Publications

Energy and Environment News

July 27, 2015

Top Stories

Oil.   Several large U.S. energy companies have disclosed plans for additional layoffs, asset sales, and financial maneuvers in efforts to cope with the recent and sudden drop in U.S. crude oil prices to under $50 a barrel.  While the initial rounds of layoffs earlier this year were concentrated in blue-collar jobs such as fracking crews and roughnecks on drilling sites, job cuts ahead will likely extend to highly skilled workers, such as engineers and scientists.  WSJ

Energy Policy.  Reuters reviews a recent proposal to sell “excess stocks” from the government’s Strategic Petroleum Reserve (SPR) as a way to offset a shortfall in funding to the Highway Trust Fund.  While some members of the Senate are vehemently opposed to the idea on grounds that the stockpile is critical for U.S. energy security, others argue that recent developments — like the U.S. shale revolution — have reduced the amount of stockpiles needed in the SPR.   Reuters

Oil.  According to a recent report by consultancy Wood Mackenzie, nearly $200 billion of oil and gas majors’ capital expenditure cuts were among investments in deep water basins.  The analysts identified 45 major project deferrals worldwide — which affect as much as 10.6 billion barrels of oil resources.  Reuters

Climate Change.  Democratic presidential hopeful Hillary Clinton unveiled her most detailed proposal on climate change to date, calling for a “path towards deep decarbonization by 2050” and “enough clean renewable energy to power every home in America” by 2027.  In addition, Clinton released a video yesterday criticizing many of the current Republican candidates for denying climate change, despite “the settled science.”  Politico

Energy and Environment News

July 24, 2015

Top Stories

Oil.  The Wall Street Journal reports that the U.S. oil market has entered a bear market as prices edge downward under the strong dollar, concerns about global demand, and continued signs of oversupply in the global crude market.   Concerns about global demand have been reinforced by weak manufacturing data from China, which is the world’s second-largest consumer of oil. WSJ

Oil.  Mexico’s lone oil operator Pemex has reported that an explosion at one of its offshore platforms last spring affected nearly 1.5 million barrels of production — much less than the 4.2 million figure released by the Energy Ministry.  The disparity has caused many investors to question Pemex’s transparency, particularly in light of its aspirations to attract nearly $33 billion in investments to boost output in the future.  Bloomberg

Energy Policy.  The Indian government has pronounced the Iran nuclear accord the “best deal available,” as it could open up economic and strategic opportunities for the country.  According to Tanvi Madan of Brookings, India hopes to benefit directly and indirectly from the chance to (1) import Iranian oil, (2) use Iran as a crucial transit route to Afghanistan and Central Asia, and (3) strengthen its relationship with the U.S. after years of strained relations. Brookings

Wind.  Construction began this week on the nation’s first commercial-scale offshore wind farm located off the coast of Rhode Island.  Although the project is only modest in scope, supporters are hoping to prove that offshore wind is a viable technology in the United States, lending credibility to other more ambitious proposals.  NY Times

Energy and Environment News

July 23, 2015

Top Stories

Oil.  The Obama administration has authorized a leading U.S. oil producer to begin drilling in the Arctic Ocean this summer.  The approval includes conditional safety restrictions that may slow the pace at which the rigs strike oil; specifically, it will require the company to secure equipment that can shut down wells in case of emergency spills.  NY Times

Energy Policy.  According to the Obama administration, Saudi Arabia is now growing more accepting of the recent nuclear deal with Iran — a development that stems not from support of its provisions, but from diplomatic concerns that the nation can’t afford to alienate Washington.  Israel, however, remains vehemently opposed to the nuclear deal and hopes to kill the accord by lobbying U.S. lawmakers during the 60-day congressional review.  WSJ

Energy Policy.  According to John Rowe, former CEO and chairman of Exelon Corp, the United States missed an opportunity to fuel its renewables revolution at a fraction of the cost when it failed to put a price on carbon.  He believes that Congress rejected a carbon tax or cap and trade program — the cheapest way to increase energy efficiency and the capacity of existing nuclear plants — in favor of renewable standards that cost two and three times as much.  Forbes

Energy Policy.  Russian energy giant Gazprom is still pushing for an amicable settlement of the European Union’s antitrust case that was filed against the company in April.  Gazprom has stated that although it remains hopeful for compromise, the firm will continue to fight accusations that it charged customers in some Eastern European countries excessive prices for natural-gas shipments. WSJ

Energy and Environment News

July 22, 2015

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Energy Policy.  President Obama is scheduled to visit Africa to follow up on an ambitious $7 billion pledge made in 2013 to double electricity access in the sub-Saharan region over the next five years.  The program — called “Power Africa” — has made little progress since its announcement, underscoring the challenge of implementing comprehensive structural change in the face of civil conflict and competing interests.  NY Times

Oil.  The United Arab Emirates announced today that it will begin tying local fuel prices to the global market, beginning in August.  The UAE is the latest in a wave of other oil-producing countries to cut domestic fuel subsidies under pressure from collapsed prices for their crude-oil exports.  WSJ

Energy Policy.  The Wall Street Journal argues that one of the largest challenges for western companies eager to take advantage of the new nuclear agreement with Iran will be Iran’s Revolutionary Guard Corps — a branch of the Iranian military that has evolved into one of the country’s most powerful economic forces due to its control over a vast network of companies spanning multiple industries.  Western firms may need to carefully vet potential suppliers, distributors, and customers to ensure there is no link to the Guards, which the U.S. has accused of involvement in terrorism overseas and human-rights abuses. WSJ

Energy Outlook.  According to economic analysis released by Nuclear Matters, nuclear power provides $10 billion in federal tax revenues a year and contributes to direct and indirect employment.  Perhaps even more noteworthy, the report asserts that nuclear lowers wholesale and retail electricity prices by 10% and 6%, respectively.  Forbes

Energy and Environment News

July 21, 2015

Top Stories

Energy Policy.  Yesterday the U.N. Security Council unanimously endorsed the nuclear accord reached between Iran and six world powers.  The approved provisions — which will set in motion a years-long process to eventually lift international sanctions in exchange for stringent controls on Tehran’s nuclear program — will not come into effect for 90 days, allowing the U.S. Congress time to review the agreement.  WSJ

Climate Change.  According to the International Energy Agency’s latest assessment, global development of technologies that slow climate change is behind schedule, ahead of the summit meeting in Paris this December.  Even under more optimistic assessments, limiting the atmosphere’s warming to many scientists’ desired levels seems to be slipping out of reach given that deployment of renewable energy is progressing at a slower than projected rate.  NY Times

Oil.  Wall Street lenders are putting increasing pressure on oil companies to either raise more equity or complete a transaction to pay down their credit lines and free up extra cash.  Banks have been willing to keep the money flowing because drillers were previously able to pay off their credit lines by tapping fixed income markets; however, Bloomberg reports that the “appetite for that debt is dwindling,” as bonds have become more expensive and are laden with increasingly onerous terms.  Bloomberg

Energy Policy.  North Korea has ruled out talks for denuclearization, quashing hopes that the landmark accord with Tehran would inspire it to follow suit.  North Korea is currently developing nuclear weapons to fend off perceived U.S. threats; Beijing estimates that it had an arsenal of 20 nuclear warheads at the end of last year — exceeding U.S. estimates — and predicts that it could double the count by next year.  WSJ