• 3 minutes e-car sales collapse
  • 7 minutes Energy Armageddon
  • 11 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours America Is Exceptional in Its Political Divide
  • 2 days Cummins showcases 15L fuel-agnostic engine platform; hydrogen, diesel, biogas 16 March 2023
  • 9 days Gazprom and Rosneft super result
  • 3 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
Editorial Dept

Editorial Dept

More Info

Premium Content

Europe Could Drop Natural Gas As A Bridge Fuel

1. There’s No Good Way to Solve US Fuel Shortage

- When Valero (NYSE:VLO) kicked off US refiners’ Q3 earnings call with a $2.82 billion net income, it said margins were boosted by gasoline and diesel demand levels being higher than pre-pandemic levels.

- Despite all the talk of demand destruction taking place amidst still-elevated gasoline prices, stocks continue to falter as the US finally confronts its lack of refining capacity.

- Even though average refinery utilization has been trending at 94-95%, the US supply of petroleum products has been a solid 1 million b/d lower than October 2019 levels, primarily a consequence of lacking capacity.

- All this is increasing the likelihood of a US product exports ban – a measure that could save US consumers some $5 billion and erase $30 billion in earnings from US refiners, according to Wood Mackenzie forecasts.

2. Europe May Drop Natural Gas as Bridge Fuel

- As Europe’s TTF spot natural gas prices have tripled this year from an average of 46 per MWh in 2021 to 134/MWh this year so far, the long-term sustainability of gas demand is called into question.

- According to Rystad, with recent gas prices it would be 10 times more expensive to operate gas-fired power plants in the long term than to build new solar PV capacity in Europe.

- For gas-fired plants to become competitive against renewables by 2030, spot prices would need to fall to at least 17/MWh…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News