Navigating Energy Turbulence: Germany vs. U.S.
An Analysis of Manufacturing and Energy Policies
On Today’s Energy Shots:
Weekly Energy Industry News Recap
Struggling German Manufacturers See Allure of Cheap American Energy
Weekly Energy News Recap:
Oil Updates:
Oil picked up Friday after a steep selloff of ~5% on Thursday.
Brent futures gained 1.7% to $78.76/barrel Friday. WTI climbed 1.7% to $74.10.
Inventories at the Cushing, Oklahoma storage hub remain 18 million barrels (-42%) below the ten-year seasonal average in the week ending November 10th, narrowing from a 21 million barrel deficit two weeks prior.
EU Proposes Ban on Tanker Sales to Russia
The European Commission is proposing a ban on crude and product tanker sales to Russia to prevent the expansion of ‘shadow fleets’ that can bypass Western sanctions.
The proposal includes clauses that prohibit countries from reselling tankers to Russia.
US Sanctions More Russian Tankers
On Thursday, the U.S. Treasury Department sanctioned three United Arab Emirates-based firms and three of their vessels for violating the U.S.-G7-Australia price cap of $60/barrel on seaborne exports of Russian crude.
The IEA estimates that Russian crude and oil product exports fell by 70,000 bpd in October to 7.5 million bpd, and estimated export revenues dropped $25 million to $18.34 billion.
Exxon to Begin US Lithium Production by 2027
On Monday, Exxon Mobil announced plans to start producing lithium with partner Tetra Technologies by 2027. Exxon anticipates supplying lithium for over 1 million EVs/year.
Sweden Plans New Nuclear Reactors
On Thursday, the Swedish government reported its aim to build two new conventional nuclear reactors by 2035 and said it is willing to absorb some of the associated costs. The government hopes to have the equivalent of 10 new reactors by 2045 by building both conventional and small modular reactors (SMRs).
The country has six reactors operating out of its original twelve after voting against nuclear in 1980.
UK Offshore Wind Prices to Increase 50%
After a failed auction with zero bids this fall, the UK government raised the guaranteed price paid to offshore wind developers for electricity generation from £44/MWh to £73/MWh.
The government makes up the difference if prices fall below the guaranteed price.
Russia Lifts Gasoline Export Ban
Russia’s Energy Ministry lifted restrictions on gasoline exports Friday, ending the ban introduced on September 21st to control rising domestic fuel prices. Russia lifted diesel export restrictions on October 6th.
The Industrial Allure of US Energy Security and Affordability
The Hierarchy of Energy Needs models the fundamental energy requirements to sustain long-term economic development.
Policies in the world’s wealthiest nations are increasingly borne out of ‘climate alarmism’ – ideas that villainize fossil fuels as unacceptable tools for a low-emissions energy transition.
To better understand the consequences of forsaking the Hierarchy of Energy Needs, we need only look at Europe’s largest economy: Germany.
Today’s Energy Shots outlines Germany’s precarious future as a European manufacturing hub and the implications for US energy firms due to the EU’s dominating energy policy.
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