US shale producers are showing a willingness to abandon growth ambitions in favor of improving cash flow and returns on capital, but this shift is not guaranteed, writes Liam Denning. The increasing backlog of drilled-but-uncompleted shale wells could provide investors with a signal as to growth in oil production and what oil prices will look like next year, he writes.
The emergence of the US as an exporter of liquefied natural gas could affect energy markets the world over, as the number of countries importing LNG has more than tripled since 2005. "In the near term, gas will replace coal, in the medium term it will partner with renewables, and in the long term it will take care of those parts of energy demand that cannot be electrified," said Maarten Wetselaar of Royal Dutch Shell.
Elevated construction costs and difficulty in securing long-term supply contracts could hurt the availability of credit for developers of US liquefied natural gas export terminals, according to S&P Global Ratings.
As the PennEast Pipeline awaits federal approval, project manager Tony Cox says the pipeline could help Pennsylvania and New Jersey consumers save hundreds of millions of dollars on electricity and natural gas.
Canadian oil sands operators are abandoning expansion plans and shifting to smaller projects because of high costs associated with new thermal projects, which have a break-even point of about $60 per barrel.
The world's total grid-connected installed wind capacity surpassed 500 gigawatts in 2017, according to Windpower Intelligence. The report said North America accounted for 98.6 GW of that amount.
Federal wind energy tax incentives continue to encourage wind development in Oklahoma despite a lack of state support mechanisms, says Adam Wilmoth, energy editor at The Oklahoman. The American Wind Energy Association said Oklahoma should add more than 1,600 megawatts of installed wind capacity in 2017, not counting the Public Service Co. of Oklahoma's Wind Catcher project.
Increasing Delaware's Renewable Portfolio Standard and creating a carve-out for offshore wind are two possible ways the state's Offshore Wind Working Group may suggest jump-starting Delaware's offshore wind industry, says MAKE Consulting's Anthony Logan. The group is expected to make recommendations by Dec. 15.
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