Restructuring, repositioning and rethinking are now essential for the industry’s survival.
Chemicals and the Economy
Clean energy set to squeeze fossil fuel demand as ‘the electrification of everything’ continues
Portugal is showing the way. Despite 6 months of drought last year, 57% of its electricity came from renewables. And its clean energy focus means it is becoming “one of the cheapest markets in Europe”. CO2 emissions will also have reduced by 75% in 2030 versus 2021.
Renewable electricity growth accelerates, as expansions account for 95% of global power increases through 2026
A new report from the International Energy Agency confirms that electricity is set to be the fuel of the future, powered by renewable sources. And the new German government’s decision to allocate 2% of Germany’s landmass to windfarms confirms the scale of the changes underway. The IEA’s chart above details the expansions now planned on […]
Oil prices start to reconnect with coal and gas
Oil prices are finally starting to reconnect with other fossil fuel prices, as the chart shows. It compares US WTI prices in terms of $/MMBtu value (WTI/5.8), versus US natural gas and coal prices: In January 1990, WTI was $3.94 versus natgas at $2.30 and coal at $1.45 (all $/MMBtu) In January 2000, WTI was […]
Oil market supply/demand finally begins to matter again as commodity funds withdraw
Its been a long time since oil market supply/demand was based on physical barrels rather than financial flows: First there was the subprime period, when the Fed artificially boosted demand and caused Brent to hit $147/bbl Then there was QE, where central banks gave free cash to commodity hedge funds and led Brent to hit […]
OPEC move supports US oil production rise, and smart meters
OPEC is living in the past with its recent announcement of new quotas. The simple fact is that the arrival of US shale production means OPEC are no longer the swing producer, able to control the world market. The quotas will have little effect in themselves, as most of the participants will cheat. Instead, they […]
Scotland launches industrial biotech strategy
Development is clearly hotting up in the industrial biotech area. The key is the increasing demand by consumers for sustainable methods of production. As Antonello Ciotto, commercial director of Equipolymers, told our Conference in Brussels this week, the major brand owners are forcing the pace on this issue: Coca-Cola: “We are working to completely eliminate […]
ExxonMobil expect gas use to rise 60% by 2040
ExxonMobil’s annual energy review is always a fascinating read. This year’s issue looks out to 2040 for the first time. It thus forecasts the relative share of the major fuels over the next 30 years. Interestingly, it also shares the blog’s belief, as set out in our ‘Boom, Gloom and the New Normal‘ eBook, that […]
Shell’s 30-year rule for new energy technology adoption
Shell CEO Peter Voser has made a fascinating speech in China, where he highlights the length of time taken for new energy technologies to gain adoption. He says Shell’s research shows it takes “30 years for new energy types to capture 1% of the market“. And he contrasts this with the electronics industry, where a […]
Volt to use ethanol as well as electricity
The blog has been following the development of GM’s new all-electric car, the Chevrolet Volt, with interest, ever since Pedro Spohr of Galp in Portugal highlighted its potential to impact naphtha balances. Of course, it won’t do this on its own – but GM’s adoption of the technology makes it essential for other manufacturers to […]