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Commodities Briefing - Category | Energy more

End of Commodities Supercycle? (Energy Subset)

Posted on 28 July 2015 by VRS  |  Email |Print

About a decade ago, Goldman Sachs’ Arjun Murti suggested an oil “superspike” might send prices to $105 a barrel. There were two primary reactions to this analysis, first, that Goldman was just marketing its commodity indices, and second, that he/they were crazy. The former view probably continues to be held by some, the latter, not so much.
Murti’s later prediction that oil might hit $200 didn’t prove out, but the $105/barrel prognostication certainly held up. What many overlooked at the time of the initial $105/barrel prediction was that it reflected an estimate of how prices might respond to an oil supply disruption. As such, it was much more reasonable than the predictions of peak oilers like Matthew Simmons or T. Boone Pickens, who thought prices were on a permanent upwards trend because of geological scarcity………………………………………..Full Article: Source

Commodities in a meltdown, but coal, uranium offer some hope

Posted on 27 July 2015 by VRS  |  Email |Print

From super-cycle to commodity meltdown was the way one group of analysts titled a report last week. “Sentiment toward commodities as an asset class has rarely, if ever, been more negative,” added Capital Economics.
Copper has hit a six-year low and closed on Friday at a dispiriting $US5238 a tonne, down 6 per cent on the week and with Goldman Sachs forecasting the red metal reaching $US4500/tonne by the end of 2016. Nickel took another hit, ending at $US11,255/tonne while lead shed more value to close at $US1716/tonne………………………………………..Full Article: Source

In Commodities Meltdown, Gas Is a Fleeting Bright Spot

Posted on 24 July 2015 by VRS  |  Email |Print

In the meltdown that is the commodities market, natural gas has emerged as a bright spot, barely touched by the turmoil that’s contributed to a global slump. Oil has tumbled 19 percent over the past three months on the Bloomberg Commodity Index, and gold is down 8.6 percent, helping send the gauge to a 13-year low this week. And U.S. natural gas? Up 5.5 percent. That’s because shipments are limited for now to North America, where hot weather has boosted demand for the power-plant fuel.
That all changes when exports, starting as soon as this year, take the gas market global. The fuel has been eating away at coal’s market share at U.S. power plants. Liquefied natural gas exports stand to erode domestic supplies, giving coal a reprieve in the U.S. but thrusting the competition between the two fuels onto an international stage………………………………………..Full Article: Source

Credit Suisse Says It May Finally Be Time to Buy Oil and Gas Stocks

Posted on 23 July 2015 by VRS  |  Email |Print

Even as energy prices fall again,one firm says it might be time to finally buy oil and gas stocks. Stocks of U.S. oil and gas companies have been so battered as commodity prices have fallen that it looks like there is finally an “attractive entry point,” Credit Suisse analysts said in a research note.
The suggestion to buy these stocks came with a caveat though: “We acknowledge we are early.” One key index tracking oil exploration and production stocks — the SIG Oil Exploration & Production Index — fell another 2% Wednesday. The index is down 18% in 2015………………………………………..Full Article: Source

$1 trillion solar, wind finance to outstrip oil and gas industry

Posted on 21 July 2015 by VRS  |  Email |Print

Listed finance vehicles for large-scale wind and solar projects are likely to rapidly overtake the oil and gas industry in the US, but may bypass Australia altogether if the Abbott government continues to send the wrong signals to investors. Deutsche Bank last week released a report which said the renewable energy finance vehicles – known as “YieldCos” – were likely to rapidly outgrow their oil and gas industry equivalents, and become and order of magnitude bigger than their fossil fuel rivals.
YieldCos – listed vehicles that offer a high rate of return for investment in large-scale solar farms and wind farms, in much the same way as real estate investment trusts and the oil and gas industry’s mutual limited partnerships – currently account for less than one per cent of renewable energy financing………………………………………..Full Article: Source

Oil glut: Greece, Iran, China drive down energy prices

Posted on 13 July 2015 by VRS  |  Email |Print

Fear and fundamentals are driving down oil prices. The fear arises from the unknown risks of the Greek and Iranian negotiations, and the panic in China’s stockmarkets. These fears have acted as triggers, bringing much greater clarity to the fundamentals of an oversupplied oil market.
Oil has lately become a very volatile commodity. Early this year, it fell below $US50 a barrel. By mid-May, it had rebounded to $US67 a barrel, which was thought to be a “new normal” on which plans could be based. But in the last few weeks, prices fell almost 20 per cent — though they’ve bounced back a little in the past few days………………………………………..Full Article: Source

$8 Trillion Alternative Energy Boom Is A Win For Copper

Posted on 29 June 2015 by VRS  |  Email |Print

Here’s a bit of energizing news: In 2014, for the first time in four decades, the global economy grew along with energy demand without an increase in global carbon emissions. That’s according to energy policy group REN21’s just-released Renewables 2015 Global Status Report, which attributes this stabilization to “increased penetration of renewable energy and to improvements in energy efficiency.”
What this means is that as the world’s population continues to grow, and as more people in developing and emerging countries gain access to electricity, the role alternative energy sources such as wind, solar and geothermal play should skyrocket. Between now and 2040, a massive $8 trillion will be spent globally on renewables, about two thirds of all energy spending, according to Bloomberg New Energy Finance. Solar power alone is expected to draw $3.7 trillion………………………………………..Full Article: Source

EIA raises WTI crude-oil price view, output estimate for 2015

Posted on 10 June 2015 by VRS  |  Email |Print

The U.S. Energy Information Administration raised its 2015 forecasts for West Texas Intermediate crude prices and U.S. oil production, in a monthly report issued Tuesday. The government agency said it expects WTI prices to average $55.35 a barrel this year, up from a previous forecast of $54.32.
The EIA, however, said it expects WTI crude to average $62.04 a barrel in 2016, down from the prior view of $65.57. Brent crude is forecast at $60.53 this year, down from a previous forecast of $60.79. The EIA said it expects U.S. crude-oil output of 9.43 million barrels a day this year, up from a prior estimate of 9.19 million barrels………………………………………..Full Article: Source

Should governments intervene in energy markets?

Posted on 05 June 2015 by VRS  |  Email |Print

Climate change and public sector debt are two of the biggest issues for modern governments and they come together in the vexed question of how far the state should intervene in energy markets. According to the International Monetary Fund, energy subsidies accounted for 8% of total global government spending in 2011 ($1.9tn, or £1.2tn), due mainly to the political appeal of keeping energy prices down.
In the UK, energy remains a contentious issue. Despite sharp falls in wholesale prices for coal and gas over the past year, household bills are as high as ever – prompting regulator Ofgem to refer the retail energy market to the Competition and Markets Authority………………………………………..Full Article: Source

Energy & Commodities Market Study

Posted on 03 June 2015 by VRS  |  Email |Print

The perfect storm in energy and commodities is the result of a confluence of events; any of which, in a “normal” market, would require time for the markets to absorb and return to equilibrium, according to a new report from SunGard.
These events are: weakening energy and commodities demand due to slow global economic growth, overinvestment in, and a return of previously constrained, production capacity leading to an extended period of excess supply, a strong dollar policy reducing the value of dollar denominated commodities and increasing regulatory intervention in commodities markets that impacts broad segments of the commodities value chain………………………………………..Full Article: Source

China energy exchange targets market gap

Posted on 03 June 2015 by VRS  |  Email |Print

China may have become the world’s largest importer of crude oil in April, but there is one thing it still lacks: its own oil market. That could change this year if the Shanghai International Energy Exchange Ltd., also known as INE, launches a long-planned oil-futures contract in Shanghai’s free-trade zone.
Yang Maijun, the chairman of the Shanghai Futures Exchange, one of the partners in INE, said earlier this year that trading in the new oil contract could begin in 2015. The establishment of an oil-futures market in China could prove another milestone in what analysts at Macquarie Group Ltd. recently called a “seismic shift in futures-trading firepower from West to East” in commodities markets………………………………………..Full Article: Source

China Energy Exchange Targets a Market Gap

Posted on 02 June 2015 by VRS  |  Email |Print

China may have become the world’s largest importer of crude oil in April, but there is one thing it still lacks: its own oil market. That could change this year if the Shanghai International Energy Exchange Ltd., also known as INE, launches a long-planned oil-futures contract in Shanghai’s free-trade zone.
Yang Maijun, the chairman of the Shanghai Futures Exchange, one of the partners in INE, said earlier this year that trading in the new oil contract could begin in 2015. The establishment of an oil-futures market in China could prove another milestone in what analysts at Macquarie Group Ltd. recently called a “seismic shift in futures-trading firepower from West to East” in commodities markets………………………………..Full Article: Source

