Shale gas development in China aided by government investment and decreasing well cost

Decreases in the cost to drill shale gas wells and continued investment into domestic production have allowed China to increase its development of shale gas. Although reliance on natural gas imports has increased in the Chinese energy market, future shale gas production in China would help to meet natural gas demand as the country faces difficulties in developing other natural gas resources, including coalbed methane (CBM). More »

Natural gas prices in Asia mainly linked to crude oil, but use of spot indexes increases

Unlike the natural gas market in the United States, natural gas prices in Asian markets typically reflect contracts that are indexed to crude oil or petroleum product prices. However, Asian countries are developing regional trading hubs so that natural gas prices better reflect natural gas market dynamics. In 2014, almost 30% of global LNG was traded on a spot and short-term basis, of which Asia Pacific trade accounted for three quarters of the total. More »

U.S. nuclear outages were less than 3% of capacity this summer

Outages at U.S. nuclear power plants were extremely low this summer (June through August), averaging 2.9 gigawatts (GW), or less than 3% of total U.S. nuclear capacity. During four days in August, outages dropped to just 0.1 GW out of a total U.S. nuclear capacity of 98.7 GW, the lowest value recorded since the U.S. Nuclear Regulatory Commission (NRC) began collecting data in 2007. More »

East Coast distillate fuel oil inventories higher than in recent years

Inventories of distillate fuel oil in the U.S. East Coast are higher now than they have been in the previous three years, reaching 59 million barrels on September 18. Most of the recent increase is in the Central Atlantic region, but inventories are also higher in New England and the Lower Atlantic, compared with previous late-September levels. More »

Sustained low oil prices could reduce exploration and production investment

Low oil prices, if sustained, could mark the beginning of a long-term drop in upstream oil and natural gas investment. Oil prices reflect supply and demand balances, with increasing prices often suggesting a need for greater supply. Greater supply, in turn, typically requires increased investment in exploration and production (E&P) activities. Lower prices reduce investment activity. More »

Coal mine starts continue to decline

The number of new and reactivated coal mines that began production in 2013 fell to the lowest level in at least the past 10 years. The addition of 103 mines in 2013 came as 271 mines were idled or closed, resulting in a 14% decline in the total number of producing coal mines from 2012 to 2013. The 2013 total was 397 fewer coal mines than in 2008, when coal production was at its highest. More »

U.S. Gulf of Mexico share of global active offshore rigs declines since 2000

In response to the decline in crude oil prices since mid-2014, the number of active offshore rigs has declined worldwide, dropping close to 20%—304 offshore rigs were operating in August 2015, down from 377 in August 2014. During this period, the number of active offshore rigs in the U.S. Gulf of Mexico (GOM) dropped more rapidly, falling by 46%. Over the past 15 years, the U.S. GOM's share of active offshore rigs worldwide has declined significantly. More »

U.S. propane inventories are at an all-time high

U.S. inventories of propane and propylene reached 97.7 million barrels as of September 11, the highest level in the 22 years that EIA has collected weekly propane inventory statistics. In the first six months of 2015, U.S. propane and propylene inventories were 29.9 million barrels higher on average compared to the same period in 2014. In the past year, nearly all of the increase in inventories occurred in the Gulf Coast region (PADD3). More »

Debt service uses a rising share of U.S. onshore oil producers' operating cash flow

Results from second-quarter 2015 financial statements of a number of U.S. companies with onshore oil operations suggest continued financial strain for some companies. Low oil prices have significantly reduced cash flow for U.S. oil producers, and to adjust to lower cash flows, companies have reduced capital expenditures and raised more cash from debt and equity. More »

Coal use in China is slowing

Economic deceleration, industry restructuring, and new energy and environmental policies have slowed the growth of coal consumption in China and are also driving more centralized and cleaner uses of coal. After nearly a decade of rapid growth, energy-based consumption of coal, which currently supplies two-thirds of China's overall energy use, grew only 1% to 2% in 2012 and 2013 and was essentially flat in 2014. More »

