Energy News Beat

NEW YORK, Jan 12 (Reuters) – Oil prices jumped more than 2% as some oil tankers diverted course from the Red Sea after overnight strikes by the U.S. and Britain on Houthi targets in Yemen, while U.S. Treasury yields eased on news that U.S. producer prices unexpectedly fell in December.

Wall Street stocks dipped in early trading as U.S. earnings season unofficially began. Major U.S. bank fourth-quarter profits fell, and an S&P 500 bank index (.SPXBK) was down 0.9%.

U.S. and British warplanes, ships and submarines launched dozens of air strikes across Yemen overnight in retaliation against Iran-backed Houthi forces for attacks on Red Sea shipping. The move widened a conflict stemming from Israel’s war in Gaza.

U.S. crude recently rose 2.72% to $73.98 per barrel and Brent was at $79.48, up 2.67% on the day.

The U.S. PPI data underscored views that the Federal Reserve may cut interest rates as soon as March. The producer price index for final demand dipped 0.1% last month as the cost of goods declined, while prices for services were unchanged, which bodes well for lower inflation in the months ahead.

Data on Thursday showed U.S. consumer prices rose more than expected in December.

“Markets are shrugging off yesterday’s CPI report since the underlying inflation trend is improving and the Fed can legitimately consider cutting rates this year,” Jeffrey Roach, chief economist for LPL Financial in Charlotte, North Carolina, wrote.

“The inflation pipeline is clearing and consumer prices will gradually get to the Fed’s 2% target.”

The Dow Jones Industrial Average (.DJI) fell 230.03 points, or 0.61%, to 37,480.99, the S&P 500 (.SPX) lost 9.95 points, or 0.21%, at 4,770.29 and the Nasdaq Composite (.IXIC) dropped 32.81 points, or 0.22%, to 14,937.38.

The pan-European STOXX 600 index (.STOXX) rose 0.74% and MSCI’s gauge of stocks across the globe (.MIWD00000PUS) gained 0.14%.

European Central Bank (ECB) President Christine Lagarde said rates could be cut if the central bank was sure that inflation had fallen to its 2% target.

The benchmark 10-year Treasury yield edged lower on the day to 3.969% , while the two-year yield dropped 6.4 basis points to 4.198% .

The U.S. dollar index gave up earlier gains and was last nearly flat in the wake of the U.S. PPI data. The New Zealand and Australian currencies were among the day’s best performers.

The kiwi was last up 0.55% at $0.62660. The Aussie gained 0.47% to $0.67165.

Bitcoin last stood at $45,305, down 1.84%. It surged to a two-year high of $49,051 on Thursday after the U.S. Securities and Exchange Commission late Wednesday approved exchange traded funds linked to bitcoin.

In Asia, Japan’s Nikkei (.N225) extended its impressive gains so far this year, jumping 1.5% to another 34-year high.

Chinese inflation data showed the country’s economic recovery remained weak in December, with the consumer price index falling 0.3% from a year ago. However, separate trade data showed exports rose faster than expected last month while imports returned to growth.

Source: Reuters.com

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Energy News Beat

The US has resumed importing oil from Russia for the first time in more than a year, despite the ongoing sanctions imposed on Moscow over its military intervention in Ukraine, according to a Sputnik Globe report.

According to the US Energy Information Administration (EIA), the US imported 36,800 barrels of Russian oil in October and 9,900 barrels in November, worth $2.7 million and $749,500, respectively. The imports were made possible by specific licenses granted by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), which oversees the enforcement of sanctions.

The EIA data also revealed that the US paid a premium for the Russian oil, as one barrel cost $74 in October and $76 in November, well above the “price cap” of $60 per barrel set by the US and its allies in 2022. The price cap was part of a coordinated effort by the US, the G7 countries, the EU, Switzerland, and Australia to reduce Russia’s income from oil exports, as a response to its annexation of Crimea and support for separatists in eastern Ukraine.

The US banned the import of oil, gas, and other energy resources from Russia in March 2022, along with other sanctions targeting Russian individuals, entities, and sectors. However, the OFAC has the authority to issue licenses for certain transactions that are otherwise prohibited by the sanctions, on a case-by-case basis.

The reasons behind the US decision to resume importing Russian oil are unclear, but some experts have speculated that it could be related to the global energy crisis, the geopolitical tensions with China, or the diplomatic efforts to resolve the Ukraine conflict.

What Twitter has to say on US’ move

X(formerly Twitter) sparked a lively debate, with some expressing surprise, skepticism, or criticism of the US move, and others offering their own interpretations or opinions on the implications of the US-Russia oil trade.

One user posted, “This is a betrayal of Ukraine and a capitulation to Putin. The US should stand firm on the sanctions and support the democratic aspirations of the Ukrainian people.”

ALSO READ| Hunter Biden pleads not guilty in Los Angeles hearing on federal tax charges

Another user replied, “This is a pragmatic move by the US to secure its energy needs and diversify its sources. The sanctions are still in place, and the US is still committed to the Minsk agreements. The US is not abandoning Ukraine, but trying to find a peaceful solution to the crisis.”

Another one wrote, “This is a smart move by the US to weaken China’s leverage over Russia. The US is offering Russia a way out of its isolation and dependence on China, and creating an incentive for Russia to cooperate on other issues, such as Iran, North Korea, and climate change.”

Source: Msn.com

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In November 2023, the United States imported oil from Russia for the first time since April 2022, according to US statistical data. Washington purchased almost 10,000 barrels of Russian oil for $749,000. Thus, the price per barrel was about $74.9, which is above the established ceiling on Russian oil prices

In December 2023, the US Treasury updated the mechanism for complying with the price ceiling for oil and petroleum products from Russia. The new requirements oblige suppliers from the countries of the coalition, which supported the introduction of a price ceiling, to receive confirmation from their counterparties each time they load and ship Russian oil.

As the Russian Ministry of Finance reported in January, the average price of Urals oil in 2023 was $62.99 per barrel, thereby its cost was above the established threshold of $60 per barrel.

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(Bloomberg) – Norwegian oil and gas companies will drill more exploration wells this year as the country seeks to maintain its position as a key oil and gas supplier to Europe.

Between 40 and 50 wells are expected to be completed, up from 34 last year, the Norwegian Offshore Directorate said Thursday. More than half of the 23 wildcat wells undertaken last year found hydrocarbons, it said.

Norway become Europe’s top supplier of natural gas in 2022, replacing Russian flows that were cut following Moscow’s invasion of Ukraine. It now contributes about a quarter of the continent’s gas and will likely remain a key supplier as European countries use it as a transition fuel amid a green push.

The country aims to keep oil and gas production stable in the coming years, the directorate said, with investments in ongoing field developments forecast to hit a record high of 77 billion kroner ($7.5 billion) this year.

There were 92 fields operating and 27 projects under development last year, according to the directorate. Unplanned outages and prolonged maintenance work weighed on natural gas production during summer months, before rebounding to a record monthly volume exported in December.

While exploration continues to target areas adjacent to or near existing infrastructure — helping to keep costs and emissions down — companies should also focus on places they’re less familiar with, the directorate said.

Oil production rose to 104 MMboed in 2023, from 97.8 MMboed a year earlier. Natural gas output dropped about 5%.

Source: Worldoil.com

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The post Norwegian oil and gas companies to stabilize production by drilling more exploration wells in 2024 appeared first on Energy News Beat.

 

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The Japanese government has announced plans to spend ¥3trn ($20.86bn) on subsidies for delivered clean hydrogen (and its derivatives) over a 15-year period.

The post Japanese government allocates $21bn to clean hydrogen subsidies appeared first on Energy News Beat.

 

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After 15 years, the Bureau of Land Management finally approved a 732-mile transmission line that will send 3,000 megawatts of power from the Sierra Madre and Chokecherry wind energy projects in Wyoming to renewable-hungry California.

The $3 billion project, which will run across Colorado, Utah and Nevada, will require another five years of construction before it’s operational, and there was a lot of planning and engineering that preceded the permitting process.

A group of Princeton University academics released a report in 2020 that estimated that, to reach net zero targets, the U.S. will need to increase its transmission capacity by 3.2 times its existing infrastructure by 2050.

The TransWest 20-year permitting and construction timeline is typical, meaning it’s unlikely that massive buildout capable of meeting that goal will ever be achieved without major changes to the permitting process.

Net Zero By 2163

The National Renewable Energy Laboratory estimated that if the U.S. got 90% of its electricity from renewable sources, it would need to build twice as much capacity as its current 240,000 miles of high-voltage power lines nowcarry.

Writing in his Substack in February, energy expert Robert Bryce calculated that it would require a transmission line long enough to circle the Earth nearly 10 times.

Based on data from C Three Group, which tracks the growth of energy infrastructure, Bryce determined that the U.S. high-voltage transmission system grew by about 1,700 per year between 2008 and 2021. That means doubling the size of this transmission capacity will take about 140 years at the current rate.

Spreadsheet Manipulation

All of the projections of what is needed, Bryce notes, don’t factor in local opposition that will certainly grow as more transmission lines cross private property, as it has with renewable energy projects.

Energy author and analyst Meredith Angwin told Cowboy State Daily that renewable energy targets aren’t set without a lot of forethought concerning the kinds of obstacles they’ll encounter, including the thousands of miles of transmission lines and storage facilities that will be needed to stabilize a grid with large amounts of intermittent wind and solar placed on it.

“It gets to be a little bit of a spreadsheet manipulation experience rather than actually a planning experience,” Angwin said.

People tend not to settle in areas where the winds are ideal for wind farms, Angwin said. That means that energy will have to be transported from where it’s produced in rural areas to where it’s consumed, most of which will be in population centers.

That’s unlike a nuclear power plant, for example, which can be sited just about anywhere there’s a water source.

Rolling Blackouts

In her book “Shorting The Grid,” Angwin analyzes what she says are problems stemming from a lack of accountability and grid governance.

She predicts that if the United States continues down its current path, people likely see more rolling blackouts and rising electricity rates, which is already happening.

The needed transmission is one problem the book covers, and the lengthy permitting process with TransWest is hardly unique.

Transmission lines tend to be more difficult to site than the average project, Angwin explained in an interview, because they have to go through multiple jurisdictions.

The TransWest project needed approval from the BLM, state governments, U.S. Forest Service and the Department of Energy, in addition to handling disputes with private landowners.

Permitting Reform 

In Vermont, Angwin said, transmission lines meant to bring hydroelectric power from Canada to Boston and New York have been blocked by local opposition for over 20 years.

The lines had to pass through New Hampshire, but that state didn’t want it.

“It wasn’t going to help New Hampshire,” Angwin said.

A 500-mile transmission line crossing New Mexico and Arizona, the SunZia project, has been in the permitting process for 17 years, and local opposition concerned about its impacts to wildlife continue to stall the project.

A recent report by Americans for a Clean Energy Grid identifies 22 high-voltage transmission projects that would go forward if “more workable transmission policies were enacted.”

Progressives, who are the most vocal proponents of renewable energy, also are the most vocal opponents of attempts to reform the permitting process that would allow faster construction of all kinds of industrial development, including wind farms, solar farms and transmission lines.

Sen. Joe Manchin, D-West Virginia, attempted to reform the permitting process last year, which would have shortened the federal environmental review process from 4.5 years to two years.

Prominent progressives successfully fought the effort.

Source: Cowboystatedaily.com

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The post After 15 Years Of Permitting, TransWest Wind Transmission Project Is Still 5 Years From Going Live appeared first on Energy News Beat.

 

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India was likely the participant that passed along details of this supposedly secret event to Russia weeks before Bloomberg’s report after Lavrov touched upon it in an interview last month, which testifies to how much these two trust one another.

Bloomberg reported last week that Saudi Arabia hosted another round of talks on Ukraine after last summer’s Jeddah talks in mid-December, though this time they were kept secret from the media. They were a dud just like the prior ones since India, Saudi Arabia, and Turkiye continued pressing Ukraine and its G7 allies to recommence peace talks with Russia. Those three and the other Global South states that attended, which were less than last summer according to the report, also refused to sanction Russia.

Russian Foreign Ministry spokeswoman Maria Zakharova dismissed that meeting as a PR stunt while Sputnik reminded everyone that her boss Foreign Minister Sergey Lavrov was actually the first to reveal the existence of these supposedly secret talks during an interview in late December. What follows are the exact words that he said at the time, which will then be analyzed in order for the audience to appreciate their actual importance in this context:

“Considering our good relations [with Global South countries, ed.], I can say that another meeting like this took place 10 days ago – the G7 plus the leading developing nations. Not all countries from the world majority attended. Some turned down their invitations. The meeting took place in complete secrecy. Nothing was reported about it; there were no leaks…Our close allies and associates who attended that meeting did not promise to keep an issue that concerns Russia secret from us.”

While Bloomberg didn’t report on the full guest list from mid-December’s supposedly secret talks, they nevertheless explicitly noted the aforementioned three Global South states’ participation while also stating that Brazil, China, and the UAE eschewed participation in that latest round unlike the prior one. It can therefore be surmised that India, Saudi Arabia, and/or Turkiye were the one(s) that informed Russia about the details of that event.

The case can compellingly be made that India certainly shared this information with Russia considering those two’s decades-long special and strategic partnership that’s evolved in recent years to take on global dimensions. This isn’t hyperbole like some skeptics might instantly imagine but is predicated upon what Lavrov himself said about their ties during his press conference with Indian External Affairs Minister (EAM) Dr. Subrahmanyam Jaishankar on the last week of the year during the latter’s trip to Moscow:

“We are sincerely grateful to our Indian colleagues for their striving to adopt a responsible approach to discussing and resolving regional and global problems in line with the principles of equitable and fair international cooperation. This approach is typical of India’s position on the developments in Ukraine and around it.”

Here are three pieces about last summer’s talks with respect to India’s position that Lavrov just praised:

* “There’s Nothing Wrong With India Attending The Western-Centric Ukrainian Peace Talks In Jeddah”

* “The Jeddah Talks Backfired On Zelensky”

* “India Showcased Its Neutrality At Last Weekend’s Western-Centric Peace Talks On Ukraine”

The hyperbolic fearmongering from a top Alt-Media influencer, who accused India of being a “Trojan Horse” for participating in those talks in a tweet that was seen by over 128k people, was proven wrong after that country proudly held firm on its position of principled neutrality towards this conflict. Those talks backfired by serving as a platform for India to promote its position to a wider audience of Global South and Western states alike, thus further legitimizing it after 18 months of Western media lies.

With this insight in mind as well as Lavrov’s revelation from late last month, it can therefore be confidently concluded that India certainly shared the details of that event with Russia, and that country would have been more forthcoming about everything than any other participant if others did so too. This previously unknown diplomatic engagement showcases just how much they trust one another in spite of the false claims to the contrary from the Western media and top Alt-Media influencers alike.

Source: Korybko.substack.com

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The post Last Month’s Secret Talks On Ukraine In Riyadh Were A Dud But Revealed Something Important appeared first on Energy News Beat.

 

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(Bloomberg) – TotalEnergies SE said lifting its stake in two Namibian oil blocks is a “key step” toward developing the Venus field off the coast of the southwest African nation.

The post TotalEnergies increases Namibian stakes to develop key oil discoveries appeared first on Energy News Beat.

 

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China Merchants Heavy Industry (Jiangsu) has started building the second of six 180,000-cbm LNG carriers for Denmark’s Celsius Tankers, a unit of Celsius Shipping.

The shipbuilder said in a statement it has held a steel-cutting ceremony for the vessel (CMHI-282-02) on January 10.

CMHI officially started building the first of these 298.8 meters long ABS-classed LNG carriers during a steel-cutting ceremony held on October 23, 2023.

Jeppe Jensen, founder and executive chairman of Celsius, announced during this ceremony that Celsius had ordered two more LNG carriers (vessels number 5 and 6) at the Chinese yard.

The Danish firm now has six firm LNG carriers on order at the Chinese shipbuilder but with six more options.

In December 2022, Celsius and CMHI signed the 4+2+2 contract for the 180,000-cbm LNG carriers with deliveries scheduled in 2026 and 2027.

Celsius chartered the first four LNG carriers to Clearlake Shipping, a subsidiary of energy trader Gunvor, and these vessels will be delivered in 2026 and 2027.

The Deltamarin-designed vessels will feature MAN ME-GA engines and GTT’s Mark III Flex containment system.

The China Merchants yard in Jiangsu won a license from GTT in October 2022 to construct large LNG carriers using GTT membrane technologies.

Following deliveries of these six ships and the vessels being built in South Korea, Celisus will have 20 LNG carriers in its fleet.

The company recently took delivery of Celsius Glarus, the third vessel of ten Celsius has on order at Samsung Heavy.

Celsius will take delivery of the seven remaining newbuilds from Samsung Heavy during 2024-2026.

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Officials today launched an investigation after one of Sadiq Khan‘s electric buses exploded during today’s rush hour.

Terrified residents in Wimbledon described a massive ‘bang’ after a double decker burst into flames during this morning’s commute, sparking chaos on the roads as black smoke filled the streets.

Astonishing video obtained by MailOnline shows the dramatic moment firefighters battled to put out the inferno.

The post Officials probe electric double decker bus inferno after vehicle ‘exploded’ and burst into flames sparking rush hour chaos – as dramatic video shows firefighters battling to put blaze out appeared first on Energy News Beat.