RBN Energy

The federal government’s Hydrogen Production Tax Credit (PTC), also known as 45V, provides the highest incentives for hydrogen produced using clean sources of power generation, like wind and solar. That might seem like great news for current and potential hydrogen producers looking to take advantage of the credit, since the U.S. has added significant renewable generation capacity in the last several years, but the reality is much different. In today’s RBN blog, we’ll explain how “additionality” fits into the “three pillars” of clean hydrogen, how it would be calculated under the proposed guidance, and some ways the rules might be adjusted to give hydrogen producers and power generators a little more flexibility. 

Analyst Insights

Analyst Insights are unique perspectives provided by RBN analysts about energy markets developments. The Insights may cover a wide range of information, such as industry trends, fundamentals, competitive landscape, or other market rumblings. These Insights are designed to be bite-size but punchy analysis so that readers can stay abreast of the most important market changes.

By Jeremy Meier - Friday, 2/23/2024 (2:45 pm)

US oil and gas rig count posted its largest gain since September 2023, climbing five rigs vs. a week ago to 626 for the week ending February 23 according to Baker Hughes.

Recently Published Reports

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TradeView Daily Data TradeView Daily Data - February 23, 2024 1 day 13 hours ago
NATGAS Billboard NATGAS Billboard - February 23, 2024 1 day 20 hours ago
Chart Toppers Chart Toppers - February 23, 2024 1 day 23 hours ago
U.S. Refinery Billboard U.S. Refinery Billboard - February 22, 2024 2 days 11 hours ago
Crude Gusher Crude Oil GUSHER - February 22, 2024 2 days 12 hours ago

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Daily Energy Blog

Everyone in Texas remembers the infamous Winter Storm Uri of three years ago. What started out as a simple cold snap for many quickly turned into something far more serious: the biggest power outage in state history, with billions of dollars in property damage and hundreds of lives lost. Since then, the expected arrival of frigid temperatures has been met with some trepidation, but the critical failures of February 2021 have so far been avoided in subsequent storms. In today’s RBN blog, we look at the steps the state has taken in recent years to weatherize its power grid, show why January’s cold snap turned out to be no big deal, and explain why renewables are playing an increasingly important role in grid reliability during extreme weather conditions. 

Around the world, a lot of smart people in the public and private sectors hold similar views on where we’re all headed, energy-wise. An accelerating shift to renewables and electric vehicles, driven by climate concerns. A not-so-far-away peak in global demand for refined products like gasoline and diesel. There are also what you might call consensus opinions on some energy-industry nuances, like how much global refining capacity will be operational in 2025 and what the spread between light and heavy crude oil will be in the years ahead. In today’s RBN blog, we discuss highlights from the new Future of Fuels report by RBN’s Refined Fuels Analytics (RFA) practice, including RFA’s different take on a few matters large and small — and all of critical concern to producers, refiners and marketers alike. 

Fresh on the heels of expanding its Beaumont, TX, refinery into the largest in the country, ExxonMobil announced in January that it had finished yet another project at its century-old Baton Rouge complex in Louisiana. The Baton Rouge Refinery Integrated Competitiveness (BRRIC) project took roughly three years to complete and did not add crude refining capacity, unlike the Beaumont project. Instead, the goal of the $240 million investment was to modernize the crude oil processing plant — the state’s largest — increasing access to competitive crudes and growing markets for its fuels as well as curbing the refinery’s environmental impact. In today’s RBN blog, we take a closer look at the BRRIC project and what it means for the Baton Rouge refinery. 

When the price of the Tier 3 sulfur credit hit a new high of $3,600 in October 2023, the tradable sulfur credit for gasoline moved from the background to center stage in refining circles. And while credit prices have retreated slightly to about $3,400, they still represent a nearly 10-fold increase over two years and translate to a Tier 3 compliance cost of almost $3/bbl, raising concerns from refiners in a highly competitive market. In today’s RBN blog, we look at how refiners are adapting and the investments that could reduce the cost of compliance. 

The U.S. Supreme Court will hear oral arguments January 17 in a pair of cases that are poised to capsize the so-called Chevron Deference, a 40-year-old legal doctrine that provides a key foundation for modern administrative law. It’s a big deal – big enough that we’re willing to wade into a little bit of legalese to help make sense of it. So strap in because in today’s RBN blog, we’ll explain what the Chevron Deference is, why it’s worth knowing about, how it applies to two cases that could alter its application, and how a ruling that limits or eliminates the doctrine’s usage and application could transform energy industry regulation.

The U.S. Supreme Court will hear oral arguments January 17 in a pair of cases that are poised to capsize the so-called Chevron Deference, a 40-year-old legal doctrine that provides a key foundation for modern administrative law. It’s a big deal – big enough that we’re willing to wade into a little bit of legalese to help make sense of it. So strap in because in today’s RBN blog, we’ll explain what the Chevron Deference is, why it’s worth knowing about, how it applies to two cases that could alter its application, and how a ruling that limits or eliminates the doctrine’s usage and application could transform energy industry regulation.

