海角大神

Recharge is a weekly e-mail digest of energy news and analysis聽written by Monitor reporters David J. Unger and Jared Gilmour.

Force majeure:聽鈥淭heft, looting, sabotage, and destruction鈥� rendered 11 Libyan oil fields nonoperational聽Wednesday, according to the country鈥檚 national oil company. Africa鈥檚 largest oil reserves are caught in the crossfire as a branch of the Islamic State further destabilizes an already chaotic post-Qaddafi Libya. Meanwhile in Iraq,IS has reportedly set fire to oil fields as Iraqi troops attempt to retake Tikrit. These growing threats to major producers counteract聽an oversupplied oil market聽otherwise destined for another price dip.

Zasyadko: Wednesday鈥檚 explosion at the Zasyadko coal mine in eastern Ukraine doesn鈥檛 appear to be directly linked to fighting in the region, but it鈥檚 clear聽the conflict has taken its toll on the region鈥檚 coal industry聽鈥� a vital fuel source in a country grasping for some kind of energy security. The tragedy overshadowed聽slight progress in averting a shut-off of Russian natural gas supplies this week. The real challenge will come as Kiev, Moscow, and Brussels sit down to negotiate what happens after the current, temporary gas deal expires at the end of this month.

111(d): In Washington,聽a new Republican-led Congress put on a full-court press this week against the Obama administration鈥檚 plans for a leaner, cleaner energy sector. In a slew of hearings on Capitol Hill, GOP lawmakers took aim at聽the EPA鈥檚 Clean Power Plan, saying the ambitious carbon rules threaten jobs and grid reliability. Obama鈥檚 energy policy has generally favored renewables growth and emissions reductions over recent years. Now, Republicans and some Democrats are looking to place the booming oil and gas sector at the center of the country鈥檚 energy future.

In the pipeline

• Monday, March 9: WASHINGTON 鈥撀燛uropean Council President Donald Tusk meets with President Obama at the White House. Scheduled topics聽include Ukraine, the Transatlantic Trade and Investment Partnership, and climate change. Mr. Tusk has led efforts to create an Energy Union to counter Russian dominance of energy markets.
• Wednesday, March 11 to Thursday, March 12: MEXICO CITY 鈥撀燛nergy officials and executives convene for the Shale World Mexico 2015 conference. The country recently opened up its energy industry to foreign investors, hoping to revive a flagging oil and gas giant.
• Thursday, March 12: WASHINGTON 鈥撀燬ecretary of State John Kerry visits the Atlantic Council to speak about US efforts to curb emissions ahead of December鈥檚 climate talks in Paris. Mr. Kerry has been vocal about the threat of climate change, and is working to drum up support for a meaningful global agreement in Paris.

Drill deeper

The EU's other 'Union': Can energy unite Europe?
[The German Marshall Fund via 海角大神]
鈥淔or the Energy Union to work, Brussels needs to quickly convince member states to support a durable European solution to their energy challenges, even if it means putting up with the bureaucracy inherent to EU decision-making,鈥� writes Kristine Berzina of The German Marshall Fund. 鈥淔raming the Energy Union in terms of 鈥榯rue solidarity and trust鈥� is not enough. Brussels needs to show concrete benefits.鈥�

Why $100 Oil Won't Be Coming Back for a Long Time聽[Bloomberg]
It was supposed to be shale鈥檚 weakness: Wells produce a quick burst of oil after drilling, followed by a drop off in output. But in a low price environment that weakness has become a strength, and analysts say the 鈥渘imble鈥� nature of low-investment, quick-return shale makes it the swing producer. Oil prices could stay low 鈥� between $50 and $75 a barrel 鈥� for several years, analysts say, and shale will be the force that pushes prices down when they rise.

Japan鈥檚 Growth in Solar Power Falters as Utilities Balk
[The New York Times]
Post-Fukushima, Japan turned away from nuclear and looked to the sun for clean power. But electric utilities there are skeptical they can manage the glut of solar power Japanese entrepreneurs hope to put on the grid. The country鈥檚 quest for a new clean energy source might hinge on how committed Prime Minister Shinzo聽Abe is to making solar competitive with the fossil fuels, which have picked up the slack for Japan鈥檚 50 closed reactors.

Energy sources

• Chinese Prime Minister Li Keqiang via Reuters: "We will strive for zero-growth in the consumption of coal in key areas of the country ... Environmental pollution is a blight on people's quality of life and a trouble that weighs on their hearts."
• UK Energy Minister Matthew Hancock: "Together with Mexico鈥檚 energy ambitions and the UK鈥檚 wealth of experience and expertise, now more than ever there are unparalleled opportunities for partnership across business and education."
• European Commission: "The EU and its Member States are committed to a binding target of an at least 40% domestic reduction in greenhouse gas emissions by 2030 compared to 1990, to be fulfilled jointly ..."

Unplug

Government investment in energy RD&D as percent of GDP, 2013
(from AEIC鈥檚聽鈥淩estoring American Energy Innovation Leadership鈥�)

Recharge is a weekly email digest of energy news and analysis聽written by Monitor reporters David J. Unger and Jared Gilmour.