Otmane El Rhazi from Today in Energy.
The average retail price for motor gasoline this summer (April through September) is expected to be $2.67 per gallon, the lowest price (in real dollars, meaing adjusted for inflation) since 2009, based on projections in EIA's Short-Term Energy Outlook (STEO). This decline is mainly the result of the projected 41% year-over-year decline in the average price of North Sea Brent crude oil.
Tuesday, 14 July 2015
Monday, 13 July 2015
Otmane El Rhazi : Last Monday's large percentage decline in crude oil prices was relatively rare
Otmane El Rhazi from Today in Energy.
The front-month futures price for crude oil benchmark West Texas Intermediate declined 7.7% on Monday, July 6, the largest single-day decline in percentage terms since February 4. Uncertainty over Greece's fiscal position, volatility in the Chinese stock market, and uncertain prospects for a nuclear deal with Iran were cited as immediate factors affecting expectations for future crude oil supply and demand. Other market indicators over past weeks, such as the stabilization of the U.S. rig count and growing petroleum product inventories, may have also contributed to lower prices.
The front-month futures price for crude oil benchmark West Texas Intermediate declined 7.7% on Monday, July 6, the largest single-day decline in percentage terms since February 4. Uncertainty over Greece's fiscal position, volatility in the Chinese stock market, and uncertain prospects for a nuclear deal with Iran were cited as immediate factors affecting expectations for future crude oil supply and demand. Other market indicators over past weeks, such as the stabilization of the U.S. rig count and growing petroleum product inventories, may have also contributed to lower prices.
Friday, 10 July 2015
Otmane El Rhazi : EIA's estimates for state crude oil production account for incomplete, lagged data
Otmane El Rhazi from Today in Energy.
Market analysts have a keen interest in understanding how crude oil production has been affected by recent changes in crude oil prices and drilling activity. EIA develops state-level production estimates based in part on state-level data. However, data from state agencies are often incomplete when first published because of late reporting and processing delays. Because EIA's methodology for state-level production estimates aims to anticipate and account for expected revisions to data collected by the states, production data published by EIA and state agencies can differ.
Market analysts have a keen interest in understanding how crude oil production has been affected by recent changes in crude oil prices and drilling activity. EIA develops state-level production estimates based in part on state-level data. However, data from state agencies are often incomplete when first published because of late reporting and processing delays. Because EIA's methodology for state-level production estimates aims to anticipate and account for expected revisions to data collected by the states, production data published by EIA and state agencies can differ.
Thursday, 9 July 2015
Otmane El Rhazi : U.S.-Canada electricity trade increases
Otmane El Rhazi from Today in Energy.
U.S. electricity trade with Canada is increasing, providing more economic and reliability benefits to both the United States and Canada. Although the amount of electricity imported over the Canadian border is a small part of the overall U.S. power supply, the transmission connections linking Canada and the United States are an important component of the electricity markets in northern states.
U.S. electricity trade with Canada is increasing, providing more economic and reliability benefits to both the United States and Canada. Although the amount of electricity imported over the Canadian border is a small part of the overall U.S. power supply, the transmission connections linking Canada and the United States are an important component of the electricity markets in northern states.
Wednesday, 8 July 2015
Otmane El Rhazi : Net petroleum product exports continue to increase
Otmane El Rhazi from Today in Energy.
Over the past decade, domestic refinery output of petroleum products has grown significantly while consumption has declined, resulting in a major increase in product exports. Petroleum product exports averaged 4.1 million barrels per day (b/d) in the first four months of the year, an increase of 0.5 million b/d over exports the same time last year. Product imports are also higher than last year, but to a lesser extent, leading to an increase in net petroleum product exports.
Over the past decade, domestic refinery output of petroleum products has grown significantly while consumption has declined, resulting in a major increase in product exports. Petroleum product exports averaged 4.1 million barrels per day (b/d) in the first four months of the year, an increase of 0.5 million b/d over exports the same time last year. Product imports are also higher than last year, but to a lesser extent, leading to an increase in net petroleum product exports.
