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Natural gas is now stronger than ever in the United States power sector

Energy News Beat

This summer, natural gas covered almost half of United States electricity demand

For the very first time, on 28 August 2023, the United States met more than of half of its electricity demand from natural gas. It encapsulated a summer during which gas-fired electricity generation grew dramatically. In just the past two years, its share of the power mix rose from 40 to 45 percent for the summer months of July and August.

A confluence of factors, including a significant drop in the price of natural gas, coal plant retirements, low output from wind and hydropower, and high cooling demand in some regions caused the share of gas to increase. By contrast, the share of coal-fired generation declined from 23 to 17 percent over the same period.

The record share of natural gas in the power mix continues the long term trend toward gas caused by the shale revolution. It comes alongside federal and state level environmental policies that pose significant risks to coal in the United States power sector.

Lower natural gas prices are driving a switch from coal

Recent strong growth in domestic gas production combined with above-average storage levels after the 2022-2023 winter season caused prices to decline by 60% through Q1-3 2023 at Henry Hub. The steepest declines in natural gas prices were recorded in gas producing areas, including Texas, Louisiana, and the East Coast, as the region benefitted from a particularly mild Q1 2023. The price swing sparked a switch coal to gas-fired generation in the power sector.

The average utilisation of coal-fired generation in the United States declined from 48.5% in the first seven months of 2022 to 39.8% in the same period in 2023, while the capacity factor of gas-fired generation increased from 54.6% to 57.7% in the same period.

Coal-to-gas switching was particularly noticeable in regions with wholesale markets1, where competition between resources is based on short-run marginal cost economics. We estimate that coal became more competitive in 2021 and 2022, particularly in the Midwest (MISO) and Central (SPP) regions due to the jump in gas prices. During 2023 gas became more competitive again as its price fell.

In the Central region, coal-fired generation, which is predominantly procured on long-term contracts, remains comparatively lower due to lower coal prices. Despite this, coal-fired generation was down about 20% in the first three quarters of 2023 in the Central region and gas-fired generation was up by about 15%, as lower gas prices allowed some of the more efficient gas-fired units to displace older and less efficient coal plants.

But regions with vertically integrated utilities are seeing slower rates of coal-to-gas switching

There is also evidence that market type is a factor driving the switch between coal and gas. For instance, natural gas is replacing coal at faster rates in regions with liberalised markets than in regions with vertically integrated utilities. Coal output increased by 7% in regions with vertically integrated utilities during July and August 2023 compared to last year, while decreasing by 15% in regions with liberalised markets. Gas generation is up 5% between 2019 and 2023 in regions with vertically integrated utilities while it is up 22% in regions with liberalised markets.

Potomac Economics, the independent market monitor for the Midcontinent ISO (MISO)2, studied the economic impact of regulated utilities using must-run designations to commit units at rates much higher than merchant, or competitive, suppliers, in the MISO region, including at times when fuel and electricity prices suggest that running coal plants is unprofitable. In the period from 2017-2020, Potomac estimates that 24% of must-run starts by regulated utilities were unprofitable, compared to only 9% by merchant (competitive) suppliers. While this rate declined to 9% by regulated utilities in 2022, merchant plants had no unprofitable starts in the same period.

Some utilities have claimed that must-run designations are necessary because MISO commitment and dispatch parameters are ill-suited to the operations of coal plants, which can have high startup and shut down costs, fixed fuel contracts (take or pay) and less flexible ramping rates. However, some utilities have changed this practice. For example, Xcel Energy in Minnesota switched to economic dispatch and seasonal operation of its two remaining coal units in 2020 after stakeholders raised concerns about the practice during its integrated resource planning process.

The switch to gas is posing new challenges to the ageing coal fleet

With an average age of 43 years compared to 22 years for their natural gas counterparts and almost an entire fleet of more than 30 years of age, coal plants are faced with new challenges.

Over this summer, US coal power plants were required to change the way they operate. For instance, on the fourth week of August – when natural gas for power reached its zenith, only about 80 GW were used for baseload compared to about 95 GW last year on the same week. With coal plants running at about 125 GW on the peak for both years, this meant that the coal capacity used for peaking went from about 30 GW to 45 GW in just a year.

This highlights the necessity for power plants originally designed for baseload operation to transform their functions to address new flexibility requirements. As a result of their more intermittent use, power plant operators now face new challenges including handling increased stress on components and turbine shells, as well as dealing with corrosion of turbine parts. These challenges can lead to higher outage rates or premature end-of-life, which may occur before their intended operational lifespan.

