Tag: batteries

Best in Energy – 2 February 2023

[MUST READ] Battery manufacturing ($FT)

Japan’s utilities try to diversify coal sourcing

Asia crude imports at record high in January

EU to launch global LNG price assessment

EU will need to cut gas use in winter 2023/24

U.S./Philippines reach deal on military bases

U.S. senators try to ban SPR oil sales to China

Qatar/Airbus reach aircraft settlement ($WSJ)

FRANKFURT, a proxy for northwest Europe, reached roughly 60% of the way through the winter heating season on February 1. So far the accumulated heating demand has been -17% below the long-term average and is the lowest since 2015/16 and before that 2006/07. But after an exceptionally long period of mild temperatures between December 19 and January 15, temperatures have turned significantly colder, causing the heating deficit to narrow slightly:

Best in Energy – 9 December 2022

China’s hesitant exit from coronavirus lockdowns

Germany accelerated floating LNG rollout ($WSJ)

Oil prices fall despite G7 Russia price cap ($FT)

U.S. grid-scale battery storage to triple by 2025

U.S. shale output has delinked from prices

U.S. CONTAINERISED rail freight in October was running at the slowest seasonally adjusted rate since 2013, reflecting weakness in the manufacturing economy and cutting consumption of diesel:

LONDON temperatures were -6°C below the long-term seasonal average on December 8, stretching the transmission system to the limit, as solar generation faded and demand ramped up in an unusually frosty early evening. There were repeated periods of under-frequency on the transmission system in the run up to the evening peak, with load exceeding generation and reserves running low. National demand approached the maximum triad levels set in winter 2021/22, despite extremely high electricity prices, triad avoidance behaviour by major electricity users, and calls for household and commercial conservation:

Best in Energy – 14 October 2022

U.S./Saudi relationship strained but not broken

U.S./Saudi recriminations over OPEC+ cut ($FT)

EU explores possible gas market interventions

U.S. electric vehicles stimulate battery boom

China tests electric-powered freighter (trans.)

U.S. winter fuels outlook (EIA)

U.S. SERVICES PRICES were rising at an annualised rate of +10.1% between August and September and were +7.4% higher than a year earlier, a sign inflation is proving persistent even as some energy and commodity prices have eased:

U.S. INTEREST RATE traders expect the central bank to increase its target federal funds rate to 4.75-5.00% by April 2023 up from just 3.00-3.25% at present as they try to bring inflation back under control:

U.S. DISTILLATE fuel oil shortages are worsening. Inventories fell -5 million bbl to just 106 million bbl last week and are now at the lowest level for the time of year for more than 40 years:

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Best in Energy – 28 July 2022

EU/Russia gas pipeline flows fall sharply

U.S. frackers warn of supply chain limits

China’s plan to centralise iron ore purchasing

U.S. leaders embrace subsidies, tariffs ($WSJ)

Grid-scale batteries used for price response

U.K. households face winter bill crisis ($FT)

West London’s local power constraint ($FT)

U.S. PETROLEUM inventories depleted by -9 million bbl in the week to July 22, with declines in commercial crude (-5 million), gasoline (-3 million), and distillate fuel oil (-1 million) as well as a drawdown in the SPR (-6 million), partially offset by increases in propane (+3 million) and other oils (+3 million). Petroleum inventories have depleted in 80 of the last 108 weeks by a total of -438 million bbl since the start of July 2020. Total stocks are at the lowest seasonal level since 2008 and show no signs of rebuilding:

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Best in Energy – 23 June 2022

Germany declares stage two gas emergency

(see official statement in translation)

U.S. presses EU to relax oil sanctions ($WSJ)

Biden requests three-month fuel tax holiday

Biden’s broken relations with oil and gas firms

Supply constraints trip up policymakers ($FT)

Batteries for grid storage – beyond lithium ion

EUROPEAN manufacturers are on the leading edge of a recession. Preliminary readings show the eurozone purchasing managers’ index has slipped to 52.0 (47th percentile) down from 54.6 (65th percentile) in May and a record 63.4 in the same month a year ago:

U.S. GASOLINE SUPPLIED averaged 8.86 million b/d in March 2022 compared with 9.18 million b/d in March 2019 (-328,000 b/d, -3.6%).

U.S DISTILLATE SUPPLIED averaged 4.16 million b/d in March compared with 4.18 million b/d in March 2019 (-23,000 b/d, -0.5%).

The differential recovery in distillate and gasoline consumption after the pandemic helps explain the relative shortage of diesel, as well as jet fuel, and why mid-distillate crack spreads and prices have been pulling the whole petroleum complex higher:

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Best in Energy – 9 June 2022

Freeport LNG explosion to shut facility for at least 3 weeks

OPEC spare capacity set to fall to lowest for over a decade

Battery shortages hinder wind and solar grid integration

Asia’s jet fuel refining margins hit record high

U.S. PETROLEUM inventories increased by +4 million bbl to 1,685 million bbl last week. The one-week increase was the largest so far this year. But stocks are still at the lowest seasonal level since 2008: