“We’re banning all imports of Russian oil and gas energy. That means Russian oil will no longer be acceptable in U.S. ports, and the American people will deal another powerful blow to Putin’s war machine."The Biden Administration announced on March 8 that the U.S. will ban all imports of Russian oil and gas as retaliation for Russian aggression.
“[China doesn’t] care about the sanctions, so they’re buying oil on the cheap while Europe and the U.S. are buying at a much higher price. It doesn’t fundamentally affect the revenue to Russia because if the price rises, even if they’re selling less barrels, they’re selling at a very high price.”
Dr. Brenda Shaffer, foreign policy energy specialist outlining a stumbling block of the Biden Administration to the Miami Herald.
Azi Feifel
COO PROSPECT RESOURCES
Trends in the Energy Market
NYMEX futures continue to be bearish, well below $3.00 per MMBtu through October 2023. Prompt month is now April 2023.
Spring has begun to arrive in many parts of the country. Expect a warm up in the east and the south. The Great Lakes Region and New England will have a colder than normal spell in the 6-10 day period. It will be colder than normal in the west.
Natural gas production is up for the month at 100 Bcf/day an increase of 0.06 Bcf per day over February and 5.4 Bcf per day greater than the same period last year.
Natural gas inventories in storage are rising. Recent withdrawals are less than the same period in 2022. Storage now stands 23.7% more than the 5-year average. A huge turnaround from the beginning of winter. European LNG prices fell 13% last week and gave up another 8% on Monday, March 20.
The collapse of SVB and Signature and the near collapse of several others helped a general sell-off across the commodities markets. This has especially impacted the global crude oil markets.
The economy seems to continue giving off mixed signals. Confidence in the banking system is shaken. The tech sector has been shedding jobs. The Fed this week face a tough call: raise rates again to continue the fight against inflation or take a timeout amid the banking crisis.
Forward electricity prices for the near term or down, but further out most regions are flat or rising.
Energy Sector in the News
How China benefits from Western sanctions on Russia's energy exports
With Moscow under pressure to sell surplus volumes no longer going to the EU, China has saved billions of dollars on purchases of cheaper Russian oil and coal and made returns trading excess supplies. Xi has said China wants a closer energy partnership with Russia that would maintain international energy security and supply chains. China’s crude imports jumped 8%, coal surged 20% and LNG soared over 40% on an annual basis in 2022. Electricity imports remained steady over 2017-2020, increasing in 2021 and again in 2022 at 23% to 4.7B kWh. Reuters
U.S. natural gas consumption set 9 monthly records and an annual record in 2022
In 2022, U.S. natural gas consumption averaged a record 88.5 billion cubic feet per day (Bcf/d)—the highest annual natural gas consumption, according to records beginning in 1949. U.S. natural gas consumption last year increased 5% (4.5 Bcf/d) from 2021, the second-fastest year-over-year growth since 2013. Natural gas consumption in the United States set monthly records in 9 of 12 months in 2022,
based on Natural Gas Monthly. Natural gas consumption peaks twice a year in the United States, driven by the residential and commercial sectors during the winter and electric power sector during the summer. In winter, the most natural gas is consumed in January or February when demand for space heating peaks. In summer, the most natural gas is consumed typically in July or August to meet air-conditioning demand.
Biden's proposal budget to boost funding for clean energy, permitting, and efficiency programs was released this Month. It includes $11.9 billion for Department of Energy climate and clean energy research, development, demonstration and deployment, a 20% hike over the FY 23 enacted amount. (Utility Dive)
“The budget provides DOE critical resources to transform the President’s historic clean energy investments and ambitious climate vision into reality—laying the foundation for an inclusive 21st century economy that lifts up communities everywhere while boldly facing the climate crisis head-on." Statement by Energy Secretary Granholm on The President’s Fiscal Year 2024 Budget. (DOE).
Additionally, the U.S. Department of Energy released guidance for second award cycle of Bipartisan Infrastructure Law’s $6 billion Civil Nuclear Credits Program which expands funding eligibility for aging nuclear reactors, advances program goals to prevent premature closure of America's nuclear fleet and maintain widespread generation of clean, resilient and affordable power. (DOE)
How PRI’s Referral Program Provides Savings for Commercial Properties
This case demonstrates the importance of having a trusted partner. As part of our referral program, this week, PRI rewarded one of our clients with a significant gift of appreciation. Our client emailed an introduction to azi@prospectresources.com and to the referred client. It was clear to the referred client that the services offered by PRI were the best choice. PRI has proprietary in-house daily reports & analytics relating to the energy markets as well as highly skilled professionals to support each client.
Help friends, colleagues, & other property owners save on energy!
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?
Horizontal Axis Wind Turbines (HAWT) are the predominant turbine design in use today. The HAWT rotor comprises blades (usually three) symmetrically mounted to a hub. The rotor is connected via a shaft to a gearbox and generator. The nacelle houses these components atop a tower that sits on a concrete foundation. (UMich)
P.S.
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