Operating flexibly, in load-following or cycling mode, in response to economic conditions also reduces plant efficiency. An EPRI study shows an efficiency penalty of around 40% (14 000 Btu/kWh v 10 000 Btu/kWh) when plants are operating near minimum load condition compared to baseload operation, which adds between USD 3 to12/MWh to the operating cost of the unit at current coal prices.

Wind and hydro generation underperformed as well

Strong renewable capacity additions (9 GW for wind and 18 GW for solar PV year-on-year) were not enough to compensate for coal retirements and high demand, letting natural gas fill the gap. In addition, wind, now the leading source of renewable energy in the US, underperformed in the summer – the average capacity factor of 26% was near its lows of the past five years.

Lower output from hydropower also contributed to higher gas demand. Hydropower produced 30.6 GW in the first eight months of 2023 (5.7% share of total electricity generation in the US), down 10% from 34.0 GW in 2022 (6.5% share), due mainly to rapid spring snow melt caused by record high temperatures in the Northwest, which makes up around 50% of United States hydropower output.

As wind and solar power make up a larger portion of the US energy mix, curtailment is emerging as a significant factor hindering their overall performance. For instance, Texan wind and solar curtailment rates are projected to increase to 13% and 20% by 2035 due to potential oversupply, lack of system flexibility as well as grid congestion in areas where the transmission grid has not been upgraded .

The factors driving power sector emissions in the United States

The switch from coal to gas and uptake of renewables has lowered CO2 emissions in the US power sector. After peaking in 2001 at nearly 2.6 billion tonnes, power-sector emissions fell to 1.6 billion tonnes in 2022. In this period, gas-fired generation more than doubled while coal-fired generation was cut by half.

But while carbon pricing is a factor in driving emissions downward in the states participating in the Regional Greenhouse Gas Initiative (RGGI), its impact is minor compared to other economic and policy factors. Whether or not the price of carbon is strengthened, the trajectory of coal and gas generation, and emissions, in the United States will depend to a large extent on how the following policies and measures develop in the coming years:

Renewable incentives – federal tax credits and state-level programmes have driven widespread adoption of renewable energy and their deployment will displace fossil fuel generation when available due to having low or zero marginal costs.
Environmental regulations – the federal government has passed measures targeting reductions in SO2, NOx, mercury, toxic metals, and coal ash that raise the cost of burning coal, either through the need to purchase allowances or install control equipment.
Electricity grid development – the electricity grid will need to be expanded to successfully integrate renewable energy sources, particularly wind and solar, and avoid curtailment as they grow as a share of the energy mix.
Power market design – the design of price setting mechanisms, including the level of price caps and adequacy payments, will affect the generation mix by valuing attributes of power generation that can vary across types.

Source: Iea.org

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Chevron, Exxon opt out of funding COP28 methane-reduction fund

Energy News Beat

(Bloomberg) — Six major oil companies each contributed tens of millions of dollars to a grant fund meant to help state-owned rivals cull the release of super-warming methane emissions, but Chevron Corp. and Exxon Mobil Corp. didn’t join in.

At issue is a Global Flaring and Methane Reduction Partnership that will be run by the World Bank with initially $255 million earmarked to help developing countries and their oil companies stifle leaks of that potent greenhouse gas. The program, unveiled at the COP28 climate summit in Dubai, is a recognition that while large oil companies in the US have spent years working to pare methane releases from wells, pipelines and processing equipment, many national oil companies are only getting started.

The initiative secured $25 million each from six oil companies: BP Plc, Eni SpA, Equinor ASA, Occidental Petroleum Corp., Shell Plc and TotalEnergies SE. Some countries also ponied up, with the United Arab Emirates that is hosting COP28 providing $100 million; the US, $2 million; Germany, $1.5 million; and Norway, $1 million.

Supporters of the initiative had hoped to raise a much higher sum by convincing large oil producers — after years plugging methane leaks — that unless national oil companies do the same, both the planet’s health and the industry’s reputation are imperiled, people familiar with the matter said.

Yet some oil giants were reluctant to underwrite a fund seen as effectively providing cash donations to global competitors, one of the people said.

