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IEEFA Update: IEA, Still Behind the Curve, Nonetheless Indicates Rising Stranded-Asset Risk in Fossil-Fuel Holdings

A Not-So-Distant Future in Which Thermal-Fired Electricity Generation Declines Precipitously

The International Energy Agency, out with its annual energy-markets forecast, “World Energy Outlook 2016,” remains behind the curve but not as far behind as it was. A history of IEA underestimation of technology change has been partially remedied in this new report, but the agency’s solar and wind forecasts can at best be described still […]

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IEEFA Asia: Rosy Prospects in Indonesian Coal?

A Note of Caution on Assuming That Recent High Prices Are Sustainable

As the U.S. coal industry hopes for an unlikely revival on the back of U.S. political developments, the Indonesian coal sector is riding a surge in thermal coal prices. Confidence was high already, as evidenced by coal giants Bukit Asam and Adaro Energy joining a late-October U.S. capital market road show sponsored by the Indonesian […]

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IEEFA China: Why the Rally in Coal Prices Is Unsustainable

A Short-Term Surge Is at the Mercy of Long-Term Trends

While thermal coal export prices have doubled since the first of the year, IEEFA remains of the view that the price spike is due solely to the confluence of several short-term policy and weather factors in China and India. By far the more important trend to watch is what’s seen in the 10.7 percent year-on-year, […]

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In Bankruptcy Reorganization, U.S. Coal Giant Alpha Is Overstating Cash Flows by $100 Million, Regulators Say

Taylor Kuykendall for SNL: West Virginia regulators admonished Alpha Natural Resources Inc. for a five-year business projection that overstated “cash flows by a whopping $100 million.” The West Virginia Department of Environmental Protection noted it would not challenge a settlement resolving the shortfall between Alpha and Contura Energy Inc., the entity formed from the bankruptcy […]

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North Dakota Oil Production Falls

Daniel J. Graeber for UPI: A regulator in North Dakota said low oil prices were in part behind the decline in crude oil production, last reported at its lowest level since early 2014. The North Dakota Industrial Commission reported crude oil production in September, the last full month for which it has data, at 971,658 […]

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‘Ironically,’ Dakota Access Pipeline Risks Defeat by Low Prices and Oil Infrastructure Glut

Chris White for the Daily Caller: The Dakota Access Pipeline is at risk of becoming an abandoned project due to historically low oil prices, according to a report published Wednesday by an energy research firm. The report, “The High-Risk Financing Behind the Dakota Access Pipeline: A Potential Stranded Asset in the Bakken Region of North […]

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China and India Will Step in Wherever U.S. Renewable Investment Slips

Maria Gallucci for Mashable: China and India stand to benefit if America’s progress on clean energy slips under President-elect Donald Trump, energy experts say. Trump has vowed to gut U.S. climate policies that favor wind, solar and other lower-emissions technologies and instead revive the struggling coal sector. But the world’s energy market is moving in […]

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North Dakota Project Stands to Add to Pipeline Glut

Daniel J. Graeber for UPI: If the pipeline isn’t completed by Jan. 1, the project consortium may have to revisit some of the contracts for shipping oil through the 1,110-mile pipeline. The institute said further that crude oil prices being about 50 percent lower than they were at the height of the U.S. shale era […]

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IEEFA Report: Dakota Access Pipeline Driven by ‘High-Risk Financing’ in Overbuilt Region; Little-Known Economic Weaknesses in Controversial Project

Developer, Facing Likelihood of Missing Deadline, May Be Required to Renegotiate Contracts; Depressed Global Oil Prices Stand to Render New Capacity ‘Superfluous’

CLEVELAND, Nov. 16, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today published a report noting weaknesses in the financing behind the Dakota Access Pipeline and questions  around the long-term usefulness of the project. The report—“The High-Risk Financing Behind the Dakota Access Pipeline: A Potential Stranded Asset in the Bakken Region of […]

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Microsoft Signs Wyoming-Kansas Power Deal, Expanding Its Reliance on Renewable Energy

Chris Martin for Bloomberg News: Microsoft Corp. committed to its largest wind-power purchase to date with a deal to buy 237 megawatts of capacity from projects in Wyoming and Kansas. Allianz Risk Transfer AG’s Bloom Wind Project in Kansas and Black Hills Corp.’s Happy Jack and Silver Sage wind farms in Wyoming will provide all […]

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