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U.S. distillate fuel oil stocks increased by six million barrels over the seven days ending on Dec. 2, according to data from the U.S. Energy Information Administration (EIA). Distillate inventories have risen by a total of 13 million barrels over the eight weeks since Oct. 7 (“Weekly petroleum status report”, EIA, Dec. 7). Distillate inventories have accumulated at a time of year when they would normally be depleting, a signal the market balance has shifted decisively. Stocks depleted by an average of six million barrels over the same period in the ten years before the COVID-19 pandemic. Net distillate exports have slowed to around 1.0 million bpd from 1.4 million bpd in September, implying foreign consumption also slackened.

☆ U.S. utilities to triple battery storage capacity by 2025 -EIA
▼ + stars: | 2022-12-08 | by ( ) www.reuters.com time to read: +2 min

Companies U.S. Energy Information Administration FollowDec 8 (Reuters) - Power utilities in the United States could triple their battery storage capacity in the coming three years, as new projects grow bigger while wind and solar capacity expand, the U.S. Energy Information Administration (EIA) said on Thursday. Battery storage capacity, which only started to take off in the United States in 2020, was expected to reach 9.1 GW by end-2022, before doubling in 2023 to 19 GW and hitting 28.4 GW in 2024. Texas, which accounts for 7.9 GW of all planned battery storage additions until 2025, is expected to house 42.5 GW of wind capacity and 30.9 GW of solar capacity by that year. California, which currently hosts 16.8 GW of solar capacity with planned additions of 7.7 GW in the next three years, will install 7.6 GW of battery storage in that period. "As more battery capacity becomes available to the U.S. grid, battery storage projects are becoming increasingly larger in capacity," the EIA said, noting that more than 23 large-scale battery projects, between 250 MW and 650 MW, were slated to be deployed by 2025.

☆ Factbox: Why are oil tankers stuck in Turkish waters?
▼ + stars: | 2022-12-08 | by ( Jonathan Saul | ) www.reuters.com time to read: +5 min

LONDON, Dec 8 (Reuters) - Turkey's maritime authority said on Thursday it would continue to block the passage of oil tankers that don't carry appropriate insurance letters, adding that insurance checks on ships in its waters were a "routine procedure". The logjam is creating growing unease in oil and tanker markets and comes as the G7 and European Union introduce a price cap on Russian oil. Millions of barrels of oil per day move south from Russian ports through Turkey's Bosphorus and Dardanelles straits into the Mediterranean. Ships typically have protection & indemnity (P&I) insurance, which covers third party liability claims including environmental damage and injury. Turkish authorities introduced new requirements, which came into effect at the beginning of December, in which every ship must have P&I insurance cover in place for all circumstances when sailing through Turkish waters or when calling at ports.

☆ Column: 'Dispatchable' renewables in spotlight after upbeat IEA report: Maguire
▼ + stars: | 2022-12-08 | by ( Gavin Maguire | Thomson Reuters | Gavin Maguire Is The Global Energy Transition Columnist. He Was Previously Asia Commodities | ) www.reuters.com time to read: +6 min

LITTLETON, Colo., Dec 8 (Reuters) - This week's upbeat renewable energy supply outlook by the International Energy Agency (IEA) contained an important but overlooked lament about the slow roll-out of so-called dispatchable renewable energy sources. In an optimised renewables-based electricity system, dispatchable power sources may only be required in minimal amounts during periods of abundant solar and wind power generation. (A column on the locations of major renewable energy installations is available here.) That statement implies that overall conditions could become more favourable for dispatchable renewable energy sources if their worth was better understood. Ultimately, it may be the utilities that have the biggest direct impact on the prospects for dispatchable energy projects.

☆ U.S., Britain launch energy partnership to boost supplies
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Ints Kalnins/File PhotoLONDON, Dec 7 (Reuters) - The United States and Britain announced on Wednesday an energy partnership aimed at sustaining a higher level of liquefied natural gas (LNG) exports to Britain and collaborating on ways to increase energy efficiency. Britain and other European countries have turned to the United States as they try to reduce their reliance on Russian energy supplies following Moscow's invasion of Ukraine begun in February. "This partnership will bring down prices for British consumers and help end Europe's dependence on Russian energy," British Prime Minister Rishi Sunak said in a statement. The "UK-US Energy Security and Affordability Partnership" will also aim to drive investment in clean energy and exchange ideas on energy efficiency and reducing demand for gas. The G7 - which includes Britain and the United States - has agreed a $60 per barrel price cap on Russian seaborne crude oil.

