Crude Oil Bullish, Gasoline Declining Post-Sandy
Crude oil is bullish today after Atlantic Superstorm Sandy has dissipated from the Northeastern United States. Many refineries have restored operations (some at reduced rates) after closing while the storm struck, according to Bloomberg. The New York Mercantile Exchange (NYMEX) opened Oct. 31 to a 1.6 percent increase in crude oil for December. The NYMEX was closed during the storm along with most businesses and transportation services in New York City, NY. This increase may also be helped by the news of a fire at BP PIc's Texas refinery.
Two-thirds of refineries in the region affected by Sandy were closed on Monday, Oct. 29, and/or Tuesday, Oct. 30, according to Reuter's. BP CEO Bob Dudley predicted in an interview with CNBC yesterday that the crude market would recover quickly, due to an efficient distribution system, although he expects a slowdown in refining and distribution for a while. The average price for regular unleaded gasoline today is down to $3.521 from $3.534, according to AAA.
Read More in Energy Digital:
The increase in crude demand means the start of depletion for the U.S. crude oil stockpiles, which rose 2.1 million barrels to 371.7 million barrels according to the American Petroleum Institute, while gasoline supplies (which were halted without the utilization of crude oil) declined. However, a Bloomberg survey of analysts predicts stockpiles fell 500,000 barrels and crude supplies increased by 1.75 million barrels.
The U.S. Energy Department is expected to release its inventory report (previously scheduled to release today) tomorrow, says spokesman Jonathan Cogan, which should give some more exact numbers to the status of the oil and gasoline industry post-Sandy.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.