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Rhode Island Offshore Wind Experiment At Risk

Yesterday the Rhode Island Public Utilities Commission unanimously rejected the recently negotiated power-purchase agreement between the developer of the offshore wind project and National Grid, the state's electricity retailer.  The three members of the commission spoke out during the public hearing, each claiming that the proposed contract contained a power price that was too high and that the overall deal, based on the standard set by statute for evaluating power price agreements, was not "commercially reasonable."  =>Continue Reading

Has Obama Administration Covered Up Cost of Cap-and-Trade?

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A Freedom of Information Act request by the Competitive Enterprise Institute (CEI) of Treasury Department documents related to proposals involving cap-and-trade have revealed that the department believes it will cost consumers hundreds of billions of dollars.  This is in sharp contrast to the cost estimates made by the Environmental Protection Agency (EPA) and the Congressional Budget Office (CBO) earlier this year when the legislation was being voted on by the House of Representatives. =>Continue Reading

Obama Signals He Is No Friend Of Conventional Energy

Late last week the Treasury Department's chief economist, Alan Krueger testified that government incentives for oil and gas have led to overinvestment in these fossil fuels.  He said, "To the extent that current subsidies for the oil and gas industry encourage the overproduction of oil and natural gas, they divert resources from other, potentially more efficient investments, and they are inconsistent with the Obama administration's goals to reduce greenhouse-gas emissions and build a new, clean energy economy." This is not good news for industry

Natural Gas Market Collapse

On Thursday, natural gas prices fell by nearly 6% to $2.945.  The break in gas prices below the key $3 per Mcf threshold puts them now at a seven-year low.  The price break was helped by another injection into storage of 52 Bcf.  This week's injection was below Wall Street's consensus anticipated 58 Bcf injection estimate, so it should have been a positive for gas prices.  However, projections are now calling for total storage volumes of 3.9 Tcf to be reached before the end of the injection season in nine weeks.  At that point, gas will need to be either shut in or

Natural Gas Monthly Production On Cusp of Real Decline?

The July release of the Energy Information Administration's monthly gross natural gas production data collected from its Form 914 survey of producers shows a meaningful decline for May's production compared to April's revised production estimate.  May production was initially estimated at 62.24 billion cubic feet per day (Bcf/d), down 0.8% from April's revised production estimate of 63.35 Bcf/d.  Many analysts have latched on to this data as a sign that the industry's gas drilling cutbacks are beginning to show meaningful production reductions that will lead to higher natural gas

Global Warming Debate and Green Jobs

President Barack Obama has been hailing the historic action by the U.S.

U.S. Money and the Green-car Revolution

The U.S. Department of Energy has granted Nissan Motors $1.6 billion in loans to fund the company's program to build capacity to manufacture more than 100,000 electric cars a year at its plant in Smyrna, Tennessee by 2013.  At the same time, Ford Motor Co.

Mirroring 34% May Auto Sales Results

Oil prices continue to rise, crossing the $72 a barrel mark. The current rise is attributed to the sharp fall in crude oil inventories reported by both the American Petroleum Institute and the Energy Department in contrast to expectations for a small increase. The International Energy Agency has raised its forecast for global oil demand saying that it believes the fall in consumption is ending. This echoes comments from the U.S. Energy Information Administration’s revised forecast. Yesterday China reported that auto sales in May rose 34% to 1.12 million units.

Oil Prices Soar Over $70 a Barrel

Crude oil prices are above $71 a barrel this morning.  The value of the U.S. dollar has fallen again.  One has to wonder whether the oil price rise reflects the market's belief that the economic recovery will drive demand, or is it because of the continued debasement of the worth of U.S.

Lowered Hurricane Forecast Tied To Global Cooling

As we had predicted in our article in the May 26th issue of Musings From The Oil Patch,  the hurricane forecasting team at Colorado State University reduced their April 7th forecast for the number of and intensiy of tropical storms and hurricanes this year.  The CSU team's June 2nd storm forecast calls for one less tropical storm (11) and hurricane (5) with an unchanged two hurricanes becoming intense storms of Category 3, 4 or 5.  In addition, the new forecast reduced the combined impact of storms and the number of days for each storm to an average of 90, down from

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