Daily Energy Report
Daily Energy Report
Fossil fuels in the global power sector, rising Russian oil prices, coal supplies in India and substitution, slowdown of Saudi economy, declining demand for electric vehicles, and more
Chart of the Day: Why are we bullish on oil and gas?
Summary
Figure (1) above shows the energy mix of the world’s power generation in 2022. It shows that 61% of electricity generated in 2022 came from fossil fuels, mainly coal and natural gas. It also shows that coal remains the dominant energy source in power generation.
EOA’s Main Takeaway
More than $4 trillion has been spent on renewable energy since 2010 worldwide, yet renewable energy generated only 14% of total electricity. Since the share of oil is extremely small in the electricity sector, doubling or tripling renewable energy will have a very limited impact on oil demand. Looking at details, 74% of electricity in India is generated from coal and 61% in China. Reducing the use of coal will also require the use of more gas.
Story of the Day: Russian oil prices are rising
BLOOMBERG: Russian Oil Price at Western Port Creeps Closer to Sanctions Cap
Summary
The price of Russian Urals at the Black Sea port Novorossiysk rose to $57.70/b last Friday, according to Argus Media. This is the highest price since last November, a few days before the sanctions and the price cap were implemented by the G7.