Tag Archives: Natural Gas

Bakery products increased by 40 percent in Greece

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Bread prices rise sharply in Greece
  • Some types of bakery products increased by almost 40% due to the rise in the price of flour and electricity.
  • Raising prices started somewhere in September. There is a big increase in prices for everything. The last time it was about 10% about half a month ago. It started with a rise in prices for gasoline and natural gas, for transportation, and gradually everything grew.

Read the original article by clicking here.

Inflation Would Rise If War Breaks Out

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Ukraine-Russia crisis could push inflation to 10% if conflict escalates
  • Escalating Russia-Ukraine crisis could push oil prices to $120 a barrel
  • Russia is the world’s second-largest producer of both oil and natural gas
  • Germany already halted the certification of the Nord Stream 2 gas pipeline from Russia, while the U.S. and the European Union have floated potential sanctions against Moscow
  • American and European officials fear that Russia may retaliate against the sanctions by cutting off the supply of oil and natural gas that flows from Moscow to Europe, sending prices spiraling higher.

Read the original article by clicking here.

Companies burn coal, lignite, and even oil to keep lights on

Rev 6:3-4 NCV When the Lamb opened the second seal, I heard the second living creature say, “Come!”4 Then another horse came out, a red one. Its rider was given power to take away peace (prosperity, rest) from the earth and to make people kill each other (butcher, slaughter, to maim violently, in streets), and he was given a big sword (assassins sword, terrorist, loud, mighty, sore afraid).

Important Takeaways:

  • Europe has never paid so much for power as costs soar more than 200% to record
  • The average cost of power for delivery in the short-term is on track to end the year at record levels, rising over 200 per cent in Germany, France, Spain and the U.K.
  • In the Nordic region — where vast supplies of hydro power tend to cap prices — costs surged 470 per cent from a year earlier.
  • Europe’s energy crunch was a result of shortages of natural gas just as demand rebounded following 2020’s lockdowns. The crisis was also aggravated by lower than normal wind speeds and nuclear power outages that have strained power grids, forcing the region’s energy companies to burn polluting fossil fuels.
  • Companies burned coal, lignite and even oil to keep the lights on, the cost of buying permits to pollute surged.

Read the original article by clicking here.

Global oil CEOs stress need for fossil fuels despite push for cleaner energy

By Liz Hampton and Sabrina Valle

HOUSTON (Reuters) -A global energy conference devoted to future technologies and low-carbon strategies kicked off in Houston on Monday with top executives from energy companies affirming the need for more oil for decades to come.

The World Petroleum Conference’s four days of discussion started with chief executives from Exxon Mobil Corp, Chevron Corp and Halliburton Co, three of the largest U.S. companies by market value, all promoting the need to deliver oil and gas globally even as the world transitions to cleaner fuels.

The conference was sapped of some of its star power at the outset due to coronavirus-related travel restrictions that forced OPEC Secretary General Mohammed Barkindo and energy ministers from the Organization of the Petroleum Exporting Countries to cancel plans to travel to Houston.

“We in fact are going into a period of scarcity. And I think that for the first time, in a long time, we will see a buyer looking for a barrel of oil, as opposed to a barrel of oil looking for a buyer,” said Jeff Miller, CEO of energy services firm Halliburton.

World fossil fuel demand has rebounded sharply in 2021, with natural gas already at pre-pandemic levels and oil nearing levels reached in 2019. That comes even as large global majors, especially those based in Europe, are limiting exploration and production in an attempt to shift to renewable power development and as governments promote efforts to cut carbon emissions to deal with rising worldwide temperatures.

“The world is facing an even more chaotic energy transition,” said Saudi Aramco CEO Amin Nasser. “They assume that the right transition strategy is in place. It’s not. Energy security, economic development and affordability are clearly not receiving enough attention. Until they are, and we clear the gaps in the transition strategy, the chaos will only intensify.”

Exxon disclosed on Monday plans to achieve net zero greenhouse gas emissions from operated assets in the U.S. Permian basin by 2030, as part of a plan to reduce upstream greenhouse gas emissions intensity by 40% to 50% by 2030, compared with 2016 levels.

“The fact remains, under most credible scenarios, including net zero pathways, oil and natural gas will continue to play a significant role in meeting society’s need,” Exxon CEO Darren Woods said at the conference.

