America's $4 Billion Wind Retreat Is a Bet on Permanently Cheap Gas
BofA: Hormuz Needs 10 Times More Ships to Stabilize Oil Markets Leon Stille has a background in energy sciences (MSc and BSc) and is pursuing a PhD in energy policy.
He currently runs his own company,… The strangest part of America's latest offshore-wind retreat is not that several projects have been cancelled.
Some were early-stage, expensive and increasingly difficult to permit.
government is paying companies to abandon one energy technology and directing their capital toward another.
Between March and August, the Department of the Interior reached a series of agreements worth approximately $3.9 billion with TotalEnergies, Bluepoint Wind, Golden State Wind, Invenergy, Duke Energy and RWE.
The arrangements differ, and some reimbursements remain conditional on matching investments.
But the basic mechanism is consistent: relinquish offshore-wind leases, invest comparable sums largely in natural gas, LNG or oil, and recover the lease payments from the federal government.
The latest agreement providesRWE with $1.22 billionto resolve claims and surrender leases off New York, California and Louisiana.
RWE is investing $900 million in Louisiana LNG infrastructure and has reserved $300 million of gas turbines for a pipeline of 15 peaking plants.
This is being presented as energy dominance.
In reality, it is an unusually expensive bet that America's future competitiveness can be powered primarily by more of the fuel it already uses most.
This Is Industrial Policy Pointed Backwards The administration argues that the leases were sold under unrealistic assumptions about subsidies, costs and permitting.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment