From the Washington Examiner, Daily on Energy
FEAR AMONG PRODUCERS THAT OIL RALLY IS FRAGILE: Some oil industry officials and analysts worry the mini-recovery of prices to above $30 per barrel is fragile and not sustainable.
“It’s a very dangerous time,” said Frederick Lawrence, an economist with the Independent Petroleum Association of America, a lobbying group representing small oil producers. “There are some bullish currents, but riptides underneath. I would not get too optimistic on these prices holding and staying in the 30s,” Lawrence told Josh.
Lawrence is optimistic that the U.S. has hit bottom on the demand side, with states beginning to open up again, but he’s less certain that the glut of oil in storage facilities, pipelines, and refineries has been relieved.
Prices got another small lift Wednesday when the Energy Information Administration reported U.S. oil inventories fell by 5 million barrels last week, providing some relief for overwhelmed storage.
“You have to be careful,” Lawrence said. “Supply and demand has been more aligned than a month ago, but we have so many unknowns.”
Global demand for natural gas will drop 2% in 2020 as COVID-19 lockdowns take toll
Oil & Gas 360, May 20, 2020
Commercial and industrial demand for natural gas is declining as most countries around the world impose lockdowns to limit the spread of the Covid-19 pandemic. Rystad Energy estimates global natural gas demand to fall by almost 2% this year as a result of the lower activity.
From the Bloomberg Open, May 20, 2020:
Renewable power is set to fall this year for the first time in two decades. Construction of new wind and solar farms is being delayed by factory closures, the need for social distancing and developers’ financial concerns, according to the International Energy Agency. The world will probably add 167 gigawatts of renewable power capacity, 13% less than in 2019. It’s a reality check for a sector that’s seen only growth for years.
Alaska Legislature adjourns after Senate approves coronavirus aid plan
James Brooks, Anchorage Daily News, May 20, 2020
If there was a smile at the end of the Alaska Legislature’s final day, it was hidden by a mask. With a 19-1 vote Wednesday morning, the Alaska Senate ratified Gov. Mike Dunleavy’s plan for almost $1.5 billion in federal coronavirus aid, likely eliminating the last legal obstacle before a small-business aid program begins accepting applicants next week. Following the vote, the Senate adjourned the Legislature’s last regular session, though members of the House and Senate have said that a special session may be needed later in the year.