According to US Energy Information Administration estimates, US crude oil  production broke through 10 million barrels per day last week and is on its way toward setting an all-time US production record.

Investment banker Goldman Sachs sees crude oil prices reaching $80 a barrel in the next six months while others are talking about prices exceeding $100 a barrel again.

OPEC and Russia reaffirmed last week that they’d continue with crude oil production cuts until the end of this year and signaled their readiness to cooperate beyond that. The Russians say producers should keep limits on output through 2018 as the market may re-balance at the end of the year or in 2019.

The future path of crude oil prices has much to do with how well US shale oil production does in the next few years. In the long run – 20 or 30 years – some observers believe that the world is still using more oil than it is finding so that someday shortages will develop along with significantly higher prices.

For the first time in history, Russia’s Gazprom’s supplied 40% of Europe’s natural gas consumption.

The Southern Gas Corridor, connecting Azerbaijan to Europe, is one of the most important infrastructure pipeline projects worldwide, bringing Caspian Sea gas in Central Asia into Europe. Europe wants to become less dependent on Russian natural gas. The Southern Gas Corridor is around 80% completed, with the first gas flow for Europe expected around 2020.

Fuel theft, largely by drug gangs, deprives Mexico of more than $1 billion in state revenues every year.

France announced it will shut down its few coal-fired electric power stations by 2021.

Coal supplied 80% of India’s total electric power mix in 2017, but economics have flipped the country’s energy equation. New renewable energy is now cheaper to build than running most existing coal-fired power plants. New wind and solar is now 20% cheaper than existing coal-fired generation’s average wholesale power price in the South Asian country. Currently, at least 65% of India’s coal power generation is being sold to distribution utilities at rates higher than the cost of new solar and wind.  India’s Central Electricity Authority proposes closing nearly 50 gigawatts of coal capacity by 2027. The country’s National Electricity Plan calls for rising demand to be met with 275 gigawatts of renewable energy capacity by 2027. See India Coal Power Is About To Crash.

The American Wind Energy Association reported the US installed 7 gigawatts of new wind capacity in 2017, bringing the country’s total to 89 gigawatts. The Association noted that there had been a 66% reduction in wind costs in the US since 2009. The year, for the first time, the US Energy Information Administration expects wind to generate more than hydroelectricity.

 

 

 

 

 

 

 

with h/t Tom Whipple

 

 

 

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