The Market, Energy, Political Page, Part 2, T+46 -- December 21, 2018

Hess: from The Williston Herald -- this will load as a pdf -- huge thanks to a reader -- I'll look for another link later ... here it is, at Natural Gas Intel ....

https://bloximages.chicago2.vip.townnews.com/willistonherald.com/content/tncms/eedition/merged/ce100a89-5931-5b4a-b9af-54ecd51392ac-merged.pdf?_dc=1545365994. 

Hess:

• global 2019 CAPEX: $2.9 billion
• US 2019 CAPEX: $1.87 billion
• Bakken: will ramp up to six rigs to produce 145,000 bopd in the Bakken

Tipping point: the other day I suggested the "Yellow Vests" was the tipping point in Europe. That movie is yet to play out. We have probably only seen the "trailer." Now this from a reader this morning, from Ice Age Now -- Germany's green transition has a hit a brick wall. Let's see what "Robert" has to say. To much to quote, but well worth a read.

Data points: these are the data points from that "Germany has hit a wall...."

• $550 billion on wind, soar, and biofuel
• legal commitments: an additional $775 billion by 2022
• simple arithmetic: $550 billion + $775 billion = a big number followed by a lot of zeroes
• not dispatchable; killing the utility industry
• some days, makes to much electricity Germany sells it at a loss to France -- "load shedding"
• Germans pay France to take their electricity
• subsidies: solar/wind are paid (by German users) 90% of rated output whether or not their electricity is needed
• subsidies: conventional utilities also paid if forced to disconnect due to too much wind/solar energy 
• other days, increased coal burned to make up the solar/wind deficit
• unlike the US, Germany has not reduced CO2 emissions in the last ten years
• Germany produces 27% of its annual power needs from wind/solar/biofuel
• and then this: if there is a stretch of several days (one to ten days -- although I would hardly call "one day" a stretch of several days -- LOL), Germany actually pays for electricity from French nuclear reactors, or they pay Poland for electricity form coal-powered plants (sort of reminds me of California getting their electricity from coal plants in Nevada
• Germany's wind/solar
• 27% of Germany's electricity consumption
• 5% of Germany's total energy needs
• Germany's electricity rates: among the highest in the world (they can afford this because their military / defense budget is paid for by the US)

Inefficiencies: there was a great article on "inefficiencies" the other day -- renewable energy and organic farming. One can add the process of "medical referrals" to a specialist to that list. [Later, December 23, 2018: "the cost of efficiency," Harvard Business Review, on sale now.]