Representatives for Chevron didn’t immediately have a comment on the company’s decision to forgo funding. The San Ramon, California-based producer was also a notable absence from a 50-member Oil and Gas Decarbonization Charter announced Saturday, with enrolled companies pledging to cut methane emissions to near-zero and halt flaring of natural gas by the end of the decade.

Exxon joined that pledge, but so far it has not provided money to the World Bank grant fund. However, it could provide technical support and methane-abatement training as part of the initiative.

“We support the goal of the Global Methane Reduction Fund and are in negotiations to provide our technical skills, scale and years of methane detection and mitigation experience to reduce emissions,” the company said in an emailed statement.

To access funding from the program, companies will need to commit to cutting methane intensity by below 0.2%, halting routine flaring of natural gas by 2030 and measuring and reporting emissions.

Source: Worldoil.com

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Gold price hits $2,100 for record high — and analysts don’t expect it to stop there

Energy News Beat

Gold prices notched another record to kick off the week — with spot prices touching $2,100 an ounce as the global rush for bullion appears set to continue.

Spot gold briefly traded above $2,100 an ounce on Sunday evening in New York, setting a new all-time high. Gold futures hit an intraday record of $2,152.30.

Gold prices are on course to hit fresh highs next year and could remain above $2,000 levels, analysts said, citing geopolitical uncertainty, a likely weaker U.S. dollar and possible interest rate cuts.

Prices of the yellow metal have risen for two consecutive months with the Israel-Hamas conflict boosting demand for the safe haven asset, while expectations for interest rate cuts have provided further support. Gold tends to perform well during periods of economic and geopolitical uncertainty due to its status as a reliable store of value.

“The anticipated retreat in both the USD and interest rates across 2024 are key positive drivers for gold,” Heng Koon How, head of markets strategy, global economics and markets research at UOB, told CNBC via email. He estimated that gold prices could reach up to $2,200 an ounce by the end of 2024.

Similarly, another analyst is bullish on bullion’s outlook.

“There is simply less leverage this time around vs 2011 in gold … taking prices through $2,100 and putting $2,200/oz in view,” said Nicky Shiels, head of metals strategy at MKS PAMP.

All that glitters is gold

The price of gold settled just below $2,100 on Friday for a record high after rising 4% last week. It briefly broke above that level when trading began again Sunday evening, before both spot and futures prices dipped about 2% on Monday.

Bart Melek, head of commodity strategies at TD Securities, expects gold prices to average $2,100 an ounce in the second quarter of 2024, with strong central bank purchases acting as a key catalyst in boosting prices.

According to a recent survey by the World Gold Council, 24% of all central banks intend to increase their gold reserves in the next 12 months, as they increasingly grow pessimistic about the U.S. dollar as a reserve asset.

“This means potentially higher demand from the official sector in the years to come,” Melek said.

A possible policy pivot by the Federal Reserve in 2024 could also be in the cards, he added. Lower interest rates tend to weaken the dollar and a softer greenback makes gold cheaper for international buyers thus driving up demand.

The Fed started its steady stream of rate hikes in March 2022 as inflation climbed to its highest in 40 years, diminishing gold’s appeal.

Higher interest rates hurt demand for gold, which does not pay any interest, as assets such as bonds become more lucrative due to their higher yields.

On Nov. 29, Fed Governor Christopher Waller said he envisioned easing policy if inflation data continues to improve over the next three to five months, prompting analysts to forecast a spike in gold prices.

On Friday, while Fed Chairman Jerome Powell pushed back on expectations for aggressive interest rate cuts ahead, his remarks indicated the central bank may at least be done hiking for now.

“We believe the main factors buoying gold in 2024 will be interest rate cuts by the U.S. Fed, a weaker U.S. dollar and high levels of geopolitical tension,” BMI, a Fitch Solutions research unit, said in a recent note.

Source: Cnbc.com

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Why Repairing Your EV Is So Expensive

Energy News Beat

Electric-vehicle owners are finding a surprising downside to their new wheels: They tend to be expensive to repair after a crash.

When Scott MacFiggen’s neighbor backed into his Rivian R1T pickup truck last summer, the vehicle was left with a dent the size of a bowling ball under a rear taillamp.

MacFiggen was expecting a couple-thousand-dollar bill from the repair shop and to be without his truck for a couple of weeks. “I guess I was a little naive,” said the 51-year-old San Francisco resident. The actual bill came to $22,000, and the vehicle took 2½ months to fix.

