Energy

[Foxx]

OPEC just announced that they will be cutting production by 100K bpd. This will reverse the increase announced after Brandon's visit in July. 

 

I'll join you.

 

The G7 sure as hell looks pretty inept these days.

 

[mead107]

I think prices won’t go up much till after the election. The gas will be back up to $5 plus. 
electric bill will be twice what they were last year. 
 

[Foxx]

The printing presses are just getting started.

 

[Foxx]

Where it stops, nobody knows is right. 

 

[Crap Throwing Clavin]

17 hours ago, mead107 said:

I think prices won’t go up much till after the election. The gas will be back up to $5 plus. 
electric bill will be twice what they were last year. 
 

 

"Pain at the pump" has been the Democrats' stated goal for years.  Don't know why people are surprised.

[Keukasmallie]

 

[Foxx]

An interesting article from Bloomberg.

 

Energy Trading Stressed by Margin Calls of $1.5 Trillion

Quote

European energy trading is being strained by margin calls of at least $1.5 trillion, putting pressure on governments to provide more liquidity buffers, according to Norway’s Equinor ASA.

 

Aside from fanning inflation, the biggest energy crisis in decades is sucking up capital to guarantee trades amid wild price swings. That’s pushing European Union officials to intervene to prevent energy markets from stalling, while governments across the region are stepping in to backstop struggling utilities. Finland has warned of a “Lehman Brothers” moment, with power companies facing sudden cash shortages. 

 

“Liquidity support is going to be needed,” Helge Haugane, Equinor’s senior vice president for gas and power, said in an interview. The issue is focused on derivatives trading, while the physical market is functioning, he said, adding that the energy company’s estimate for $1.5 trillion to prop up so-called paper trading is “conservative.”

 

Many companies are finding it increasingly difficult to manage margin calls, an exchange requirement for extra collateral to guarantee trading positions when prices rise. That’s forcing utilities to secure multi-billion euro credit lines, while rising interest rates add to costs.

 

 

“This is just capital that is dead and tied up in margin calls,” Haugane said in an interview at the Gastech conference in Milan. “If the companies need to put up that much money, that means liquidity in the market dries up and this is not good for this part of the gas markets.”  

 

So far Germany has introduced Europe’s biggest scheme to backstop companies affected by the fallout of the war in Ukraine, setting aside 7 billion euros in loans to be made available to companies facing liquidity issues. German energy giant Uniper SE last week sought an extra 4 billion euros after fully using a 9 billion-euro existing facility, while Austria extended a 2 billion-euro credit to cover the trading positions of Vienna’s municipal power utility.

 

Finland and Sweden announced a $33 billion emergency liquidity facility Sunday to backstop utilities through loans and credit guarantees.

 

EU plans to intervene would be “sensible” for derivatives trading, Haugane said. Among the emergency interventions being discussed by the EU are price caps in power and gas markets. For Equinor, price caps in electricity could make sense, because power markets are more localized.  ...

 

[Ann]

Oh boy
 

 

[Foxx]

19 minutes ago, Ann said:

Oh boy
 

 

They're doing something terribly wrong alright but.. I would venture to say that waiting to ban gas powered vehicles before you have a proven replacement is right at the top of the list. Along with all the other things they haven't properly thought out.

[Nouseforaname]

1 hour ago, Foxx said:

They're doing something terribly wrong alright but.. I would venture to say that waiting to ban gas powered vehicles before you have a proven replacement is right at the top of the list. Along with all the other things they haven't properly thought out.

I would say that by then electric vehicles will be a proven replacement though I’m not for banning gasoline cars outright by then.

 

I’ve been on the market for one myself as a second car. 

[Cinga]

On 9/5/2022 at 4:48 PM, mead107 said:

I think prices won’t go up much till after the election. The gas will be back up to $5 plus. 
electric bill will be twice what they were last year. 
 

 

Probably October which is pretty normal as demand for heating oil and gas ramps up for the winter months.

On 9/6/2022 at 10:18 AM, Crap Throwing Clavin said:

 

"Pain at the pump" has been the Democrats' stated goal for years.  Don't know why people are surprised.

 

Yup, the Biden mantra of solar panels and electric vehicles will ramp up right along with energy prices in October

[Ann]

He's not wrong
 

 

[Foxx]

7 minutes ago, Ann said:

He's not wrong
 

 

15 days to flatten the curve.

amiright??

[Ann]

5 minutes ago, Foxx said:

15 days to flatten the curve.

amiright??

Extended through April 15th

[Foxx]

Idiocy

 

[Koko]

8 minutes ago, Foxx said:

Idiocy

 

 

[devnull]

I wonder how much power California is going to have to divert to SoFi for tonight's NFL season opener extravaganza.

 

How many Californians will be sitting in the dark for the greater good?

[Nouseforaname]

9 hours ago, Foxx said:

15 days to flatten the curve.

amiright??

An anecdote but Europeans I’ve known generally have always been careful about how much energy they use so this might not be a big change for them.  
 

I went to stay with family in the south of Italy in winter a few years back and I remember being surprised how everyone slept with heavy clothes because heating was very expensive.

[Foxx]

Buckle up!

or is that, pucker up...

 

[Nouseforaname]

6 minutes ago, Foxx said:

Buckle up!

or is that, pucker up...

 

Thanks Russia.