by wp_sysadmin | Apr 30, 2020 | News
OIL
Oil
prices set to cap off nightmare month with gains
Reuters, April 30, 2020
Oil prices jumped for a second day on Thursday, lifted by
signs the U.S. crude glut is not growing as quickly as expected and clawing background
at the end of a month of tumbles wrought by coronavirus fears that caused
futures to plumb two-decade lows. Brent
crude LCOc1 was up 13.8%, or $3.11, at $25.65 a barrel by 1407 GMT in light
trading. The front-month contract for June is set to expire on Thursday. The more actively traded July contract LCOc2
was up $2.51 or 10.4%, at $26.74 a barrel.
West Texas Intermediate (WTI) crude CLc1 was up 16.5%, or $2.48, to
$17.54 per barrel. The U.S. benchmark surged 22% on Wednesday.
‘The first glance at what’s coming’: Oilfield service alerts state of more than 250 layoffs in Alaska
Tegan Hanlon, Alaska’s Energy Desk, April 29, 2020
Four oilfield service companies have alerted the state of
sweeping layoffs at their North Slope operations as the coronavirus crushes
demand for fuel, oil prices crash and drilling activity declines.
Details
emerge on Trump’s oil rescue plan
Lesley Clark, E & E News, April 30, 2020
The Trump administration is looking at offering two lines of
credit to help the beleaguered oil and gas industry as it reels from
historically low prices sparked by the global coronavirus pandemic. Energy Secretary Dan Brouillette outlined the
plan in a call Tuesday with the North Dakota Petroleum Council (NDPC), telling
producers that the administration is considering lending facilities with the
Treasury Department and the Federal Reserve for loans to “help the
industry through this pandemic.”
GAS
Cheniere moderates 2020 U.S. LNG growth estimates
Oil & Gas 360, April 30, 2020
U.S. liquefied natural gas company Cheniere Energy Inc cut
its growth estimates for LNG exports and investment in new projects
industry-wide due to the slump in energy markets and the COVID-19 pandemic. Fuel demand is down 30% worldwide as a result
of the coronavirus pandemic, but LNG consumption has been less affected as
consumers in Asia and elsewhere use the fuel to heat homes and generate power.
MINING
COVID-19
mining shutdowns hurt silver production the most, gold the least – report
Anna Gulabova, KITCO, April 29, 2020
All the COVID-19 shutdowns have impacted silver mining
production the most, according to the Global Data report. The coronavirus pandemic has forced
governments across the globe to shut down many non-essential businesses and in
some cases that meant mining. The latest
report from Global jmData looked at different mining sectors and how they have
been affected across the globe. Silver fared the worst, while gold was hurt the
least out of all the major mining sectors the report looked at.
POLITICS
What
Will—and Won’t—COVID-19 Change about Our Politics?
COVID 19
Seven
challenges COVID 19 raises for the climate agenda
Will Nichols and Olivia Dobson, Wood Mackenzie, April 28, 2020
The Covid-19 pandemic has handed us a global lesson on the prudence of being prepared for a ‘grey rhino’ event – high impact incidents that are likely to happen but are commonly overlooked. But even with this first-hand experience, will this translate into proactivity on the other obvious global risk parallel: climate change? Here we examine seven ways Covid-19 has complicated the global climate agenda
by wp_sysadmin | Apr 29, 2020 | News
News of
the Day: We salute BP and Alaska Airlines for “lending a helping hand” to Alaska.
From BP Alaska
President Janet Weiss:
We are very proud of our relationship with Alaska Airlines
and we were inspired to lend a helping hand as they took quick action to step
up their support for remote communities in this incredibly challenging
time. It is our honor to partner with
them to reinforce the supply chain in Alaska by providing 1 million gallons
of jet fuel to support critical flying in the state of Alaska. BP
will offset carbon emissions from the flights connected to the donated aviation
fuel through the BP Target Neutral Program. Today, Alaska Airlines is also announcing
that they are “paying it forward” by donating 1 million miles to the American
Cancer Society of Alaska’s Flight Partner Program which ensures cancer patients
in Alaska have access to transportation for treatments far from home. This
donation helps replace the loss of air transportation due to the COVID-19
pandemic.