Monday, 6 July 2015
Otmane El Rhazi : California grid expected to maintain reliability despite drought
Otmane El Rhazi from Today in Energy.
According to the North American Electric Reliability Corporation (NERC), the bulk power system in California is not expected to lose grid reliability this summer, despite a drought that has lowered hydroelectric generation. Overall, NERC expects more than 72 gigawatts (GW) of electric generating capacity to be available this summer in the part of the electric grid covering much of California.
According to the North American Electric Reliability Corporation (NERC), the bulk power system in California is not expected to lose grid reliability this summer, despite a drought that has lowered hydroelectric generation. Overall, NERC expects more than 72 gigawatts (GW) of electric generating capacity to be available this summer in the part of the electric grid covering much of California.
Thursday, 2 July 2015
Otmane El Rhazi : Fossil fuels have made up at least 80% of U.S. fuel mix since 1900
Otmane El Rhazi from Today in Energy.
While the overall energy history of the United States is one of significant change, three fossil fuel sources—petroleum, natural gas, and coal—have made up at least 80% of total U.S. energy consumption for more than 100 years. Recent increases in the domestic production of petroleum liquids and natural gas have prompted shifts between the uses of fossil fuels, but the predominance of these three energy sources is likely to continue.
While the overall energy history of the United States is one of significant change, three fossil fuel sources—petroleum, natural gas, and coal—have made up at least 80% of total U.S. energy consumption for more than 100 years. Recent increases in the domestic production of petroleum liquids and natural gas have prompted shifts between the uses of fossil fuels, but the predominance of these three energy sources is likely to continue.
Wednesday, 1 July 2015
Otmane El Rhazi : EIA expands geographic coverage of natural gas production with new data for 10 states
Otmane El Rhazi from Today in Energy.
Beginning this week, EIA is expanding its reporting of monthly natural gas production by 10 additional states. The addition of these states significantly enhances EIA's monthly coverage. Accompanying EIA's expanded coverage is a new webpage, Monthly Crude Oil and Natural Gas Production, which replaces the Monthly Natural Gas Gross Production Report.
Beginning this week, EIA is expanding its reporting of monthly natural gas production by 10 additional states. The addition of these states significantly enhances EIA's monthly coverage. Accompanying EIA's expanded coverage is a new webpage, Monthly Crude Oil and Natural Gas Production, which replaces the Monthly Natural Gas Gross Production Report.
Tuesday, 30 June 2015
Otmane El Rhazi : EIA celebrates 20 years on the Internet
Otmane El Rhazi from Today in Energy.
On July 1, 1995, EIA became the first agency within the U.S. Department of Energy to venture onto the Internet. In an era before Google, Facebook, and Internet Explorer, the Internet had about 40 million users and 23,500 websites. The seven users who visited EIA.gov on its first day of operation had access to a few dozen web pages and 200 files. Although the initial version of the website looked rather primitive, the website quickly established itself as the agency's primary communications channel.
On July 1, 1995, EIA became the first agency within the U.S. Department of Energy to venture onto the Internet. In an era before Google, Facebook, and Internet Explorer, the Internet had about 40 million users and 23,500 websites. The seven users who visited EIA.gov on its first day of operation had access to a few dozen web pages and 200 files. Although the initial version of the website looked rather primitive, the website quickly established itself as the agency's primary communications channel.
Monday, 29 June 2015
Otmane El Rhazi : Hawaii and Vermont set high renewable portfolio standard targets
Otmane El Rhazi from Today in Energy.
Two states recently passed legislation that would require significant increases in renewable electricity generation. On June 8, Hawaii updated legislation setting a 100% renewable portfolio standard (RPS) by 2045. On June 11, Vermont passed a bill creating a 75% RPS by 2032. Both of these RPS target percentages are higher than any other RPS target in the United States.
Two states recently passed legislation that would require significant increases in renewable electricity generation. On June 8, Hawaii updated legislation setting a 100% renewable portfolio standard (RPS) by 2045. On June 11, Vermont passed a bill creating a 75% RPS by 2032. Both of these RPS target percentages are higher than any other RPS target in the United States.
