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Climate Change.  The Paris climate negotiations have been extended to Saturday, as delegates from 195 nations work to finalize the accord and solve lingering disagreements. The United States, the European Union, and many developing nations have formed a “high-ambition coalition” calling for rapid action on emissions reduction and a transparent accountability mechanism, but many countries — including Brazil, China, Russia, and Saudi Arabia — have yet to sign on to the alliance.  NY Times

Energy Outlook.   Amid mild weather and warnings of worsening global oversupply, crude oil prices fell to multi-year lows earlier today. In its monthly oil report, the International Energy Agency (IEA) projects oil demand to slow in 2016 and global supplies to rise further if sanctions on Iran are lifted; meanwhile, unseasonably warm weather in the U.S. may add to the drag on demand.  Reuters

Oil.  Earlier this year, most analysts incorrectly predicted a gradual oil price recovery in 2015; instead, the price slump deepened as OPEC unexpectedly increased its production and both U.S. and Russian producers proved more resilient than anticipated. As a result, analysts are lowering their forecasts for 2016, as the ongoing supply-driven downturn is expected to keep oil prices low. WSJ

Energy Policy.   Following months of effort led by Senator Lisa Murkowski (R-AK) and Senator Heidi Heitkamp (D-ND), Congress may lift the crude oil export ban as part of a year-end spending and tax bill. The lifting of the export ban, which may be tied to extending wind and solar power tax credits, is backed by Republicans who stress its potential to boost America’s “soft” power, yet Democrats have warned that it will harm the environment and U.S. consumers.  NY Times

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Climate Change. Officials at the Paris climate conference this week are discussing a sweeping agreement to preserve forests which, if a deal is reached, would commit countries to sharp reductions in deforestation. Following a surge in recent efforts to save forests, the negotiations reflect a growing understanding that deforestation is a contributor to climate change — and that healthy forecasts can help limit risks stemming from climate change.  NY Times

Oil.   OPEC oil production increased to 31.7 million barrels per day in November, as a gain in Iraqi output more than offset a decline in Saudi Arabia’s oil production. Contributing to further price drops, OPEC oil output continues to exceed its former production target, which the group abandoned last week after disagreement over which members should cut production to boost prices.  FT

Energy Outlook.  New headwinds are worsening the energy sector outlook; U.S. natural gas storage is nearing full capacity, and underground storage surpassed four trillion cubic feet for the first time last month. Compounding inventory concerns, mild weather could keep demand low this winter and place additional downward pressure on natural gas prices.  WSJ

Oil.   The oil price slump has created dozens of “zombies” — companies which have enough money to pay interest on debt, but not enough to drill new wells. These companies, which face high debt levels and shrinking oil reserves, aim to cut costs until oil prices recover and they can profitably drill new wells.  Reuters

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Energy Outlook. Several large oil companies in Mexico have announced plans to invest heavily in refinery upgrades as an effort to increase production of clean fuels and expand crude-oil processing capacity.   The planned investments come in the face of a severe slump in global oil prices and increasing competition within Mexico’s oil sector under its new energy laws.  WSJ

Climate Change.   Officials at the international climate change summit in Paris are nearing agreement on a new draft of the proposed accord, which aims to narrow key sticking points surrounding issues of transparency, scope, and compensation and financial aid for poorer countries.  Financial responsibility has been a key point of tension for U.S. officials,  particularly in light of near-certain Congressional opposition to any binding liability pledge.  WP

Nuclear.  A special report from the New York Times reviews forces promoting and hindering continued advancement of nuclear power throughout the world, most notably in China.   While concerns about safety, increasing wind and solar power capabilities, and other social, political, and economic challenges have stemmed its rise over the past several decades,  new developments in modular factory production and various public policies could make nuclear a financially competitive option in the future.  NY Times

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Oil Outlook.  According to the Wall Street Journal, the global oil glut is expected to continue next year “in full force”, although analysts are divided on how long the standoff between U.S. producers and OPEC members will endure.  Some analysts predict that production will decline by up to 10% in 2016 due to diminished opportunity for productivity gains,  but others predict that companies will pump up to 10% more crude (compared with 2014 levels) in order to maintain the cash flow needed to pay interest on financing contracts. WSJ

Climate Change.   According to a report published yesterday in the journal Nature Climate Change,  global emissions of man-made greenhouse gases (GHG) appear to have dipped by 0.6 percent in 2015 relative to 2014, potentially marking the first decline in GHG pollutants.  While the significant reduction in China’s use of coal for electricity seems to be the biggest factor driving the decline,  countries from North American and Europe also emitted less carbon dioxide due to broader shifts to clean fuels and more fuel-efficient vehicles.  WP

Natural Gas.  Wholesale natural gas for January 2016 dropped to a 17-year low for January-delivered futures contracts amid rising supplies and unseasonably warm weather, particularly across big cities in the northern United States.   While natural gas use typically soars in the United States in January, consumption is now expected to remain soft throughout the winter.   FT

Energy Outlook.  Nick Butler of the Financial Times writes that advances in energy storage have the greatest potential to transform the energy business in the years ahead, as better storage could fundamentally change the method and timing of energy delivery, and considerably alter the energy mix in favor of renewables.   While future developments in energy storage are likely to be transformational, Butler notes that the story will probably be one of “gradualism” and integration, as opposed to radical and immediately disruptive change.  FT

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Oil Outlook.  The Organization of Petroleum Exporting Countries (OPEC) did not reach an agreement to restrain production at its meeting today, causing oil prices to dip below the $40 level.  The lack of consensus within the group illustrates a continued divide among its members;  while Iran and Venezuela demand production cuts but are unable or unwilling to do so themselves, Saudi Arabia and the Persian Gulf states refuse to make cuts unless all members and some non-members cut production as well.  WSJ

Natural Gas.  A group of leaders from several prominent natural gas-exporting countries (excluding the U.S. and Russia) have proposed forming an OPEC-style cartel as a way to coordinate producers and stabilize pricing.   While the strategy has had varied success over the years within the oil market, the natural gas market has historically relied on long-term fixed price contracts and is typically sold to local markets; however, recent changes in the market may lead to favorable conditions for a cartel.  WSJ

Oil Outlook.  Reuters reports that China is likely to double its strategic purchases of crude oil next year, pushing the country’s overall oil purchases to record levels and elevating its import volumes for strategic petroleum reserves (SPR) to 70-90 million barrels of crude oil.  According to analysts, China plans to build up its SPR as part of an effort to become more energy independent, raising the OECD’s standards of 90 days’ worth of import demand.  Reuters

Climate Change.  The New York Times reports that there is a “disconnect” between investors’ desire for a healthy environment and their need for investment returns, citing a recent survey which found that nearly two-thirds of investors were at least somewhat concerned about climate change while less than a third felt that it posed a risk to their investments.  According to various investment advisers, hesitancy surrounding climate-related investment decisions stems from several key concerns, such as the belief that not enough climate-friendly investments exist, and fears of lower returns on investments that are tied to climate change.  NY Times