Energy ETF investors are betting oil’s rally is already over

Posted on 29 May 2015 by VRS  |  Email |Print

Investors are cautiously pulling money out of energy producers for the first time in eight months, taking short-term gains after oil rebounded from a six-year low. More than $1.55 billion has been withdrawn this month from exchange-traded funds concentrated on energy stocks such as Exxon Mobil Corp. and Chevron Corp. It’s on pace for the first monthly setback for the group since investors began pouring into the sector in October with an eye toward profiting from an eventual recovery in prices.
“The thesis that oil is too cheap and it has to go higher maybe is not as compelling a case with oil at $60 as it was when it was at $42,”said Ryan Issakainen, a strategist at First Trust Advisors LP in Wheaton, Illinois…………………………………Full Article: Source

Energy ETF Investors Grow Wary of Oil Outlook

Posted on 29 May 2015 by VRS  |  Email |Print

Exchange traded fund investors are exiting energy sector bets for the first time in eight months after oil prices rebounded off a six-year low. Investors have yanked over $1.55 billion from energy stocks exchange traded funds, setting up the first monthly outflows from the sector since October, reports Jim Polson for Bloomberg.
Month-to-date, the Energy Select Sector SPDR experienced $628.6 million in net outflows, Vanguard Energy ETF lost $9.5 million and iShares U.S. Energy ETF saw $533.2 million in outflows, according to ETF.com…………………………………Full Article: Source

Merrill Lynch bullish on energy sector as oil price steadies

Posted on 22 May 2015 by VRS  |  Email |Print

Bank of America Merrill Lynch has become more optimistic on the energy sector, on both a small and large cap basis, as oil prices appear to have stabilized in the wake of a sharp drop that sent stock prices spiraling lower in recent months.
In a note to clients on Thursday, small cap strategist Steve DeSanctis said the firm had boosted its rating on small cap energy to “overweight” from “underweight,” a move matched by Merrill’s large cap strategy team, which upgraded energy shares further up the market-cap scale to “overweight.”……………………………………….Full Article: Source

Will Strong China Oil Demand Boost Energy Prices?

Posted on 05 May 2015 by VRS  |  Email |Print

Chinese implied oil demand rose 7.7% in the first quarter of 2015, posing upside potential to estimates for this year’s prices. The slowing economy in China likely means the remaining quarters of this year won’t mirror the start of the year. But Barclays analysts Chi Zhang, Miswin Mahesh, Michael Cohen and Warren Russell write:
“Chinese implied oil demand in the first quarter (adjusted for inventories) was up 7.7% year over year, the strongest quarterly growth since fourth quarter of 2012. The momentum has accelerated relative to the 2.4% y/y growth averaged over 2014, helped by rising consumer demand and a weak oil price. Further, the momentum diverges from the trend in underlying economic data during the first quarter period, affecting industrial demand for oil. Real GDP grew by 7.0% y/y, down from 7.4% in the fourth quarter and versus full-year 2014………………………………………..Full Article: Source

Uranium outlook positive but perhaps not outstanding unless…

Posted on 24 April 2015 by VRS  |  Email |Print

Uranium has been one of the best performing commodities over the past year, but only because it was rising from such a low level. So now what lies ahead? While the uranium price may well have been one of the best performing over the past nine months or so, it should be remembered that this is as a recovery from an all-time low price in real terms – but then such times may well prove to have provided the best opportunity to get back into the commodity.
Thus the uranium round table panel event at the London 121 Mining Investment conference was well attended as investment professionals sought to get a handle on the latest prospects for the nuclear metal. It is worth recalling that the price reached an all-time high at a time when lack of investment in new projects, together with run down user inventories, created a huge supply/demand imbalance price spike in 2007 to reach around $135/lb – albeit briefly as is the nature of price bubbles of this type…………………………………..Full Article: Source

How To Reenergize The Hard-Hit Oil And Gas Industry

Posted on 02 April 2015 by VRS  |  Email |Print

Here’s a piece of legislation the Republican Congress should pass pronto: end the decades old, misbegotten ban on the export of crude oil, as well as the stifling bureaucratic restrictions on the export of natural gas. Astounding advances in technology and new discoveries of oil and natural gas reserves have skyrocketed U.S. energy production.
America is drilling and refining more oil than it has in decades. Gas is so abundant that electric utilities can’t build or retrofit plants fast enough to absorb it all. These barriers were put in place to help American businesses and consumers by keeping the stuff at home rather than letting foreigners get their hands on it………………………………………..Full Article: Source

Iran nuclear crisis: Six key points

Posted on 31 March 2015 by VRS  |  Email |Print

Over a decade of negotiations over Iran’s nuclear programme come to a head on Tuesday, the deadline for a deal. Here are some of the key points to understanding what the nuclear crisis is all about.
What happens next could have major consequences for the international community and Iran. A long-running dispute over Iran’s nuclear programme has heightened tensions between Tehran and the West, but a deal on Tuesday could bring down diplomatic barriers. Failure, though, could see the crisis turn much worse………………………………………..Full Article: Source

Iran nuclear deal to see $20 oil if Tehran floods crude market

Posted on 30 March 2015 by VRS  |  Email |Print

Ending economic sanctions against Tehran could be a game changer for the oil markets. Flights to Tehran from Dubai have been crammed in recent months with Western executives flooding into the Iranian capital ahead of a potential lifting of economic sanctions.
Potentially one of the Middle East’s biggest economies, Iran has been frozen out by the West over its refusal to give up its aspirations to become a nuclear power. But a binding deal that would bring the Islamic state in from the cold appears tantalisingly close as negotiators thrash out terms in talks being held in Lausanne, Switzerland, over the weekend………………………………………..Full Article: Source

How will energy trading respond to climate change targets?

Posted on 30 March 2015 by VRS  |  Email |Print

As other countries follow Switzerland’s lead in setting targets for greenhouse gas cuts, questions arise as to how industry will respond. swissinfo.ch looks at what these moves globally may mean for the energy trading sector.
Switzerland became the first country last month to announce how it would contribute to a global climate treaty that the United Nations hopes to clinch next December in Paris. It set targets of 50% reductions in carbon dioxide and other warming gases from 1990 levels by 2030, with 30% coming from within the country and 20% achieved by market trading or offsets………………………………………..Full Article: Source

Iran’s Nuclear Deal Could Open Oil Flood

Posted on 18 March 2015 by VRS  |  Email |Print

Iran, the U.S. and its allies are pushing ahead with talks over a nuclear deal that would change many things—perhaps none faster than the price of oil. Iranian exports in recent years have been essentially capped by Western sanctions aimed at pressuring Tehran over its nuclear ambitions.
A deal easing those sanctions could eventually translate into half a million barrels or more a day in Iranian crude heading into a currently glutted global market, analysts estimate. With global crude prices already under pressure, a deal could quickly knock them lower. U.S. oil prices slumped to a six-year low Monday on fresh signs that supplies are swamping the market………………………………………..Full Article: Source

Fall in energy prices to impact oil and gas investments

Posted on 12 March 2015 by VRS  |  Email |Print

The rapid decline in energy prices is expected to have a large impact on investment in oil and gas projects worldwide. Since June 2014, the price of Brent crude oil price has collapsed due to a supply glut fuelled by a rise in US shale oil production, as well as weaker global demand, particularly in China and Europe.
Speaking during the Middle East Oil and Gas Show in Manama, Bahrain, Amin Nasser, Senior Vice President for Upstream Operations at Saudi Aramco, told local press: “Challenges during down cycles are more complicated today than before. At this moment the global industry is poised to potentially cancel about US$1 trillion in capital funding.” This figure includes delayed projects as well as those that could be cancelled outright………………………………………..Full Article: Source

Nasdaq looks to halve energy trading cost

Posted on 12 March 2015 by VRS  |  Email |Print

Nasdaq plans to halve the cost of trading energy with the launch of a new, low-cost futures exchange that executives believe will challenge the current dominance wielded by the CME Group and Intercontinental Exchange.
The US exchange group, best known as a stock market operator, took aim at what it called a “monopoly” as it formally announced the launch of Nasdaq Futures, a commodity market that will list contracts in oil, natural gas and US power………………………………………..Full Article: Source

US Will Never Gain Oil Market Crown Says IEA Head

Posted on 02 March 2015 by VRS  |  Email |Print

No matter how much oil the United States produces over the next few years, it will never become the next Saudi Arabia in the global oil market, according to Fatih Birol, the new executive director of the International Energy Agency (IEA). What’s especially interesting about this forecast is that it directly contradicts what Birol said only three months ago, and he gave no explanation for his change of mind.
On Feb. 26, Birol told The Telegraph’s Middle East Congress in London that OPEC, particularly the Persian Gulf members, will prevail over all other producers for the foreseeable future, even though the revolution in extracting shale oil has been “excellent news” for American producers………………………………………..Full Article: Source

Don’t let UN set our energy policy

Posted on 19 February 2015 by VRS  |  Email |Print

Here’s a question for Canadians to consider leading up to October’s federal election. How much economic damage are NDP Leader Tom Mulcair and Liberal Leader Justin Trudeau prepared to inflict on us in order to get a meaningless pat on the head from the United Nations on climate change?
Because make no mistake, the economic damage will be real if the NDP or Liberals win the next election, or either party forms a minority government, supported by the other. No matter how you do it, “pricing carbon” — meaning pricing industrial carbon dioxide emissions — will be a new financial burden for Canadians. We will pay it either in higher taxes (a carbon tax) or higher prices (cap-and-trade) on a wide range of goods and services………………………………………..Full Article: Source

Private equity and energy: Refilling the pipeline

Posted on 13 February 2015 by VRS  |  Email |Print

Oil’s plunge may have helped consumers, but it has hurt big private-equity firms. Earlier this month Apollo Global Management announced that profits were down by 79% year on year in the three months to December 31st. This week KKR and the Carlyle Group said they were smarting too, with KKR’s profits down by 94% and Carlyle’s by 68%. Energy-related assets, whose valuations have fallen with the oil price, are largely to blame.
Spurred on by the shale boom in America, private-equity funds have invested heavily in the energy sector. More money was raised for energy buy-outs in America in 2014, and more deals were made, than ever before, according to Preqin, a data provider………………………………………..Full Article: Source

Goldman Sachs: Coal hits ‘retirement age;’ IEA disagrees

Posted on 27 January 2015 by VRS  |  Email |Print

If Vegas bookmakers were taking bets on whether Gateway Pacific Terminal would be built, the odds would have been getting longer in the past few months. Earlier this month came the ostensible bombshell that opponents of SSA Marine’s proposed coal terminal at Cherry Point have been waiting for: A clear request from Lummi Nation to the U.S. Army Corps of Engineers to deny a federal permit for the terminal.
Case history has been favorable to Indian tribes, and Lummi Nation in particular, when it comes to protecting the traditional fishing grounds granted by treaty. In November, a financial expert from an organization that seeks to wean the world off coal told a Bellingham audience the end was near for the fossil fuel. ……………………………………….Full Article: Source

IEA economist sees upward pressure on oil prices by year-end

Posted on 22 January 2015 by VRS  |  Email |Print

Oil prices will face upward pressure by the end of the year, the chief economist of the International Energy Agency (IEA) said on Wednesday, as a fall of more than 50 percent in the price of crude since last June is expected to eventually curtail some production.
Fatih Birol of the IEA was appearing on a panel with OPEC Secretary General Abdullah al-Badri at the World Economic Forum in Davos, Switzerland. Badri argued that OPEC oil producers were right not to cut production despite the price fall………………………………………..Full Article: Source

Will 2015 be the Recovery Year for Energy and Commodities?

Posted on 06 January 2015 by VRS  |  Email |Print

Last year was a dismal year for oil, the energy sector in general, commodities, and gold. Following through with the theme of my weekend newspaper column of how investors tend to shop for the next year’s winners from the lists of the previous year’s hottest out-performers, while studies show they’d be much better off considering the previous year’s under-performers, leads us to the worst performers of last year.
Are they oversold? Are their bear markets over? Are they at least due for a bear market rally? So far, oil is showing no signs of bottoming. After attempting to hold at $55 a barrel in December, it has declined to a new low………………………………………..Full Article: Source

Energy Sector Outlook for 2015

Posted on 06 January 2015 by VRS  |  Email |Print

It appears that crude oil prices are starting to stabilize. At least they’ve started to decline slower. Most of the “experts” who send me their price forecasts have the low being set in the $45 to $55 range. This week we will see the first major winter storm of the season, which should draw more attention to the energy sector.
The first “Clipper” of the season will bring heavy snow, high winds and very cold temperatures to an area of the country that burns a lot of natural gas for residential space heating. People in the Northeast still use a lot of heating oil to heat their homes, so this may have some impact on oil demand………………………………………..Full Article: Source

