Harris' energy strategy is ambiguous from a strategic perspective, say her aides
Since Vice President Kamala Harris joined the White House race 25 days ago, she has been keeping energy executives on their toes. Was she the anti-pollution and climate change warrior Attorney General of California? Or was she the pragmatic number two in the Democratic Biden Administration that oversaw record U.S. production and exports of oil? Seven times in her speeches, she mentioned climate, but never energy, fracking, or oil. Polls indicate that climate change is a topic of great interest, particularly among younger voters. Her campaign is aimed at avoiding alienating any side.
Vattenfall Wins Danish Wind Farm Tender, but Project Still in Doubt
Swedish utility Vattenfall won a tender on Monday to build two offshore wind farms for Denmark, but could yet have the project pulled by a government worried about the cost of renewable energy subsidies. The winning bid was to produce power from two wind farms off the west coast of Denmark, called Vesterhav Nord and Vesterhav Syd, for 0.475 Danish crowns ($0.0716) per kilowatt-hour (kWh). But with wholesale power prices currently well below that level - around 0.22 crowns per kWh - that would mean taxpayers making up the difference in subsidies.
Argentina's Macri Defends Energy Rate Hikes
President Mauricio Macri on Saturday defended his move to hike Argentina's energy rates as a "painful" but necessary part of fixing the economy after years of mismanagement under his leftist predecessor. Macri's remarks came two days after an Argentine court halted price increases for gas and electricity, hurting his drive to narrow the fiscal deficit by cutting energy subsidies. The dispute will likely end up in the Supreme Court. "If there had been an alternative I would have taken it…
Algeria to Reduce Imports As Oil Price Drop Bites
Algeria has decided to reduce its imports by 15 percent in 2016 to save foreign currency reserves as the crash of oil prices has put the OPEC state under financial pressure, according to a letter to banks from the prime minister. The North African state, which relies on oil and gas for 60 percent of its budget, has already cut public spending, reduced some energy subsidies and frozen infrastructure projects since its energy revenues fell by almost half last year. But, reliant on its oil industry and with an under-developed non-energy sector, Algeria imports vast quantities of goods.
Oil Near 11-year Lows on Supply, Demand
Saudi budget signals no change to oil policy; Iran on track to raise supply in 2016. Oil prices steadied not far off their 11-year lows on Tuesday, under pressure from slowing global demand and abundant supplies, with Saudi Arabia signalling no change to its oil policies and Iran preparing to ramp up exports. International benchmark Brent and U.S. WTI crude prices edged up after falling 3 percent on Monday to trade below $37 per barrel as of 1000 GMT. Brent stood less than a dollar away from its 11-year low of $35.98 reached last week.
Gulf Keystone Receives Monthly Oil Payment from Iraqi Kurdistan
Gulf Keystone Petroleum said on Wednesday it had received a gross payment of $15 million from the Kurdistan Regional Government (KRG) for oil exports, marking the third consecutive month of regular payments. The company, which was owed $298.4 million in arrears at the end of September, said the payment had improved its cash position to $54.6 million. The payment is equal to amounts the company received in September and October, showing the KRG was delivering on a pledge made in September to start regular oil export payments.
Britain Scraps 'Green' Costs for Energy-intensive Industry
Britain will permanently exclude energy-intensive industries such as steel and chemicals from extra costs to support green energy projects, finance minister George Osborne said on Wednesday. Steelmakers in particular have been hit by heavy energy costs that make it harder for them to compete internationally, contributing to thousands of job cuts in the sector in recent weeks. Tata Steel, the biggest steelmaker in Britain, for instance said last month it may cut about 1,200 jobs as part of plans to restructure its struggling operations.
EDF Energy Buys Dorenell Onshore Wind Farm in Scotland
EDF Energy's renewable arm has bought the Dorenell onshore wind farm project in Scotland which could provide electricity for up to 138,000 homes, the company said on Thursday. The plant could generate up to 200 megawatts of electricity and is expected to begin operation in 2018. EDF Energy, the British subsidiary of French utility EDF, will develop and construct the project alongside renewable energy company Infinergy which was previously developing the project, EDF Energy said in a statement. Financial terms were not disclosed.
INDC Climate Plan to be Published Next Week
Saudi Arabian Oil Minister Ali al-Naimi said on Wednesday that the kingdom's climate action plan, known as Intended Nationally Determined Contributions (INDC), would be published next week. Naimi made the comment at a carbon conference in Riyadh. Naimi also said there was no dire need for Saudi Arabia to remove domestic energy subsidies. (Reporting by Rania El Gamal)
UK Subsidy Cuts Eliminate Solar Jobs
Hundreds of jobs will be lost at British solar panel insulation firm Mark Group after administrators were called in late on Wednesday, the company said, blaming recent government subsidy cuts. Managers had tried to save the company by buying it from owner U.S. solar giant SunEdison on Wednesday but after taking legal advice decided shortly after it must close. Administrator Deloitte said 939 staff had already been made redundant while a further 226 skeleton staff had been retained in the hope a buyer could be found for the company.
