Weekly Energy News

Kuznetsov Roman, Shipilova Anastasia April 02, 2022

Gas drillers in Canada face shift in Trudeau’s climate plan

Canada’s natural gas producers will face the greatest burden among energy companies under Prime Minister Justin Trudeau’s new emissions-reduction plan, just as the industry faces renewed pressure to increase output.

Gas drillers and processors are projected to cut emissions by 45% by 2030 versus 2019 levels. That compares with a 35% reduction that’s expected from larger-emitting oil sands producers, according to government documents. Dozens of companies operate gas wells, pipelines and processing plants scattered across the country, often in remote regions, making it challenging to deploy technologies that control carbon.

The multitude of gas producers don’t have a single goal. For example, the government plan calls for a 42% total reduction in emissions from the oil and gas sector. Oil sands companies have set a 32% target through a plan called Oil Sands Pathways to Net Zero.

Germans warm up to coal, wood amid high gas prices

Germans are snapping up wood and coal, despite the arrival of Spring, with an eye on climbing gas prices and uncertainties about the effects of a prolonged war in Ukraine.

Germany on Wednesday declared an "early warning" of a possible gas supply emergency, a sign of concern about possible disruption or stoppage of natural gas flows from Russia.

Despite stable gas supplies, consumers and companies have been advised to reduce their energy consumption, with Economy Minister Robert Habeck saying "every kilowatt-hour counts".

Susanne Gasden is one of the people who has ordered wood for next winter, even though she has electric heating in her home. "I have a stove in every room, and if for some reason the gas is suddenly turned off or we have an energy shortage, at least I have the ability to remain self-sufficient," she said. "It's a bit of saving for a rainy day."

U.S. issues formal notice of record sale of oil from reserve

The U.S. Energy Department formally outlined a sale of oil from emergency reserves on Friday, a day after President Joe Biden announced the largest release ever in an effort to push down fuel prices.

Up to 1 million barrels of oil a day will be sold from the Strategic Petroleum Reserve for six months starting in May. Biden said the release, the third in the past six months, will serve as a bridge until domestic producers can boost output and bring supply back into balance with demand.

The first 90 million barrels of SPR oil will be sold between May and July, including 20 million barrels that had already been scheduled to get to market in May. The another 90 million barrels will be released between August and October, the Energy Department said.

The SPR, which currently contains about 568.3 million barrels, the lowest since about May 2002, is held in four sites along coastal Texas and Louisiana. Up to 38.5 million barrels will be sold through July from the two Texas sites, and up to 31.5 million barrels will be sold from the two Louisiana sites, the department said.

How US aim to tackle high gas prices with tax holidays, rebates for residents

As gas prices have soared across the country, some politicians have floated a potential solution: temporarily halting the collection of taxes charged at the pump. That includes proposals to suspend the federal tax of 18.4 cents per gallon, as well as state taxes that average about 39 cents per gallon.

The national average for a gallon of gas is currently $4.22, according to American Automobile Association. That’s up from the $3.61 average drivers saw a month ago and $2.87 a year ago.

An NBC News poll found 8 in 10 Americans worry the war between Russia and Ukraine will increase gas prices. Politicians are rushing to ease those financial worries. Joe Biden on Thursday announced the U.S. will use oil from strategic reserves to help force down gas prices. Meanwhile, leaders at both the federal and state level have sought to temporarily suspend taxes consumers pay at the pump.

Millions of Brits plunged into fuel poverty on Friday as household energy bills surge

The number of English households in fuel poverty will double to 5 million from April 1, new research warned on Friday as Brits braced for their energy bills to increase by hundreds of pounds.

The Resolution Foundation said that as a result of higher prices coming into force on Friday, 2.5 million households in England would be plunged into “fuel stress.”

Energy bills in Britain are set to surge from Friday, after Ofgem, the country’s energy regulator, announced that it would increase its price cap by a record-breaking 54% from April 1.

Ofgem’s price cap limits how much households in the U.K. can be charged for energy utilities, and is reviewed twice a year.

Vedanta to source 580 MW green energy for India operations

Mining giant Vedanta Limited on Thursday said its board has approved a proposal to source 580 MW of green energy for its operations across India. The company has signed a Power Delivery Agreement with Sterlite Power Technologies.

The miner said it aims to partially replace its existing captive thermal power capacities with renewable energy for smelting and associated operations, and meet power requirements of capacity expansion at Vedanta Aluminium Ltd, Balco in Odisha and Hindustan Zinc in Rajasthan

The overall agreement is to produce 580 MW of renewable power from the plant where Sterlite Power Technologies and its affiliates are setting up a 1,960 MW hybrid-based renewable energy capacity. Once the power supply begins, it has the potential to prevent about 2.7 million tonnes of green house gas emmisions from entering the atmosphere.