For EVs, repairs following a collision can cost thousands of dollars more than their gas-powered counterparts, because the fixes tend to require more replacement parts, the vehicles are more complicated and fewer people do such repairs. While those issues may ease over time, first-time electric owners may be startled by the higher costs and longer wait times.

Last year, repairing an EV after a crash cost an average $6,587 compared with $4,215 for all vehicles, according to CCC Intelligent Solutions, a company that processes insurance claims for auto repairs in the U.S.

The increased costs following collisions contrast with the maintenance savings that dealers and automakers promote when trying to get buyers to switch to electric cars and trucks. In addition to not needing gas, EVs tend to require less upkeep. Not needing to do regular chores like oil changes, engine tuneups or replacement of timing belts means that electric-vehicle owners spend half as much maintaining their vehicles as their gasoline-owning counterparts, according to Consumer Reports, a nonprofit consumer organization.

Still, when EVs need repair, it can be costly. Rental-car company Hertz Global Holdings, which operates a large electric fleet mostly composed of Tesla vehicles, said its third-quarter profit was pinched in part because of the cost of repairing electric models.

Higher repair costs are also helping to drive up insurance premiums for electric owners, who pay on average $357 a month for coverage compared with $248 for gas vehicle owners, according to insurance comparison website Insurify.

“People are used to hearing that EVs have fewer parts than a combustion vehicle, but that is not the case in collision repair,” said Marc Fredman, chief strategy officer for CCC Intelligent Solutions.

Bringing down repair costs is another complication for automakers as they try to attract first-time buyers and reignite sales growth of electric models, which has slowed in recent months. Companies including Tesla and Ford Motor have slashed prices this year in hopes of attracting new customers.

Last year, on average, an EV repair required roughly double the replacement parts compared with a conventional vehicle, according to CCC Intelligent Solutions. The way many electric models’ parts are bolted or welded in the vehicles often means the components cannot be repaired and have to be replaced, Fredman said.

When these vehicles do get into a crash, repairs can be more complex for many reasons. The bodies can be more complicated to disassemble, and the repairs tend to require more steps and precautions, Fredman said.

Vehicles containing lithium-ion batteries also require special storage consideration because of the risk of fire when they are damaged, said Scott Benavidez, chairman of the trade group Automotive Service Association and owner of a collision repair business in New Mexico. Those precautions add both time and cost to the repair process, he added.

The vehicle bodies themselves can result in higher parts and labor costs because EVs tend to use more exotic materials than traditional steel, collision-repair specialists said. Some of these materials, like aluminum, require specialized tools and storage facilities, narrowing the number of shops that can perform the work, they said.

“Those shops will charge more because they’re taking on the risk of working on them and retrofitting their shop,” Benavidez said.

Repairing an electric car tends to take longer, as well, in part because there are still a limited number of shops capable of doing this type of work. It takes 25% longer to get an EV into a body shop than a traditional vehicle, according to data from CCC Intelligent Solutions. Those repairs tend to take roughly 57 days compared with 45 days for non-EVs, the data showed.

In the case of MacFiggen’s Rivian truck, the cost of the repair reflected deeper, structural damage that wasn’t immediately visible, a Rivian spokesperson said. MacFiggen said his insurance covered the five-figure repair bill. The price of repairing body panels on any vehicle can vary widely, but it typically costs between $100 and $3,000, J.D. Power data found.

“Our top priority is building safe vehicles,” the Rivian spokesperson said. “Repairing Rivian vehicles is in line with similar repair costs to other EV manufacturers.”

There are signs that costs could come down as automakers build up a supply of spare parts and more independent repair shops become trained.

EV market leader Tesla has company-owned collision repair centers, as well as a network of privately owned body shops. Those additions helped half the cost of repairs on Teslas over the past decade as more shops became equipped to work on the vehicles, said Xander Walker, a former Tesla employee who worked on refurbishing leased vehicles and trade-ins.

Today, Tesla says the costs of operating a Model 3 sedan are similar to those of a Toyota Corolla over a five-year period, in part because of lower maintenance and repair costs.

Hertz Chief Executive Stephen Scherr also said he expects repair costs to come down as replacement parts become more readily available, and as Hertz purchases more vehicles from traditional carmakers with a broader network of suppliers.

Meanwhile, Scherr said the rental-car company is attempting to lower the price of spare parts and planning to perform more repair work in-house to bring down costs.