Friday, 26 June 2015
Otmane El Rhazi : Argentina and China lead shale development outside North America in first-half 2015
Otmane El Rhazi from Today in Energy.
As recently as last year, only four countries in the world were producing commercial volumes of either natural gas from shale formations (shale gas) or crude oil from tight formations (tight oil): the United States and Canada, and more recently, Argentina and China. Beyond these four countries, other countries have started exploring and producing hydrocarbons from shale and other tight resources.
As recently as last year, only four countries in the world were producing commercial volumes of either natural gas from shale formations (shale gas) or crude oil from tight formations (tight oil): the United States and Canada, and more recently, Argentina and China. Beyond these four countries, other countries have started exploring and producing hydrocarbons from shale and other tight resources.
Thursday, 25 June 2015
Otmane El Rhazi : U.S. refinery capacity reaches 18 million barrels per day
Otmane El Rhazi from Today in Energy.
Increased refinery runs—based on increases in both capacity and utilization—have helped accommodate increases in U.S. crude oil production. The United States' capacity to refine crude oil into petroleum products—measured as operable atmospheric crude distillation unit capacity—increased by 0.2% in 2014, reaching 18.0 million barrels per calendar day, according to EIA's recently released annual Refinery Capacity Report.
Increased refinery runs—based on increases in both capacity and utilization—have helped accommodate increases in U.S. crude oil production. The United States' capacity to refine crude oil into petroleum products—measured as operable atmospheric crude distillation unit capacity—increased by 0.2% in 2014, reaching 18.0 million barrels per calendar day, according to EIA's recently released annual Refinery Capacity Report.
Wednesday, 24 June 2015
Otmane El Rhazi : Under sanctions, Iran's crude oil exports have nearly halved in three years
Otmane El Rhazi from Today in Energy.
In early April this year, Iran and the five permanent members of the United Nations Security Council plus Germany reached a framework agreement to guide negotiations targeting a comprehensive agreement by June 30. The comprehensive agreement could result in the lifting of crude oil-related sanctions against Iran, which in turn could result in an increase in Iran's crude oil production and exports. However, the ultimate decision and the timing that sanctions could be lifted are highly uncertain
In early April this year, Iran and the five permanent members of the United Nations Security Council plus Germany reached a framework agreement to guide negotiations targeting a comprehensive agreement by June 30. The comprehensive agreement could result in the lifting of crude oil-related sanctions against Iran, which in turn could result in an increase in Iran's crude oil production and exports. However, the ultimate decision and the timing that sanctions could be lifted are highly uncertain
Tuesday, 23 June 2015
Otmane El Rhazi : Oil and natural gas production job declines tend to lag oil price declines
Otmane El Rhazi from Today in Energy.
Employment in oil and natural gas extraction and support activities in the United States reached nearly 538,000 in October 2014, but then declined by about 35,000 jobs, or 6.5%, over the following six months, through April 2015, according to data from the Bureau of Labor Statistics.
Employment in oil and natural gas extraction and support activities in the United States reached nearly 538,000 in October 2014, but then declined by about 35,000 jobs, or 6.5%, over the following six months, through April 2015, according to data from the Bureau of Labor Statistics.
Monday, 22 June 2015
Otmane El Rhazi : U.S. crude oil production growth helps Gulf Coast imports
Otmane El Rhazi from Today in Energy.
In recent years, higher domestic production of light, tight crude oil has led to a reduction in crude oil imports. Certain types of crude oil have been affected more than others; for example, the increased economic availability of domestic light, tight crude oil has virtually eliminated Gulf Coast imports of light crude oil. In the past year, Gulf Coast imports of medium crude oil have also fallen because of increased production from the Eagle Ford, Bakken, and Permian regions.
In recent years, higher domestic production of light, tight crude oil has led to a reduction in crude oil imports. Certain types of crude oil have been affected more than others; for example, the increased economic availability of domestic light, tight crude oil has virtually eliminated Gulf Coast imports of light crude oil. In the past year, Gulf Coast imports of medium crude oil have also fallen because of increased production from the Eagle Ford, Bakken, and Permian regions.
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