This didn't go so well the first time

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DAILY ENERGY NEWS | 09/21/2022

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Green Energy = National Socialism. And in Germany that never works out well...

Wall Street Journal (9/21/22) reports: "Germany will nationalize Uniper, seeking to save the country’s largest gas importer that was hit hard by Russian natural-gas cuts to Europe. The German government said Wednesday it would take a 99% stake in the energy giant and inject in €8 billion, equivalent to around $8 billion. Berlin will acquire the stake of Uniper’s parent company, Finnish utility Fortum Oyj. Uniper was Germany’s largest importer of Russian natural gas and suffered heavy financial losses after Moscow throttled supplies. Uniper was forced to buy gas in a market where prices have hit record highs in recent months. With Uniper’s nationalization, Berlin is moving to save a systemically important company as Europe’s races to shift away from its decadeslong reliance on Russian fossil fuel exports. European officials say Russia’s decision to cut gas supplies is an economic attack in retaliation for the West’s support for Ukraine. "This step has become necessary because the situation has worsened significantly,' Robert Habeck, Germany’s economy minister, said Wednesday. 'The state will do everything necessary to keep systemically important companies in Germany stable at all times.'...The emergency state support, including nationalization, is unlikely to end with Uniper. German officials say they are drafting plans to take control and shore up stakes in local businesses of Rosneft, the Russian state-owned oil giant, which include PCK Raffinerie GmbH, a refinery that supplies almost all the oil derivatives used in Berlin and the surrounding region."

"There simply is no rationale for the tax provisions [of the IRA] that can withstand scrutiny. They will reduce the production of conventional energy, which is reliable, concentrated per unit of weight, and complementary with efficient capital investment. They will increase energy costs and reduce economic growth and national wealth, even as they yield no benefits in terms of environmental improvement. Let us hope that a future Congress is led to repeal them."

– Benjamin Zycher,
American Enterprise Institute

When you customer is the government, this is the result...

Reuters (9/20/22) reports: "NEW YORK, Sept 20 (Reuters) - General Motors Co (GM.N) said Tuesday it backed establishing tougher federal emissions standards to help ensure at least 50% of new vehicles sold by 2030 are zero-emission models. The largest U.S. automaker and the Environmental Defense Fund (EDF) released a series of joint recommendations to boost electric vehicles (EVs) as the Environmental Protection Agency (EPA) develops proposed requirements from the 2027 model year through at least 2030. GM and EDF said the new EPA standards 'should help to ensure at least 50% of new vehicles sold by 2030 are zero-emissions vehicles and consistent with eliminating tailpipe pollution from new passenger vehicles by 2035.' In December, the EPA finalized new light-duty tailpipe emissions requirements through the 2026 model year that reversed then-President Donald Trump's rollback of car pollution cuts and will speed a U.S. shift to more EVs. 'General Motors has the ultimate goal of eliminating tailpipe emissions from new light duty vehicles by 2035,' said CEO Mary Barra, adding the recommendations 'support accelerated adoption of electric vehicles to put us on the path toward that goal.' GM and EDF also said standards should incorporate an 'innovation opt-in compliance pathway for multipollutant reductions.' Expressed in miles per gallon (mpg), the EPA rules finalized in December would result in a fleetwide real-world average of about 40 mpg in 2026 for new vehicles, versus 32 mpg under the Trump rules."

Who was most hurt by the Chinese tit-for-tat of Nancy Pelosi's trip to Taiwan? "Special" Envoy Kerry.

Bloomberg (9/20/22) reports: "There’s still room for progress on climate talks with China despite its suspension of global warming discussions with the US, John Kerry said on Tuesday. Kerry, the US special presidential envoy for climate, stressed that Beijing could resume those negotiations, which were put on ice in the wake of House Speaker Nancy Pelosi’s visit to Taiwan. 'They suspended -- they didn’t terminate,' Kerry said at a New York Times climate event, adding that it was a conscious word choice. 'I really hope China will decide sometime in the next days it is worth coming back to this because we owe it to humankind.' Kerry spoke optimistically last year about the opportunity for the world’s two largest economies to find common ground and make progress on climate change -- despite tensions over human rights, intellectual property and other issues. And he has been able to leverage a close relationship with his counterpart in China, Xie Zhenhua, to forge consensus, resulting in a joint agreement to advance clean energy, combat deforestation and tackle methane emissions at the UN climate summit in Glasgow last year. Now, Kerry’s entreaties to Xie are going unanswered. But it isn’t stopping him from trying. 'I have emailed,' Kerry said. 'He’s not allowed to answer me, and it’s very complicated.' 'And he hasn’t,' he quickly added."

The green's mandated "energy transition" creates gobs! For coal miners! In Tanzania...

Reuters (9/20/22) reports: "The sleepy Tanzanian port of Mtwara mainly dealt in cashew nuts until late last year. Now it bustles with vessels loading up with coal, as Russia's invasion of Ukraine drives a worldwide race for the polluting fuel. Tanzania traditionally exports thermal coal only to neighbouring countries in east Africa; sending it further afield was out of the question, as it required trucking the material more than 600 km from mines in its southwest to Mtwara, the nearest Indian Ocean port. Europe's crippling energy crisis has changed all that. Prices for thermal coal, used to generate electricity, have leapt to record levels as a result of the war, which has led to many European countries losing access to vital supplies of natural gas and coal from their top provider Russia. Buyers in Europe and beyond are now vying to pay top dollar for coal from often remote mines in places such as Tanzania, Botswana and even potentially Madagascar. The resurgent coal demand, driven by governments trying to wean themselves off Russian energy while keeping a lid on power prices, clashes with climate plans to shift away from the most polluting fossil fuel."

Energy Markets

WTI Crude Oil: ↑ $85.10
Natural Gas: ↑ $7.86
Gasoline: ↑ $3.68

Diesel: ↑ $4.92
Heating Oil: ↓ $334,49
Brent Crude Oil: ↑ $91.93
US Rig Count: ↑ 862

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