HOW ENERGY- RICH AUSTRALIA EXPORTED ITS WAY INTO AN ENERGY CRISIS
Australia is struggling to keep the lights on as booming exports of liquefied natural gas cause power shortages at home, reports The Wall Street Journal.
The country is experiencing rolling black outs especially in the state of South Australia because the power stations in the region don’t have enough fuel to produce electricity.
Policymakers failed to factor in Australia’s rising gas exports into their calculations for supplying domestic energy needs.
The country “now exports so much liquefied natural gas, or LNG, it may overtake No. 1 exporter Qatar within several years. It exported 62% of its gas production last year, according to the BP Statistical Review of World Energy,” writes Rachel Pannett.
Australia’s power shortage has been exacerbated by a move to adopt renewable energy and the closure of aging coal plants that left the region more reliant on gas for power, especially when intermittent sources such as wind and solar weren’t sufficient.
Some analysts point to Australia as a cautionary tale for the U.S. which is also seeking to boost its gas exports.
IEA SAYS SPENDING IN U.S. SHALE DRIVES GLOBAL OIL INVESTMENT RECOVERY
U.S. shale producers are driving a slight uptick in global investment in oil and gas fields this year, writes Benoit Faucon.
The International Energy Agency forecast a 3% increase in fossil-fuel developments for 2017 even as the oil industry is still recovering from a more than two-year slump in crude prices that has battered the sector.
This year’s uptick is almost solely driven by a 53% increase in spending by U.S. shale-oil producers, who have used hydraulic fracturing and horizontal drilling techniques to create a booming American energy industry, said the IEA in report on Tuesday.
Meanwhile, the chief executive for Saudi Arabia’s state oil firm sounded the alarm that the world is heading for an oil-supply shortage that booming U.S. production can’t prevent.
“Amin Nasser, the chief executive of Saudi Arabian Oil Co., or Saudi Aramco, said the oil-price downturn of the past three years had reduced investments in long-term crude-petroleum exploration and development projects,” the Journal reports.
OIL UP? OIL DOWN? BLAME THE ALGORITHMS
Oil prices are increasingly dancing to the tune of algorithmic traders, leaving analysts bewildered, reports Stephanie Yang and Timothy Puko.
“On various days over the first six months of 2017, even amid signs of tightening supply, oil prices fell sharply, eventually sinking into bear market territory. Such moves confounded longtime watchers of oil, who said that based on the fundamental information, prices should have been rising,” the Journal reports.
The culprits behind crude’s recent movements are computer generated algorithms that are exacerbating price movements, say analysts.
Oil prices pulled back Tuesday morning, despite ongoing talk of possible production curbs in Libya and Nigeria and news of shrinking U.S. stockpiles.
Brent crude, the global benchmark, fell 1.09%, to $46.38 a barrel, in London midmorning trading. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 1.06%, at $43.93 a barrel.