The price of US oil clawed back above zero on Tuesday after plunging into negative territory for the first time as the coronavirus pandemic crushed demand in global energy markets.
FT 21st April 2020 read more »
Benchmark US crude oil prices traded with negative prices for the first time in history on Monday, sending shockwaves through the global energy sector. But what are negative prices and what do they mean for the wider industry? US oil prices traded below zero for the first time ever, meaning producers or traders were essentially paying other market participants to take the oil off their hands.
FT 21st April 2020 read more »
US oil prices turned negative for the first time on record on Monday after oil producers ran out of space to store the oversupply of crude left by the coronavirus crisis, triggering an historic market collapse which left oil traders reeling. The price of US crude oil crashed from $18 a barrel to -$38 in a matter of hours, as rising stockpiles of crude threatened to overwhelm storage facilities and forced oil producers to pay buyers to take the barrels they could not store. The market crash underlined the impact of the coronavirus outbreak on oil demand as the global economy slumps.
Guardian 20th April 2020 read more »
Telegraph 21st April 2020 read more »
Times 21st April 2020 read more »
Polluting industries around the world are using the coronavirus pandemic to gain billions of dollars in bailouts and to weaken and delay environmental protections. The moves have been described as dangerous and irresponsible by senior figures. They say the unprecedented sums of money being committed to the global recovery are a historic opportunity to tackle the climate crisis, but such action has not been taken to date. In the US, assistance for the green energy sector was not included in the $2tn support package on 26 March, three days after 24 rightwing thinktanks, including the Competitive Enterprise Institute, said they were “deeply disturbed” by possibility of funding for “unreliable ‘green’ energy programs”. However, New York state did pass new laws to speed up clean energy projects.
Guardian 17th April 2020 read more »
The position of fossil fuels in the US economy is less secure than it might appear. In fact, the fossil fuel industry is facing substantial structural challenges that will be exacerbated by, but will not end with, the Covid-19 crisis. For years, the industry has been shedding value, taking on debt, losing favor among financial institutions and investors, and turning more and more to lobbying governments to survive. It is, in short, a turkey. CNBC financial analyst Jim Cramer put it best, back in late January, before Covid-19 had even become a crisis in the US: “I’m done with fossil fuels. They’re done. They’re just done.” “We’re in the death knell phase,” he said “The world has turned on [fossil fuels].” Cramer’s take is not yet conventional wisdom, but he’s right. Evidence in support appears in a new report from the Center for International Environmental Law (CIEL) called “Pandemic Crisis, Systemic Decline.” Let’s walk through it. Fossil fuels are furiously lobbying for, and receiving, largesse from the US government. Fossil fuels were already facing structural problems before the coronavirus. Oil and gas are caught in a historic downturn. Wasting stimulus money on fossil fuels makes no sense, so Trump will probably do it.
Vox 20th April 2020 read more »
The U.S. fossil fuel industry continues to seek bailouts during the COVID-19 crisis, as global oil demand craters and crude oil floods an already oversupplied market. These twin phenomena have combined to crash the price of oil, threatening the stability of the U.S. oil and gas sector. The federal government has responded by cutting environmental and public health regulations, prioritizing corporations over frontline workers and communities, and exploring appropriating billions of dollars to purchase oil surpluses to fill the Strategic Petroleum Reserve. Most recently, big banks are establishing holding companies to snap up financially shaky oil and gas companies, offering an ostensible private bailout. During this crisis, the U.S. government should assert long-term ownership and control over fossil fuel companies to safeguard long-term economic security for workers, avoid taxpayer-funded windfalls for fossil fuel executives, restore communities exploited by fossil fuel corporations, save taxpayer dollars, and ensure an eventual managed phase-out of coal, oil, and gas production. Bailing out the oil, gas, and coal industries with no strings attached would return our economy to a precarious status quo in which the fossil fuel industry’s volatile and environmentally destructive business model worsens our economic and environmental crises. It would allow a handful of executives and wealthy shareholders to continue to extract the vast majority of profits, while taxpayers, workers, and exploited communities shoulder the burden of corporate and social risks and externalities. We need public ownership for the people, not a bailout for fossil fuel executives.
Oil Change International 14th April 2020 read more »