US Weekly Energy Report - 9 March 2017

Market Commentary

Former Texas Governor Rick Perry was sworn in last week as the new head of the U.S. Department of Energy (DOE). It has been speculated that Perry, who in recent years suggested the DOE should be abolished, will likely attempt to minimize regulation and the role of the agency. His appointment has been viewed as favorable for the oil and gas industry, but concerns have been expressed over the new administration’s position on environmental issues and renewable energy.

The Energy Information Administration (EIA) reported this week that U.S. wind generating capacity surpassed hydro capacity at the end of 2016. The addition of more than 8,700 MW of new capacity last year pushed total installed wind generating capacity to 81,312 MW, while hydroelectric generating capacity stood at 79,985 MW.

Speaking at a conference in Houston on Monday, Russian Energy Minister Alexander Novak said it was premature to talk about extending oil production cuts. Russia joined OPEC and other non-OPEC nations last November in pledging to reduce oil output to combat a global supply glut. Novak said Russia was about half way to its target reduction of 300,000 barrels per day, but that it is too soon to determine whether or not cuts will be extended beyond June.

Download Full Report