OIL
Canadian
producers see markets stabilizing, offering hope for a rebound
Kevin Orland, World Oil, April 29, 2020
While global oil prices remain near multi-decade lows, the
heads of two major Canadian crude producers see reasons for hope that the
market will rebound in the months ahead.
Cenovus Energy Inc. Chief Executive Officer Alex Pourbaix said he’s
seeing demand for refined products in China start to return to pre-pandemic
levels. He expects a similar scenario may play out in North America as U.S.
states and Canadian provinces begin to relax distancing measures in the months
ahead.
Oil
jumps 22% on smaller-than-expected inventory build, optimism around reopening
economies
GAS
Gas
industry group sees good time for fuel switch
Matthew V. Veazey, Rigzone, April 29, 2020
“As the cleanest burning fossil fuel, natural gas has a key
role in providing reliable and cleaner energy to all,” IGU President Joe Kang
remarked in a written statement emailed Monday to Rigzone. “Even in the most
developed markets, affordability and reliability of clean energy is a key issue
and switching to natural gas offers an enormous opportunity.”
MINING
Supreme
Court ruling could be set-back for proposed mine near Haines
Clair Stremple, Alaska’s Energy Desk, April 29, 2020
The Supreme Court ruled last week that the Clean Water Act
applies to pollutants that reach protected waters, even from a distance.
Conservationists say it’s a win for clean water. It could mean stricter
permitting is required for Constantine Metal Resources’ expansion plans for a
mine project near Haines. But state regulators remain tight-lipped about what
might happen next.
But Gene McCabe, the manager of the state’s wastewater
program, wrote in an email that it’s too soon to tell if the Maui case applies
to Constantine. He and other regulators are still waiting on the results of a
tracer dye study they requested from the company. The study’s results should
reveal whether or not there’s significant connectivity between the groundwater
and the surface water.
POLITICS
Biden
floats climate Cabinet position. That’s complicated
COVID 19
Data
on Gilead drug raises hopes in pandemic fight, Fauci calls it ‘highly significant’
Deena Beasley, Manis Mishra, Reuters, April 29, 2020
A top U.S. health official said Gilead Sciences Inc’s
experimental antiviral drug remdesivir is likely to become the standard of care
for COVID-19 after early results from a key clinical trial on Wednesday showed
it helped certain patients recover more quickly from the illness caused by the
coronavirus.
SBA
limits business loans to small lenders
Zachary Warmbrodt, Politico, April 29, 2020
The Small Business Administration on Wednesday said it would temporarily restrict incoming applications for emergency small business loans to only those submitted by the country’s tiniest lenders, an unprecedented move by the agency as it triaged hundreds of thousands of incoming requests for aid. The SBA told banks that for the rest of the day, starting at 4 p.m., its systems would accept only so-called Paycheck Protection Program loan applications from lenders with less than $1 billion in assets, representing the smallest in the industry.
by wp_sysadmin | Apr 28, 2020 | News
Goldman
lists 5 reasons traders should load up on energy stocks following oil’s
historic plunge
Matthew Fox, Market Insider, April 28, 2020
Goldman Sachs thinks now is the time for investors to add
exposure to energy stocks following oil’s historic plunge into negative
territory last week. The investment bank
gave five reasons in a note published Monday night. Goldman thinks energy fundamentals have
bottomed and sees potential for a lasting recovery in energy stocks depending
on the pace of the rebound in demand for oil
Oil
moves mixed on easing lockdowns, looming storage shortage
Reuters, April 28, 2020
Oil prices were mixed on Tuesday as optimism about the
easing of coronavirus-related restrictions reassured markets, although traders
remained cautious with storage capacities filling up fast and supply cuts not
deep enough to counter falling demand.
GAS
Russia’s
Novatek registers new Arctic LNG licence
Mirza Duran, Offshore Energy, April 28, 2020
Russian independent LNG export player Novatek has registered
a new licence to underpin its liquefied natural gas expansion activities in the
Arctic. Novatek’s unit Arctic LNG 1
registered licence number SLH 16637 NR for geological survey, exploration and
production at the Bukharinskiy licence area on the Gydan peninsula. Novatek operates the giant Yamal LNG project
but is also building its second export project in the Arctic on the Gydan
peninsula across the straight from the LNG plant on the Yamal peninsula. Novatek is also looking to build more LNG
export facilities in the area.
POLITICS
Russian envoy to Denmark says US undermines Arctic peace
Reuters, April 27, 2020
Russia’s ambassador to Denmark has accused Washington of
provoking confrontation in the Arctic in order to achieve dominance in a region
where Moscow has invested heavily. The
accusation came after the United States last week announced $12.1 million in
economic aid to Greenland, a semi-autonomous part of the Kingdom of Denmark, to
strengthen ties and boost the country’s hunt for mineral resources.
COVID 19
Mnuchin
says no bailout for states with badly managed budgets
Saleha Mohsin, Bloomberg, April 28, 2017
Treasury Secretary Steven Mnuchin said states that had
poorly managed budgets before the Covid-19 outbreak sent their economies
reeling should not be rescued by the federal government. “This isn’t just going to be a federal
bailout of the states,” Mnuchin said early Tuesday on CNBC. “States that had
specifically large expenses because of the coronavirus, like New York and New
Jersey, it was the right thing that the federal government gave them money.” He said he approves of local governments
using coronavirus funding to enforce public safety through law enforcement, but
not for revenue lost because of the economic shutdown or “states that were
mismanaged” before the pandemic hit.
Need A Loan Now That The Paycheck Protection Program Is Running Again? Try These Nonbank Lenders
by wp_sysadmin | Apr 27, 2020 | News
News of
the Day:
BP
Alaska says $5.6 billion deal with Hilcorp will be completed despite oil market
tumult
OIL
Mnuchin:
‘No bailouts,’ but oil loans may be coming
Mike Lee & Lesley Clark, E & E News, April 27, 2020
Treasury Secretary Steven Mnuchin said yesterday that he and
Energy Secretary Dan Brouillette are studying the idea of loans to oil
companies “very carefully.” Appearing
on “Fox News Sunday,” Mnuchin was pressed on whether the Trump
administration would “bail out” oil companies despite critics who say
that many of the problems facing the industry are of their own making. “Let me be very clear, the president has
said no bailouts to any companies, whether that was airlines or oil companies.
We will consider again loans to companies in a proper scenario with strategic
importance, but no bailouts. No shareholder bailouts,” Mnuchin said.
From the Washington Examiner’s Daily on Energy:
REPUBLICANS FUME OVER BANKS
‘DISCRIMINATING’ AGAINST ARCTIC DRILLING: Republican oil-state senators
are accusing big banks of discriminating against oil and gas companies by
refusing to finance fossil fuel projects in the Arctic. And they are taking
their case to Trump, even though there seems to be little he can do about it.
“They want the federal government
to help support them and then they discriminate against a critical sector of
the U.S. economy. I don’t think they should be allowed to do that, sir,” said
Sen. Dan Sullivan of Alaska in comments to Trump in the Oval Office Friday,
according to a pool report of an unrelated signing ceremony for a bill
providing loans to small businesses.
Trump responded by saying, “I like
the idea of looking into that.” He also accused Wall Street of being “pushed by
the radical left” into taking green positions at the behest of pressure from
activists.
Sen. Kevin Cramer of North Dakota
made a similar attack Friday after Morgan Stanley became the latest big bank to
say it won’t fund new oil and gas drilling in the Arctic. Several other U.S.
banks have changed their policies on Arctic drilling, including Goldman Sachs,
JPMorgan Chase, Wells Fargo, and Citigroup.
Cramer, in a tweet, accused the banks
of “picking winners & losers in energy markets,” and warned he would
consider “any appropriate action we can take” against the banks as a member of
the Senate Banking Committee.
GAS
China
lends US gas producers a big helping hand
Tim Daiss, Asia Times, April 27, 2020
China is offering life support to beleaguered US and other
liquefied natural gas (LNG) producers hit by the double whammy of a multi-year
supply overhang and the Covid-19 pandemic’s rising economic fallout. China’s
procurement of US LNG represents a certain olive branch after a 13-month punitive
halt on purchases due to the US-China trade war.
MINING
Saudi
Arabia identifies 54 mineral-mining sites
Bandar Al-Khorayef, Arab News, April
27, 2020
The Saudi minister of industry and mineral resources, Bandar
Al-Khorayef, has issued seven decisions relating to the largest allocation
process for mining-reserve sites in the Kingdom. They include 54 sites covering
an area of approximately 4,000 square kilometers. The decisions are part of the
leadership’s goal to develop the mining sector.
