Wood Mackenzie

Drivers for NOC investment have never been stronger – but will it happen? Join our webinar on 31 July as we delve into NOCs around the globe and why they should return to international business development. Our experts will also discuss hot topics in exploration and M&A activity, giving you pivotal insight and analysis to stay informed. Register now to secure your place at our webinar: https://okt.to/rPqDk2

The #Biomethane/#RNG industry has been increasingly attracting investments and some governments are counting on biomethane to help with sustainability, energy security and affordability issues. But the industry is still struggling to scale up and is facing a range of uncertainties – technological, regulatory as well as commercial. To help our clients navigate the rapidly evolving industry and take advantage of opportunities it offers, we have created a new cross-regional offering. Find out more: https://okt.to/O5xHrh

The European Commission has announced plans to implement tough new import tariffs for Chinese electric vehicle (EV) producers. The intention is to incentivise and support the scaling up of #EV manufacture within the European Union. But with the transition to electric vehicles showing signs of stalling, could these new measures misfire? We explore the key implications of these new tariffs: https://okt.to/CaFoRw

🌟 Highlights from Our Latest Weekly Report: Japan Power Market Update (9th July 2024) 🌟 🔍 Market Overview: Demand Surge: Daily average demand soared above 100GW, with dark spreads deep in the money and spark spreads just above zero. Last week's temperatures in Tokyo and Osaka peaked over 35°C, pushing demand up by 10.9% week-on-week. Power Prices: DA power prices surged in the first week of July, averaging 11.89 JPY/kWh, a week-on-week increase of 1.31 JPY/kWh. Generation Boost: Actual generation jumped by 11.4% to 13,018 TWh, led by a 63% increase in hydroelectric generation. 🌡️ Temperature Effects: Heat Wave Impact: The intense temperatures and rainy season humidity drove a 10.9% increase in demand. Tokyo and Kansai will continue to see high temperatures (31-33°C) through mid-July. Cooling Demand: Increased cooling demand has generated higher thermal consumption, with gas, oil, and coal generation up by 11%, 17%, and 13%, respectively. ⚖️ LNG and Coal Dynamics: LNG Inventory: LNG inventories are 16.2% below the 5-year average, but utilities remain confident about meeting summer demand. Economic spreads are favouring coal over gas, leading to higher coal consumption. Price Trends: Northeast Asia DES LNG prices decreased slightly to $12.40/MMBtu for August. 🔋 Generation Capacity: Thermal Capacity: By 22 July, total generation availability (excluding wind and solar) will reach 161GW, a 1% year-on-year increase. Gas availability will rise by 6GW to 75GW, and coal-fired availability will increase by 3GW to 43GW. Nuclear: Nuclear availability is expected to remain at 9.9GW until mid-July. 📈 Strategic Insights: Market Behavior: Forward prices remain stronger year-on-year, indicating robust conditions through 2024. Average prices in Tokyo are forecast to increase slightly in early July but will drop to 15 JPY/kWh as temperatures moderate. Regional Trends: Kansai and Tokyo show different demand and price change patterns, reflecting localized impacts of weather and generation capacity. 📢 Engage with Us: We'd love to hear your thoughts on how these trends will shape your trading strategies. 💬 Connect with our experts for tailored insights into your energy needs and explore collaborative opportunities to navigate these dynamic market conditions together. 🌐 amir.hezareh@woodmac.com Adam Hagge #EnergyMarket #JapanPowerMarket #LNG #Coal #EnergyInsights #Summer2024

Join industry experts from Dow, CEMEX USA, Kimmeridge, Enbridge, and more at the second annual Carbon Capture, Utilization and Storage Conference. In 2023 we identified an urgent need to start moving projects from plans to execution. On October 9-10, 2024 in Houston, TX we will address the costs and economic feasibility of these projects. #WMCCUS Register now: https://okt.to/emQWTV

The Northeast heat wave led to some excitement in #ISO New England! During the heat wave three weeks ago, temperatures reached upper-90-degrees along the east coast pushing demand to peak at 23.3 GWs in ISO New England (ISO-NE) the highest demand day so far this year. On Tuesday (6/18), the ISO called a Capacity Scarcity Condition (CSC) due to a generator tripping offline removing ~600 MWs of capacity from the generation stack. This event was further exacerbated by temperature related redeclarations, a generator experiencing mechanical issues during startup attempts, and several fast-start resources failing to come online. This resulted in 5- minute Real-Time (RT) prices reaching almost $2,000/MWh, and hourly prices exceeding $750/MWh at Mass Hub. As these events were unfolding, Wood Mackenzie’s ISO-NE team identified the exact unit that tripped, William F Wyman, on our PowerRT platform highlighted below. The team was also able to determine that the same unit had cleared the following day, in the Day-Ahead Market (DAM), indicating that RT prices would again be at risk on Wednesday (6/19), although demand underperformance ended up limiting RT price volatility. These real-time events led to extremely high DAM prices through the remainder of the week. The market became conservative and procured more capacity than forecasted demand around critical evening peak hours. Counterintuitively, RT market prices were very low as the week wrapped up because of the additional capacity procured and the extreme weather pattern breaking apart. In our Summer 2024 ISO-NE Outlook, July peak demand was forecast at 24.2 GW, an increase of 1 GW compared to the peak three weeks ago. If this forecast verifies, the pattern of over procuring capacity in the DAM, leading to weaker RT prices could continue… barring any more generation tripping offline. Find out more details on our insights and offerings: https://okt.to/cGd2NO

Wood Mackenzie’s second annual Carbon Capture, Utilization and Storage Conference is taking place October 9-10 in Houston! Have you secured your ticket to join us? Key agenda themes for this year include: ����From plans to execution: What would it take to accelerate CCUS deployment? 🔹Funding CCUS projects: How to get investment decisions 🔹Connecting CO2 sources to sinks: Is existing infrastructure available or is there a need to retrofit? 🔹Global CCUS market: The past, present and futuristic view 🔹CO2 storage: Are there enough to capture global annual emissions? Register now: https://okt.to/SY2y93

Wood Mackenzie’s Gulf Coast Pipeline Service observed a significant decrease in Houston-bound crude pipeline flows as Hurricane Beryl made landfall. Pipelines that showed a notable downturn include BridgeTex, Longhorn, Marketlink, Seaway and Seaway Twin. These pipelines account for approximately 2.42mn bpd of capacity flowing into Houston. Find out more about our US Gulf Coast Pipeline report or get in touch if you would like to know the full impact of these outages > https://okt.to/vDUETw

European voters just threw a spanner in the works of the EU’s 2030 decarbonisation targets. Last month’s European parliamentary elections saw a dramatic shift in power to nationalist and populist parties, which tapped into, among other issues, voter scepticism over the pace and sheer cost of the energy transition. On this week’s Edge we look at the impact of the elections on tackling climate change. https://okt.to/wyhH2z

This week's edition of our LinkedIn newsletter is now live! 💡 This week you've been talking about: - Can ExxonMobil make attractive returns from its US CCUS portfolio? - Could new EU tariffs on Chinese imports slow EV adoption? - The impact of fiscal policy on Asia's upstream oil & gas sector - Solar and wind uptake to reach 5.4 TWac from 2024 to 2033 Get the latest below 👇