OPEC’s Dominance Of Energy Market ‘Is Over’

Posted on 23 December 2014 by VRS  |  Email |Print

The era of OPEC domination over the global energy market is over, the former head of the oil cartel has told Sky News. Abdullah bin Hamad al-Attiyah, the former energy minister of Qatar, said that the group of 12 oil exporters, which dominated the production and price-setting of energy for half a century, had surrendered its power to single-handedly affect prices.
He urged the organisation to collaborate with Russia and reduce global oil production. Asked whether the era of OPEC dominance was finished, he said: “It’s over. OPEC cannot play alone. This is why when OPEC met at the last moment they cannot decide it because if they will cut there is no meaning it will be the others who will benefit and even increase their production.”……………………………………….Full Article: Source

U.S. Should Save Nuclear Industry From Fracking Peril: IEA

Posted on 19 December 2014 by VRS  |  Email |Print

The United States needs to develop clear policies to support its ailing nuclear industry—which is prone to seeing old reactors close rather than new reactors open largely because of the impact on energy prices of cheap natural gas from fracking, the International Energy Agency said.
“The domestic nuclear industry is therefore at a critical juncture as a consequence of its declining economic competitiveness, and existing market mechanisms do not favour investment in high capital-intensive nuclear technology,” according to the IEA’s comprehensive review of U.S. energy policy for 2014………………………………………..Full Article: Source

Uranium picks up on Asia’s renewed appetite for nuclear energy

Posted on 19 December 2014 by VRS  |  Email |Print

Since bottoming out at US$28 a pound in May, uranium prices have climbed 35%, becoming the one commodity that seems to be resisting the broad selloff. The surge, analysts agree, is due mostly to China’s increased reliance on nuclear energy and renewable energy sources as it moves away from coal-fired plants. But prices are still far from the point that would allow mining activity to pick up again, they warn.
“There’s some movement but I don’t think uranium prices are going to break out of the stalls in near-time,” says Matthew Keane, mining analyst with Argonaut in Perth Australia told Financial Times……………………………………….Full Article: Source

Is the commodity crash,volatility in equities a danger sign for global economy?

Posted on 12 December 2014 by VRS  |  Email |Print

Energy prices have crashed to the lowest level in five years, so are metals and agri-commodities while volatility in equities have increased raising concerns about global economic growth. In a linear way, it is always easy to say that lower commodity prices signal the strengthening of recessionary trends or absence or recovery signals in the economy.
If that were so, every region should have the same economic growth but in reality Eurozone remains weak while US is on the edge of recovery with markets eagerly awaiting the likelihood of an interest rate hike. Asian giants China and India may have slowed down a bit but still not out of the reckoning.The market is awaiting the European Central Bank (ECB) monthly report in a short while from now………………………………………..Full Article: Source

US energy is growing, and so is US ‘power’

Posted on 26 November 2014 by VRS  |  Email |Print

America’s unexpected transformation into the world’s biggest natural gas producer and one of the globe’s largest oil producers will give the U.S. more geopolitical clout on the world stage—including in key relationships with China, Russia and the Middle East.
By 2020, the U.S. is likely to be energy independent, along with Canada, its biggest import and export partner. Add to that a new boom expected from a reforming energy industry in Mexico, and North America will more than hold its own as a powerhouse in the global energy market……………………………Full Article: Source

EU energy costs turn up heat on aluminium sector

Posted on 25 November 2014 by VRS  |  Email |Print

Aluminium workers at the Alunorf plant in the German city of Neuss aptly call one of their production lines “the grill”. Nearby, smelters in what is one of Europe’s leading industrial clusters are fired up to 960C. To keep all this running, the aluminium industry needs to be a voracious power consumer.
But across Europe, energy costs are threatening the survival of the industry: 11 out of 24 smelters in the EU have shut since 2007. And industry chiefs have no doubt about what is strangling their business, complaining that the EU’s environmental regulations are making electricity prices prohibitive………………………………….Full Article: Source