The sites — which contain a variety of ore, including gold, copper,
silver, zinc, lead, iron, quartz and tin — are in the regions of Riyadh,
Makkah, Madinah, Asir, Hail and Najran. The
identification of the mining sites comes as the ministry aims to offer an
attractive environment for local and international businesses to invest in the
sector, and provide the data needed to attract the interest of the private
sector. The Saudi Geological Survey plans to carry out a thorough study of the
mining reserves, the results of which will be used to promote investment
opportunities.
POLITICS
The
hangover has set in – Backlash
grows as pandemic relief stumbles
Senate
will return next week
COVID 19
The
drugs and treatments that could stop Covid-19
CDC
adds new symptoms to its list of possible COVID-19 signs
New Zealand Says It Has Won ‘Battle’ Against COVID-19
by wp_sysadmin | Apr 23, 2020 | News
COVID 19
Dunleavy
says Alaska is in a better position than other states to reopen some businesses
Remote
but not removed, Alaska freezes out COVID 19
Treasury
warns large companies against applying for coronavirus loan program
Sylvan Lane, The Hill, April 23, 2020
The Trump administration on Thursday advised large
businesses with ample access to financial markets against applying for
emergency coronavirus relief loans as some major companies face backlash for
tapping aid for small businesses. In a
set of guidelines released Thursday, the Treasury Department warned that
valuable, publicly traded companies likely cannot say in good faith that they
qualify for an emergency Small Business Administration (SBA) loan program to
prevent layoffs and bankruptcies.
Related: Tweaks
to SBA loan program could boost money flow to Alaska
OIL
Oil rallies more than 50% in two days in comeback from record lows
Oil and Gas 360, April 23, 2020
Oil jumped more than 30% on Thursday, accelerating the
recent rally as the Street eyed continued production cuts and rising
U.S.-Iranian tensions. West Texas
Intermediate, the U.S. benchmark, rose 30%, or $4.18, to trade at $17.96 per
barrel. Brent crude, the international benchmark, traded 11.8% higher at $22.79
per barrel. On Wednesday, WTI jumped 19.1% — one of its best days on record. In
just two days, from Tuesday’s settle price of $11.57 to Thursday’s session high
of $18.24, WTI has gained 57%.
The
Chinese Trick That Could Save Oil
Irina Slav, OILPRICE.com, April 22, 2020
China is buying cheap oil to fill its strategic oil
reserves–a move that could save the oil industry. But can it really save the entire global oil
industry? Some say yes, while others claim it is merely magical thinking.
GAS
Hendrix bid to acquire Furie revived with AIDEA loan
Elwood Brehmer, Alaska Journal of Commerce, April 22, 2020
An Alaskan bid for a struggling Cook Inlet gas producer
appears to be back on following revisions to a state-backed loan for the
purchase. The Alaska Industrial
Development and Export Authority board of directors on April 15 approved
technical changes to a March 4 resolution authorizing a loan up to $7.5 million
to Hex LLC, a company formed late last year by longtime Alaska oil and gas
industry player John Hendrix. Hendrix,
through Hex, submitted the winning $15 million bid in a December bankruptcy
auction for Furie Operating Alaska, a small Texas-based natural gas producer
that operates the Kitchen Lights Unit and has contracts to supply a handful of
Southcentral utilities.
MINING
Electric
car sales expected to weather massive pandemic hit
Abby Smith, The Washington Examiner, April 23, 2020
The pandemic could cut electric car sales in half this year,
but it ultimately won’t veer the United States off course as it heads toward
increasing levels of electric vehicles on the roads in the next decade. Instead, despite the big hit to electric
vehicle sales expected in 2020, auto analysts say they aren’t seeing
indications the global pandemic is changing the long-term trends pushing
automakers toward electric cars. That’s even with extremely low gas prices
prompted by the collapse in oil markets.
Our Take:
More electric cars, more mining…
POLITICS
Another
Small Business Headache: Some Employees Are Asking To Be Laid Off Thanks To
Higher Unemployment Benefits
Sarah Hansen, Forbes, April 22, 2020
Because of the expanded unemployment benefits in the CARES Act—an extra $600 per week from the federal government on top of state benefits—some employers that have scored coveted emergency loans for small businesses are now finding themselves stuck between the terms of their loan and employees who are asking to be laid off. Here’s the breakdown.
