Energy Links

2179851686_3eae811a2b_o

In it’s May 14 report, the International Energy Agency says that global crude runs remain depressed. OPEC are aware, and adjusted their production accordingly on May 28.

For those who think that fuel prices are coming down, OPEC is ahead of you and will make sure production falls below the drop in demand. Cartels can do that.

Off-shore drilling activity has not abated, credit crisis or not. Rates for deepwater drilling equipment are holding steady.

Here are the US charts for gasoline demand, crude oil supply in storage, and regular gasoline prices:

gas_demandoil_supply

gas_prices

The electric utility industry has flexibility in its use of fuel, and oil represents a diminishing amount of the industry’s fuel, as reported long ago by DOE.

As discussed here previously (search Centerpoint), electric energy use is down in the US, for the first time since Edison and Tesla invented DC generation on Pearl Street in NYC.

Some in the US electric utility industry are worried about their own demand destruction. With California-based businesses imploding because of overtaxation and over-regulation, San Diego’s Pacific Gas and Electric is revisiting an old new-market, electric vehicle charging. When was the last time a regulated US electric utility needed to go out and find customers? With a bit of  cross-marketing, they may succeed.

Photo of Tennessee Valley Authority DC generator, 1942

About these ads

Tags:

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Follow

Get every new post delivered to your Inbox.

Join 34 other followers

%d bloggers like this: