With commodities and goods such as coal, LNG, and computer chips commanding eye-popping prices, Bank of America analysts are predicting a return to triple-digit crude oil prices this winter. While we do not rule out that crude prices will flirt with $100/barrel sometime this winter, we regard this development as… Read more »
Posts Categorized: Blogs
Brighter Skies for Greenfield North American LNG Projects
It’s boom times for LNG markets. The forward strip is showing JKM winter 2021/2022 spot prices exceeding $40/MMBtu, a more than 700% increase from the 2019/2020 winter. Indeed, global gas markets are currently experiencing a near-perfect storm: demand is rising; the sector has faced underinvestment for years; wind production disappointed… Read more »
ERCOT Summer Wind Generation: What Happened?
A funny thing happened in ERCOT in June and July. While the grid (mercifully) didn’t experience any major outages, wind generation actually fell year-over-year from the prior-year periods – despite an increase in wind generation capacity. There remains a great deal of uncertainty surrounding climate change and wind cyclicality. In… Read more »
Refiners’ Delight: 2021 looking good
PADD 1 oil demand in decline U.S. oil refiners largely managed to survive the COVID-19 demand shock. Sometimes, as Dunkirk proved, survival is victory. With the worst of COVID seemingly behind the U.S. due to widespread uptake of safe and effective vaccines, economic demand and mobility are approximating pre-pandemic levels…. Read more »
EU Methane Standards and U.S. LNG Exports
CAISO curtailment falling on battery development?
There is some limited evidence that California’s solar “curtailment” problem is receding on battery deployment. Curtailment, or the involuntary reduction of output of solar or wind generation due to system oversupply, could restrict renewables penetration. Indeed, most renewables and electricity experts continue to warn that solar penetration will face hard… Read more »