Daily Energy Report
Daily Energy Report
China’s rising crude oil inventories, Piper Alpha platform, China EVs price war, Siemens wind turbine troubles, South Sudan oil production expansion, US rig count, and more
Chart of the Day: China Will Use its SPR as Oil Prices Rise
Summary:
Figure (1) shows China’s crude oil inventories increasing in recent months. The chart does not include crude underground or fixed-top storage.
EOA’s Main Takeaway:
While the data is correct, we committed a “chart crime” starting from 900. The increase will look different if we start from zero. But we decided to publish this chart anyway to show China is building its commercial and strategic inventories and to emphasize the point that China will use its inventories as oil prices rise, exactly as it did in the past. Large use of commercial inventories and strategic reserves leads to lower imports, which prevent prices from increasing or increasing at a high rate.
It's worth noting that some pundits confused higher imports with higher economic activities in China. Higher imports do not mean higher demand when the additional oil goes into storage.
STORY OF THE DAY: The Piper Alpha Platform
ENERGY VOICE: 35th Anniversary of Aberdeen Oil Platform Disaster
Piper Alpha platform on fire. Source: Safty at sea.
Summary:
Dozens of people gathered in Aberdeen on Thursday to pay their respects to the 167 men who lost their lives in the worst disaster the oil/gas sector has ever seen. On July 6, 1988, the Piper Alpha platform in the North Sea exploded and sank. Only 61 of the 226 men on the platform survived. The anniversary was used as a somber remembrance as well as a reminder of the critical importance of following safety protocols.
EOA’s Main Takeaway:
We are publishing this story to commemorate the legacy of those 167 oil men and to remind the world of the dangers and risks of the oil industry and the sacrifices that are made just to keep the world going. People should frequently be reminded that the world wouldn’t exist in any form they would recognize without oil and natural gas. Prior to the use of hydrocarbons, life was brutally difficult, not very safe, not very healthy, and not very long.
Those who are interested in this event may watch this Video.
News of the Day
1- Bloomberg: Agreement in China to End EV Price War
Summary:
Tesla and 15 of China’s EV automakers have agreed to end a price war that has created volatile pricing in the Chinese market. An agreement was signed at the China Auto Forum in Shanghai as each of the 16 companies pledged to follow four points of cooperation having to do with marketing, product quality, and promoting “core socialist values.”
EOA’s Main Takeaway: