Volume 2, Issue 1
September 19, 2016 – September 25, 2016
Jason Mulderrig | Anushka Dasgupta
Nuclear:
Hinkley Point Nuclear Plant Will Go Ahead, Britain Says http://www.nytimes.com/2016/09/16/world/europe/britain-hinkley-point.html?ref=energy-environment
September 15, 2016 | Stephen Castle The British government recently approved going forward with the construction of the Hinkley Point nuclear power station. After being delayed for two months, the British government decided to proceed with the construction of the nuclear power plant after the government secured conditions that will protect the security of critical infrastructure such as the power plant. This power plant is being partially funded by French and Chinese agencies, which were not pleased with the delay in the decision to proceed with the project. If the project had been rejected after all, then the French would have demanded compensations for construction, trade between the UK and China would have suffered, and the power plant poised to power 7 percent of the country would have evaporated. However, opponents to Theresa May, opponents to nuclear energy, and clean energy advocates were not pleased with the project approval. -JPM
Oil and Gas:
The Standoff Between Big Oil and Big Corn http://www.nytimes.com/2016/09/18/business/energy-environment/the-standoff-between-big-oil-and-big-corn.html?ref=energy-environment&_r=0
September 17, 2016 | David Gelles In this New York Times article, the successes and drawbacks of the Renewable Fuel Standard is put under investigation. The Renewable Fuel Standard is a piece of legislation enacted and expanded in 2005 and 2007, respectively. The RFS required gas refiners to add a set amount of biofuel, typically ethanol produced by corn, sugarcane, and switchgrass, into American gasoline in order to reduce emissions and dependence on foreign oil while supporting the agricultural industry. In the years following its enactment, the RFS has been praised as a smashing success by farm supporters and environmentalists, and it has been loathed as a utter failure by big oil. However, if one looks past the biases involved in the conversation, it seems that the impact of the RFS has been nuanced. The RFS has definitely reduced emissions, but probably not as much as anticipated. It has reduced dependence on foreign oil, but fracking has certainly helped more on this front. And the financial benefits to farmers from the RFS has been centralized in only a few farming regions in this country.
OPEC’s Impact: It Depends On What The Meaning Of “Freeze” Is http://www.forbes.com/sites/davidblackmon/2016/09/22/opec-it-depends-on-what-the-meaning-of-freeze-is/#688a2a6c5b8e
September 2, 2016 | David Blackmon This past weekend and into this week, OPEC leaders are meeting in Algiers, Algeria to discuss and propose potential freezes at current oil production levels. The two countries in question at this meeting are Libya and Nigeria. Libya is poised to increase its oil output by 3.5 times its current values by the end of the year now that the impact of ISIS in Libya has been reduced as of recent. Meanwhile, Nigeria has announced its intentions to significantly increase its oil outputs now that Boko Haram has been pushed to its extreme northern regions and spilling over into Chad and Niger. From a cursory glance, it seems that these countries will not accept production freezes considering other OPEC countries that have not been ravaged by recent military conflicts, particularly Saudi Arabia, have been increasing their oil production levels recently. In other words, an oil production freeze agreement seems tenuous at best from this meeting. For more information about the status of oil in Libya and Nigeria, read: http://www.forbes.com/sites/timdaiss/2016/09/18/troubled-opec-could-nigeria-swing-oil-markets/2/#36c930633fcc
Chesapeake Energy: A Turnaround Rally Worth Buying Into http://www.forbes.com/sites/qineqt/2016/09/16/chesapeake-energy-a-turnaround-rally-worth-buying-into/#3256690558fa
September 1, 2016 | Qineqt About 9 months ago, Chesapeake Energy seemed to be well on its way to bankruptcy litigation after the recent crash in oil prices revealed overleveraging. As a result, the stock of Chesapeake took a turn for the worst and bottomed out at $1.59. But as of recent, the financial side of Chesapeake has improved. The company has reduced its leveraging and has redirected more of its revenue to pay off debts. As a result, Chesapeake’s stock has increased, and the stock is predicted to increase even more when an analyst day for the company comes around on October 20th. If I were in the stock market, I would buy some stock in Chesapeake asap! -JPM