Moving into high summer, US energy markets were taking stock of trends in power generation amid low gas prices. The US Henry Hub gas benchmark recently traded at historic lows, and with forward prices suggesting little upside, the fuel is likely to see increased demand from power plants this summer. According to S&P Global Platts Analytics, even average seasonal temperatures in July and August could lift demand for power burn as much as 2-3 Bcf/d over last summer, assuming gas prices remain near current lows. Meanwhile, US coal burn continues to decline, falling to a 47-year low in April, according to the IEA. Several analysts expect the share of coal-fired generation to shrink dramatically in the coming decades. Bloomberg New Energy Finance forecast earlier this month that coal would practically disappear from the US power mix by 2050. S&P Global Platts Analytics’ forecasts show average monthly coal output falling to less than 6% in 2040 from about 29% in 2018. European energy sector stakeholders had their eye on opportunities generated by the accelerating global energy transition. Delegates at a June 25 UK event on offshore wind heard how European energy companies are leveraging their skills and expertise to pursue wind… continue reading
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Source: CTRM Center