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SOLAR INDUSTRY IS MAKING PROBLEMS WITH UYGUR PROTECTION ACT: America’s solar industry it has the wind behind it between the Deflation Act and the price protection provided by the President Joe Biden‘s urgent tradebut developers see major hangups elsewhere as enforcement of the Uyghur Forced Labor Prevention Act hampers imports, their top lobby says.
The UFLPA charges CBP with preventing the entry of products without sufficient documentation to show they were not forced into the Xinjiang region, which according to some estimates makes about half of the solar-grade polysilicon globes.
Customs and Border Protection has stopped or delayed more than a gigawatt of solar products under the nearly year-old law, according to the Solar Energy Industries Association.
SEIA President and CEO Abigail Ross Hopper he said that “there is no place for forced labor in our supply chain” and that American business has been outsourcing the supply chain out of Xinjiang. But the group said CBP enforcement is requiring more stringent documentation than expected in seeking proof that quartzite, an input to solar-grade polysilicon, is not sourced from Xinjiang.
“We’ve been focusing on getting non-Chinese polysilicon cleared through Customs and we’re asking Customs to provide more information on what companies need to do to get export approval,” Hopper told reporters yesterday.
“There should be clear guidelines that CBP can give us to say, ‘This is how you present your polysilicon,’ and so your supply chain is not at risk of UFLPA,” said Hopper, who added that companies are detaining goods going to the US because there is a chance that they will be stopped at the border.
Dealing with China: China as a whole produced ten times more polysilicon than the no. 2 German producer by 2021, according to the International Energy Agency, and has a hand in almost every level of supply from mining to refining and production, making it very difficult to cut out Chinese companies completely.
The same is true of the clean energy supply chain, including the battery section.
Other topics: Supply chain disruptions have crippled the solar industry throughout the year, and project developers have blame is laid their problems in obtaining solar panels are mainly due to the UFLPA and the Commerce Department’s investigation of non-restrictions on goods from Asia.
The trade is expected to issue a preliminary ruling on the probe, which domestic solar producers support but SEIA and others oppose, on Dec.
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MORE OIL CHANGE: Oil prices rose today after Saudi Arabia indicated that OPEC+ may extend production cuts in December or take additional measures to balance the market as needed, denying earlier reports suggesting the opposite.
Futures prices for the international benchmark Brent crude rose today by 97 cents, reaching $88.42 per barrel, while prices for US-based West Texas Intermediate rose to $81.23, an increase of 1.5%.
The rise comes after the The Wall Street Journal report yesterday that OPEC+ will increase production next month – news strongly rejected by Saudi Arabia, which said it was considering further production cuts instead.
“The current cut of 2 million barrels per day by OPEC + continues until the end of 2023 and if there is a need to take more measures by reducing production to balance supply and demand we are always ready to intervene,” the energy minister of Saudi Arabia, Prince. Abdulaziz bin Salmanhe told local media outlet SPA today ahead of the group’s December meeting.
TOP BIDEN ADVISER SAYS ‘PROBABLY’ SPR ISSUED: The US will begin buying back oil to replenish the Strategic Petroleum Reserve when prices fall to around $70 a barrel and will look to use the resource strictly to lower prices in the future, the US high power envoy Amos Hochstein he said in the morning.
“Somewhere around that range of $70, $72, $73, maybe a little bit below that, we’re going to immediately look to increase and buy back oil from the SPR,” Hochstein said on CNBC’s “Squawk.”
Hochstein’s words indicate the willingness to buy oil above the level previously identified by the White House, which said last month that it will buy when prices are in the $67 to 72 barrel range or lower.
Hochstein also said that the US would have an “opportunity” about orders more releases from SPR, after Biden in March ordered the sale of 180 million barrels. That downgrade sent SPR levels to their lowest level in 40 years.
“I don’t think there’s a lot of criticism today” of Biden’s decision to sell 180 million barrels, Hochstein said on CNBC.
“The release of the SPR is an important part of lowering prices when we do. “Imagine if we hadn’t pumped a million barrels a day,” he said.
EU LEADERS SET PRICE RATE AFTER MONTH OF NEGOTIATIONS: The European Commission raised the bloc-wide gas price cap this morning to 282 dollars (or 275 euros) per megawatt hour, advancing the plan that comes after months of difficult and protracted negotiations, even if it is unlikely to fully appease member states.
The cap will be available for one year starting Jan. 1, 2023. It will only work if prices are above $282 per megawatt hour, and if the difference between the cap and the price of LNG exceeds 55 euros for 10 consecutive trading days, the EU Energy Commissioner , And Samson, he explained today.
“The instrument was carefully designed to work, while not jeopardizing our security of supply, the functioning of the EU energy markets and financial stability,” he added, stressing that it was not an administrative intervention.
Answer: Some diplomats you have been told Reuters that the proposed gas ceiling will disappoint both price cap advocates, who have pushed for a lower limit that could be opened several times a year, and those who are staunchly opposed to the effort, including Germany.
Next steps: The proposal will now be sent to EU energy ministers, who will start discussing the matter later this week.
… EUROPE’S ENERGY TRANSFER WARNS COPPER IS A SECURITY SUPPLY ISSUE: Meanwhile, the European Energy Exchange (EEX) warned that the European Commission’s proposed tariff will not result in lower gas prices – and will be at risk of “great damage and loss” to the EU’s energy security and financial stability as a result.
Tobias Paulun, chief strategy officer at EEX, you have been told Reuters in the interview that the gas price cap could cause EU traders and utilities to lose gas loads on the world market.
“This proposal has the potential to exacerbate the financial crisis as well, because it greatly disrupts the trading activity of market participants,” said Paulun.
“We are particularly concerned that the effects of this proposal will be assessed at an earlier, later stage when the damage has been done,” he added.
NORWAY TO DEVELOP NEW NATURAL GAS FIELD: Norway said today that it will develop a new natural gas field in the Norwegian Sea as part of its efforts to export more gas to the EU and help offset Russian concerns.
The Irpa gas discovery is estimated to have recoverable resources of about 20 billion standard cubic meters, or 124 million barrels of oil equivalent, which will be recovered within seven years.
The project is overseen by Norwegian energy giant Equinor, and is expected to start production in the fourth quarter of 2026. Investments are expected to total approximately $1.4 billion.
“The development of Irpa will contribute to the early and long-term supply of gas to EU and UK customers,” said Equinor’s vice president of projects, procurement and procurement, Geir Tungesvik, he said in a statement.
INSIDE UTAH AND NEVADA RENTAL MARKETING PLANS: The Bureau of Land Management is taking input on new oil and gas lease sales that could total more than 95,000 acres in Utah and Nevada. The auctions add to the acreage the BLM plans to auction in May in New Mexico and Wyoming.
The BLM announced the sale of Utah and Nevada yesterday and it was clear that the progress and timing of exploration in Utah and Nevada was done in compliance with the Inflation Act for oil and gas lease authorizations.
The BLM is now looking at new beach lease sales in at least four Western states next year, which would be held under minimum royalty and rental rates combined with the Inflation Reduction Act.
The IRA has renewed its oil and gas leases and its authority in the Interior to carry out the sale of off-shore leases and its new conditions that may be re-committed to the development of underground fuel resources.
WHAT SPLIIT CONGRESS SAYS ON BIDE’S POWER AGENDA: This week “Plugged in” podcastformer FERC chairman and landlord Neil Chatterjee and Breanne gather for a special holiday weekend episode to explore key news, including the results of the November midterm elections and what a GOP-led House means for Biden’s energy agenda.
The two also discussed the outlook from COP27 and the “loss and damage” agreement, as well as the NERC Winter Reliability Assessment and areas more affected by energy emergencies in the coming months. Listen to the full episode Right here.
The Wall Street Journal Germany talks to hate businesses with huge exposure to China
New York Times Inside the Saudi plan to keep the world dependent on oil
Washington Post Cutting-edge tech has made this small country a major food exporter
WEDNESDAY | 30 NOVEMBER
10:00 am, 406 Dirksen. The Senate Committee on Environment and Human Services will hold a to hear on bilateral infrastructure legislation and a perspective from the private sector.