Fuel Supply Networks are Responding Properly
Dean Foreman, API Energy Blog, March 26, 2020
Supply networks for refined products – including gasoline, diesel and jet fuel – appear to be responding properly and flexibly to sudden and sharp declines for transportation fuel stemming from the coronavirus (COVID-19) and global efforts to slow its spread. Market conditions can shift, yet API’s view at this point is that most refined products markets have continued to function well in keeping about a month’s worth of storage. We gauge this in part by comparing recent inventory levels for gasoline, diesel and jet fuel with their ranges over the past five years. Although some products appear to have more available storage capacity than others, if needed, it also is apparent that the pace at which refiners produce fuels can provide additional adjustments which will affect demand for storage.
COVID 19 will reshape global gas
Nikos Tsafos, Center for Strategic & International Studies, March 25, 2020
The rapidly evolving COVID-19 crisis presents profound challenges for the global natural gas industry, as it does for the energy system as a whole and the economy at large. Before COVID-19, the gas industry was in the midst of four cycles or transformations, whose trajectory the crisis will alter. First, there was a market cycle characterized by short-term oversupply, low prices, and record-level investment in future supply, which threatened to extend the current overhang into the mid-2020s. That imbalance will get starker in the short term as demand collapses and producers are forced to curtail output, but less bleak in the long term as projects underway get delayed and investment in new projects slows as companies cut spending.
LNG Producers Dump Spot Cargoes on Oversupplied Market
Irina Slav, OILPRICE.COM, March 27, 2020
Amid plunging gas demand, LNG producers are under pressure to dump their cargoes on the spot market, further depressing already low prices, Reuters reports, citing commodity trading sources. “We’re seeing more sell tenders these days due to a combination of factors like coronavirus and DQT, but this also means that when demand rebounds, buyers will return to the market to seek spot cargoes,” one source told the news agency, referring to the downward quantity tolerance stipulation typical of take-or-pay contracts for natural gas that allows the buyer to buy less than agreed without consequence.
U.S. Sens. Lisa Murkowski and Dan Sullivan, both R-Alaska, today issued the following statements after the Bureau of Land Management (BLM) released the final Environmental Impact Statement (EIS) for the Ambler Mining District Industrial Access Road project.
campaigners want to reduce air travel, just not this much
Ryan Heath, Politico, March 27, 2020
The Climate Group has written openly about the current frustration in green circles. Despite the NGO’s staff being used to remote work, they have never “truly believed in the power of the virtual world to provide the same outcomes as physical attendance at intimate stakeholder meetings, diplomatic discussions or international events.”