U.S. officials took the opportunity to talk about President Joe Biden’s clean energy agenda while insisting on the need to address high fuel prices for consumers.

“We are deploying clean energy like never before,” said David Turk, deputy U.S. Secretary of Energy.

But Turk also said Washington will not “stand in the way” of companies willing to increase domestic oil production as the industry tries to fully recover.

“We need to make sure everyone has affordable, reliable and resilient energy,” he said.

Anders Opedal, CEO of Norway’s Equinor, said energy companies have a responsibility to bring down emissions and provide energy.

“We will need oil and gas for many years to come but with reduced emissions,” he said.

BP is investing $1 billion worldwide to reduce emissions at refineries, David Lawler, head of BP America and CEO of BPX unit said at the conference.

More top executive are also expected to address the conference on Monday, though rooms for keynote speakers were only half occupied.

Eight energy ministers from top oil-producing nations, including Saudi Arabia, Kazakhstan and Qatar, were off the week’s program. Ministers from Argentina, Equatorial Guinea, Greece, Turkey and Romania, as well as CEOs of BP, Sonatrach and Qatar Energy also bowed out.

Their absence resulted from “travel restrictions and concerns” about the Omicron COVID-19 variant, organizers said. Replacements were being selected, a spokesperson said, which included BP’s U.S. chief in lieu of its CEO.

The impact of the virus comes as the industry struggles with shortages of natural gas and power in Asia and Europe from output losses spurred by the pandemic. Energy prices that hit multi-year highs this autumn have retreated with travel restrictions.

Oil rose 3% a barrel to about $72 on Monday on hopes the Omicron variant would be less damaging to oil demand and after Saudi Arabia, the de facto leader of OPEC, on Friday raised its official selling prices to Asia and the United States.

(Additional Reporting by Gary McWilliams, Erwin Seba and Marianna Parraga; editing by Jason Neely and Marguerita Choy)

Fertilizer shortage may lead to spring scramble on North America’s farms

By Rod Nickel

(Reuters) – A global shortage of nitrogen fertilizer is driving prices to record levels, prompting North America’s farmers to delay purchases and raising the risk of a spring scramble to apply the crop nutrient before planting season.

Farmers apply nitrogen to boost yields of corn, canola and wheat, and higher fertilizer costs could translate into higher meat and bread prices.

World food prices hit a 10-year high in October, according to the United Nations food agency, led by increases in cereal crops like wheat and vegetable oils.

The Texas Arctic Blast in February and Hurricane Ida in August disrupted U.S. fertilizer production. Then, prices of natural gas, a key input in producing nitrogen, soared in Europe due to high demand and low supplies. Global urea prices this month topped $1,000 per tonne for the first time, according to BMO Capital Markets. Russia and China have curbed exports.

In the United States, nitrogen fertilizer supplies are adequate for applications before winter, said Daren Coppock, CEO at U.S.-based Agricultural Retailers Association. Applying fertilizer before winter reduces farmers’ spring workload.

But with prices so high, some farmers are delaying purchases, risking a scramble for supplies during their busiest time of year, Coppock said.

Global nitrogen fertilizer sales were worth $53 billion in 2020, and prices are at least 80% higher so far this year, according to Argus Media.

Normally, MKC, a Kansas farm cooperative, sells fertilizer to farmers for payment up front with delivery months down the road, giving growers certainty about a key expense.

With prices soaring, MKC has scaled back its pre-paid sales out of caution.

“You just don’t know what the price is going to be. It has put a lot of retailers in a tough spot,” said Troy Walker, MKC’s director of retail fertilizer.

Delaying fertilizer purchases until spring runs the risk of further supply chain congestion as farmers rush to apply fertilizer and plant seed during a tight window.

“There’s going to be a lot of people who wait and see,” Coppock said. “(But) if everybody’s scrambling in the spring to get enough, somebody’s corn isn’t going to get covered.”

Wisconsin farmer Jim Zimmerman decided to bite the bullet and secure all his fertilizer for spring, this year.

“It’s next year’s prices I’m worried about,” Zimmerman said. “It could get worse.”

Nutrien Ltd, the largest U.S. farm supplier, has secured less nitrogen fertilizer than usual for spring delivery because manufacturers are making less available, said Jeff Tarsi, the company’s senior vice president of retail. Sales to farmers are likely to occur closer to spring than usual, he said.

