2024-12-12 22:33

Dec 12 (Reuters) - U.S. energy storage market saw record growth in the third quarter with 3,806 megawatts (MW) worth installations and 9,931 megawatt-hours (MWh) deployed, Wood Mackenzie said in a report on Thursday. This was a 80% and 58% increase, respectively, from a year earlier, the report, which was developed in partnership with the American Clean Power Association, showed. WHY ITS IMPORTANT U.S. grid connection , opens new tab queues have been continuing to rise as network operators grapple with a huge number of clean power applications and dwindling transmission capacity. The Energy Department said its National Transmission Planning Study found the U.S. will need to double or triple transmission capacity in the three decades to 2050 in order to meet demand growth and reliability needs. Grid-scale installations are projected to more than double by 2028 to reach a total volume of 63.7 gigawatts (GW), and residential installing could reach 10 GW of storage in the same time period, as per the report. CONTEXT Grid-scale energy storage deployments were led by Texas and California - Texas added nearly 1.7 GW and California added about 6 GWh. The report by Wood Mackenzie and ACP also showed the residential market set an all-time high last quarter, with 346 MW of storage added - a 63% increase compared with the last quarter. KEY QUOTES "Overall, storage installations will grow 30% in 2024, signaling the industry's strongest year yet. However, it will be difficult to keep this pace. Between 2025 and 2028 we are projecting an annual average growth rate of 10%, as early-stage development constraints continue," said Nina Rangel, senior research analyst at Wood Mackenzie. "...any major shifts in tax incentives or increased tariffs could outweigh benefits and have an impact on new project development," said Allison Weis, global head of storage for Wood Mackenzie. Sign up here. https://www.reuters.com/business/energy/us-grid-scale-energy-storage-sees-record-installations-deployments-q3-2024-12-12/

2024-12-12 22:01

GEORGETOWN/HOUSTON, Dec 12 (Reuters) - Toronto-listed Frontera Energy (FEC.TO) , opens new tab and partner CGX Energy (OYL.V) , opens new tab are seeking alternatives to resolve a dispute with Guyana over rights to retain an offshore block where they found oil, but should they fail to reach an agreement, the matter is set to go to an arbitration court, the vice president said. Guyanese Vice President Bharrat Jagdeo said in August the government had opted not to approve the companies' application to appraise a discovery in the block, which would have given them more time with the license, as the South American nation was not confident the firms could find a financial partner. On Thursday, Jagdeo said there was no doubt Frontera and CGX failed to comply with some terms of the license, but if they have a different interpretation, the parties can go through the legal process established in the agreement. "We are not worried about it going to court," he told reporters in a press conference. According to the agreement's terms, if parties do not resolve a dispute in a 60-day period after the joint venture's partners notify the government of the disagreement, they can go to arbitration or a sole expert. Frontera and CGX Energy said earlier on Thursday they were "firmly of the view that the Corentyne block Petroleum Agreement remains in place." "The joint venture ... has sent the government of Guyana a letter activating a 60-day period for the parties to the Corentyne block Petroleum Agreement to make all reasonable efforts to amicably resolve all disputes via negotiation," they added in the release. Jagdeo said he had not seen the letter. Analysts and experts were expecting Corentyne to be the next area to be developed in Guyana, which could have added diversity to an industry completely dominated by a consortium led by U.S. major ExxonMobil (XOM.N) , opens new tab. Corentyne is the only area Frontera and CGX have left in Guyana, after returning two other blocks to the state, Demerara and Berbice. In 2022, the companies announced the presence of light oil and gas condensate in Corentyne and have focused their efforts there since. A CGX subsidiary has a separate project in Guyana for a $130 million port, which is starting commercial operations this month after the company negotiated long-term agreements for its use, it said. The port can accommodate vessels of up to 150 meters (492 feet) long. Sign up here. https://www.reuters.com/business/energy/frontera-cgx-seek-alternatives-preserve-offshore-oil-block-guyana-2024-12-12/