Ford Motor also expects that repair costs will eventually come down as technicians are trained and components become more readily available.

“With any technology, the more it scales, the more the cost comes down and customer wait times go down,” said a Ford spokesperson.

Source: Msn.com

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MORGAN: Record-breaking gathering of hypocrites in Dubai for COP 28

Energy News Beat

Nothing exposes the fake nature of world environmentalists better than the annual pilgrimage of supposed defenders of the Earth to UN climate conferences. This year’s conference (COP 28) is kicking off in the United Arab Emirates (UAE) and a record-breaking 70,000 delegates are flying there to live in opulence for two weeks to discuss better ways of telling the rest of us to tighten our belts.

I didn’t make an error in the numbers there, though it may look that way. No fewer than 70,000 people will get on emission-belching jets to cross the world to stay for days in five-star resorts where gas powered air conditioning will ensure they remain in perfect comfort as they navel gaze and attend seminars.

The UAE is an oil-rich desert nation so while high emission energy is readily available, fresh food goods must be imported.

There will be hundreds more flights to UAE to ensure the delegates are greeted with fresh fruit for breakfast and only the highest quality of salad greens are delivered with the evening room service. To ensure those greens remain fresh along with the assortment of high-end meat products, thousands of coolers will burn millions of litres of fossil fuels to preserve these fine foods from the local desert heat.

Thousands of servants will be required to ensure this gathering of environmental royalty is properly cared for while they ponder on how to save the world.

Chauffeurs, maids, chefs, dishwashers and security are labour intensive. Have no fear though. The UAE has developed a fantastically effective system of importing cheap labour from developing nations and deporting them when they are finished with the services.

Sure, the UAE has been criticized for this use of borderline slavery by most of the human rights groups on the planet but hey, what’s a little labour abuse when it’s for something as important as pampering international environmentalists?

Speaking of human rights, the UAE is outstanding. They hold no elections and the government has been known to be just as happy to detain and torture its own citizens as it is with foreign nationals.

Flogging and stoning are legal punishments in the UAE courts, which are guided by a medieval form of Sharia law. Have no fear though, the environmental crusaders descending on the UAE for their conference will be shielded from having to see such things. If their chambermaid is flogged for showing her hair, she will be transferred into the basement to work in laundry services so the guests don’t have to see her twitching in agony as she labours.

The usual suspects are flying out to attend COP 28. Notable scold and intellectual luminary Greta Thunberg will be in attendance while Canada’s Green Jesus Steven Guilbeault will doubtless be blowing kisses in her direction. Thunberg’s latest anti-Israel rantings have surely helped her rise in the UAE food chain and her every need will be attended to while she makes the rounds at the conference.

Thousands of unknown bureaucrats, activists, politicians and other self-important souls will pack the halls, bars, pool sides and hotels of the UAE for the conference too.

This is their annual reward for toiling so hard in saving the world from itself. This is how your taxes paid and your donations to environmental groups get spent. These conferences are never held in cold, undeveloped nations of course. They ensure to hold them in places with nice climates where an abundance of five-star hotels are available.

What is possibly being achieved at these conferences that can’t be done through streaming meetings?

Why is it so critical to have 70,000 people gathered in one spot for a week?

Let’s get to the point.

These environmental conferences have nothing to do with the environment. They are just excuses for thousands of hypocrites to burn millions of litres of fossil fuels on a paid vacation. It’s one big party modeled for shoulder-rubbing and fine dining. Actual environmental policy development never happens at these things. How could it be effectively done among tens of thousands of delegates?

These hypocrites will then fly home from their luxurious weeks of conspicuous consumption and dedicate their time to telling the rest of us that we are being selfish in wanting to live affordably in comfort using fossil fuels.

They will lobby for increasing carbon taxes while shutting down profitable, efficient, conventional energy industries. They will put you out of work, while they demand and receive increases in their already large incomes. They will call you selfish for daring to drive a used, four-cylinder car instead of driving a $90,000 electric vehicle.

They will tell you to wear a sweater when the power fails due to an overloaded electric grid after banning natural gas heat and chide you for wanting to take a vacation in Mexico when you could camp out in your back yard.

These lectures will come from the comfort of their gated communities when they aren’t overseas at an event.

The delegates at COP 28 will consume more resources in a week than the combined citizens of some small countries.

And until we start calling them out and firing the governments that employ them, they will keep getting away with it.

