe, setting into motion a confluence of events that could destabilize Western democracies and augment the power enjoyed by anti-Western petrostates like Iran and Russia. Worst of all, he writes, 'I fear we’ll see a populist backlash to the whole climate/green movement.' The Times headline advises its readers to commit to an ideological goal ahead of this crisis: 'Don’t Blame the Greens.' But Friedman doesn’t seem to have taken this advice. The columnist accurately notes that the proximate causes for a looming energy crisis are multifarious, and some are driving this emergency more than others...So, yes, there’s a lot of blame to go around if what Friedman forecasts to be a dark, cold, and scary winter materializes. No small share of that blame should be apportioned out to the central planners who sought to kneecap the existing energy market in favor of an insufficient
alternative. Friedman calls these the 'nice' greens. But if the intended consequences of their policy preferences result in engineered hardships for the developed world and increased geopolitical influence for despots and theocrats abroad, that doesn’t seem so very “nice” to me."

** ([link removed])

If you oppose a carbon tax, take a stand and ** contact us. (mailto:[email protected])

** ([link removed])

Tom Pyle, American Energy Alliance
Myron Ebell, Competitive Enterprise Institute
Phil Kerpen, American Commitment
Andrew Quinlan, Center for Freedom and Prosperity
Tim Phillips, Americans for Prosperity
Grover Norquist, Americans for Tax Reform
George Landrith, Frontiers of Freedom
Thomas A. Schatz, Citizens Against Government Waste
Richard Manning, Americans for Limited Government
Adam Brandon, FreedomWorks
Craig Richardson, E&E Legal
Benjamin Zycher, American Enterprise Institute
Jason Hayes, Mackinac Center
David Williams, Taxpayers Protection Alliance
Paul Gessing, Rio Grande Foundation
Seton Motley, Less Government
Nathan Nascimento, Freedom Partners Chamber of Commerce
Isaac Orr, Center of the American Experiment
David T. Stevenson & Clint Laird, Caesar Rodney Institute
John Droz, Alliance for Wise Energy Decisions
Jim Karahalios, Axe the Carbon Tax
Mark Mathis, Clear Energy Alliance
Jack Ekstrom, PolicyWorks America

Energy Markets


WTI Crude Oil: ↑ $79.30
Natural Gas: ↓ $5.66
Gasoline: ↑ $3.26

Diesel: ↑ $3.43
Heating Oil: ↑ $247.63
Brent Crude Oil: ↑ $82.76
** US Rig Count ([link removed])
: ↑ 626



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