The new paradox in the energy market
Plus, young activists demand that hard action follows the words at COP26
Two things to start:
- European gas prices are on the up again as Russia shows no sign of increasing its exports to the region.
- The SEC charged the United States Oil Fund, the exchange traded product at the centre of last year’s sub-zero oil market meltdown, and its partner United States Commodity Funds, for “misleading statements” made during the crisis. The funds agreed to pay $2.5m to settle the case.
Welcome back to Energy Source. It’s another busy week.
The COP26 climate summit in Glasgow is entering its final stretch.
Last week saw great fanfare over a flurry of big multilateral pacts on deforestation, climate finance, methane and coal. But those hoping for a watershed moment have so far been disappointed.
The first announcement lacked enforcement details. The second remains shy of its $100bn target. The third omitted the biggest culprits. And the failure of the US to sign up to the fourth was a big blow to its credibility.
Another deal in the works to end global vehicle emissions by 2040 has faced pushback from the world’s biggest carmakers.
Still, US climate envoy John Kerry remained upbeat, insisting over the weekend that “genuine progress” was being made.
“I have never in the first few days of any of the COPs I’ve been to counted as many initiatives and as much real money being put on the table,” he said.
Meanwhile, back in Washington, Congress has finally passed the president’s $1.2bn bipartisan infrastructure bill. On the energy and climate front it includes big infusions of cash for the grid, electric vehicles, well-plugging and R&D in areas such as carbon capture and hydrogen.
But the reconciliation bill still being bashed out in Congress will be a much bigger deal for climate — even if it has been significantly diluted from its original iteration. Passage is expected this week — but we are not holding our breath.
We’re also braced for a potential release of oil from the US strategic petroleum reserve this week as the Biden administration scrambles to respond to Americans’ ire over high petrol prices — having been rebuffed in its outreach to Opec.
In our first item today, Derek Brower writes about the new paradox in global energy markets, where the countries that are pledging to burn less of the fossil fuels causing climate change are now doing their utmost to secure new supplies of those same fossil fuels.
Amanda Chu looks at the growing impatience among activists and young people at COP26.
And in a double-bill Data Drill we look at the disparity between rich and poor when it comes to global emissions and break out the latest numbers on soaring EV sales.