Brent falls

300 Stanford professors call on university to divest from oil and gas, as well as coal. They speak of teaching about a bright future whilst investing in its destruction.
“As oil prices fall, banks serving the energy industry brace for a jolt.” Among the hardest hit are likely to be Wells Fargo and Citi.
At least one major oil company will turn its back on fossil fuels, says scientist.” Jeremy Leggett bases warning on high cost of production plus climate policy.
US oil drillers idle most rigs since 1991 in clearest signal yet of retreat. 35 horizontal rigs were idled last week alone: “This is the end of the boom.”
Investment in renewables hit record high in 2014: up 16% to $310bn, 29% in China. c.100 GW of solar and wind built, c. half of each, up from 74 GW in 2013.
Much lending to shale done by “people who believed they were taking little risk.” Investors learned nothing from subprime mortgage securitisation, says John Dizard.
Oil companies seek supertankers to store and later trade 20 million barrels of oil. Traders stored as much as 100 mb in 2009.
Oil price plunge could harm prospects of carbon-emissions limitation: HSBC. Meaning less capital for low-carbon investment. So says head of HSBC’s climate-change centre.
Oil’s drop is so sentiment-driven that investors should avoid it, say banks. As Brent drops <$50, traders are ignoring supply disruptions that would normally lift price.
Low oil price = “potential, if not inevitability, for supply shortfalls in the future”. Andrew Hall warns long lead times mean cancelled projects cannot be reinstated quickly.
Record renewables generation, almost 26%, and falling coal in Germany in 2014. Renewables > lignite for the first time, and will reach 80% in 2041 at current rate.
Oil price drags down stock prices due to fears over cancelled capex: BoA. S&P 500 benchmark is down, at a time when consumers should be enjoying a bonus.
Reserves that can’t be burned to hit 2˚C: 82% of coal, 49% of gas, 33% of oil. Cost-curves in UCL study places out of bounds Arctic oil, most tar sands, much shale.
Kepler Cheuvreux expects US shale production to stall in H2 2015. With Brent at $50.3, drillers are increasingly signalling sharply lower capex this year. (no url).
Advocacy groups sue EPA for public access to toxic chemicals used in US fracking. Lawsuit filed by the Environmental Integrity Project in a Washington federal court.
UK Labour party seeks ban on fracking on the 15% of land area feeding aquifers. They are seeking an amendment to the government’s catch-all Infrastructure Bill.
Denmark hits 39% of annual electricity from wind: 4th consecutive annual record. Increase from 32.7% is partly due to new installations, partly increased efficiency.
2014 confirmed as UK’s hottest year since records began. Also the fourth wettest, says the Met Office.
Outrage in Brussels at UK lobbying to weaken 40% emissions-cut agreement. A draft plan authored with Czech Republic proposes “light touch” oversight.
£1.7bn UK loan to foreign oil & gas projects despite pledge to withdraw. UK Export Credit Finance deals, including with Petrobras, fly in face of Coalition Agreement.
White House says President Obama would veto tar sands pipeline. If Congress passes a bill approving Keystone XL, he won’t sign it.
China carbon trading set to more than double in 2015. All 7 regional market pilots will be up and running this year. 24 mt CO2e were traded in 2014.
First oil company goes bankrupt in the shale, unable to raise more cash. WTH Energy, a small Texan driller. Analysts warn there will be others.
Decline in number of US oil rigs fails to halt Brent’s fall to just short of $50. Baker Hughes data show 1,482 rigs, down from record high of 1,609 mid October.
The bear market in oil is “polluting non-energy stocks”. Too many companies have made investments on the premise that oil will always be expensive.
Half California’s electricity from renewables by 2030, Governor pledges. He will use his fourth term to drive most ambitious green energy plan anywhere.
Investors opinions differ on carbon-fuel divestment v. engagement. Both approaches are needed, says Carbon Tracker CEO Anthony Hobley.
E.ON’s U-turn, “as surprising as it was revolutionary”. “We are the first to draw this conclusion,” CEO says, clearly infering others will follow.