Libya Increases Oil Production; Market Fluctuates
The speculation that Libyan oil production would increase sent the crude oil market into a mild fluctuation. But in a press conference Aug. 5 in Tripoli, Libyan Oil Minister Abdulbari Al-Arusi stated that the country has increased oil production and will keep increasing production further.
According to Al-Arusi, the oil fields are producing 700,000 barrels per day, which is still below normal, and he expects them to be producing 800,000 by the end of the week. Also, an oil port in the North African country reopened after protesters shut it down last week.
The crude oil market dropped $1 after hearing that Libya would increase oil production. Gasoline fell to the lowest level in almost four weeks on speculation that refinery restarts will increase supplies and as crude weakened.
According to Bloomberg.com, gasoline for September delivery declined 5.08 cents, or 1.7 percent, to $2.9439 a gallon at 9:48 a.m. on the New York Mercantile Exchange after touching $2.9403, the lowest intraday level since July 9. Trading volume was 12 percent above the 100-day average.
Pump prices, averaged nationwide, slipped 0.3 cent to $3.614 a gallon, Heathrow, Florida-based AAA said on its website. Prices are 0.4 cent higher than a year ago.
Ultra-low-sulfur diesel for September delivery sank 4.41 cents, or 1.4 percent, to $3.0273 a gallon on trading volume that was 12 percent below the 100-day average.
The WSJ reports that the International Energy Agency cautioned that about 500,000 barrels a day of supply would be at risk of disruption in 2014 because of geopolitical and technical risks--roughly the equivalent of the expected increase in U.S. production that year.
According to the International Energy Agency, in addition to the disruptions in Libya, oil theft in Nigeria, and pipeline sabotage in Iraq have dented production in these countries. There have also been fears South Sudan may scale down oil flow through Sudan again amid a pricing dispute.
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.