Publications

Top Stories

Oil. Shipments of oil by train have subsided in recent months amid safety problems and the slump in oil prices.  In particular, the price differential between U.S. crude and foreign crude makes many oil-train shipments too costly — even though refiners prefer shipping oil by train as a way to avoid long-term contractual pipeline agreements. WSJ

Natural Gas.  Natural gas prices retreated to within 7 cents of their 2012 lows after warmer weather forecasts lowered expectations for demand in the oversupplied market.  While experts predict upcoming weather will accelerate this seasonal drop in demand even further, supply-side factors — such as falling stockpiles of natural gas and a drop in the number of drilling rigs — may work to balance the market.  WSJ

Energy Outlook. The Financial Times reports that the recent nuclear agreement between Iran and world powers may amplify the global supply glut by allowing the country to restore previous levels of oil and gas exports.  However, several large oil companies have noted that the country will need to offer better terms for exploration contracts given the new low-price, cost-cutting environment.  FT

Climate Change.  Nick Butler of the Financial Times writes that many major oil and gas companies are undergoing substantial reviews of their climate change policies in attempts to (1) define a coherent and consistent message, (2) plan for regulations amid policy uncertainty, and (3) build reputation and company morale.  Butler argues that because these companies are taking climate change so seriously, they will likely incorporate transitions toward low-carbon fuels into their long-term strategies to remain competitive in light of changing market forces.  FT

Top Stories

Coal. Both of the working proposals in the House and the Senate to renew the charter of the Export-Import Bank would reverse bank guidelines that prevent financing for overseas power plants that do not adopt green technology. Proponents of the change say that a reversal of the rule would give the coal industry a needed boost, while opponents say the coal industry’s involvement underscores the bank’s bias towards particular industries. The Hill

Oil. The Libyan government announced yesterday that it was formally lifting an export ban on two key oil ports, paving the way for the return of sizable exports after nearly a year. The decision will provide further relief to oil markets that have eased in recent days after Iraqi disruptions failed to materialize. WSJ

Climate Change. Eli Lehrer says that conservatives should adopt a new strategy in the battle over global warming that uses the issue to pursue policies they support. Lehrer says conservatives should push policies such as “subsidy-free zones” in areas impacted by climate change and efforts to better prepare U.S. facilities for the consequences of severe weather. National Review

Top Stories

Energy Policy.  Following months of debate, Iran and six global powers announced a surprisingly specific and comprehensive nuclear deal allowing Iran to keep its nuclear facilities open under strict production limits. The deal — deemed by President Obama as a “historic understanding with Iran” — satisfies the United States’ primary goal of ensuring that Iran will not be able to create a nuclear weapon within a year’s time.  NY Times

Energy Policy.  Brigham A. McCown asserts that forthcoming industry regulations on methane emissions will fail to curb climate change because even though methane is the second largest contributor of greenhouse gas emissions in the United States, it contributes less than 10 percent of total man-made greenhouse gas emissions.  Furthermore, McCown notes that the Administration’s proposed regulations will curtail economic growth by increasing energy prices, which will in turn raise production prices and lead to job cuts and reductions in safety and efficiency investments.  Forbes

Oil.  According to U.S. Energy Department data, U.S. oil refiners are relying more on North American crude now than in any year since 1986 due to the global supply glut which has made local oil cheaper than imports from overseas. Domestic production and imports from Canada and Mexico contributed 85% of all crude processed at U.S. plants in January as U.S. stockpiles rose to 471.4 million barrels last week — the highest number since 1930.  Bloomberg

Top Stories

Energy Outlook.  A new study in the journal “Energy Policy” finds that while jobs tied to the coal industry declined by nearly 50,000 from 2008 to 2012, jobs tied to natural gas, wind, and solar energy increased by more than 174,000 over the same period.  The authors identify several factors behind the shift in energy-related employment including new environmental regulations, dramatic technology advances (e.g., the fracking boom for the natural gas industry), lingering effects of the Great Recession, and changes in price across various types of fuel.  WP

Energy Outlook.  Jeffrey Ball of the Wall Street Journal notes that although interest in alternative energy options has historically moved with the price of oil, recent momentum toward these sources is unlikely to be lost due the recent oil price slump.  Specifically, he argues that (1) the technological advances made in sources such as solar, nuclear, and wind power make these alternatives more economically competitive than before, and (2) these alternatives are largely used to generate electricity, which is not in direct competition with oil.  WSJ

Energy Policy.  According to the Natural Resources Defense Council, a prominent environmental group, data regarding oil and gas company violations of safety and pollution rules are hidden from citizens in 33 of the 36 U.S. states that develop these resources — which effectively shields these companies from heightened public scrutiny.  The group warns that this lack of disclosure of public information such as oil spills, drinking water contamination, air pollution, and the strength of well casings will leave citizens vulnerable as the shale broom brings production closer to residential areas.  FT

Energy Policy.  As long as both houses of Congress are controlled by Republican majorities, the Obama administration’s ability to deliver on its promise to reduce U.S. greenhouse gas emissions by as much as 28% by 2025 remains uncertain.  The pledge was made on Tuesday as a prelude to a possible global climate agreement to be negotiated in Paris later this year, and delighted environmental groups and the international community; however, Republican leaders have vowed to stymie the President’s efforts, deeming it both “job-killing and likely illegal.”  Forbes

Top Stories

Energy Outlook.  The Wall Street Journal reports that many oil market analysts are divided over the timing and strength of the oil price recovery. While bears argue that high U.S. oil inventories and rising production will keep prices low for some time, bulls point to signs of strengthening demand and contest that seasonal maintenance at refineries is largely responsible for high inventory volumes.  WSJ

Coal.  James Crabtree of the Financial Times discusses India’s strategy to increase coal production in light of the country’s rapidly rising energy demand.  He points out that recurring issues tied to India’s coal industry such as government scandals,  finance issues, and geographical hurdles — coupled with recent alarm over air-quality problems — undermine the long-term sustainability of domestic coal as India’s primary fuel source.  FT

Oil.  Recent projections by the largest oil refiner in China suggest that the nation will reach its peak fuel demand much sooner than many Western analysts have forecasted.  While many international oil companies and the International Energy Agency predict that China’s oil demand will increase through the year 2040, factors such as declining demand for diesel, waning growth in crude oil consumption, and new economic policies that aim to shift the Chinese economy toward services and consumption suggest that an “energy slowdown” may already be underway.  Bloomberg

Energy Policy.  Iran and six world powers failed to meet today’s self-imposed deadline to finalize a nuclear deal that would constrain Iran’s ability to develop nuclear weapons in exchange for the lifting of tight international sanctions.  This setback — due to disagreement within the group over when the sanctions would be lifted — represents the third time in less than a year that this group missed a deadline related to the deal.  WSJ

Water.  In response to a historic drought, the Governor of California ordered unprecedented mandatory water reductions of 25% across the state today.  The governor took immediate action after accompanying state surveyors into the Sierra Nevada mountains to verify electronic readings that show an average snow water equivalent of 1.4 inches — the lowest amount ever recorded on April 1^st and a record low of 5% of normal for this time of year.  WSJ