INDUSTRY NEWS
Fueling electric vehicles costs roughly the equivalent of $17 a gallon
In its paper "Overcharged Expectations: Unmasking the True Costs of Electric Vehicles," the Texas Public Policy Foundation stipulated that the hidden costs of fueling EVs drastically outweigh its low upfront fueling costs. The hidden costs come from an increased burden on the energy grid exerted by charging stations, and an enormous amount of federal subsidies.
LNG Dispute Highlights Supply Vulnerability
For Europe last year, the U.S. LNG industry was pretty much a godsend—despite the hefty price tag. For the U.S. LNG industry, the situation was similar: with so much new capacity being planned, producers needed some large buyers for the long term. And some of them found them in the face of European Big Oil.
North America Poised to Double LNG Export Capacity by 2027
New projects are set to grow North America’s liquefied natural gas (LNG) export capacity to 24.3 billion cubic feet per day (Bcfpd) by 2027 led by expansion in the U.S., according to the Energy Information Administration (EIA).
Offshore wind industry is “fundamentally broken”
More than half of all U.S. offshore wind contracts, according to BloombergNEF, “have been terminated this year or at risk of being ended.” Among the losers: BP and Equinor, which wrote down the value of their offshore projects in New York by $840 million. The catastrophe led a BP executive to declare last week that “offshore wind in the U.S. is fundamentally broken.”
5.2 Magnitude Earthquake Hits Texas
A 5.2 magnitude earthquake hit Coalson Draw, Texas, last week, the U.S. Geological Survey (USGS) highlighted on its website.
Oil prices at 2½-month lows as China data offset supply cuts
While China’s crude oil imports in October showed robust growth both year on year and month on month, its total exports contracted at a quicker pace than expected.
OPEC+ Remains Positive on Oil Demand Growth Before Meeting
“The economy, despite the challenges, is still doing quite well,” OPEC Secretary-General Haitham Al-Ghais said at the Argus European Crude Conference in London on Tuesday. “We are positive on demand, we’re still quite robust on demand.”
The Problem With Refilling The Strategic Petroleum Reserve
Indeed, the reserve held only 351 million barrels of crude as at Oct. 27 after another 20 million barrel drawdown in the current year, eliciting fresh concerns regarding the country’s energy security. And now some industry watchers are charging that the administration is dragging its feet on the matter.
Shale Patch Wages Hit USA Record
Average hourly earnings for front-line oil-and-gas workers rose 0.9% in September from the previous month to $43.63, according to a Labor Department report released Friday. Compared with a year ago, oil pay is up 5.7%. The move bucked a national trend.
Natural Gas Demand Suggests The IEA Got Peak Demand Wrong
Executives in the natural gas industry expect strong demand for the fuel in Asia through 2040 and 2050 as countries continue their coal-to-gas switch policy and look to meet emission reduction goals.
Texas Surpasses California With Most Installed Solar Power
The Electric Reliability Council of Texas, the grid operator for 90 percent of Texas, had 18,364 megawatts of solar power capacity installed on its grid as of Sept. 30, according to ERCOT data. That's enough electricity to power almost 3.7 million Texas homes during times of peak electricity demand, according to ERCOT.
US reviews of gas-export permits slow under Biden administration
U.S. Department of Energy reviews for liquefied natural gas (LNG) export permits have lengthened under President Joe Biden's administration to 11 months or more, from seven weeks, according to government data.
Manchin Urges EPA to Revise Proposed Methane Rules
“The current Administration has made its intentions clear: it is determined to target our flourishing oil and gas sector, despite its substantial progress in reducing methane emissions, irrespective of how it might impact American energy security, reliability, and consumer cost. This has put pressure on EPA to hastily finalize and implement these extensive new regulations, leading to proposals that lack thorough consideration and alignment”.
Big Oil’s Mega Acquisitions Raise Questions About Peak Oil Demand
According to the Financial Times, the two megamergers that Exxon and Chevron announced in the past couple of weeks have set off what its authors called “an arms race” to secure long-term oil and gas asset supply—at a time when some are predicting a peak for oil demand.
Court Stays Gulf of Mexico Oil Lease Sale
“Shrinking or further delaying Lease Sale 261 threatens both our energy security and climate goals and could make us more dependent on dirty foreign oil and gas,” Manchin, a West Virginia Democrat, said following the ruling by the Fifth Circuit Court of Appeals in Louisiana.
Global Fossil Fuel Demand Set To Hit Record High In 2024
Oil demand alone is expected to increase by 1.7% next year, per the report. Natural gas demand is set for 2.2% growth, led by Asia and the Middle East, while Europe will continue to see depressed demand as it looks to save gas and energy.
Solar Power Stocks Crash After Demand Warning Across Europe
We attribute these cancellations and pushouts to higher-than-expected inventory in the channels and slower-than-expected installation rates. In particular, installation rates for the third quarter were much slower at the end of the summer and in September where traditionally there is a rise in installation rates."
Geopolitical Risk Keeps Oil Prices Afloat As Bearish Pressure Builds
The prospect of more crude from Venezuela and higher US crude inventories has been ratcheting up pressure on the physical side, while the first signs of aid reaching Palestinians in Gaza appear to be eating away at the geopolitical risk premia baked into the flat price.
The Next Phase Of The U.S. Shale Revolution
Mergers in the U.S. shale patch have continued through the course of 2023 as companies jockey for assets that will fill in gaps in their acreage base. Two key basins have been the focus of much of this activity. I refer to the Permian Basin and the Eagle Ford, each of which has attributes that draw the interested eyes of companies with strong balance sheets and cash to spend.
Texas Sees Host of Oil and Gas Records
In the analysis, TXOGA estimated that, for the month of September, Texas saw its highest crude oil production rate ever, at 5.9 million barrels per day, and its highest natural gas production gross withdrawal figure ever, at 34.6 billion cubic feet per day.