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Gas overtakes coal at US power stations

The US generated more of its electricity from gas than from coal for the first time ever in April — in a sign of how the shale boom is putting mounting pressure on the country’s mining industry. Plunging prices for natural gas, which have fallen alongside oil since last summer, led to it being used to generate 31 per cent of America’s electricity in April, while coal contributed 30 per cent. This was the first month in US history that gas-fired electricity generation surpassed coal-fired generation, according to SNL Energy, a research firm — although it came close in 2012 when gas prices were also very weak. In 2010, coal provided 45 per cent of US power. Since then, competition from cheap shale gas — unlocked by the rise of horizontal drilling and hydraulic fracturing — plus a growing regulatory burden on coal-fired power plants, has squeezed out coal […]

Posted On : Published By : Tom Whipple
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Texas Oil Production Increases 16%

While crude oil production in the U.S. seems to have leveled off, oil production in Texas continues to move forward at a brisk pace. The Energy Information Administration (EIA) said that US oil production declined slightly by 0.5 percent or 50,000 barrels per day (bpd) in May from the prior month to an average of 9.7 million bpd. In Texas, however, crude oil production increased 16 percent in May to 107 million barrels (3.6 million bpd) from 92 million barrels (3.1 million bpd) in May 2014, according the Texas Petro Index. The surplus of oil in Texas and worldwide has created a softening of price. Prices declined on the New York Mercantile Exchange (NYMEX) on July 7 to $51.98 the lowest price since April 13 and a 17 percent drop since its 2015 high of $62.58 in May. The six-year low was set on March 18 at $42.03. The […]

Posted On : Published By : Tom Whipple
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European Leaders Reach Agreement to Resolve Greek Debt Crisis

Photo Prime Minister Alexis Tsipras of Greece after reaching an agreement with European leaders in Brussels on Monday. Credit Geert Vanden Wijngaert/Associated Press BRUSSELS — European leaders said Monday morning that they had reached a deal meant to resolve Greece ’s debt crisis and avert a historic fracture in the Continent’s common currency project. “EuroSummit has unanimously reached agreement,” Donald Tusk, the president of the European Council, wrote on his Twitter account shortly before 9 a.m. on Monday. The new bailout for Greece would involve “serious reforms” and “financial support,” he wrote. The deal announced early Monday allows only the start of detailed negotiations on a new assistance package for Greece. But the prospect of a new bailout program was expected to give the European Central Bank the leeway to continue channeling sorely needed emergency funding to Greek banks hollowed out by a long economic slump and the withdrawal […]

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Eurozone Leaders Reach Unanimous Agreement on Greece

BRUSSELS—Eurozone leaders said early Monday that they would give Greece another three-year bailout involving some €80 billion ($89 billion) in rescue loans, provided the government of Prime Minister Alexis Tsipras manages to implement a round of punishing austerity measures in the coming days. “EuroSummit has unanimously reached agreement” Donald Tusk, who presided over the talks with leaders, said in a tweet . “All ready to go for ESM [European Stability Mechanism] program for Greece with serious reforms & financial support.” European stocks rallied early Monday on the news. In early trade, the Stoxx Europe 600 rose 1.2%, building on Friday’s hefty gains . Germany’s DAX rose 1.3%, France’s CAC-40 added 1.5% and London’s FTSE 100 rose 0.6%. The euro hit an intraday high of $1.1197 against the dollar before falling 0.4% on the day. The tentative rescue deal—hammered out after 22 hours of, at times acrimonious, negotiations between the […]

Posted On : Published By : Tom Whipple
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Foreigners Seen Pulling Dividend Cash From Russia as Rally Fades

As Russian companies pay out an estimated 875 billion rubles ($15 billion) in dividends this year through July, some asset managers think foreigners are set to take the money and run. A 14 percent gain in dollar terms has put Russia among the 10 best-performing markets after the worlds’ worst drop in 2014. And the Micex Index’s 4.5 percent dividend yield is the highest among the biggest emerging-market benchmarks. While those may look like reasons to be bullish, GL Financial Group and Royal Bank of Scotland Group Plc are among those predicting that slumping oil prices and a worsening economic outlook will prompt shareholders to cash out after they’re paid. “The dividend season could serve as an opportunity for investors to exit Russian shares,” Sergey Vakhrameev, a money manager at GL Financial, which oversees about $100 million in assets, said by phone from Zurich. “The majority of foreign investors […]