☆ U.S. crude output and petroleum demand to rise in 2022 - EIA
▼ + stars: | 2022-12-06 | by ( ) www.reuters.com time to read: +1 min

EIA projected that crude production would rise to 11.87 million barrels per day (bpd) in 2022, compared with its previous estimate of 11.83 million bpd. Petroleum and other liquid fuels consumption would rise to 20.36 million bpd in 2022, lower than the prior forecast of 20.38 million bpd. For 2023, EIA projected that crude production would rise to 12.34 million bpd. That compares with a record 12.29 million bpd in 2019. Petroleum and other liquid fuels consumption is expected to rise to 20.51 million bpd, from a previous estimate of 20.48 million bpd.

☆ Brazil, a Bastion of Hydropower, Is Gaining Traction in Wind and Solar
▼ + stars: | 2022-12-06 | by ( Paulo Trevisani | ) www.wsj.com time to read: +8 min

The government, meanwhile, welcomes renewables projects as they can generate jobs and extra income for communities plagued by poverty. The wave of solar, wind and other clean-energy projects is expected to take market share from historically predominant hydroelectric generation. Wind and solar power are abundant in areas thousands of miles north of metropolitan centers where it is mostly needed, industry officials said. New solar and wind plants are generally welcomed by environmentalists and can often offer much-needed income to small farms. Of this total, 83% is expected to come from renewable sources, including hydro, solar, wind and others.

U.S. shale production costs are soaring and there is no sign that tight-fisted investors will change their demands for returns rather than investment in expanding drilling. At Helmerich & Payne (HP.N), one of the largest drilling contractors, its R&D budget will rise only $1 million, from 2022's $27 million. The U.S. government expects overall oil production to reach a new peak next year, but it has several times this year cut its forecasts. Shale production declines rapidly after peaking compared to conventional oil wells, falling about 50% after the first year. Lower production rates are "a longer-term prospect," said Mike Oestmann, chief executive of shale producer Tall City Exploration.

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Chartbook: U.S. crude oil productionOilfield services company Baker Hughes says the number of rigs drilling for oil has risen by 455 in 119 weeks from its post-pandemic low in August 2020, an average of 3.9 per week. Completion rates rather than drilling rates provide a more reliable guide to future trends in production in the short term. The number of new oil and gas wells completed has been broadly stable just below 1,000 per month since March 2022 (“Drilling productivity report”, EIA, Nov. 14). Unless competition rates accelerate, the number of rigs drilling for oil and gas is likely to plateau around current levels, and oil production grow much more slowly in 2023. Related columns:- U.S. oil drilling rises in response to higher prices (Reuters, Feb. 25)- U.S. oil drilling likely to accelerate in 2022 (Reuters, Nov. 17, 2021)John Kemp is a Reuters market analyst.

☆ Why Silicon Valley is so hot on nuclear energy and what it means for the industry
▼ + stars: | 2022-12-02 | by ( Catherine Clifford | In Catclifford | ) www.cnbc.com time to read: +13 min

Pallava Bagla | Corbis News | Getty ImagesVenture capitalists in Silicon Valley and other tech hubs are investing money in nuclear energy for the first time in history. This surge of private investment will be a positive for the industry, agrees John Parsons, an economist and lecturer at MIT. Nuclear energy is "a very complex science, and it's been supported by the federal government and at these national labs. In the 1960s and 1970s, large conglomerates constructed big nuclear power plants, and those projects often ran over budget. New generations of nuclear reactors will have different sizes, different coolants and different fuels, explained Matt Crozat, senior director of policy development at the Nuclear Energy Institute.

In real terms, monthly average prices have been between the 76th and the 98th percentile for all months since the turn of the century. Chartbook: U.S. distillate suppliedMANUFACTURING SLOWSMost distillates are used in freight transportation, manufacturing, construction, farming, mining, and in oil and gas production. Distillate consumption is therefore highly sensitive to changes in the business cycle, especially the manufacturing and freight sectors. The slowdown in distillate consumption has been close to what would be expected based on the deceleration in manufacturing. Reduced distillate use would be consistent with an unusual increase in distillate fuel oil inventories reported over the last seven weeks in weekly surveys conducted by the EIA.

☆ Heating Bills to Send Chill Through Americans’ Finances
▼ + stars: | 2022-11-30 | by ( Jinjoo Lee | ) www.wsj.com time to read: 1 min

The Northeast has all the ingredients for a perfect storm this winter when it comes to heating costs. Heating bills are about to deliver an unpleasant jolt to American households. In a November report, the U.S. Energy Information Administration said it expects retail natural gas heating expenditures this winter (October to March) to increase by 25% on average and electricity bills to rise 11%. Households using heating oil will see an even bigger shock: EIA expects heating oil expenditures to rise 45% this winter compared with the last one.

