July 22, 2016: Energy Matters: Conventional

Courtesy of American Energy Society and Eric Vettel.

Petroleum

- It's been a while, but it appears as if the global oil market is almost balanced. Production is slowing while demand is rising. AES Premium Members have access to the IEA report

- On the supply side, some Saudi Arabian and other Middle Eastern producers are now pumping oil for less than $10 a barrel. On the demand side, India is the "world’s growth leader of oil consumption" - up 8.3 percent from the same period last year. (Note: China's demand is rising at the second fastest rate, 3.3 percent.) 

Natural Gas

- Natural gas generates about 34% of all electricity in the US; coal has a 30% share; nuclear and renewables come in at 19% and 15%, respectively. After 2016, renewables will have an increasingly larger role in the energy mix, while natural gas generation will shrink due in part to rising prices of NG. AES Premium Members have access to the early release of the EIA Energy Outlook 2016.

Coal

- There are about 13,000 coal mines in operation in the US. The US Mine Safety and Health Administration did not identify any mines for a "pattern of violations" in 2015 ... the first time there were no citations issued in a very long time. 

 - Korea is building a series of new coal-fired power plants.

Nuclear

- South Carolina Electric & Gas Co. is asking state regulators for $852 million more to complete the VC Summer 2 and 3 nuclear units (making it a $14 billion project). The primary reason for the request is that management decided to replace the contractor of the project.