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#Post#: 357--------------------------------------------------
💣 Energy Bombshells
By: RE Date: May 20, 2021, 1:55 am
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It's the DEMAND,stupid. ::)
RE
HTML https://oilprice.com/Energy/Energy-General/IEA-Drops-Bombshell-Report-On-Oil-And-Gas.html
IEA Drops Bombshell Report On Oil And Gas
By Josh Owens - May 18, 2021, 2:00 PM CDT
Trade Oil Futures Now
The IEA made headlines today when it suggested that there should
be no new oil and gas investments after 2021... If that were to
happen - with a supply crunch already looming - the oil traders
at OPC Markets would have a great time.
HTML https://mcusercontent.com/ed58b19f2b88e4a743b950765/images/6602986c-95cc-9d81-024e-6b0c1701d2ff.jpg
Chart of the Week
- U.S. residential energy consumption declined by 4% in 2020,
despite people spending more time at home during the pandemic.
- Relatively warmer weather reduced heating needs during
winter months, offsetting the 2 percent increase in electricity
sales.
- Space-heating and water-heating are usually the most
energy-intensive uses in the average U.S. home.
Market Movers
- BP (NYSE: BP) is in advanced talks to sell its 28% stake in
a North Sea oil field.
- Natural gas stocks rose in concert with prices following
new weather forecasts showing hotter-than-average temperatures
later this month. Nymex natural gas was up more than 5% on
Monday. Coal stocks also rose on the news.
- Gran Tierra Energy (TSX: GTE) announced that it was
shutting some of its oil wells in Colombia due to unrest.
Tuesday, May 18, 2021
Oil prices took a breather Tuesday morning, but Brent is once
again testing $70 per barrel, with expectations of improved
demand on the heels of widespread vaccinations in the U.S.
IEA: No new fossil fuel exploration. The IEA is out with a
landmark report on a pathway to net-zero emissions by 2050.
Among the many important points in the 200-plus-page report is
the call to end fossil fuel exploration. “[N]o exploration for
new resources is required,” the agency said. It also listed a
series of restrictive policies that are necessary, including
phasing out sales of the internal combustion engine and bans on
new natural gas hookups in buildings. The conclusion is a
dramatic shift in tone.
Supply crisis coming? The steep cuts to capex and the
increasingly stringent climate policy have forced the oil majors
to lower their growth plans. Some analysts warn that this could
set the market up for a supply crunch in the coming years.
India demand takes 500,000-bpd hit in May. India’s oil demand
could be off by as much as 500,000 bpd for the month of May,
according to Reuters. The negative effects from the Covid-19
spike are expected to extend into June.
Gas industry faces an existential threat from renewables. The
Wall Street Journal details the gas industry’s looming decline
from renewables. “I’m hellbent on not becoming the next
Blockbuster Video,” said Vistra (NYSE: VST) Chief Executive Curt
Morgan. “I’m not going to sit back and watch this legacy
business dwindle and not participate.” Vistra owns 36 gas-fired
power plants but said it will not build anymore, instead it will
invest $1 billion in solar and batteries.
Central banks step up climate scrutiny. A coalition of 90
central banks from around the world – the Central Banks and
Supervisors Network for Greening the Financial System – is
scheduled to meet next month at a major conference to address
risks from climate change.
Gasoline shortages ease. Over 1,000 retail gasoline stations
were resupplied over the weekend, easing the shortages from the
Colonial Pipeline outage.
Iran planning oil export boost. Iran is preparing to boost
production and exports of crude oil as talks on the nuclear deal
with the United States continue to progress, government
officials said.
OPEC+ production rising by 1 mb/d. OPEC’s oil exports have
jumped by 1 million barrels per day (bpd) so far in May, while
the OPEC+ group started easing the production cuts by 350,000
bpd this month.
Spain to end fossil fuel production. Spain’s parliament voted in
favor of a new climate law that commits the country to cut
emissions 23% by 2030, compared with 1990 levels. The law also
bands coal, natural gas, and oil production by 2042, and outlaws
new permits immediately.
Shell says Nigerian assets not compatible with energy
transition. Royal Dutch Shell (NYSE: RDS.A) acknowledged that
its operations in Nigeria are incompatible with its green
transition. “The balance of risks and rewards associated with
our onshore portfolio is no longer compatible with our strategic
ambitions,” CEO Ben van Beurden told investors. “We cannot solve
community problems in the Niger Delta.” Shell has been selling
off assets in Nigeria incrementally in the past decade, so a
“full retreat would be an obvious end point,” Bloomberg said.