☆ Venezuelan oil offers little to U.S. or Chevron
▼ + stars: | 2022-11-28 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

NEW YORK, Nov 28 (Reuters Breakingviews) - U.S. President Joe Biden is open to Venezuelan oil. Over the weekend, the Treasury Department issued $355 billion oil giant Chevron (CVX.N) a license to resume limited production in the country. But between the dirty Venezuelan oil and decrepit fields, the help is limited. Steadily tightening sanctions led to the country’s oil production falling by about three-quarters over the years. Follow @rob_cyran on TwitterloadingCONTEXT NEWSThe United States eased sanctions on Venezuela on Nov. 26 by granting a license to Chevron to resume production and importation of Venezuelan oil.

In the ten years before the pandemic, distillate inventories declined by an average of more than 11 million barrels over the same period. Between 2010 and 2019, seasonal drawdowns ranged from ranged from as little as 7 million barrels to as much as 21 million barrels. Stocks are still 21 million barrels (-16% or -1.25 standard deviations) below the pre-pandemic five-year seasonal average. But the deficit to the seasonal average has narrowed from 34 million barrels (-24% or -2.05 standard deviations) on Oct. 7. Chartbook: U.S. distillate inventoriesPRICE RESPONSEThere is some evidence high refining margins and prices for diesel and other middle distillates are restraining consumption.

☆ New York governor signs first-of-its-kind law cracking down on bitcoin mining — here's everything that's in it
▼ + stars: | 2022-11-23 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +8 min

Kathy Hochul signed a law Tuesday banning certain bitcoin mining operations that run on carbon-based power sources. "The bitcoin mining industry is actually leading in terms of compliance with that Act." "Our customers are being scared off from investing in New York state," said Foundry's Zhang. "Bitcoin mining operations are providing high-paying and high-grade, great jobs for local communities. "Other blue states often follow the lead of New York state and this would be giving them an easy template to replicate," said Foundry's Zhang.

U.S. marginal production (+14.5 million bpd) captured nearly all the increase in global consumption (+14.8 million bpd) between 2009 and 2019. FRACKING TECHNOLOGYIn a narrow sense, the shale revolution refers to the widespread application of horizontal drilling and hydraulic fracturing techniques to increase output from shale and other tight rock formations. Like other technologies, however, shale production has eventually settled into a more mature and conservative phase, hastened by the traumatic shock to oil and gas markets during the coronavirus pandemic. In 2022, the Biden administration has tried to cajole domestic oil producers to increase their output, without much success. U.S. shale producers are expected to account for a much smaller share of global growth in petroleum production and consumption in the next few years.

☆ Five countries, other than China, most dependent on the South China Sea
▼ + stars: | 2022-11-18 | by ( Sean M. Holt | ) www.cnbc.com time to read: +11 min

Territorially, there are seven claimants to the South China Sea: China, Brunei, Indonesia, Malaysia, the Philippines, Taiwan and Vietnam. Analysts name the top five countries, other than China, that are most dependent on the South China Sea. Aerial view of fishing boats setting sail to South China Sea for fishing on August 16, 2022 in Yangjiang, Guangdong Province of China. "Although they claim more than half of the South China Sea, China has pushed claimant states such as Vietnam out of traditional fishing waters and more into the South China Sea, causing excessive overfishing." South KoreaSouth Korea is "intentionally quiet about the South China Sea" as it wants to "maintain favor with China," Graham said, citing Seoul's primary focus on the North Korean issue.

Companies Hess Corp FollowNov 17 (Reuters) - The Organization of the Petroleum Exporting Countries (OPEC) is "back in the driver's seat" as the top swing producer amid slowing U.S. shale growth, Hess Corp (HES.N) Chief Executive Officer John Hess said on Thursday at an investor conference in Miami, Florida. Hess anticipates U.S. oil production will hit around 13 million barrels per day in the next few years and then plateau. U.S. production growth has been slower than anticipated at the beginning of this year due to investor pressure to focus on returns over growth, along with inflation and inventory depletion. The U.S. Energy Information Administration last week cut its forecast for 2023 shale growth by 21%. Now, really OPEC is back in the driver's seat where they are the swing producer," Hess said, cautioning though that OPEC lacked spare capacity to easily boost its production.

☆ Heating New England’s Homes Will Be Expensive This Winter
▼ + stars: | 2022-11-15 | by ( David Uberti | ) www.wsj.com time to read: 1 min

The average U.S. retail price for heating oil early this month was 73% higher than a year ago, at $5.91 a gallon. A surge in heating-oil prices is hitting the Northeast as it braces for colder weather, putting the squeeze on household budgets and potentially accelerating the region’s shift toward other fuels. An average household that burns heating oil could spend 45% more for it this winter, according to a base-case forecast by the U.S. Energy Information Administration, translating to hundreds more dollars apiece. People who burn the fuel to heat their homes should expect a bigger financial hit than those who use natural gas or propane.

☆ Oil prices slip on OPEC cut in demand forecast, China Covid cases
▼ + stars: | 2022-11-15 | by ( ) www.cnbc.com time to read: +2 min

Oil prices extended losses in early Asian trade on Tuesday after OPEC cut its 2022 global demand forecast, while rising Covid-19 case numbers in China clouded the outlook for fuel consumption in the world's top crude importing nation. Brent crude futures fell 39 cents, or 0.4%, to $92.75 a barrel by 0133 GMT after settling down 3% on Monday. U.S. West Texas Intermediate crude was at $85.31 a barrel, down 56 cents, or 0.7%, after tumbling 3.5% in the previous session. The Organization of the Petroleum Exporting Countries (OPEC) cut its 2022 global oil demand growth forecast for a fifth time since April, citing mounting economic challenges including high inflation and rising interest rates. "The market is currently defying looming supply risks, despite expectations that the latest demand downgrade could be supply-negative for OPEC oil output," the analysts said, referring to imminent European Union sanctions on Russian oil exports.

☆ Oil prices slip on OPEC cut in demand forecast, China COVID cases
▼ + stars: | 2022-11-15 | by ( Florence Tan | ) www.reuters.com time to read: +2 min

SINGAPORE, Nov 15 (Reuters) - Oil prices extended losses in early Asian trade on Tuesday after OPEC cut its 2022 global demand forecast, while rising COVID-19 case numbers in China clouded the outlook for fuel consumption in the world's top crude importing nation. Brent crude futures fell 39 cents, or 0.4%, to $92.75 a barrel by 0133 GMT after settling down 3% on Monday. U.S. West Texas Intermediate crude was at $85.31 a barrel, down 56 cents, or 0.7%, after tumbling 3.5% in the previous session. The Organization of the Petroleum Exporting Countries (OPEC) cut its 2022 global oil demand growth forecast for a fifth time since April, citing mounting economic challenges including high inflation and rising interest rates. "The market is currently defying looming supply risks, despite expectations that the latest demand downgrade could be supply-negative for OPEC oil output," the analysts said, referring to imminent European Union sanctions on Russian oil exports.

In 2021, India was the world’s third-largest crude importer (214 million tonnes) after China (526 million tonnes) and the United States (305 million tonnes) (“Statistical review of world energy”, BP, 2022). India’s domestic crude and condensate production has been stuck at 30-40 million tonnes per year for the last two decades, data from India’s Ministry of Petroleum and Natural Gas shows. By contrast, domestic petroleum consumption has doubled to 202 million tonnes in 2021 from 103 million tonnes in 2002 (“Snapshot of India’s oil and gas data”, Petroleum Planning and Analysis Cell, Nov. 10). Yellen has become the chief advocate for the price cap concept as the Biden administration attempts to sell the idea to sceptical oil buyers and governments in Asia. But further SPR releases could buy policymakers and India’s refiners time and are likely in the event Russia retaliates against the price cap.

☆ Oil falls for a fourth day as China COVID concerns grow
▼ + stars: | 2022-11-10 | by ( Sonali Paul | ) www.reuters.com time to read: +2 min

MELBOURNE, Nov 10 (Reuters) - Oil prices fell for a fourth day on Thursday on concerns that new COVID curbs in China, the world's biggest crude importer, will impact fuel demand. U.S. West Texas Intermediate (WTI) crude futures were down 31 cents at $85.52 a barrel. Adding to market gloom was a big build in U.S. crude inventories reported on Wednesday. However, gasoline inventories fell by 900,000 barrels to their lowest since November 2014 and distillate stockpiles fell by 500,000 barrels. Bearishness around the rise in U.S. crude oil stockpiles may have been overdone, Commonwealth Bank analyst Vivek Dhar said.

☆ Oil prices slide $2 on China demand worries, U.S. midterm elections
▼ + stars: | 2022-11-08 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

Companies Diamondback Energy Inc FollowNov 8 (Reuters) - Oil prices fell more than $2 on Tuesday in choppy trading on growing worries about fuel demand as COVID-19 outbreaks worsened in top crude importer China, and jitters about the outcome of U.S. midterm elections. U.S. crude fell $2.88, or 3.14%, to $88.91 per barrel. It's a wait to see what the result is type of a situation here," said Bob Yawger, director of energy futures at Mizuho in New York. U.S. stocks also gyrated as market participants bided their time waiting to see whether Capitol Hill is in for a power shift, with Republican gains expected in the midterm elections. The ICE exchange, home to the Brent benchmark, has increased the initial margin rates for front-month Brent crude futures by 4.92%, making maintaining a futures position more expensive from the close of business on Tuesday.

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