Daily Energy Report
Crude Oil Futures for May 2020 settled unchanged $0.00 @ $19.87/bbl trading in a $.98 range including the overnight-RBOB settled down 1.53/cpg and Heating Oil settled up 3.25/cpg.
The Trump administration is considering paying domestic oil producers to leave crude in the ground to help alleviate the curr ent growing glut. The Energy Department has drafted a plan to compensate companies for sitting on as much as 365 million barrels worth of reserves by effectively making that untapped crude part of the U.S. government’s emergency stockpile. Federal law already gives the Energy Department authority to set aside as much as 1 billion barrels of oil for emergencies — without dictating where they should go. In this case, the government would essentially buy the oil locked underground but ask producers to hold off on extracting or delivering it.
Natural Gas Futures for May 2020 settled up $0.088 @ $1.686/mmbtu trading in a .164 cent range including the overnight session.
As many of the coal fired power plants in New England and New York have either been retired or switched fuels, the regions ’ coal fired electricity generation and coal consumption have fallen to minimal levels. Additional closures in the coming months will further reduce coal consumption in these regions. In 2007, when coal-fired electricity generation peaked in the United States, coal accounted for 15% of the electricity generated in both New England and New York. Once final data for 2019 is available, the U.S. Energy Information Administration expects coal’s share of generation will be less than 1% in each region. Thursday morning’s weekly EIA data showed a build of +73 bcf for the week.