Dealmaking activity in the US exploration and production sector took a hit as oil prices plummeted, with only $770 million worth of deals struck in the first quarter of 2020, or about 10% of the average quarterly activity in the past decade, according to Enverus. "As painful as the downturn is, this may finally push the industry into healthy consolidation that leaves us with larger, more efficient, and better capitalized operators when the recovery starts," said Enverus analyst Andrew Dittmar.
The Offshore Technology Conference, which attracts tens of thousands of participants to Houston each year, will no longer take place in 2020 due to the coronavirus pandemic. Organizers initially planned to reschedule the event for August or September instead of May.
Cheniere Energy is asking the Federal Energy Regulatory Commission for permission to place into service its roughly 1.4-billion-cubic-foot-per-day Midcontinent Supply Header Interstate Pipeline by April 17. The pipeline stretches from Oklahoma's Anadarko Basin to the US Gulf Coast, where Cheniere has two liquefied natural gas export facilities.
The Energy Department on Thursday unveiled plans to lease an initial 30 million barrels of storage in the Strategic Petroleum Reserve to US oil producers, with potential to free an additional 47 million barrels of space. "Filling the SPR with crude oil, produced by American companies that are facing catastrophic losses and increased financial hardship, is a logical action for the federal government to take as we work to overcome the economic disruptions caused by COVID-19 and intentional, global oil market disruptions," said Energy Secretary Dan Brouillette.
The Oklahoma Energy Producers Alliance wrote a letter this week asking the Oklahoma Corporation Commission to implement production cuts in response to price weakness and "stop authorizing, permitting and approving the drilling of wells which result in 'economic waste.' "
Congress can ensure the next stimulus is a vehicle for job creation, economic recovery and clean energy growth by including an Energy Jobs Coalition in the package, writes former Energy Secretary Ernest Moniz. Moniz details provisions to include in the EJC, including modernizing the country's grid infrastructure, financing opportunities for renewables and other programs that encourage decarbonization.
Officials from thirteen states and districts with goals to completely divest from carbon have formed the 100% Clean Energy Collaborative, with plans to hold their first meeting by phone later this month. The coalition will focus on what states have to do to meet their respective goals and identify areas for collaboration, says Warren Leon of the Clean Energy States Alliance, the coalition's facilitator.
Technological advances and transmission infrastructure have brought down the levelized cost of energy from offshore wind Europe over time, and the US could see the same trend if the industry continues to embrace larger turbines and overcomes challenges in land-based and subsea cable infrastructure, write Aneesh Prabhu and Luisina Berberian of S&P Global Ratings. "The benefits are twofold for offshore wind: Larger turbines will generate more electricity per unit, and fewer turbines will need to be installed and serviced," they write.
Northland Power has finished building the 252-megawatt Deutsche Bucht project off the coast of Germany. It's the third offshore wind farm the company has completed, says President and CEO Mike Crawley.
RWE has made a final investment decision to move forward with the 342-megawatt Kaskasi offshore wind farm in Germany, which will feature Siemens Gamesa turbines and is expected to come online in 2022. "Our investment in this project underlines our ambitions to further grow in offshore wind in Europe and around the globe," says executive Christoph Radke.
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