The one nitrogen product that is running short in North America is urea ammonium nitrate (UAN), said Kreg Ruhl, crop nutrients manager at Illinois-based farm cooperative Growmark. UAN is a liquid form that is convenient for farmers to apply.

The U.S. International Trade Commission is conducting an anti-dumping investigation into UAN from Russia and Trinidad and Tobago, at the request of U.S. producer CF Industries.

Importers are reluctant to book shipments into 2022, because they may have to pay retroactive duties if CF wins its case, Ruhl said.

Farmers could reduce their fertilizer needs by planting more soybeans and less corn, but there is little evidence many plan to do so.

The U.S. Department of Agriculture forecast U.S. corn plantings would decline to 92 million acres in 2022, from 93.3 million in 2021.

Waiting until spring to buy fertilizer could disappoint some farmers, said Matt Conacher, senior fertilizer manager at Federated Cooperatives Limited, a Canadian wholesale seller.

“My advice is, if you can get your fertilizer now, do so.”

(Reporting by Rod Nickel in Winnipeg; Additional reporting by Julie Ingwersen in Chicago; Editing by Caroline Stauffer and Lisa Shumaker)

Russia using gas to bully Moldova, says EU

By Robin Emmott

BRUSSELS (Reuters) -The European Union’s top diplomat said on Thursday that Moscow was using natural gas to bully Moldova, as the prime minister of the ex-Soviet republic said the country could not afford the prices Russia was now offering.

Moldova’s gas contract with Russia’s Gazprom expired at the end of September. Moldova’s pro-EU Prime Minister Natalia Gavrilita told Reuters that Gazprom was not offering the new government the traditional annual rollover of a previous, 30-year contract, but instead a three-fold price increase.

The Kremlin on Wednesday denied the Russian company was using gas talks to try to extract political concessions, but EU foreign policy chief Josep Borrell rejected that argument.

“In global terms the price increases around the world are not a consequence of weaponization of the gas supply, but in the case of Moldova, yes it is,” Borrell told a news conference alongside Gavrilita in Brussels.

He did not offer any detailed evidence of Russian pressure. Gavrilita said in an interview with Reuters that Gazprom had increased its long-standing price for Moldova to $790 per 1,000 cubic meters of gas, from around $250.

“The price increase for Moldova is just extraordinarily stark. It has increased threefold and is set to increase fourfold if we buy everything on the spot market. The country cannot afford this politically, economically or socially,” Gavrilita said.

Moldova is governed by the pro-Western government of President Maia Sandu who defeated Moscow-backed Igor Dodon in an election last November. The country was one of the Soviet Union’s 15 republics and has been at the center of a political tug of influence between Russia and the West since the 1991 collapse of the Soviet Union.

Gavrilita said Moldovan officials continued talks with Gazprom in St. Petersburg and that she took it as a good sign that they were continuing, but it was still unclear if there would be a deal.

She said the country was looking at swaps, contracts without prepayment conditions and long-term contracts from other sources. The country bought gas from EU countries for the first time this month.

EU HOPES, BUT NOT NATO

Asked if Moldova could live without a long-term Gazprom contract, she said: “I want to underline here that no European country is buying its whole supply on the spot (market).”

Gazprom has said it will suspend gas exports to Moldova, which borders Romania and Ukraine, if it is not paid for previous supplies.

The EU this week said it would give Moldova 60 million euros ($70 million) by the end of the year to deal with the crisis, after Moldova declared a state of emergency.

Gavrilita, who said supplies had fallen so low that pressure in Moldovan pipelines went below a critical level, will use the money to help poor Moldovans unable to pay higher energy prices.

After less than 100 days in office, the Sandu government is looking to end years of endemic corruption and is “looking for a European style of development,” Gavrilita said. “In the long term, yes, we do see Moldova as part of the EU,” she said, adding that the country was not seeking to join NATO.

(Reporting by Robin Emmott; Editing by Jan Harvey and Susan Fenton)

Russia close to using natural gas as weapon in Europe’s gas crunch – Biden energy adviser

By Timothy Gardner

WASHINGTON (Reuters) -U.S. President Joe Biden’s global energy security adviser said on Monday that Russian President Vladimir Putin is getting close to using natural gas as a political tool if Russia is holding back fuel exports to Europe as it suffers an energy crunch.

