Decarbon Daily - Energy Crisis, Renewables, & AI-Powered
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A Global Energy Crisis Now or Tomorrow?
Headlines abound about the energy crisis coming this winter due to the volatility of natural gas prices and the energy transition to renewables. History has shown us how difficult it is to keep the energy system in balance.
Paul Sankey discussed supply and demand views on Yahoo! Finance on Friday. According to Sankey, "... the main concern is lacking in spare capacity as we go into winter. OPEC is in control of the supply side as US oil companies continue showing capital discipline."
"The gas problem is structural", said Sankey. Europe, China, and India need more natural gas.
China's market slowdown this month may cause even more economic slowdown due to slowing production and price hikes to steel and aluminum markets. The stress on the global supply chain will continue.
The Chinese government has taken a short-term pragmatic approach to addressing the energy shortfall by reverting to dirtier fuels, despite its longer-term promises to cut coal.
Over the past week, the government ordered a rapid expansion of coal mines. It also decreed sweeping market reforms, forcing all coal-fired power generators to sell into the wholesale market, allowing electricity prices to rise by as much as 20 per cent, and lifting price caps for some big users.
Source: Financial Times
US LNG Exports Up +170% Year over Year
According to the latest EIA report for LNG, the top five countries of destination, representing 60.3% of total U.S. LNG exports in August 2021 are:
- China (51.7 Bcf)
- South Korea (50.1 Bcf)
- Brazil (34.2 Bcf)
- Spain (23.1 Bcf)
- India (20.6 Bcf)
The US Gulf Coast terminals were busy in August shipping a total of 98 cargos. Sabine Pass was the most active terminal with 32 cargos shipped with Freeport (23) and Corpus Christi (19) terminals active as well.
Compared to August 2020, LNG exports have increased by 170% in August 2021. The average price for delivered LNG, according to the August EIA report, has increased by nearly 30% this year.
Europe, China, India, and other countries will likely turn to LNG and other alternative sources to prevent further supply and price shocks to the energy system.
Inside this Issue
📉 Behind the Energy Crisis: Fossil Fuel Investment Drops, and Renewables Aren’t Ready
💨 Japanese Oil Major Eneos Acquires Renewables Firm JRE
☀️ Shell-backed Silicon Ranch Acquires Carbon Offset Firm Clearloop
🚙 Goldbell Acquires BlueSG; Plans up to $40M Investment by 2023
🛰 AiDash Secures $27M in Series B Funding to Prevent Wildfires and Power Outages With AI-Powered Satellite Technology
🔋 Battery Startup Our Next Energy (ONE) Closes Series A Led by Breakthrough Energy Ventures
Articles in this issue