Building a lower-carbon, higher-energy future

Posted on 17 November 2014 by VRS  |  Email |Print

Cutting greenhouse gas emissions while keeping the lights on for a growing global population is a huge but critical challenge. We have to believe it is a challenge we can meet. At this year’s United Nations Climate Summit in New York, delegates gathered to “catalyze climate action” and “raise political ambition.”
Carbon pricing. The summit’s rhetoric may be high-minded but its agenda is suitably pragmatic. One clear sign of that pragmatism is its interest in carbon pricing. At first sight, carbon pricing—imposing a cost on carbon to encourage polluters to cut their greenhouse gas emissions—can look like a fiddly response to the challenge of climate change. An accountant’s solution to a scientist’s problem. But, in reality, it is one of the best tools we have……………………………………Full Article: Source

IEA: Crises cloud world energy outlook

Posted on 14 November 2014 by VRS  |  Email |Print

Global security is headed for an uncertain future if world leaders fail to transform energy supplies, industry expert group IEA warns in new report. The International Energy Agency called on world leaders to take decisive action to stem future energy demand in its latest World Energy Outlook report released on Wednesday.
The Paris-based energy consultancy said that total energy demand is set to rise by 37 percent by 2040, and that annual investment of $900 billion (723 billion euros) in oil and gas development is needed by the 2030s to meet the projection…………………………………Full Article: Source

Global Energy Demand May Outpace Supply in Future, IEA Says

Posted on 12 November 2014 by VRS  |  Email |Print

Global energy demand will dramatically increase over the next 20 years, but turmoil in many key producing regions and the difficulties in formulating the right energy policies mean the world may not be able to respond with adequate supply and meet its climate change goals, the International Energy Agency said Wednesday.
In its annual World Energy Outlook, the Paris-based energy watchdog forecast that global energy demand will increase 37% by 2040. Though global resources are adequate to meet the growth in consumption, significant investment and political action are needed to ensure the resources are developed, the IEA said………………………………………..Full Article: Source

OPEC: Energy demand to increase by 60 pct by 2040

Posted on 07 November 2014 by VRS  |  Email |Print

By 2040, energy demand is expected to increase by 60 percent to 256 million barrels oil equivalent per day (mb/d), according to OPEC’s report: World Oil Outlook for 2014. The Organization of the Petroleum Exporting Countries, or OPEC, released its outlook for 2014, examining the main issues and drivers that could affect oil and energy markets in the medium to long term between 2014 and 2040, on Thursday.
While energy demand is expected to increase by 60 percent by 2040, global oil demand is expected to increase by over 21 mb/d by 2040, to reach 111 mb/d, the report said………………………………………..Full Article: Source

Coal price weakness will extend into 2015:BofA Merrill Lynch

Posted on 03 November 2014 by VRS  |  Email |Print

Coal price weakness is expected to extend into 2015 on the back of a growing physical surplus next year. The balance is weaker on soft demand in China and continued strong mine ramp-ups around the world, forcing further production cuts in the US. A new 6% import tax on Australian supplies into China may further depress Newcastle prices, according to Bank of America Merrill Lynch.
Still, at $64/mt Newcastle prices are not low enough to force production cuts in Australia, as the vast majority of production earns enough to cover variable cash costs as long as Newcastle prices stay above $55/mt………………………………………..Full Article: Source

Energy efficiency market hits $310b

Posted on 29 October 2014 by VRS  |  Email |Print

The global energy efficiency market is worth at least $310 billion a year and growing, according to a new report from the International Energy Agency (IEA). The report also finds that energy efficiency finance is becoming an established market segment, with innovative new products and standards helping to overcome risks and bringing stability and confidence to the market.
IEA Executive Director Maria van der Hoeven said that energy efficiency is the invisible powerhouse in IEA countries and beyond, working behind the scenes to improve our energy security, lower our energy bills and move us closer to reaching our climate goals………………………………………..Full Article: Source

UK energy minister sees rapid reform of EU carbon market

Posted on 29 October 2014 by VRS  |  Email |Print

Plans to accelerate reform of Europe’s carbon market could be finalised as soon as April, building on the momentum from last week’s EU deal on green energy policy, Britain’s energy and climate minister said on Tuesday.
The EU has been debating proposals to strengthen its Emissions Trading Scheme (ETS), meant to be the bloc’s sharpest tool in shifting to a low carbon economy but blunted by a surplus of spare pollution permits. The plan is to set up a mechanism known as the Market Stability Reserve (MSR) to absorb some of the excess and drive up the price of allowances to increase the cost of burning higher carbon fuels relative to cleaner energy………………………………………..Full Article: Source