“I think we are getting close to that line if Russia indeed has the gas to supply and it chooses not to, and it will only do so if Europe accedes to other demands that are completely unrelated,” Amos Hochstein, Biden’s adviser, told reporters, when asked if Putin was using gas as a weapon.

Hochstein said gas prices in Europe have been driven higher not just by events in the region but also by a dry season in China that has reduced energy output from hydropower and increased global competition for natural gas.

Still, while several factors have led to the European gas crisis, Russia is best placed to come to the aid of Europe, he said.

“There is no doubt in my mind, and the (International Energy Agency) has itself validated, that the only supplier that can really make a big difference for European energy security at the moment for this winter is Russia,” Hochstein said. Russia can increase upstream production of gas, and should do it quickly through existing pipelines, he said.

Putin has rejected suggestions that Moscow was squeezing supplies for political motives, saying it will increase flow as much as partners ask.

Putin has blamed record high prices on the EU’s energy policy and said Russia can boost supplies to Europe once its Nord Stream 2 gas pipeline gets approved.

Yuriy Vitrenko, the head of Ukraine’s state energy company Naftogaz, this month said Russia was trying to blackmail Europe into certifying its Nord Stream 2 gas pipeline by keeping fuel supplies low. The pipeline, which Washington opposes because it would circumvent Ukraine, is finished but needs approvals from Germany to start delivering Russian gas under the Baltic Sea to Europe.

Approvals from Germany and the European Commission for Nord Stream 2 will likely take until March, so if Russia says it can quickly boost gas flow through Nord Stream 2, it should be able to do so now through existing pipelines, Hochstein said.

“You can’t have it both ways,” Hochstein said

(Reporting by Timothy Gardner; Editing by Mark Porter)

White House asks U.S. oil-and-gas companies to help lower fuel costs -sources

By Jarrett Renshaw

(Reuters) -The White House has been speaking with U.S. oil and gas producers in recent days about helping to bring down rising fuel costs, according to two sources familiar with the matter.

Energy costs are rising worldwide, in some cases leading to shortages in major economies like China and India. In the United States, the average retail cost of a gallon of gas is at a seven-year high, and winter fuel costs are expected to surge, according to the U.S. Energy Department. Oil-and-gas production remains below the nation’s peak reached in 2019.

“We are closely monitoring the cost of oil and the cost of gas Americans are paying at the pump. And we are using every tool at our disposal to address anti-competitive practices in U.S. and global energy markets to ensure reliable and stable energy markets,” a White House official said.

Press Secretary Jen Psaki said Wednesday that she is not aware of any contact with oil and gas companies “around this particular issue.”

U.S. crude oil recently hit $80 a barrel for the first time in seven years, as the Organization of the Petroleum Exporting Countries and their allies known as OPEC+ restrict output. The White House has discussed rising prices with top OPEC producer Saudi Arabia in recent weeks.

The average retail price of a gallon of gasoline has risen to $3.29, according to AAA figures. The U.S. Energy Department said on Wednesday that household heating costs are expected to rise dramatically this winter for all fuels, but particularly for heating oil and propane.

U.S. oil production has been slow to rebound from 2020, when output dropped during the coronavirus outbreak. Production hit a record of nearly 13 million barrels per day (bpd) in late 2019, but the U.S. Energy Department said Wednesday that output will only average 11 million bpd in 2021, rising to 11.7 million bpd in 2022.

Natural gas prices are up sharply this year, the result of supply shortages and stronger-than-expected demand in Europe and Asia.

U.S. shale producers, who are responsible for the boom in crude oil output in the last 10 years, have been less willing to drill for more oil after years of weak financial performance, and have instead focused on cutting spending to boost returns for investors.

It can take six months to drill and complete a new well and bring the oil and gas to market. Any call by the White House for an increase in U.S. production is likely to fall on deaf ears, according to one oil executive, who did not want to be identified criticizing the approach. The industry has also been unhappy with some of Biden’s earlier actions, including a temporary drilling halt on federal lands, that they see as an attack on the industry.

“By pursuing policies that restrict supply and make it harder to produce oil and natural gas here in America, Americans will have to pay more for their energy,” said Anne Bradbury, chief executive officer at the American Exploration and Production Council, which lobbies for independent oil-and-gas producers.

President Joe Biden’s administration has been conducting internal discussions about rising fuel costs, one of the two sources added.