If we keep swallowing the lies from the environmental left and ignoring the double standards they flaunt in front of us, we deserve the energy and financial poverty that comes with it.

Source: Westernstandard.news

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Venezuelans vote to back potential annexation

Energy News Beat

The consultative referendum was held amid a century-old dispute for land and newly discovered offshore hydrocarbons

Voters in Venezuela have overwhelmingly backed their government’s position on a territorial dispute with neighboring Guyana, the country’s National Electoral Council has reported. The row stems from the US border arbitration more than a century ago, which Caracas considers unfair.

The five-question “consultative referendum” held on Sunday was initiated by President Nicolas Maduro after the International Court of Justice (ICJ) ruled in April that it had jurisdiction in the case. The territory in question is known as Esequiba and measures some 159,500 square kilometers (61,600 square miles), or roughly two-thirds of the entire territory of Guyana.

The dispute stems from 19th-century disagreements over where the border between Guyana, then a British colony, and Venezuela should lie. In the 1890s, Washington intervened against London’s interests under the Monroe Doctrine, which ostensibly protected Latin America from European colonial powers.

The UK agreed to a US arbitration, in which a panel of two Americans, two Britons, and a Russian produced a ruling in 1899 that largely favored British territorial claims. Venezuela rejected the outcome at that time.

The issue was revisited during the decolonization period after World War II, as Guyana was about to gain independence. The Geneva Agreement of 1966 proposed a roadmap towards an eventual satisfactory resolution, in which the UN was given a role. In 2018, UN Secretary-General Antonio Guterres referred the case to the court in The Hague.

In the Sunday ballot, Venezuelans rejected the 1899 arbitration and supported the 1966 agreement as the only valid instrument for resolving the situation. They also endorsed the formal creation of ‘Guayana Esequiba’ as a new state in Venezuela, with citizenship to be offered to residents of the Guyana-administered territory.

The fourth question asked voters whether they rejected Guyana’s unilateral attempts to delimit the sea border with Venezuela, to which they also said ‘Yes.’ In the 2010s, ExxonMobil surveyors discovered offshore oil in commercial quantities in the part of the Atlantic to which Esequiba gives access.

On Friday, the ICJ warned Venezuela against trying to change the status quo and of Guyana’s control of Esequiba but did not explicitly prohibit it from holding the referendum. Caracas has rejected the court’s jurisdiction in the case and asked voters whether they agreed with the government’s official stance, which they did.

On the day of the referendum, Guyanese President Mohamed Irfaan Ali said his people had “nothing to fear over the next number of hours, days, months ahead,” and urged Caracas to “show maturity” in handling the dispute.

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COP28 Craziness: EU Chief Demands ‘Trillions’ for Green Agenda at U.N. Climate Summit

Energy News Beat

The European Union appears undeterred by years of calamitous climate policies, with EU Commission Chief Ursula von der Leyen demanding new taxes and other schemes to take green agenda investment into the “trillions”.

Leaders from around the world descended (many of whom on private jets) upon the oil-rich Arabian nation of Dubai for the 28th instalment of the United Nation’s top annual climate summit, in which politicians demand that ordinary citizens bankroll their lofty visions of a so-called green future.

Despite people suffering across Europe under an energy crisis as a result of the war in Ukraine and the years of dumping money into dubious ‘renewable’ energy sources, EU Chief Ursula von der Leyen’s takeaway was to double down on the very same policies that precipitated Europe’s precarious energy situation.

“More is needed,” the German politician urged, proclaiming: “We have to move from billions to trillions.”

The EU leader admitted that to accomplish such a goal, Brussels will need to “find new sources of revenue”. To do so, von der Leyen said that she “fully supports” the plan proposed by Kenyan President William Ruto and French President Emmanuel Macron to impose a global green tax targeting financial transactions to “raise more money for climate action.”

In addition, von der Leyen called for increased efforts to expand “green bonds” to “facilitate the flow of private capital in green projects,” particularly for developing nations. She said that last year, the European Union contributed nearly 30 billion dollars in climate finance to developing countries.

The EU chief also said that there needs to be an expansion of carbon pricing, a central feature of the European Green Deal that imposes taxes on emissions to incentivise businesses to lower their so-called carbon footprint. She said that in the two decades of carbon pricing, the EU has taken in 175 billion euros in revenues from companies, which was then directed to climate change projects.

