All posts by Irina Slav

Big Oil Should Focus On The World’s Cleanest Energy Source

Big Oil majors have been scrambling to make the most ambitious climate commitments in the industry, planning a pivot to clean energy, talking about net-zero emission bills, solar, and wind. However, there is another clean energy source that has remained out of the spotlight–one that may eventually rise to prominence: geothermal. Geothermal energy is, simply put, the heat from the Earth’s mantle brought to the surface to use for heating and, more importantly, electricity generation. Iceland is the usual example of successfully harnessing…

Will Working From Home Increase Emissions?

It sounds far-fetched. It sounds counterintuitive. Nevertheless, analysts from the International Energy Agency (IEA) say that the work-from-home trend that the coronavirus pandemic has encouraged may not be as good for the environment as one might think. In a study based on energy consumption modeling, the IEA team found that while working from home led to lower emissions from the commute, it could actually lead to more emissions than working from an office because of the increase in residential energy consumption–at least for those who live close…

Saudi Arabia Is Bullying OPEC Members Into Compliance

First, they said it nicely: play along and cut to your quotas, or we’ll all suffer low oil prices for longer. Then they put their foot down: start cutting deeper or else. And now it has emerged what the “or else” part was—a new price war. The Wall Street Journal’s Benoit Faucon and Summer Said reported earlier this week that Saudi Energy Minister Abdulaziz bin Saud had threatened Nigeria, Angola, and Iraq with another oil price war if they didn’t get in line with the production cuts, according to OPEC delegates.…

Japan Bets Big On Mozambique LNG

In partnership with the business sector, the Japanese government will invest some $14.4 billion (1.5 trillion yen) in liquefied natural gas development in Mozambique, the Nikkei Asian Review reported. According to the report, the money will fund the development of a gas field in the African country to produce some 12 million tons of LNG annually, beginning in 2024. As part of the deal, trading major Mitsui & Co. and Japan Oil, Gas and Metals National Corp. will together buy a 20-percent stake in the field. Three Japanese private banks…

Elon Musk Trolls SEC And Short Sellers As Tesla Stock Rallies

Elon Musk took his Twitter feud with Tesla’s short sellers and the Securities and Exchange Commission to a whole new level on Thursday evening, mocking the traders who had bet against the EV maker, as well as the U.S. market regulator, as Tesla’s stock hit a new record-high of $1,208, rallying 7.95 percent. In a series of tweets, Musk asked, ‘Who wears short shorts?’, and said that “Tesla will make fabulous short shorts in radiant red satin with gold trim,” and “Will send some to…

Saudi Arabia And Kuwait Restart Production At Huge Shared Oil Field

Saudi Arabia and Kuwait have restarted production at the Al-Khafji oil field in the neutral zone between the two countries, Turkey’s Anadolu Agency reported, citing a statement by the acting CEO of the Kuwait Gulf Oil Company. The official Twitter account of the company posted an update yesterday, saying (via Google Translate) “Congratulations on the occasion of the resumption of production in joint abundance operations.” An earlier report by Argus News from late June said Saudi Arabia and Kuwait had plans…

Moody’s Turns Bearish On Oil Demand Growth

Billions of people spent the last few months in a lockdown of some form or another with travel bans or severe restrictions in place. Some warn that this will be our new normal. And this new normal could accelerate a shift away from hydrocarbons as the single most popular source of energy. “COVID-19 lockdown experience of reduced commuting and business travel, alongside better air quality and family time, may deliver lasting changes in energy consumption,” Moody’s said in a recent report. These changes, the rating agency went on,…

Is The UK Doing Enough To Stimulate EV Sales?

Sales of plug-in hybrids and battery electric cars in the UK inched up to 7 percent of total sales in the first quarter of the year, Reuters’ John Kemp wrote this week. That’s up from just 2 percent for the first quarters of both last year and 2018. The increase may not be particularly impressive as a portion of total car sales, but it may be meaningful for the shift from internal combustion engine cars to battery EVs. Last month, The Telegraph reported that the government was mulling over a so-called car scrappage…

Goldman Sachs Expects Crude Prices To Rise In 2021

Goldman Sachs’ commodity analysts remain guarded about oil’s potential to rise over the near term, but in 2021, prices may start to improve, commodity chief Jeffrey Currie told Bloomberg’s Alix Steel. Currie is sticking to the $35-a-barrel oil price forecast over the short term, he said, adding that if prices increased quickly, they would interfere with the market rebalancing by bringing more shale production back online. As for demand and supply, Currie noted a marked improvement in demand, although in some parts of…

Energy Transfer Twists Oil Companies’ Arms On Dakota Access Pipeline

Energy Transfer, the company behind the controversial Dakota Access oil pipeline, has declared force majeure on the project to stop companies from pulling out of its plan to double the pipeline’s capacity. Reuters reported, citing unnamed sources in the know, that Energy Transfer is using force majeure to prevent companies that think the pipeline is no longer necessary to stick to their capacity commitments. The reason they think the pipeline is no longer necessary is that U.S. oil production has fallen substantially, removing the need…