Energy Headlines Versus Trendlines

The most recent data released by the U.S. Energy Information Administration for 2019 highlight a worrying reality: the United States is no longer reducing emissions. CO2 emissions fell in 2019, but they’re still higher than they were in 2017—and remain unchanged versus 2016.

As the world’s largest oil and gas producer, the United States will suffer from lower oil prices. However, not all hydrocarbon-producing states will suffer the same, as shown by the last major oil price decline.

When oil prices collapse, as they have today, there is a rush to understand how low oil prices will affect hydrocarbon producers. The “fiscal breakeven” price is a useful single-point metric, but it can also obscure the broader context of where an economy stands.

Last week, the United Arab Emirates (UAE) moved a step closer to becoming the first Arab country to host a nuclear power project. Unit 1 of the Barakah nuclear power plant received a long-awaited operating license.

This week, the International Energy Agency (IEA) released its update on energy-related CO2 emissions for 2019. 

There is a tendency to cheer the role that gas has played in reducing coal use, but that might oversimplify the forces at play. Gas is playing a role in reducing coal consumption in Europe, but that role is neither simple nor straightforward.

Over the past decade, the market for liquefied natural gas (LNG) has expanded dramatically: over 20 countries started to import LNG after 2008, opening far and wide a market hitherto limited to a small number of big importers.

This week, the United States and China signed a so-called “phase one” trade deal to stop the escalation of tariffs that has precipitated since the start of the trade war in 2017.

Headlines of new coal capacity in China ignore the challenge of addressing carbon emissions already locked in by existing Chinese coal infrastructure.