Finally, von der Leyen highlighted the EU’s 300-billion-euro ‘Global Gateway’ answer to Communist China’s Belt and Road programme, saying that by sending money to developing nations, the European Union would help them “leapfrog into a clean energy future”.

“We Europeans are interested to invest because this diversifies and strengthens our supply chains in these growing new markets. It is the best investment any of us can make,” the EU chief said.

Elsewhere at the United Nations summit, leftist leaders aimed at the West for allegedly causing the supposed climate emergency, with socialist Bolivian Vice President David Choquehuanca saying that “Mother Earth” was in crisis because of “neocolonial, capitalist, imperialist, patriarchal, Western culture.”

“The climate crisis is but the latest chapter in a long history of hypocrisy and lies: The ‘Global North’ is responsible for the global imbalance that we’re seeing,” he said, adding: “They seek permanent growth to the detriment of the Global South.”

The climate summit also saw leaders of 130 countries commit to including cutting emissions from farming a key pillar of their respective green agendas, despite food prices soaring globally as a result of rising energy costs.

While the pledge does not mandate any specific taxes on food production, the declaration will likely see more disputes with farmers, who have waged large-scale protest movements in countries like the Netherlands over environmentalist schemes to shut down their businesses.

Source: Breitbart.com

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The Critical Minerals to China, EU, and U.S. National Security

Energy News Beat

The Critical Minerals to China, EU, and U.S. Security

Governments formulate lists of critical minerals according to their industrial requirements and strategic evaluations of supply risks.

Over the last decade, minerals like nickel, copper, and lithium have been on these lists and deemed essential for clean technologies like EV batteries and solar and wind power.

This graphic uses IRENA and the U.S. Department of Energy data to identify which minerals are essential to China, the United States, and the European Union.

What are Critical Minerals?

There is no universally accepted definition of critical minerals. Countries and regions maintain lists that mirror current technology requirements and supply and demand dynamics, among other factors.

These lists are also constantly changing. For example, the EU’s first critical minerals list in 2011 featured only 14 raw materials. In contrast, the 2023 version identified 34 raw materials as critical.

One thing countries share, however, is the concern that a lack of minerals could slow down the energy transition.

With most countries committed to reducing greenhouse gas emissions, the total mineral demand from clean energy technologies is expected to double by 2040.

U.S. and EU Seek to Reduce Import Reliance on Critical Minerals

Ten materials feature on critical material lists of both the U.S., the EU, and China, including cobalt, lithium, graphite, and rare earths.

Despite having most of the same materials found in the U.S. or China’s list, the European list is the only one to include phosphate rock. The region has limited phosphate resources (only produced in Finland) and largely depends on imports of the material essential for manufacturing fertilizers.

Coking coal is also only on the EU list. The material is used in the manufacture of pig iron and steel. Production is currently dominated by China (58%), followed by Australia (17%), Russia (7%), and the U.S. (7%).

The U.S. has also sought to reduce its reliance on imports. Today, the country is 100% import-dependent on manganese and graphite and 76% on cobalt.

After decades of sourcing materials from other countries, the U.S. local production of raw materials has become extremely limited. For instance, there is only one operating nickel mine (primary) in the country, the Eagle Mine in Michigan. Likewise, the country only hosts one lithium source in Nevada, the Silver Peak Mine.

China’s Dominance

Despite being the world’s biggest carbon polluter, China is the largest producer of most of the world’s critical minerals for the green revolution.

China produces 60% of all rare earth elements used as components in high-technology devices, including smartphones and computers. The country also has a 13% share of the lithium production market. In addition, it refines around 35% of the world’s nickel, 58% of lithium, and 70% of cobalt.

Among some of the unique materials on China’s list is gold. Although gold is used on a smaller scale in technology, China has sought gold for economic and geopolitical factors, mainly to diversify its foreign exchange reserves, which rely heavily on the U.S. dollar.

Analysts estimate China has bought a record 400 tonnes of gold in recent years.

China has also slated uranium as a critical mineral. The Chinese government has stated it intends to become self-sufficient in nuclear power plant capacity and fuel production for those plants.

According to the World Nuclear Association, China aims to produce one-third of its uranium domestically.

The post The Critical Minerals to China, EU, and U.S. National Security appeared first on Elements by Visual Capitalist.

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‘We are near that inflection point’: Billionaire Ray Dalio warns that America is now ‘borrowing money to pay debt service’ — cautions that debt will accelerate just to maintain spending

Energy News Beat

America’s national debt is currently closing in on a staggering $33.74 trillion. And according to Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, that number may continue to rise — quite rapidly.