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IMF Warns Proposed Legislation in Ukraine Threatens Reforms

KIEV, Ukraine—The International Monetary Fund warned Sunday that recently proposed legislation in Ukraine threatens to undermine reforms critical to the success of a $40 billion bailout package for the country. Poul Thomsen, director of the IMF’s European department, said in a statement that seven pieces of legislation up for review in Ukraine’s parliament next week could roll back important reforms on pensions and energy tariffs that Ukrainian lawmakers passed earlier this year. The fund also condemned a separate law passed by parliament earlier this month that would allow Ukrainians to repay foreign currency loans at a more favorable exchange rate, a move some experts have said could collapse the country’s banking system. President Petro Poroshenko has signaled he will veto the foreign-exchange bill. The IMF’s concerns come as Ukraine continues to struggle with a buckling economy, as the armed conflict with Russia-backed rebels persists in the country’s east. Ukraine’s […]

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Nuclear Plant Closing Reflects Overhaul of German Energy Production

Photo Solar panels are commonplace now in Grafenrheinfeld, where a nuclear plant was shut last month. Germany aims to close all such plants by 2022. Credit Gordon Welters for The New York Times GRAFENRHEINFELD, Germany — In one of this country’s most popular novels for young readers, the nuclear reactor on the edge of this Bavarian town melts down, spewing a radioactive cloud that threatens all of Germany and robs a 14-year-old girl of her family and her hope for the future. Last month, that nuclear power plant in Grafenrheinfeld , responsible for meeting the energy needs of industry-heavy Bavaria since 1981, came to a less dramatic but equally symbolic end. The plant became the first active reactor to be decommissioned since 2011, following Chancellor Angela Merkel ’s about-face on nuclear power after the Fukushima Daiichi nuclear plant catastrophe in Japan. Taking Grafenrheinfeld offline is a milestone in Germany’s […]

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Oil balanced on IEA, IMF growth forecasts

Oil prices hold steady in early Friday trading after a report on global demand declines balances an brush off of the Chinese stock market collapse. Photo by Stephen Shaver/UPI NEW YORK, July 10 (UPI) — Crude oil prices started Friday holding relatively steady despite a downbeat forecast from the International Energy Agency. Brent crude oil prices started the day relatively unchanged from Thursday’s close to $58.53 per barrel. West Texas Intermediate, the U.S. benchmark, was steady at $52.65 per barrel. Crude oil markets were volatile for the first full trading week in July as investors took stock of Greek economic troubles and ongoing nuclear negotiations with Iran and its international partners. Deadlines and key developments on both fronts may be settled during the weekend. Greek’s economic problems were in part behind the series of events that undermined global performance during the latest fiscal crisis, though European leaders said the […]

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Natural Gas Prices Rise on Hotter Forecast

By Nicole Friedman Natural-gas prices rose Friday on forecasts for slightly hotter temperatures across much of the U.S. over the next two weeks, but analysts questioned whether the gains could be sustained in an oversupplied market. Natural-gas futures for August delivery settled up 4.4 cents, or 1.6%, to $2.770 a million British thermal units on the New York Mercantile Exchange. Hot weather boosts demand for gas-powered electricity, as households and offices turn on air-conditioning units. Though no extreme heat is expected this month, "today’s forecast is a bit warmer than yesterday’s" in the next 11 to 15 days, said private forecaster WSI Corp. in a note. Robust production has kept prices subdued this summer. The U.S. Energy Information Administration reported on Thursday that natural-gas inventories grew by 91 billion cubic feet last week, more than analysts and traders had expected. Gas stockpiles now sit at 2.7 trillion cubic feet, […]

Posted On : Published By : Tom Whipple