2024-12-12 21:48

Dec 13 (Reuters) - A look at the day ahead in Asian markets. Asian markets are set to end the week on the defensive, pressured by rising U.S. bond yields and a firmer dollar, with investors ready to reduce risk exposure as they ponder the cross-currents sweeping through the emerging world. China's latest pledges - to widen the budget deficit, issue more debt and loosen monetary policy - have generally been welcomed, but Brazil's surprisingly aggressive interest rate hike and promise of more to come has had a more mixed impact. Chinese and Hong Kong stocks bounced strongly on Thursday, and barring a fall of 1.4% or more on Friday, blue chip Chinese stocks will register their third weekly rise in a row, a winning streak not seen since May. The yuan fell on the stimulus news, as expected, but not by much. Indeed, going into Friday's session, the onshore yuan is set to break a remarkable run of 10 consecutive weekly declines. Even less surprising, perhaps, was another leg lower in Chinese bond yields. The 10-year yield is at record lows and is on course for its biggest weekly fall since 2020. Wall Street understandably took a breather on Thursday after the previous day's somewhat surprising surge. The S&P 500 fell 0.5% and is poised for a modest fall on the week, and the Nasdaq backed off Wednesday's record high above 20,000. It's still on course for its fourth consecutive weekly rise though, and remarkably, it has declined in only two weeks out of the last 14. The AI-driven bull run in U.S. tech shows every sign of powering on into the year end with Hong Kong's benchmark tech index is up 3% for the week. The wider policy and market sentiment thermometer is also sending mixed signals. The Swiss National Bank delivered a jumbo rate cut on Thursday, bringing the zero bound into view and floating the possibility of negative rates, if they are needed. The European Central Bank cut rates by a more modest 25 basis points, as expected, but was more cautious in its guidance. And hot U.S. producer price inflation pushed up Treasury yields, while punchy jobless claims data stoked concern about the labor market. All in all, a very mixed bag, and investors may well be relieved that the weekend is near. Asia's economic calendar on Friday is light. The two main indicators are India's wholesale inflation for November, which is expected to ease a bit to 2.2% on an annual basis from 2.36% in October, and Japan's fourth quarter Tankan survey of business sentiment. The Australian dollar and Philippine peso could move on scheduled speeches from RBA Assistant Governor Sarah Hunter and Philippine central bank governor Eli Remolona, respectively. Here are key developments that could provide more direction to markets on Friday: - Japan Tankan survey (Q4) - India wholesale inflation (November) - New Zealand manufacturing PMI (November) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2024-12-12/

2024-12-12 21:38

HOUSTON, Dec 12 (Reuters) - W&T Offshore (WTI.N) , opens new tab, an independent driller operating in the U.S. Gulf of Mexico, has asked a federal judge to block insurance companies' demands for $250 million in additional collateral for taking apart old oil infrastructure. The offshore drilling industry faces mounting pressure to provide bonds for decommissioning oil and gas infrastructure in federal waters. The Federal Bureau of Ocean Energy Management (BOEM) in June enforced a final rule that amended its financial assurance regulations in a bid to ensure the industry covers decommissioning costs, not the taxpayer. "You're at the mercy of the federal agency and you're at the mercy of the surety providers, so there is really not a whole lot of control there," W&T Offshore CEO Tracy Krohn told Reuters in an interview. "The regulatory agency has no real basis for requiring a great deal more bonding than what they already have," Krohn added. The BOEM estimates offshore drillers would collectively pay just under $7 billion as a result of the final rule, in new supplemental financial assurances to cover the potential costs of decommissioning activities. As of June 2023, more than 2,700 wells and 500 platforms were overdue for decommissioning in the Gulf of Mexico, according to the U.S. Government Accountability Office. In the lawsuit, filed on Wednesday in the U.S. District Court for the Southern District of Texas, W&T Offshore asked Judge Keith Ellison to declare that the insurers have colluded to damage the company by jointly demanding additional collateral and premiums. The company claims the insurers used BOEM's final rule to demand additional collateral for surety, for which the operator has already paid premiums. Houston-based W&T Offshore did not immediately provide a comment. Endurance Assurance Corp and Lexon Insurance Co, both named in the suit, did not immediately respond to requests for comment. Opponents said BOEM's final rule would disproportionately affect smaller companies that lack investment grade ratings or sufficient proven oil reserves. Oil majors are more likely to have large reserves, or meet credit criteria exempting them from putting up more money to cover potential future decommissioning. Days before the BOEM's final rule was enforced, Texas, Louisiana and Mississippi sued the government in a bid to block it. The U.S. Gulf of Mexico produces roughly 1.74 million barrels per day of oil, according to the last government figures, about 13% of total U.S. output. Sign up here. https://www.reuters.com/business/energy/us-offshore-driller-asks-judge-block-insurers-demands-250-mln-collateral-2024-12-12/

