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Friday, August 6, 2021

Notes From All Over -- Part 2 -- Friday, August 6, 2021

EVs: for all the talk about EVs, the numbers don't add up and we saw that in spades, as my dad used to say, this past week. The grid simply can't handle it, and that's just the start.

Expensive electricity: in the US, it's just a matter of time. The "UK regulator" has just okayed -- HODL -- drum roll -- a 13% hike in natural gas and electricity retail bills. after soaring wholesale prices. Imagine, if your local utility went to your local regulator asking for a 15% increase in electricity prices. Link here. 

Cheap natural gas: the era is over. Prices surge by 1,000% -- ZeroHedge

Aramco reports tomorrow, Saturday, August 7, 2021: estimates, about $25 billion for the quarter. Link here. Last year's Aramco's net profit was less than $7 billion. And the world is not even close to a full "re-opening."

Brazil: increases LNG imports from the US amid its worst drought in more than 90 years. Link here.

Namibia: I honestly don't know if this is a scam or a legitimate news story. Something doesn't ring true, but then again, I'm probably missing something. 

The story seems to be only found in oilprice which seems strange, if the story is as big as James Stafford suggests it is. Regardless, yesterday's story provides an interesting update, listing every oil and gas company that's apparently involved one way or the other. I think most most folks have heard of Cathie Wood's ARRK -- well, this African story could generate an ETF all of its own.

I think it's worth archiving, coming back to it in a few years. Link to James Stafford here. One last thought: about two years ago, maybe five years ago, I forget, XOM's CEO or some such person said there were no big elephants to find out there. If the Namibia story is "real," this is an elephant. Of all the companies Stafford mentions, it's notable that XOM is not on the list.

Canada: link to Charles Kennedy. Of all the contributors over at oilprice, Charles Kennedy is top shelf, so this is another huge story from this past week: surghing oil exports lead to largest Canadian trade surplus since 2008. Link here

Quick: the number one country from which the US imports crude oil is Canada. Quick: name the number two country.

Heavy oil: this is an amazing story. From Charles Kennedy and the same link as above:

Canada’s exports to its main trade partner, the United States, also rose to a record in June, driven by increased exports of crude oil, passenger cars, and light trucks. Canada’s trade surplus with the United States widened from US$4.7 billion (C$5.9 billion) in May to US$6.6 billion (C$8.3 billion) in June, the largest surplus since August 2008, Statistics Canada said.

In May this year, Argus reported that Canadian crude oil exports to the United States were going to increase this year as additional pipeline capacity comes online and oil sands output increases. Moreover, demand for heavy crude has also been on the rise, with few producers available.

Despite no Keystone XL: those record Canadian export numbers? Think about it. No Keystone XL. Much of that oil is being transported on pipelines that have had capacity expanded or reversals in flow, but the real winner is CBR. The loser: faux environmentalists: a lot of CO2 emitted by those diesel trains, carrying oil that could have been transported by pipeline. By the way, knock on wood, when was the last CBR derailment?

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