Actions taken to reduce carbon emissionswill be discussed throughout this newsletter. Including information on:
an increase in offshore wind farms,
pros and cons of electric vehicles,
global clean technology manufacturing plans and
Constellation's trial of hydrogen blending with natural gas.
Clean technology manufacturing plays a pivotal role in the energy transition required to meet climate, energy security and economic development goals.The State of Clean Technology Manufacturingplans came out mid-May in preparation for the G7 Summit. "Since late 2022, the estimated output by 2030 from existing and announced manufacturing projects is up by 60% for solar PV and 25% for batteries, driven by supportive policies, corporate strategies and growing demand."
Special briefing from the IEA’s Energy Technology Perspectives Series
Azi Feifel
COO PROSPECT RESOURCES
Trends in the Energy Market
NYMEX futures continue to be bearish/neutral, well below $2.60 per MMBtu through October 2023. Prompt month is now July 2023.
Expect a cool front in the immediate near term in the Midwest and East. A big warm up will take place in Texas with mid-90s over the next 2 weeks in Dallas and Houston. California may see unusual June thunderstorms.
Natural gas production for May is slightly down at 100 Bcf/day. That is down 0.70 Bcf/day month-over-month, but 3.1 Bcf per day greater than the same period last year.
Demand for natural gas-fired electric generation is strong, up 10% year-over-year.
Natural gas inventories in storage continue to be strong. Inventories are 17% greater than the five-year average and 29% greater than the same time last year.
Crude oil continues to be range bound between $72-$80/bbl.
The debt ceiling deal got passed just ahead of the Treasury's deadline. The labor market has remained fairly strong, adding 339,000 jobs created in April. Home pricing is up for consecutive months. US consumer spending has jumped, but inflation has also accelerated.
Forward electricity prices remain down, in some areas fairly significantly.
PJM's "circuit breaker" concept has been presented to the Markets & Reliability Committee. Feedback has been requested from the public. The future of PJM's generation does pose some risk. FERC examining various proposals.
Energy Sector in the News
A successful trial by Constellation to decrease carbon emissions took place May 18th by blending hydrogen with natural gas at an increased percentage.
“This test proved what we’ve suspected for years - that blending clean hydrogen with natural gas can safely reduce emissions without major modifications to an existing plant that’s well over a decade old,” Joe Dominguez, president and CEO of Constellation, said in a news release. “As the EPA and numerous climate experts have acknowledged, the availability of affordable clean hydrogen at scale will be essential if we are going to prevent the ravaging effects of climate change.” EPRI, an independent non-profit energy R&D institute, and the Fuel Cell & Hydrogen Energy Association, or FCHEA, both heralded the test as an important next step for the industry, but they said the hydrogen industry needs to make additional advances for hydrogen blending to become feasible at utility scale. (Utility Dive)
Oil prices jump after Saudi Arabia vows to cut production again
The White House responded to Saudi Arabia’s decision to slash oil production by saying US officials are focused on prices for American consumers. “We are not a party to OPEC+, which makes its own decisions,” a White House official told CNN in a statement. “We are focused on prices for American consumers, not barrels, and prices have come down significantly since last year.”OPEC+ produces about 40% of the world’s crude oil. (CNN)
Electric vehicles make a difference in the air we breathe around our cities, but they barely make any climate difference when it comes to global emissions emitted
PRO: EVs have brought many innovations including autonomous driving, instant torque and other technology to the interior. Electric vehicles emit zero emissions while it’s moving.
CON: The most damaging is the production process since most pollution comes from the agriculture/forestry industry and the power industry which ironically powers electric cars. In order to charge an EV you need to use fossil fuels to produce electricity. Further, a minimum of 60,000 miles needs to be driven before an electric vehicle begins to provide benefits related to environmental issues and most EVs are traded in for a new vehicle long before that. (MSN)
The Energy Information Administration (EIA) Natural Gas Storage report measures the change in the number of cubic feet of natural gas held in underground storage during the past week.
If the increase in natural gas inventories is more than expected, it implies weaker demand and is bearish for natural gas prices. The same can be said if a decline in inventories is less than expected.
If the increase in natural gas is less than expected, it implies greater demand and is bullish for natural gas prices. The same can be said if a decline in inventories is more than expected.(Investing.com)
A senior manager left a PRI client and was hired by a large real estate firm. He approached PRI about providing services to his new firm. He wondered if it made sense to bring in a “middleman” instead of dealing directly with the supplier. He asked PRI to compare results for four larges buildings served by PRI in his previous firm, with the same period results for 4 buildings of his new firm. Both sets of properties were served directly by the same supplier. The results were astonishing – Our “worst” results for a client managed by PRI, were far better than the best results for supplier’s direct client!
When you introduce us to a friend, we’ll give them a free analysis and recommendation for how to optimize their energy usage. You’ll get a Visa gift card if they become a paying client. To refer your friend, simply email an introduction to your friend and to Azi Feifel.
Did You Know?
An offshore wind boom is underway to add an unprecedented capacity in the U.S. as the industry aims to meet the Biden administration’s goal of deploying 30 GW by 2030. Bureau of Ocean Energy Management held auctions for offshore wind leases. The 16 farms are expected to add 17,949 MW of capacity and have an estimated completion date ranging from 2023 to 2028 (Utility Dive)
P.S.
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