Gas Prices Fall, Tensions Ease
Crude oil prices slipped to their lowest level in months in light of reduced consumption amid high prices and a weakening economy.
According to The Washington Post, the West Texas Intermediate, the grade of crude oil used as a benchmark in oil pricing, fell 55 cents to $97.94 a barrel for June—the lowest level since February. Furthermore, the price of US gasoline is also dropping. At an average of $3.76 per gallon, it's down by about 5 cents from where it was a week ago and 16 cents from where it was a month ago, according to AAA. Still, nine states have gas prices of at least $4 a gallon.
SEE OTHER TOP STORIES IN THE ENERGY DIGITAL CONTENT NETWORK
Though prices remain high, many of the forces that drove them up are reversing. Tensions with Iran have eased and weaker economies have curbed demand. Analysts that predicted gas prices could reach $5 by summer are now saying that is highly unlikely.
That's good news for consumers, the economy and President Barack Obama amid election season. Declining fuel costs provide a form of stimulus as consumers are able to save or consume other goods versus filling up their tanks with that money. According to the EIA, a 10-cent drop in pump prices adds about 0.1 percent to disposable household income.
Analysts warn that the market is still vulnerable to fluctuations should tensions with the Middle East ferment again, threatening supplies of crude oil. However, they are hopeful that prices should remain stable and continue to decline over the next few months.
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.