“We are at a point in which we are borrowing money to pay debt service,” he said in a recent interview with CNBC.

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The hedge fund legend explained that if a country’s debt were to grow faster than its income, its debt service would be “encroaching” on its spending. And if the country wanted to maintain its current level of spending, it would need to “get more and more into debt.”

“The way that works, it accelerates,” he said.

He added that the problem is exacerbated by America’s internal political issues and social conflicts.

Dalio is not the only one to point out the connection between U.S. politics and fiscal health. Moody’s Investors Service recently changed its ratings outlook for the U.S. from “stable” to “negative.” It warned that “continued political polarization” in Congress may heighten the risk of lawmakers failing to achieve consensus on a fiscal plan to “slow the decline in debt affordability.”

Will interest rates go higher?

Since the U.S. Federal Reserve began raising interest rates in March 2022, many borrowers have experienced the burden of higher monthly payments. Should interest rates persist in rising, it poses significant challenges for a country grappling with nearly $34 trillion of debt.

When asked about his forecast for interest rates a year from now, Dalio responded, “I don’t think there’s going to be any important change in the Fed policy, other than maybe a slight easing as the economy slows down.”

And yet recent indicators still suggest an expanding economy.

Read more: Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here’s how

Last month, the Commerce Department reported that, for Q3, real GDP in the U.S. increased at an annual rate of 4.9%. This statistic not only exceeded economists’ expectations, but also marked the biggest increase since Q4 of 2021.

That said, Dalio is concerned about the nation’s financial strength.

“Financially strong means: do you earn more than you spend? Do you have a good income statement as a country? And do we have a good balance sheet?” he remarked. “We are near that inflection point.”

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Source: Finance.yahoo.com

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The post ‘We are near that inflection point’: Billionaire Ray Dalio warns that America is now ‘borrowing money to pay debt service’ — cautions that debt will accelerate just to maintain spending appeared first on Energy News Beat.

 

Internal EU rows threaten Ukraine’s $54 billion – FT

Energy News Beat

Compromise within the bloc is reportedly being hampered by the rise of far-right parties in Europe and the financial crisis in Germany

Disputes over the EU’s joint budget could leave Ukraine without €50 billion ($54.3 bln) promised by the bloc, the Financial Times reported on Sunday. Agreement is being hampered by the far-right’s win in Dutch elections last month and a budget crisis in Germany resulting from a court ruling over unused pandemic funds, the newspaper said.

Ahead of a summit in Brussels in less than two weeks, at which the EU’s long-term budget as well as support for Ukraine will be discussed, the bloc’s 27 states are “far from reaching a deal,” the FT said, citing unnamed officials.

One source from among EU representatives said “it is a moment of truth,” pointing out that “if you say you stand by Ukraine, you have to step up to the plate.” At the same time, another official reportedly said that agreement on the bloc’s budget would be “very, very difficult.”

On Thursday, the EU’s budget commissioner, Johannes Hahn, said that Germany is currently “so distracted by their domestic issues that they don’t find time to deal with [EU budget issues].” A few days earlier, however, German Chancellor Olaf Scholz had said “we must not let up in our support for Ukraine,” even as his country faces an energy crisis.

Dutch elections last month ended in an unexpected win for the far-right Freedom Party (PVV), which, among other things, calls for a halt in military and financial support for Ukraine, and doesn’t support EU sanctions on Russia.

On Friday, Hungarian Prime Minister Viktor Orban, who has repeatedly called for a ceasefire and peace talks in Ukraine, said the EU should first sign a five-to-ten-year strategic partnership agreement with Kiev instead of starting membership talks. Earlier, he blocked a €50-billion EU aid package for Ukraine, saying the bloc’s strategy on the conflict had “failed.”

Hungary’s position on Kiev’s requirements from the EU could spark a “political crisis” at the December 14 summit in Brussels, Politico reported last week.

Since the beginning of June, Ukraine has been waging a counteroffensive against Russia, but has yet to achieve any significant results. According to the head of the Russian Defense Ministry, Sergey Shoigu, as of early December, Kiev has lost more than 125,000 service personnel and 16,000 units of heavy weaponry.

During an extraordinary G20 summit last month, Russian President Vladimir Putin said that Moscow has never refused peace talks with Kiev.

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