The Global Oil Impact. An inflationary conundrum would be the delicate way to describe the current situation on oil. First, it makes all the sense in the world to cut Russian oil exports off. The Country is a gas station at this moment with no ability to generate income outside of energy. That was the increase in pricing that you saw on Sunday afternoon with the rest of us as oil popped to $140/barrel and has settled back down to the $120s. Whether you’re buying wheat and barley (stock up on your beer) or steel and lithium, costs are rising for inflationary and macro reasons.
Next Move, Politically Speaking. US politicians are likely to give Biden no choice on a Russian oil import ban, both for political reasons (he will be blamed for higher gas prices/domestic production will have to increase/force a deal on domestic energy independence) as well as diplomatic reasons (Russia is unlikely to sustain a global import ban for long). You are hearing the White House speak up and blame the oil sector for not producing on the leases they currently hold while Manchin is saying let’s make a deal that increases production and delivers the clean energy package that is wanted. Meanwhile, Europe is contemplating its decisions years ago to give this leverage to Putin including the addition of the gas pipeline Nord Stream 2, which could trigger an energy realignment of the fuel sources that are needed to be more self dependent or dependent on friends like the US LNG exports.
What To Look For. Inflation will increase the cost of electricity and is likely to adjust the proformas for asset owners but with a commensurate increase in installation costs for materials and labor. The Ukrainian farms and surrounding areas account for a third of the global wheat and barley supply which is now significantly disrupted and prices in the live markets are adjusting to this. With the input cost of oil, any transportation costs will increase. Unless you drive electric, you’ve already felt the impact at the pump of filling up your car. So will your suppliers, vendors and employees. The optimistic view is that this should trigger an energy deal in DC including tax credits driving this market forward with enhanced urgency.
Opinion
News
1 Politico:
Zelenskyy adviser - Global ban on Russian oil would end Putin's attacks
2 Scientific American:
Amid War, Biden Reluctant to Unleash Clean Energy Rhetoric
3 Energy Storage News:
CAISO - 1GW dispatch during July wildfire a ‘fabulous moment’ for battery storage amidst 12-fold growth
4 Axios:
Europeans throw cold water on possibility of Russian energy ban
5 Utility Dive:
California clean energy advocates urge regulators to 'go big' with offshore wind goals
6 Bloomberg:
SoftBank Energy Unit Gets Up to $600 Million, Led By Ares Funds
7 Canary Media:
Goldman Sachs and Shell bet $75M that chain stores can boost grid resiliency
8 PV Magazine:
IREC releases training courses for residential solar plan
Opinions:
9 Reuters:
Europe energy crisis a 'big wake up call' -Total Energies CEO
Have a great day!
Yann
Opinion
Best, Yann
News
1 Canary Media:
Chart - Outpacing even China, the US takes the lead in grid battery investment
2 Reuters:
Oil price surges to highest since 2008 on delays in Iranian talks
3 Bloomberg:
War in Ukraine Overshadows Energy Transition as Oil CEOs Gather
4 Axios:
UN report - Climate change is so severe we're running out of time to adapt
5 E&E News:
Interior advances large solar project on Nev. tribal land
6 Utility Dive:
Inflation, production backlogs hit electric transit bus manufacturer Proterra
7 PV-Tech:
60GW green hydrogen hub planned for Texas
8 Energy Storage News:
China targets 30GW of battery storage by 2025 as BESS output grows 150%
9 PV-Magazine:
SolaREIT closes $100 million securitization
Opinions:
10 CNBC:
County by county, solar panels face pushback
Have a great day!
Yann
Opinion
Best, Yann
News
1 Bloomberg:
U.S. Clean Energy Draws Record $105 Billion in Private Investment
2 The Hill:
Fire breaks out at major nuclear plant in Ukraine amid fighting
3 Washington Post:
In Virginia, abandoned coal mines are transformed into solar farms
4 Axios:
Pelosi says she supports banning oil imports from Russia
5 Reuters:
Explainer - Why $100 oil could hurt the energy transition more than it helps
6 Solar Power World:
Solar developer New Energy Equity acquired by ALLETE
7 Energy Storage News:
Biden’s State of the Union address reinforces clean energy message
8 PV-Magazine:
Lawrence Berkeley report outlines shifts in demographics
Opinions:
9 Canary Media:
How to divest your 401(k) from fossil fuels
Have a great day!
Yann
Opinion
Best, Yann
News
1 Politico:
Dems agonize over Manchin's wish list - Taxes, prescription drugs, climate cash
2 Utility Dive:
Biden touts charging network expansion in State of the Union amid 85% jump in 2021 US EV sales
3 Bloomberg:
Solar Rally Halted as First Solar Sees Lingering Supply Woes
4 Axios:
Ford creates business unit for electric cars
5 PV-Tech:
Mining giant Peabody enters solar, eyes 4.9GW of solar and storage in next five years
6 Energy Storage News:
Greenbacker and Aypa Power acquire US battery storage projects
Opinions:
7 PV-Magazine:
Participate in the Solar Jobs Census 2022
Have a great day!
Yann
