If you would like to ask our webinar guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund a question please submit them here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
https://oilprice.com /Energy/Energy-General/Why-Natural-Gas-Is-The-Most-Important-Fuel-Of-the-Next-Decade.html
We’re going to lose the public,” a Long Beach state Assemblyman, Patrick O’Donnell, told the California water board this summer when a heatwave revealed the state’s weak spots in energy supply.
“Cheap natural gas prices and the energy source’s ability to fill in where sustainable energy falls short will speed investment growth,” the EMA report authors wrote. “As an energy source, gas is regarded as a ‘stop-gap’ solution for renewables.”
It may even become something more than a stop-gap solution if the projected strong growth in renewable capacity additions does not pan out. The expiry of the production tax credit and the phase-out of the investment tax credit could drive a slowdown in new solar and wind capacity additions, Shilpa Kokate, Advisory Director for Easter U.S. for Hitachi ABB Power Grids, told Oilprice.
There is also the issue of a carbon tax that will greatly help the shift to renewables from fossil fuels as will overall regulatory support for this shift, which has been essential for the advent of renewables everywhere. But there is also another thing, according to Kokate—failure to appreciate the role of natural gas in helping maintain the reliability of power supply.
Opposition to fossil fuels is understandable. It could become problematic, however, if it is so complete that it overlooks the role natural gas, if not other fossil fuels, plays in energy security. Renewable energy is clean, certainly, but as the sun does not shine around the clock, and the wind does not blow constantly and at a constant speed, they need storage to provide a reliable power supply. Building enough energy storage to eliminate the need for natural gas completely is a challenging task: battery installations take up a lot of space, and they don’t cost a dollar a kW. Until these challenges are overcome, gas will continue to be needed.
Natural gas was first hailed as the bridge between the fossil fuel past and the renewable future. Then it came under fire because although cleaner than oil and coal, it is not entirely emission-free. But according to a new report from Energy Market Advisors, it will rule the energy mix of the United States even 20 years from now.
The reasons for this continued dominance are simple enough even if they may be unpleasant for the most hard-line supporters of renewables such as solar and wind. Gas is not only cheap, but its supply is also continuous, so, importantly, it does not need battery storage the way solar and wind do, which increases the total costs of such installations even if other costs are falling, which they are.
These falling costs will undoubtedly pave the way to much more solar- and wind-heavy energy mix across North America, while coal sinks into oblivion, partly driven by its worse economics, the report said. By 2044, close to half of the existing coal power generation capacity will be gone. At the same time, solar will grow from 60 GW this year to some 250 GW in 2044 – an impressive fourfold growth. Wind will grow, too, albeit more modestly, from 115 GW today to 191 GW in 2044. But gas will rule them all.
To date, natural gas accounts for some 41 percent of North American energy generation. In 2044, according to Hitachi ABB Power Grids, gas will account for 43 percent. This, compared with the explosive growth seen in solar and wind, does not seem particularly impressive. The thing to remember is, however, that even with this almost absent growth, gas will be the fuel driving the biggest portion of power generation in North America. And this means that the fossil fuel era is far from over, really.
Related: The World's Most Expensive Crude Get Expensive Again
In some parts of the United States, it will even continue to be the dominant energy source even in 2044, according to the EMA report. In the Midwest, for instance, natural gas will account for 49 percent of energy generation in that year, while renewables will account for 31 percent. In the Southeast, gas will come to account for 57 percent, while renewables rise from less than 10 percent to 20 percent.
The forecast dominance of gas is not something that some governors such as New York’s Andrew Cuomo would want to hear as they strive for 100-percent renewable energy. But there is another reason gas will be dominant: it will help make the grid resilient to the intermittency of renewable energy generated by solar and wind farms. Because it is not intermittent like them, gas can provide the essential baseload every grid needs to provide a reliable power supply to its users. And if the supply is not reliable, the green energy boom could easily lose public support.
“We need to pay attention to the integrity of the electrical grid. Because if we do not, we are going to lose this whole green thing we’re doing. We’re going to lose the public,” a Long Beach state A
https://oilprice.com/Energy/Natural-Gas/Natural-Gas-Will-Rule-The-US-Energy-Market-For-Decades.html
Great post Proselenes.
Just a little reminder.......
Which means of course.......all development costs for Coho, Chinook, Cascadura can be covered by borrowing more (and the facility is up to 50 million - currently only 20 million and only 15m of 20m borrowed)
Once Coho is on line later this year......Royston in 2021 will be paid for from operating cash flow........
Read the quotes below from Paul....... !!!
https://tinyurl.com/y49slof3
Paul Baay said the firm has enough financial firepower to finish drilling Chinook-1 – the hotly-anticipated, third well on its hugely prospective Ortoire exploration block that spudded earlier this week.
What’s more, he said the firm will have enough funds to follow up with a fourth well called Cascadura Deep later this year.
With a current cash balance of US$11 million, boosted by a recent US$2.8 million VAT repayment and US $9 million placing, Baay added that no plans are in place for Touchstone to raise money in the foreseeable future.
“It makes no sense to dilute investors through an equity placing,” he said. “Not when we already have the cash to complete this work ourselves.”
................
Should Touchstone repeat the success of its first two wells at either of these opportunities, then Baay is once again highly confident that equity investors will not bear the brunt of development costs.
This comes down tothe firm’s recent closure of a seven-year, US$20 million term with Republic Bank – one of the Caribbean’s leading financial institutions.
Touchstone has already withdrawn US$15 million to satisfy obligations relating to its previous US$20 million credit facility with a Canadian lender from which it has now switched.
But Baay sees the relationship with Republic as a much more long-term arrangement that will open up increasingly as Touchstone grows, providing headroom that other explorers can only dream of:
“This is a real bank – there are no sweeteners, no warrants, no royalties, and no covenants until 2023. Republic is capable of lending up to US$50 million without syndication, so this means we can go back to them as we grow and make more discoveries on Ortoire, and they can grow with us.
It’s a super simple story right now; we’re going to drill the next two exploration wells, and away we go.”
The case for a material fundamental re-rate from Touchstone’s current market cap is clear.