storage

Opinion

The long and winding road to recovery

In a recent article I described the mechanisms which drive the market structures of backwardation and contango, which explained how and why the market got into negative territory, with a steep contango forward curve.  But having got there, how does that same understanding of market behaviour help us form a view of where we go from here?

Oil & Gas

Supply deal should avert ‘uncontrolled dismantling’ of industry, Rystad says

The proposed 10 million bpd cut by OPEC+ for May and June will keep the world from physically testing the limits of storage capacity and save prices from falling into a deep abyss, but it will still not restore the desired market balance. Just hours before delegates stepped into the (again virtual) closed meeting, Brent was fluttering in the mid-$30s, seemingly oblivious to the fact that even if a 10 million bpd cut is agreed upon, or even in the best-case scenario 15 million bpd if the US, Canada, Norway and Brazil join forces, an excess of supply of the magnitude of 5-10 million bpd will remain, and will need to be stored.

Opinion

OPINION: Time to take pumped storage hydro seriously

There’s no mystery about the biggest problem with wind power. It is, quite simply, that the wind does not always blow and when it doesn’t, other sources of generation have to be available to provide the back-up.

Other News

Capture Power said it remains committed to White Rose CCS project

Capture Power said it would retain its commitment to the delivery of the White Rose Carbon Capture and Storage (CCS) project after one of the consortium members pulled out. Drax said it was pulling out of the major scheme to develop technology to store emissions amid concerns over Government green policy changes. The company blamed the “drastically different financial and regulatory environment” which has seen the wholesale price of electricity drop and moves by the Government to rein back support for low carbon technology.

Oil & Gas

IEA chief calls for greater partnership with China

The new head of the International Energy Agency (IEA) said there needed to be greater partnership between the organisation and China. Fatih Birol made the comments on his first visit to the world's largest energy consumer. Birol, who took up his new post earlier this month, told an audience of Chinese officials and foreign diplomats in Beijing that one of his top priorities in the role will be to strengthen ties with the company.

Other News

Baron Oil signs loan agreement for Northern Ireland gas storage project

Baron Oil has signed a convertible loan agreement with InfraStrata for the Islandmagee gas storage project in Northern Ireland. The loan will specifically provide bridge financing for the imminent drilling of the project’s salt appraisal well. Baron will provide a secured loan of €1.8million to InfraStrata with an option to convert the loan balance in an equity participation of 15% in Islandmagee Storage Limited. The loan has an 8% interest coupon and is repayable by May 2016 and Baron has an option to extend the loan until December 31, 2016.

Renewables/Energy Transition

Campaigners urge more support over energy

More support is needed from politicians to reduce energy demand and boost energy storage, according to environmental campaigners. The call from WWF Scotland came as they published figures showing that March broke records for wind power output in Scotland. Their analysis of data showed that wind turbines alone provided the National Grid with enough electricity to supply, on average, the energy needs of 110% of Scottish households, 2.6 million homes. This represents an increase of 16% compared to the same period last year. Overall, wind power generated the equivalent of 57% of Scotland’s total electricity consumption - domestic and non-domestic - for the month.

Africa

Fires put out at three oil tanks at Libya’s Es Sider Port

Libya extinguished fires at three of five oil-storage tanks that started last week at its largest oil port, helping global crude prices to stabilize. Libya is still seeking international assistance because of possible environmental damage, said Ali al-Hasy, a spokesman for the Petroleum Facilities Guard, part of the internationally-recognized government of Prime Minister Abdullah al-Thinni. Es Sider has tanks with a capacity of 6.2 million barrels of oil, compared with current Libyan output of 352,000 barrels, according to National Oil Corp.