Greenspan Warns Of Danger Of High Natural Gas Prices

A theory emerged to explain the appearance of a massive crater in Russia’s hydrocarbon-rich Yamal Peninsula that has climate-change observers extremely concerned. Analysts have long known that Russia’s energy future lies beneath the frozen ground of Yamal and independent producer Novatek is building a large LNG export project now with the help of French oil major Total that bears the region’s namesake. But some scientists believe the giant crater could be the result of a methane eruption facilitated by weakened, melting permafrost. If that is in fact the case and there were an economical way to capture that “naturally” escaping methane, it could be a new source of natural gas. [Washington Post]

Guess what? The utility business model is changing and new opportunities for other companies are emerging. “Ten years from now, you are going to be your own main [power] generator,” said [NRG CEO David] Crane. “You are going to be monetizing the energy value of your real estate. That will be your first source of energy in the future because it is zero marginal cost and it’s right there.” [Smart Grid News]

International benchmark crude oil futures prices moved in opposite directions yesterday. Prompt-month WTI lost about $0.50 on slower refinery activity that pushed up gasoline prices, and Brent prices increased ever so slightly. The spread between the two benchmarks widened to about $8.00. “West Texas Intermediate crude declined 46 cents, or 0.5 percent, to $96.92 a barrel on the Nymex, the lowest settlement since Feb. 3. Trading was 7.4 percent above the 100-day average at the 2:30 p.m. floor closing. …Brent for September settlement slid 2 cents to $104.59 a barrel on the London-based ICE Futures Europe exchange, the lowest since Nov. 7, as Israel withdrew troops from Gaza and negotiators sought a more lasting halt to the offensive. The European benchmark crude was at a premium of $7.67 to WTI, up from $7.23 yesterday.” [Bloomberg]