Recent statistical revisions suggest higher historical coal consumption in China

New preliminary data from the China Statistical Abstract 2015 show an upward revision to China's historical coal consumption and production. Energy-content-based coal consumption from 2000 to 2013 is up to 14% higher than previously reported, while coal production is up to 7% higher. These revisions also affect China's total primary energy consumption and production, which are also higher than previously reported—up to 11% and 7% in some years, respectively, mainly because of revisions to coal. More »

U.S. job market and automotive sales trends support growth in gasoline use

U.S. motor gasoline product supplied, a proxy for gasoline use in the United States, has been rising after reaching an 11-year low in 2012. Although lower gasoline prices have been an important factor in the increase in gasoline use so far in 2015, changes in the labor market and in the vehicle sales mix over the past few years also have contributed to the rise in gasoline use. More »

Global solar photovoltaic manufacturing production slows in recent years

Growth in solar photovoltaic (PV) module production has slowed in recent years to 4% annually from 2011 to 2013 after increasing by an average of 78% from 2006 to 2011. In addition, the gap between global PV module manufacturing capability and production has grown, leading to lower utilization rates of manufacturing facilities. More »

Crude oil swaps with Mexico could provide economic and environmental benefits

U.S.-Mexico crude oil swaps approved last month by the U.S. Department of Commerce's Bureau of Industry and Security will likely involve exchanges of U.S. light sweet crude for Mexican heavy sour crude that is already being exported to the United States. The swaps, which are provided for under regulations governing U.S. crude oil exports, are expected to be economically and environmentally beneficial because of differences in crude oil qualities as well as differences in each country's petroleum refineries More »

Saudi Arabia maintained crude oil market share in Asia in the first half of 2015

In the first half of 2015, Saudi Arabia exported on average 4.4 million barrels per day (b/d) of crude oil to seven major trading partners in Asia, making up more than half of Saudi Arabia's total crude oil exports over that period. Even as global crude oil prices fell in 2014 and 2015, Saudi Arabia increased production and kept its export levels high, enabling it to maintain its market share in these countries. However, long-term trends within Saudi Arabia's energy sector may reduce its global crude oil market share. More »

Electric generator capacity factors vary widely across the world

The technologies used to generate electricity are similar across regions of the world, but the pattern of use for those generating technologies can be significantly different. Analysis of electric generating plant utilization (measured by annual capacity factors, or the ratio of generation to capacity) over a five-year period shows a wide range of variability among fuel types and across world regions. More »

Gasoline prices in week before Labor Day lowest in 11 years

The U.S. average retail price for regular gasoline was $2.51/gallon (g) on August 31, the lowest price for the Monday before Labor Day since 2004, and 95¢/g lower than the same time last year. Declines in crude oil prices are the main driver behind falling U.S. gasoline prices. More »

Output per miner-hour rises as smaller coal mines close

Coal mining productivity increased in 2013, averaging 5.5 short tons per miner hour, reversing a trend of declining productivity since at least 2000. Preliminary data from the Mine Safety and Health Administration indicate a further increase in 2014. Improved productivity at the largest mines, as well as the shrinking number of smaller coal mines, contributed to the rise in overall productivity. More »

Effects of removing U.S. crude export restrictions depend on price, resource assumptions

A new study by the U.S. Energy Information Administration (EIA) on the potential implications of allowing more crude oil exports finds that effects on domestic crude oil production are key to determining the other effects of a policy change. Gasoline prices would be either unchanged or slightly reduced. Trade in crude oil and petroleum products would also be affected. More »

Alaska increases wind power capacity in utility- and distributed-scale projects

Although wind power provided less than 3% of Alaska's electric power generation in 2014, Alaska's wind power capacity has increased 20-fold between 2007 and 2014, growing from 3 megawatts (MW) to 60 MW. This increase is notable in light of the challenges of installing and connecting large wind generators, specifically the high costs of expanding electricity transmission infrastructure in the least densely populated state. More »