Don't need to post this every week but according to oil driller Baker Hughes, the number of US oil rigs in use fell by 4 last week to 328. This is the seventh straight week of declining rigs and lowest oil rig total since October 2009. Combined oil and gas rigs fell by 5 this week to 415, a new record low since this series began in 1947.
That sucks. I just checked. The 1 year electric contract I signed in May'13 was 6.1c/kwh for energy. The 1 year electric contract I signed in May'14 was 7.4c/kwh for energy. The 2 year electric contract I signed in May'15 was 5.9c/kwh. If I wanted to renew to today 1 year contracts are 5.8c and 2 year contracts 5.9c. (all same provider). So depending on your reference point my electricity is down approximately 5% (vs'13) or 20% (vs'14). Add into that programmable thermostats and my electric bills are down significantly.
But when you consider that Henry Hub averaged $3.73 in 2013 and $4.37 in 2014, while the current 12 month strip is only about $2.67, I agree that at first glance you would expect it to be significantly lower than it is.
Is your implication that the other party would have 'invented' a different alternative energy solution or are you just expressing your politics?
The ethanol mandate is ludicrous. The green/electric cars push in the US comes down to two things cheaper & cleaner. Electric cars are both significantly cheaper than gas cars, even with the new lower oil prices and cleaner given both the increased efficiency and the cleanliness of NG generation vs a combustion engines.
Getting a little off topic here, but relates heavily to the coal chart posted yesterday and @WilleeMac's points regarding the inefficiencies of the electric markets. The following is an article about Dynergy's decision to close 3 coal fired power plants in IL and the ripple effect it has on the local community. It also discuss's a little how the deregulated electricity & capacity markets have made these plants uneconomical.
Maybe I'm reading this wrong but it seems like suppressed oil is a bigger problem to the Saudis as they lead on. How are they going to pay for the Vision 2030 program (authored by the new minister) if no one will lend to them in 5 years. Ironically, it seems they need oil $60+ to cover the deficit and to be able to pay for this bullshit program.
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