2024-12-12 21:36

NEW YORK, Dec 12 (Reuters) - The head of the Federal Reserve Bank of New York's powerful Markets Group, Michelle Neal, is stepping down and will leave the bank in March 2025, the bank said in a press release , opens new tabon Thursday. Neal will serve as a senior advisor at the bank until she exits, the bank said, adding that Neal is moving to a role in the private sector. Neal oversees the part of the New York Fed that interfaces with the financial sector. Neal was also a member of the bank's Executive Committee. While a successor to Neal is sought, the bank said in its press release that Anna Nordstrom, currently head of the Domestic and International Markets Function in the Markets Group, will serve as interim leader of the Markets Group. Neal joined the New York Fed in the spring of 2022 after a long string of leadership jobs in the financial sector. In the press release, John Williams, president of the New York Fed, said Neal "has overseen significant initiatives - including the major technological investment in the Federal Reserve’s open market operations - to transform and innovate the critical work that we do." Neal's exit is unlikely to have any notable implications for central bank operations as the implementation of monetary policy is handled by Roberto Perli, the manager of the Fed's System Open Market Account. Sign up here. https://www.reuters.com/business/finance/ny-fed-markets-group-chief-neal-resigns-will-exit-bank-march-2025-2024-12-12/

2024-12-12 21:28

Brazilian real fell against U.S. dollar after opening 1% higher Fiscal concerns intensified market pessimism C.bank raised rates by 100 bps, signaled same-size hikes through March BRASILIA, Dec 12 (Reuters) - Brazil's currency reversed course and weakened against the U.S. dollar on Thursday, despite a larger-than-expected interest rate hike by the central bank and its signal of more aggressive increases ahead. After opening the session 1% higher, the Brazilian real shifted direction to end the day down 0.9% at 6.01 per dollar. Meanwhile, the long end of the yield curve widened, reversing an initial downward move. "The fiscal issue remains a concern," said Daniel Leal, senior fixed income strategist at BGC Partners. "The market is highly fragile, with small positions triggering significant curve movements." The currency had already been erasing initial gains, but the depreciation trend intensified after comments by presidential spokesman Paulo Pimenta, who stated that President Luiz Inacio Lula da Silva will run for re-election in 2026. The 79-year-old leftist leader is in hospital recovering from two surgeries to relieve bleeding in his skull, with his health condition fueling speculation about his viability as candidate in the next presidential election. Eduardo Moutinho, a market analyst at Ebury Bank, noted that Lula being reaffirmed as candidate "renewed pessimism about potential government intervention through populist measures, further undermining fiscal responsibility." Fiscal concerns were a key focus of the central bank's decision on Wednesday, when it raised interest rates by a greater-than-expected 100 basis points, to 12.25%. Policymakers said that the negative market perception of government fiscal measures significantly impacted asset prices, contributing to more adverse inflation dynamics. A recent rise in the country's risk premium, weakening the Brazilian real and pushing up interest rate futures, gained steam after the government revealed a much-anticipated spending cut package that disappointed expectations, further undermining confidence in its capacity to rein in growing public debt. FORWARD GUIDANCE Policymakers also flagged hikes of the same size at the next two meetings, signaling that a shift to a new governor will not weaken the central bank's resolve to fight inflation. Wednesday's rate-setting decision was the last under central bank chief Roberto Campos Neto, who will be replaced in January by current monetary policy director Gabriel Galipolo, a close Lula ally who was part of discussions about the fiscal package before its announcement. Next year, Lula will hold a 7-2 majority on the central bank's nine-member rate-setting committee, known as Copom, up from the current 4-5 minority. Presidential spokesman Pimenta criticized the central bank's latest decision, asserting that its current approach was heavily influenced by "speculative market logic and interests." "I hope this reality changes next year, allowing for a market dynamic more aligned with the country's interests," he said. Economists at UBS BB led by Alexandre de Azara said that the strongly negative reaction to the package likely prompted the central bank to reconsider its stance on giving forward guidance, which they had been trying to avoid. "Since January 2024, there has been no multiple-meeting forward guidance. Now they can try to stabilize inflation expectations and market pessimism," the UBS BB economists wrote. They added that they expect less currency volatility ahead, with the central bank's benchmark Selic rate peaking at 14.25% in March, up from a previous forecast of 13.50%. Economists at BTG Pactual, however, said they now expect the central bank will make a final rate hike of 50 basis points in May bringing the Selic to 14.75% — its highest level since 2006. "If adjustments to economic policy do not align with this more intense rate hike trajectory, the convergence of inflation to the target will remain at risk, with broader deterioration in economic expectations for 2025-2026," they said. Sign up here. https://www.reuters.com/markets/currencies/brazils-currency-weakens-changing-course-despite-aggressive-rate-strategy-2024-12-12/