Related Video: Iraq Eyes Exxon Stake and New OPEC Status
Offshore wind turbines require 63,000 pounds of copper.
Renewables—and especially offshore wind—are set to drive a surge
in copper demand that will push prices even higher, as the
amount of copper required per wind turbine is staggering, at
63,000 pounds.
Activist investors get another boost against ExxonMobil. Glass
Lewis & Co. agreed with investor activist Engine No. 1 in its
quest to revamp the board of ExxonMobil (NYSE: XOM), another
boost for the effort.
Washington State’s most aggressive climate policy. Washington
State just enacted the most aggressive climate policy in the
nation, a cap-and-trade system that would take emissions down
close to zero by 2050. Utilities need to be carbon neutral by
2030. The law covers more of the economy (70% of overall
emissions) than most other state policies.
UK seeks G-7 deal to end fossil fuel subsidies. The UK is
helping the G-7 move close to an agreement to phase out fossil
fuel subsidies.
Oil industry gets a partial win at Supreme Court. The U.S.
Supreme Court gave the oil industry a partial win in a
highly-anticipated court case. The City of Baltimore has sued 20
international oil companies seeking damages related to climate
change, and the Supreme Court decided that the case should be
heard in federal court, which the oil industry views as more
favorable terrain. The case now goes back to federal court.
Shell wins backing from shareholders. Royal Dutch Shell (NYSE:
RDS.A) won backing from shareholders in a non-binding vote on
its green transition plans, with 88% of shareholders voting in
favor.
Shale comeback would be disastrous for oil. Experts are now
warning that OPEC+ could see its efforts thwarted by a chief
rival: U.S. shale. According to the Oxford Institute for Energy
Studies, rising oil prices could allow for a significant return
of U.S. shale to the market in 2022, potentially upsetting the
delicate rebalancing of the global oil market.
By Josh Owens for Oilprice.com
#Post#: 373--------------------------------------------------
💣 Energy Transition Threatens $14 Trillion In Oil And Ga
s Assets
By: RE Date: May 21, 2021, 6:33 am
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HTML https://oilprice.com/Energy/Energy-General/Energy-Transition-Threatens-14-Trillion-In-Oil-And-Gas-Assets.html
Energy Transition Threatens $14 Trillion In Oil And Gas Assets
By Irina Slav - May 20, 2021, 9:00 AM CDT
Trade Oil Futures Now
HTML https://d32r1sh890xpii.cloudfront.net/article/718x300/2021-05-20_gveg10ld3v.jpg
The energy transition is putting as much as $14 trillion worth
of oil and gas assets at risk, Wood Mackenzie said today, as
quoted by Reuters, in the latest doomsday scenario for the
energy industry.
Over the short term, the future looks good for oil and gas,
according to the consultancy. Demand for oil and gas will
rebound to pre-pandemic levels and even exceed them, reaching
160 million barrels of oil equivalent daily.
What's more, oil and gas companies are getting still leaner and
meaner, and will this year be able to generate as much cash flow
at $60 per barrel as they did at $100 per barrel of Brent seven
years ago, Wood Mac analysts also said.
Over the long term, however, things begin to look different,
with every energy transition scenario involving a decline in oil
demand.
In the scenario most optimistic about oil and gas, global demand
would decline slowly and gradually, to reach 90 million barrels
daily in 2050. This would encourage investments in new
production and see prices climb above $80 per barrel by 2030.
Yet if the world decides to pursue the 2-degree warming
scenario, demand for crude oil could fall to as little as 35
million bpd by 2050, with demand growth peaking by 2025. That
would mean Brent prices of $40 per barrel on average in 2030,
and lower afterwards, according to the Wood Mac report.
Even in the more ambitious scenario, "The world will still need
oil and gas supply for decades to come, and the scale of the
industry will remain enormous," according to Wood Mackenzie vice
president Fraser McKay.
The report comes just a day after the International Energy
Agency called on the energy industry to stop investments in new
oil production right now so the world could reach its 2050 Paris
Agreement targets.
By Irina Slav for Oilprice.com
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