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Strategic Energy Newsletter

 
 
Prospect Resources Inc
 

January 2024

 

Hi !

 

"We are moving from kind of a clean-versus-dirty, renewables-versus-fossil imagination of this kind of bifurcated energy industry to the reality that these are big companies with both renewable and fossil assets, and doing things really, really big and really, really fast.  .”

 Jason Grumet 

CEO  American Clean Power Association 

 
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Azi Feifel

COO PROSPECT RESOURCES

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Trends in the Energy Market

Current Market News

  • NYMEX futures had been trading lower but in recent days have risen somewhat dramatically with the change in weather. February 2024 settled at $3.030  /MMbtu on Wednesday, January 10.

  • A major storm system is moving through the upper Midwest and Midwest with snow, high wind, and colder temperatures. The coldest days of the year are coming in the 6-10 day period for the upper Midwest and major cities such as Chicago, Detroit, and Cleveland will see significantly below normal temperatures.
  • Natural gas inventories are 3,336 Bcf, 436 Bcf or 15% more than the same period last year and 348 Bcf or 11.6% more than the 5-year average.
  • European LNG prices are $10.05 per MMbtu and Asian prices are $11.48 per MMbtu.

And yet more...

  • Despite production cuts, crude oil prompt-month futures have continued down on weak global demand and are holding below $70 / bbl. Durable goods have been falling. Middle East and Red Sea conflicts remain a concern.

  • Economy - Inflation continues to ease, though still much higher than the Fed target inflation rate of 2%. The economy in 2023 added 2.7 million jobs while unemployment was at 3.7% last week. Labor force participation rate fell slightly in December.

  • After generally falling for a couple of months, PJM electricity forwards are on the rise, through 2028, with 2024 remaining the best deal out there. Northeast forwards are also up but less dramatically. ERCOT markets also show a significant upward trend in a backwardated market.
Discuss with Azi

U.S. crude oil exports reached a record high in first half of 2023 

Data source: U.S. Energy Information Administration, Petroleum Supply Monthly 

 

U.S. crude oil exports in the first half of 2023 averaged 3.99 million barrels per day (b/d), which is a record high for the first half of a year since 2015, when the U.S. ban on most crude oil exports from the United States was repealed. In the first half of 2023, crude oil exports were up 650,000 b/d (19%) compared with the first half of 2022. 

 

Click here for Graph of U.S. Crude Oil Exports
(Jan 2015-Jun 2023)

 

♦♦♦ CURRENT NEWS ♦♦♦

 

PETROLEUM
Refilling the U.S. Strategic Petroleum Reserve Puts a Soft Floor Under Prices The government sold off hundreds of millions of barrels from the strategic petroleum reserve in 2022, but now it’s buying back oil to refill the reserve.  

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OFFSHORE WIND STARTING
Massachusetts Switches On Its First Large Offshore Wind Farm Vineyard Wind is the country’s second large-scale offshore project to start producing electricity and comes at a turbulent time for the industry.

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OFFSHORE WIND STOPPING
BP and Equinor Cancel Big New York Offshore Wind Project The project, known as Empire Wind 2, was expected to be installed 15 to 30 miles off the coast of Long Island. 

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CLEAN ENERGY
Zero-Carbon Industry: Navigating The Clean Industrial Revolution This is a core message of Zero-Carbon Industry, a new guide to the breakthrough technologies transforming the manufacturing sector and the policies that can accelerate the global transition to clean industry.

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RIGS
U.S. Drilling Continues to Slow The total number of active drilling rigs for oil and gas in the United States fell this week by 1, according to new data that Baker Hughes published on Friday—the… 

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SEVERE WEATHER
Statement on Impending Severe Cold Weather Across United States  Securing fuel supplies, readying units through winterization and dispatching fuel will require prudent attention...

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ELECTRICITY DEMAND
Future Electricity Demand and Energy Needs Rising Rapidly; Transmission Hurdles Impact Future Reliability Sharp increases in peak demand forecasts and the potential for higher generator retirements are raising concerns for electric reliability over the next 10 years

 

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Prospect Resources Inc., 3818 Oakton Street Suite 200, Skokie, IL 60076, (847) 673-1959

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