The White House has been trying to tackle supply bottlenecks that have boosted the price of various goods, from meat to semiconductors. Officials said Wednesday that the administration has been working with major ports in Los Angeles and Long Beach, along with shipping giants UPS and FedEx, to alleviate congestion slowing deliveries.

(Reporting by Jarrett Renshaw, Ron Bousso and David French; Editing by Howard Goller and Andrea Ricci)

U.S. public power/natgas groups urge Biden to cap prices in last week’s freeze

(Reuters) – Trade groups representing U.S. public power and natural gas companies urged President Joe Biden to declare a gas emergency for last week’s extreme weather and authorize the secretary of energy to cap the price of gas.

In a Feb. 19 letter to Biden, the American Public Power Association (APPA) and the American Public Gas Association (APGA) said the recent cold weather in the Midwest and Texas boosted demand for electricity at the same time power generation was constrained due to freezing gas wells and pipelines.

Officials at APPA, APGA and the U.S Department of Energy were not immediately available for comment on whether the administration could or would retroactively change gas prices.

That forced utilities and other energy suppliers to pay billions of dollars to buy gas and power for their customers. In addition to heating homes and businesses, gas also powers much of the power generation in Texas and other states affected by the freeze.

Gas prices, which usually trade around $3 per million British thermal units (mmBtu), rocketed to over $300 per mmBtu at some hubs, while power prices, which usually trade around $25 per megawatt hour in Texas, soared to over $10,000 at times.

One public-owned power plant spent $78 million for four days of gas supply, the groups said, noting the fuel for that plant cost only $18 million for all of 2020.

“If no relief is provided, these staggering costs will ultimately have to be borne by utility customers,” the groups said.

(Reporting by Scott DiSavino in New York and Timothy Gardner in Washington; Editing by Steve Orlofsky and Jonathan Oatis)

Oil extends losses as Texas prepares to ramp up output after freeze

By Devika Krishna Kumar

NEW YORK (Reuters) – Oil prices fell for a second day on Friday, retreating further from recent highs as Texas energy companies began preparations to restart oil and gas fields shuttered by freezing weather and power outages.

Brent crude futures were down 66 cents, or 1%, at $63.27 a barrel by 12:27 p.m. (1727 GMT). U.S. West Texas Intermediate (WTI) crude fell 99 cents, or 1.6%, to $59.53.

For the week, Brent was on track for a 1.3% gain while WTI was largely flat.

This week, both benchmarks had climbed to the highest in more than a year.

“Price pullback thus far appears corrective and is slight within the context of this month’s major upside price acceleration,” said Jim Ritterbusch, president of Ritterbusch and Associates.

Unusually cold weather in Texas and the Plains states curtailed up to 4 million barrels per day (bpd) of crude production and 21 billion cubic feet of natural gas, analysts estimated.

Texas refiners halted about a fifth of the nation’s oil processing amid power outages and severe cold.

Companies were expected to prepare for production restarts on Friday as electric power and water services slowly resume, sources said.

“While much of the selling relates to a gradual resumption of power in the Gulf coast region ahead of a significant temperature warmup, the magnitude of this week’s loss of supply may require further discounting given much uncertainty regarding the extent and possible duration of lost output,” Ritterbusch said.

Oil prices fell despite a surprise drop in U.S. crude stockpiles last week, before the big freeze hit. Inventories fell 7.3 million barrels to 461.8 million barrels, their lowest since March, the Energy Information Administration reported on Thursday.

“Vaccines and the impressive rollouts we’ve seen have delivered strong gains, as have the efforts of OPEC+ – Saudi Arabia, in particular – and the big freeze in Texas, which gave oil prices one final kick this week,” Craig Erlam, senior market analyst at OANDA said.

“With so many bullish factors now priced in, it seems we’re seeing some of these positions being unwound.”

The United States on Thursday said it was ready to talk to Iran about returning to a 2015 agreement that aimed to prevent Tehran from acquiring nuclear weapons. Still, analysts did not expect near-term reversal of sanctions on Iran that were imposed by the previous U.S. administration.

“This breakthrough increases the probability that we may see Iran returning to the oil market soon, although there is much to be discussed and a new deal will not be a carbon-copy of the 2015 nuclear deal,” said StoneX analyst Kevin Solomon.

(Additional reporting by Ahmad Ghaddar in London and Roslan Khasawneh in Singapore and Sonali Paul in Melbourne; Editing by Marguerita Choy and David Gregorio)