Folks not directly involved in the FERC’s rate-setting process for interstate gas pipelines may think it’s a largely mechanical — and painfully boring — activity. But the process is actually often incredibly dynamic, with a lot of give-and-take among pipeline representatives, pipeline customers and FERC staffers, all aimed at reaching an agreement on rates that everyone involved can live with. We recently explained the “formal process” and (informal, confidential) “settlement process” that usually play out along parallel tracks. In today’s RBN blog, we expand on our look at the rate-setting process for gas pipelines with a few more nuances of how negotiated resolution really works. 

Think energy markets are getting back to normal? After all, prices have been relatively stable, production is growing at a healthy rate, and infrastructure bottlenecks are front and center again. Just like the good ol’ days, right? Absolutely not. It’s a whole new energy world out there, with unexpected twists and turns around every corner — everything from regional hostilities, renewables subsidies, disruptions at shipping pinch points, pipeline capacity shortfalls and all sorts of other quirky variables. There’s just no way to predict what is going to happen next, right? Nah. All we need to do is stick our collective RBN necks out one more time, peer into our crystal ball, and see what 2024 has in store for us. 

The rates regulators set for transporting natural gas on interstate pipelines are all-important. They determine how much it costs to get gas from A to B, whether new capacity can be funded, and serve as the bedrock of regional gas price relationships around the nation’s pipeline grid. But the process for establishing those rates can seem opaque and is often misunderstood — it’s one of those things you need to be directly involved in to fully grasp. Well, RBN’s Advisory Practice lives and breathes gas pipeline rate cases month in, month out, and we thought it would be interesting — and kind of fun — to take you behind the curtain and explain how rate cases at the Federal Energy Regulatory Commission (FERC) really play out. 

A year ago, as New Year’s Day approached, we were looking ahead into very uncertain market conditions, having lived through a pandemic, crazy weather events, collapsing and then soaring prices, and Russia’s horrific invasion of Ukraine. Our job was once again to peer into the RBN crystal ball to see what the upcoming year had in store for energy markets. We’ll do that again in our next blog. But another part of that tradition is to look back to see how we did with our forecasts for the previous year. That’s right! We actually check our work. And that’s exactly what we’ll do today: review our prognostications for 2023. 

The rates regulators set for transporting natural gas on interstate pipelines are all-important. They determine how much it costs to get gas from A to B, whether new capacity can be funded, and serve as the bedrock of regional gas price relationships around the nation’s pipeline grid. But the process for establishing those rates can seem opaque and is often misunderstood — it’s one of those things you need to be directly involved in to fully grasp. Well, RBN’s Advisory Practice lives and breathes gas pipeline rate cases month in, month out, and we thought it would be interesting — and kind of fun — to take you behind the curtain and explain how rate cases at the Federal Energy Regulatory Commission (FERC) really play out. 

The price of the Tier 3 gasoline sulfur credit hit $3,600 in October, up by a factor of 10 since 2022 and roughly in line with the all-time high reached in 2019. The high price of this important credit is a direct indicator of the true cost of compliance with the Environmental Protection Agency’s (EPA) Tier 3 gasoline sulfur standard and has raised some alarm recently in refining and financial circles. In today’s RBN blog, we give some specific examples of how refiners and investment analysts are reacting. 

Renewable diesel (RD) production has been surging this year, far surpassing blending mandates established by the Environmental Protection Agency (EPA). But there may be storm clouds on the horizon. The jump in RD production has led to excess generation of Renewable Identification Numbers (RINs), the tool used to ensure compliance with the Renewable Fuel Standard (RFS), impacting RD economics. With RD production set to move even higher in 2024 amid already-declining margins, it has left some to wonder how the market will come back into balance. In today’s RBN blog, we look at the growth in RD production, the resulting impact on RIN volumes and prices, and how things could shake out next year. 

The price of the Tier 3 gasoline sulfur credit hit $3,600 in October, up by a factor of 10 from two years ago and roughly in line with the all-time highs seen in late 2019. This tradable credit allows refiners to sell gasoline that exceeds the sulfur specification on gasoline sold in the U.S. In today’s RBN blog, we examine what’s behind the credit’s steep and steady rise — and why it matters. 

Florida is entirely dependent on others for the vast amounts of refined products it consumes — every gallon of gasoline, diesel and jet fuel that’s pumped into cars, SUVs, trucks, locomotives and airplanes in the Sunshine State needs to be either shipped or trucked in. Now, a midstream company is planning a project that would enable large volumes of refined products to be railed into Florida by unit trains to three new storage and distribution terminals — and eventually several more. In today’s RBN blog, we discuss the plan.