From Standstill, America’s Oil Frackers Plot A Slow, Careful Return
Dan Eberhart, Forbes, June 11, 2020
Concerns are mounting that U.S. shale drillers, by returning to action too soon, could again play a spoiler role in global oil markets and derail the nascent price recovery. On the surface, these concerns appear valid, but look deeper and you’ll see that there’s more at play, and less to worry about. While U.S. oil companies are planning to begin easing production shut-ins starting this month, the sector is no longer capable of packing the same punch as before the crash. The primary constraint on growth is the sheer amount of capital required to reverse the virtual standstill in new drilling and fracking activity that has taken place in response to the Covid-19 crisis.
Canadian LNG Alliance launched
Molly Burgess, gasworld, June 15, 2020
The BC LNG Alliance has relaunched as the Canadian LNG Alliance (Canadian LNGA) to reflect the critical role LNG has to play in Canada’s COVID-19 economic recovery, economic reconciliation and Canada’s clean energy transition. Under its new name, the Canadian LNGA is committed to building an inclusive and positive dialogue around Canada’s role and opportunity for leadership in the world’s energy future. “LNG is Canada’s opportunity,” said Bryan Cox, President and CEO of the Canadian LNGA. “By all of us working together – governments, industry, Indigenous Nations, workers, and communities – to responsibly build an LNG industry, we can provide a significant and much-needed economic boost to our country.”
Russia’s gold mine production growth to overtake China’s by 2029 – report
Mining.Com, June 14, 2020
A report by Fitch Solutions states that global gold mine production growth is expected to rebound in the coming years underpinned by higher gold prices and mergers between major mining firms. “We forecast global gold production to increase from 106moz in 2020 to 133moz by 2029, averaging 2.5% annual growth,” the document states. “This would be an acceleration from the average growth of just 1.2% over 2016-2019.”
Putting the spotlight on Russia, Fitch predicts that the eastern European giant is set to overtake China a decade from now, growing from 11.3moz in 2020 to 15.5moz in 2029. This would represent average annual growth of 3.7% during the period and would see Russia accounting for 11.6% of global output by 2029, compared to 10.6% in 2020.
Justices revive permit for pipeline under Appalachian Trail
Mark Sherman, AP, June 15, 2020
The Supreme Court sided with energy companies and the Trump administration Monday in reinstating a critical permit for a proposed natural gas pipeline that would cross under the Appalachian Trail. The justices ruled 7-2 to throw out a lower court ruling that had canceled the permit for the Atlantic Coast Pipeline. It would bring natural gas from West Virginia to growing markets in Virginia and North Carolina. Its supporters say the pipeline would bring economic development, thousands of jobs and reduced energy costs for consumers. Justice Clarence Thomas wrote for a majority of the court that the “Forest Service had the authority to issue the permit here.” Justices Sonia Sotomayor and Elena Kagan dissented.