Verbund CFO Sees No Power Price Recovery
Austrian hydropower company Verbund does not at present see power prices recovering as the market is still oversupplied, Chief Financial Officer Peter Kollmann told Reuters on Thursday. "We still see strong oversupply in the price zone comprising Germany and Austria," Kollmann said. "I don't see big growth rates. Growth is possible, but it depends on political decisions," he added, referring to German decisions on power grid extensions, renewable energy subsidies as well as carbon and coal market developments.
Egypt Plans Smart Card System for Fuel from Mid-June
Egypt will begin rolling out a smart card system for subsidised fuel from June 15, the head of the firm overseeing the project said, part of plans to reduce costly energy subsidies over time. Fuel subsidies have long weighed on Egypt's state budget and contributed to the economic stagnation that President Abdel Fattah al-Sisi promised to tackle when he took office last May. The government cut fuel subsidies last summer, raising prices by up to 78 percent, in a move lauded by economists but criticised by some Egyptians accustomed to cheap energy. More subsidy cuts are expected in the coming years.
Indonesia’s Economic Success Hinges on Energy Investments
New IEA review of country’s energy policies lauds phase-out of gasoline subsidies as key first reform. Indonesia is enhancing the governance and transparency of its energy institutions and state-owned companies, reducing fuel subsidies and facilitating much-needed infrastructure investments, the International Energy Agency (IEA) said today in its second in-depth review of the country’s energy policies, but it must move to meet demand growth and ensure the environmental sustainability of energy supplies.
Lower Oil Price Effect on GCC Economies in 2015
The Brent oil price per barrel lost more than 50% of its value from $114 in June 2014 to the current price of about $50. Coface expects it to average at $75 on average in 2015. This bearish trend is pressurizing the hydrocarbon sector in major oil producing countries and will have an impact on GCC economies. The Gulf Cooperation Council (GCC) economies are deeply dependent on the hydrocarbon sector despite their efforts to diversify. The oil industry remains their main source of fiscal revenues and represents more than 80% of fiscal income.
G20 Targets New Global Energy Body
Leaders at the G20 Summit are seeking to lay the foundations for a new global energy trade regime to help ensure open markets and prevent oil and gas supplies being used as tools of foreign policy, the Australian newspaper reported on Saturday. A central part of the plan, which has the backing of Saudi Arabia and Russia, would be an institution to sit above OPEC and the International Energy Agency, the newspaper said in an unsourced report. The talks on energy security have not been concluded and could be influenced by the growing debate over climate change, it added.
G20 Multi-Billion Dollar Subsidies for Fossil Fuels Undermine Climate Action
G20 countries are spending $88 billion a year on fossil fuel exploration despite evidence that dangerous climate change is inevitable unless the majority of oil, gas and coal reserves are left untouched, a report said on Tuesday. The UK-based Overseas Development Institute (ODI) said at least two thirds of existing fossil fuel reserves must be left in the ground if countries are to meet their target of limiting global temperature rise to 2 degrees Celsius. Besides the risk of catastrophic climate effects…
Egypt Signs $350 mln in Oil, Power Financing Deals with Saudi
Egypt signed $350 million worth of financing agreements with Saudi Arabia on Saturday aimed at upgrading its power grid and securing imports of petroleum products as it seeks to end its worst energy crisis in decades. Power cuts have become common in Egypt as the cash-strapped government struggles to supply enough gas to its power stations let alone upgrade a grid suffering from decades of neglect. The energy crunch has become a political hot potato in the Arab world's most populous country…
Yemen Will Destabilise Economy if it Delays Reforms
Yemen will destabilise its economy if it delays reforms such as cuts to energy subsidies, the International Monetary Fund said in a report released after the government rolled back some fuel price rises in the face of political unrest. Sanaa's finances have deteriorated rapidly this year as attacks on oil pipelines by tribesmen and militants deprived the state of key revenue. The government's fight against al Qaeda militants and other rebel groups has also drained its budget. "Delays in implementing reforms…
Australia Energy Blueprint Sees Large-scale Deregulation
Australia on Tuesday said it wants to dramatically deregulate its energy industry, boost domestic gas supply and cut renewable energy subsidies as it prepares to ramp up exports of liquefied natural gas. In a draft policy blueprint, the conservative coalition government unveiled a range of policy proposals - most involving scaling back government interference - that it said would keep the country's energy industry competitive amid dwindling demand and investment. "The Australian energy…
Slew of Spanish Lawsuits Filed over Renewable Energy Reforms
Spain's Supreme Court has accepted at least 125 lawsuits so far this month from firms and individuals fighting energy reforms, official data showed, after the government changed the rules on investments in renewable projects and cut subsidies. Spain has passed a series of measures in the past two years which have slashed and in some cases eliminated subsidies on renewable energy projects such as wind and solar-panel farms, capping potential profits for firms. The government is trying to plug a multi-billion-euro deficit caused by a gap in regulated prices and costs.