EU 2030 Energy and Climate Framework to tackle rising energy prices

Posted on 28 October 2014 by VRS  |  Email |Print

Rising energy prices and volatility of energy markets has been threatening economic stability in Europe and inevitably weakening its competitiveness. While the U.S. having access to cheaper unconventional fossil fuel supplies like shale gas, the EU has long term gas and oil contracts with higher prices.
Generally speaking, the EU industry currently pays gas prices three times higher than the industry in the U.S., India or Russia. Meanwhile, EU industrial electricity prices are more than twice those in the U.S. and Russia. This price gap negatively affects the EU’s energy-intensive industries’ competitiveness, particularly where energy accounts for a vast share of total production costs. ……………………………………….Full Article: Source

Developing countries begin to take lead in green energy growth

Posted on 28 October 2014 by VRS  |  Email |Print

The growth rate of wind farms and solar plants in China, India and an array of smaller developing countries is starting to outpace that in many of the world’s richest nations.
Companies such as China’s Yingli and Trina Solar, two of the world’s largest solar-panel makers, and Indian wind turbine group, Suzlon Energy, are helping drive a major shift in green energy use, a year-long study of developing countries’ energy use suggests………………………………………..Full Article: Source

Are Declining Oil Prices Increasing the Risks to OPEC, U.S. Energy Security or Clean Fuels Supplies?

Posted on 24 October 2014 by VRS  |  Email |Print

World crude oil prices have declined by over 20% since June 2014. While this level of price volatility is not without historic precedent, prices are projected to possibly decline to much lower levels by year’s end. Further decline in crude oil market prices will impact most petroleum oil Suppliers and Consumers.
Lower oil prices should directionally benefit Consumers and help struggling economies around the World. The decline in oil prices, however, can pose economic and other risks to many petroleum oil and alternative fuels Suppliers. Will declining crude oil market prices create significant economic and sustainability risks to the OPEC Cartel, U.S. Energy Security or Alternative Clean Fuels programs?……………………………………….Full Article: Source

LNG focus on China,key old growth markets of Japan, Korea: PIRA Energy

Posted on 10 October 2014 by VRS  |  Email |Print

NYC-based PIRA Energy Group reports that new import capacity in Japan and Korea enhances buying flexibility. In the U.S., NYMEX falloff after hefty build highlights market’s lack of direction. In Europe, gas year begins with high stocks but even higher risks. Specifically, PIRA’s analysis of natural gas market fundamentals has revealed the following:
New import capacity in Japan and Korea enhances buying flexibility: Much attention is focused on China as the key growth market for Asian LNG both in the short and long term, but import capacity is quietly being added in the old growth markets of Japan and Korea as well, adding much needed flexibility and storage capacity for Asia’s two largest buyers, even if the demand growth outlook appears weak for now………………………………………..Full Article: Source

IEA: Energy Efficiency Worth $310 Billion

Posted on 09 October 2014 by VRS  |  Email |Print

Investments in measures to curb energy waste and boost efficiency are overtaking wind and solar spending and have reached at least $310 billion a year, the International Energy Agency said. That’s almost $100 billion higher than investment in renewable energy in 2013, which amounted to $213 billion, according to estimates from Bloomberg New Energy Finance.
Demand dropped as much as 5 percent from 2001 to 2011, largely due to investments in efficiency, the Paris-based agency said today in a report, which studied countries including the U.K., U.S. and Japan. Savings in 11 nations in 2011 were equivalent to displacing a continent’s energy demand, it said………………………………………..Full Article: Source

EU Moves Closer to Deal on 2030 Climate, Energy Strategy

Posted on 07 October 2014 by VRS  |  Email |Print

The European Union made headway toward a deal on a strategy to shift to a low-carbon economy and boost security of energy supplies amid a natural-gas dispute between Russia and Ukraine.
Energy and environment ministers from the EU’s 28 member states met in Milan yesterday to prepare ground for a compromise at the Oct. 23-24 summit, where the bloc’s leaders are expected to decide on policies for 2030. The challenge for governments is to reconcile the need for cheaper and safer energy while accelerating the pace of emissions reductions………………………………………..Full Article: Source

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