OPEC may Raise Crude Supply Next Week
The Organization of Oil Producing Countries—More commonly known by the acronym “OPEC”—is deliberating on whether or not to increase oil supply to the global market in an effort to bring price down. The move would be the first time OPEC has increased supply since 2007, and would be an effort to aid struggling economies worldwide as oil price hikes have crippled growth.
OPEC pumps more than one-third of the world’s crude oil supply and may up available supply by as much as 1.5 million barrels per day (bpd). OPEC Ministers are scheduled to meet on June 8 to formally decide on what measures to take.
"There is a need for an increase to replace the loss from Libya," the delegates said. "Oil prices are too high. $100 oil is scaring people." Delegates stated that a rise of 1 million barrels per day is the likely outcome of the meeting. “That would be calming for prices,” delegates added.
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OPEC already upped supply by 1.4 million bpd in May to 26.23 million bpd. Original targets for May were only intended to be 24.84 million bpd.
Since Saudi Arabia holds the majority of OPEC’s spare supply capacity, the burden of boosting supply would fall unto it. Other OPEC nations, such as Iran, Venezuela and Libya would likely not increase supply according to OPEC insiders.
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.