• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 5 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 30 mins The Tony Seba report
  • 12 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 21 hours Oil prices going Up? NO!
  • 8 hours Kenya Eyes 200+ Oil Wells
  • 8 hours Are Electric Vehicles Really Better For The Environment?
  • 2 hours LNG Shortage on the Way
  • 17 hours Saudi Arabia turns to solar
  • 2 days Could oil demand collapse rapidly? Yup, sure could.
  • 1 day Oil prices going down
  • 1 day China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 8 hours OPEC soap opera daily update
  • 2 mins Sell out now or hold on?
  • 5 hours Could Venezuela become a net oil importer?
  • 2 days Tesla Closing a Dozen Solar Facilities in Nine States
  • 2 days Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
Global Energy Advisory – 22nd June 2018

Global Energy Advisory – 22nd June 2018

Bottlenecks in the Permian are…

Uncertainty Looms Large Over Latin American Oil

Uncertainty Looms Large Over Latin American Oil

While Venezuela is grabbing a…

European Companies Move to the US to Avoid High Energy Prices

European industry officials and domestic consumers alike are upset with the high energy costs across the continent, even causing some to question the clean energy initiatives. Over the past few years Europe has spent tens of billions in its efforts to reduce carbon emissions; most of which has gone into clean energy sources such as wind and solar.

Fabien Roques, the head of the European power and carbon division at the energy consultancy firm IHS CERA, stated: “we embarked on a big transition to a low-carbon economy without taking into account the cost and without factoring in the competitive impact. I think there will be a critical review of some of these policies in the next few years.”

Many companies working in energy intensive industries, such as chemicals or steel, are either closing their plants down or looking to also invest in the US where energy prices are far lower.

Related Article: Oil Sands Crude Crashes Through $60 a Barrel

The New York Times reported that, “Voestalpine, an Austrian maker of high-quality steel for the auto industry, announced that it would build a plant in North America that would employ natural gas to reduce iron ore to a kind of raw iron that would then be used in the company's European blast furnaces.”

BASF, the German chemical company, has said that it will build a new plant in Louisiana in order to take advantage of the lower energy costs and remain competitive.

Harald Schwager, a member of the executive board at BASF, said: “we Europeans are currently paying up to four or five times more for natural gas than the Americans. Energy efficiency alone will not allow us to compensate for this. Of course, that means increased competition for all the European manufacturing sites.”

Europe’s expansion into low carbon sources of energy will enable it to meet its greenhouse gas targets for 2020, but at the same time it may be having a negative effect on the future economy.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News