Publications

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LNG.  Falling world oil prices and the prospect of cheap LNG exports from the United States have made many planned LNG projects around the world uncompetitive.  Most of these projects are in Australia and Canada where LNG is sold mostly to Asian markets at oil-linked prices; if these projects are shelved and future supply is curbed, U.S. LNG — which is not linked to oil prices — is likely to maintain a competitive edge for the foreseeable future.  WSJ

Oil. The Financial Times projects that the net global economic effect of weaker oil prices will be positive because oil-consuming countries are more likely to spend their increased real income than oil producers are likely to cut back.  The benefits will be greatest in China, the Eurozone, and Japan, while losses will be greatest among net oil producers including Russia and many members of OPEC — particularly Venezuela and Nigeria.   FT

Energy Policy.  In a letter to President Obama, Brookings Scholar Charles K. Ebinger calls for the President to act on energy policy by opening Yucca Mountain for nuclear waste disposal, creating policies that promote green-energy research and development, and approving the Keystone XL pipeline.  In his final statement, Ebinger suggests that the President “level all playing fields” by cutting all direct and indirect tax benefits for fuels across the board in exchange for a uniform nation-wide carbon tax.  Brookings

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Energy Policy.  Next year’s GOP-led Senate is likely to address many key energy and environmental policies including the Keystone XL pipeline, curtailing the EPA’s carbon emissions regulations, and reviews of natural gas exports.  Political analysis experts report that there will be a more positive tone for industries under the new GOP leadership, but movement on most of these major issues will be incremental at best.  WSJ

Coal.  New research by the Natural Resources Defense Council asserts that every ton of coal purchased in China imposes $43 in social costs on the country.   The research supports arguments for an energy policy — such as a national carbon tax — that brings these costs into China’s coal pricing mechanism.  Chinese officials were receptive to these findings, but expressed skepticism about policy action in the near term.  NY Times

Natural Gas.  After voters in the city of Denton, Texas moved to ban fracking within city limits in Tuesday’s election, oil industry executives and Texas regulators filed two separate lawsuits against the ban.  One of the lawsuits asserts that the ban is a violation of private property rights of the mineral owners who receive royalties from natural gas production; the other lawsuit contests that the ban undercuts the responsibilities of state regulators.  NY Times

Climate Change.  Brookings scholar Devashree Saha asserts that sub-national efforts led by states and localities are helping to “lay the blueprint for large-scale climate action”, but that the federal government needs to lead a comprehensive effort to address climate change.  Amid Congressional gridlock and political dysfunction, Saha argues that the actions of these sub-national actors are currently the best hope of addressing climate change and continuing momentum towards a low-carbon economy.  Brookings

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Natural Gas.  Voters in Denton, Texas — a county in the center of an historically energy-friendly state — approved a measure to ban fracking of oil and gas during yesterday’s elections.  So far, more than 400 measures by cities and counties nationwide have been passed to control or ban fracking practices. Bloomberg

Oil.   Oil prices plunged yesterday after Saudi Arabia decided to lower official selling prices for U.S. customers in December.  Neil Hume of the Financial Times argues that the market’s intense focus on Saudi Arabia’s oil pricing policy is unwarranted — Hume asserts that wide lack of understanding about the oil market and negative confirmation bias among investors is also placing great downward pressure on oil prices.  FT

Oil.   A major U.S. energy company in Texas signed a contract to sell ultralight U.S. oil to foreign buyers without explicit approval from the U.S. government — a move that increases pressure on the Federal government to address the decades-old crude oil export ban.  The company bypassed government approval by following guidelines established in two confidential rulings last summer which allowed two separate companies to export lightly refined oil.  WSJ

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Oil.  Yesterday the benchmark American oil price fell below the $80-a-barrel threshold after Saudi Arabia cut its selling price for the American market.  While sustained low oil prices could eventually impact investments in domestic drilling, most analysts do not predict a disruption in domestic oil production unless the benchmark drops to $70 a barrel and remains there for several months.  NY Times

Oil.  The Wall Street Journal reports that sliding oil prices are threatening risky and expensive oil production projects around the world, many of which were launched for Asian customers.  Meanwhile, Saudi Arabia and other low-cost producers of oil in the Middle East may benefit from low oil prices in the long term if U.S. shale production slows and low prices discourage further development of alternative fuels.  WSJ

Keystone XL.  Cost estimates for the Keystone XL project have increased by 48% to $8 billion due to delays in receiving U.S. approval.  The pipeline has been pending approval since 2008 — the U.S. State Department has delayed the official ruling while a Nebraska court decides if a state regulator needs to review the line’s route across Nebraska.  Bloomberg

Oil.  An op-ed in the Financial Times describes the global oil market as entering a “periodic game of chicken” as U.S. oil producers rapidly increase production and members of OPEC refuse to cut output in order to maintain market share.  While weaker oil prices will be a net benefit for the world economy, the article suggests that oil market volatility may lead to political turmoil — potentially destabilizing some of the west’s allies in the Middle East and making its adversaries desperate and erratic.  FT

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Oil. The Wall Street Journal reports that big oil companies are shelving expansion plans and cutting operations with tight profit margins as the cost of extracting oil and gas increases.  Additionally, the Journal notes that major oil companies initially “missed out” on growth opportunities related to shale because individual investments were not large enough to impact big oil’s profit or reserves.  WSJ

Climate Change.  The fourth and final volume of the climate assessment performed by the Intergovernmental Panel on Climate Change (IPCC) reported that carbon emissions may need to drop to zero by the end of the century to keep global temperature rises below levels many consider dangerous.  The IPCC also indicated that the costs associated with needed mitigation actions — such as shifting energy systems towards renewable sources and improving energy efficiency — would lower economic growth by 0.06% annually.  IPCC, WSJ

Climate Change.  Op-Ed by Andrew C. Revkin details the release of the IPCC’s final synthesis report and asserts that the synthesis largely echoes earlier reports on climate change mitigation options.  Revkin argues that the report fails to acknowledge the lack of investment in energy science worldwide — which he asserts is crucial for the grand energy transition needed to mitigate against catastrophic damage.   NY Times