What would be ideal is folks still conserve energy and drive fuel
efficient vehicles even with low prices. Maybe that way the prices will
stay low for a long time.
On 3/8/2020 8:05 PM, Clay via Mercedes wrote:
Alaska has a local news aggregator that includes daily prices for oil (WTI,
Brent, AK) and NG. NG remains fairly stable, but oil has dropped from a high
of $68 to $43 since the beginning of this year. The failure of OPEC to contain
production will drive prices down further when Saudi ARAMCO and Russia will
ramp up production beginning of April. Expectations of $30 per barrel and
concurrent fuel costs plummeting. Short term storage of crude is maxing out as
Asian bunkers and loaded tankers float around waiting for China to open. Looks
like electric cars will not be as sought after until the massive oil glut is
drawn down and demand kicks back in.
Gretel Thunderburg will be able to fly back to skandihoovia for little money as
the airline seats go begging
clay
On Mar 6, 2020, at 7:06 AM, Andrew Strasfogel via Mercedes
<mercedes@okiebenz.com> wrote:
Panel told energy to be 'disproportionately affected' by virus
The head of the International Energy Agency warned senators yesterday that
the new coronavirus will have significant impacts on energy sectors, with
oil markets in particular facing major repercussions.
Pressed on the emerging global health threat, IEA Executive Director Fatih
Birol told the Energy and Natural Resources Committee that energy "will be
disproportionately affected by the coronavirus."
"The main reason being that in addition to economic activity going down,
mobility is negatively affected," Birol testified.
Falling demand is already being felt throughout global markets, sparking
the largest ever drop in a single financial quarter (*Energywire
<https://www.eenews.net/energywire/2020/03/05/stories/1062519483>*, March
5).
Birol noted that the aviation sector — which accounts for about 1% of the
global economy but 10% of oil demand — is particularly hard hit. "It is
very, very negatively affected," he said.
IEA will release its annual oil market report Monday in Paris and is
currently "revising down" oil numbers, Birol said.
That report was supposed to be released at the annual CERAWeek by IHS
Markit conference in Houston — which Birol noted was canceled because of
the coronavirus (*Energywire
<https://www.eenews.net/energywire/stories/1062493765>*, March 2).
However, Birol also said he expects the fallout from the coronavirus and
the disease it causes, COVID-19, to be "temporary."
"Looking at fundamentals, oil demand is strong and global demand will
continue to increase," he said.
Pressed by Energy and Natural Resources Chairwoman Lisa Murkowski
(R-Alaska) about what happens if a COVID-19 outbreak lingers into the
summer, Birol conceded that a further downward revision would follow and
noted that Monday's report will include an "adverse case" scenario.
Sustained downward pressure domestically will be felt on shale production,
he said. Bloomberg reported
<https://www.bloomberg.com/news/articles/2020-03-05/exxon-slows-pace-of-permian-development-after-oil-price-slump>
yesterday that Exxon Mobil Corp. is slowing drilling in Texas' Permian
Basin over virus fears.
*"Oil prices will experience a downward pressure*, and in the case of the
United States if this downward pressure continues for a long time, it may
have impact on the shale production," said Birol.
Responding to a question from Sen. Catherine Cortez Masto (D-Nev.), Birol
said a global glut in solar panels should minimize the short-term impacts
on the solar sector, even though a "big chunk" of the panels comes from
China and other Southeast Asian countries.
"If the situation gets under control in a short period of time, we will not
see any problem because there is a surplus of solar panels in the world,"
he said. "But if it continues for over a year, we may see some bottlenecks."
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