Just like the EU and the western world tightened sanctions against Russia, Russia in turn is also taking several steps against several EU firms and countries. 

Russia has also cut electricity to Finland. Putin has warned his Finnish counterpart Sauli Niinisto that ditching neutrality and joining NATO would be a mistake that could damage relations between their countries. This came as a reaction to Sweden's and Finland's official request to join NATO.

This has pushed the EU to scramble and draft a plan for buying Russian gas without breaking sanctions. EU is also trying to come to terms with Putin's rubles-for-gas demand. 

This will inevitably deepen the concern around global food supply, leading to a rise in wheat prices and further denting the food security of several importing countries. 

Indian government officials, however speaking just hours after the country banned wheat exports, gave a different reason, they said there was no dramatic fall in wheat output this year but unregulated exports had led to a rise in local prices.

Read more at India Says Ban Wheat Exports is Check Unregulated Trade 2022

The $40 Billion US aid package to Ukraine has run into hurdles in the Senate. This bill had been previously passed smoothly by the House. 

One of the senators, Rand Paul, has blocked the bill, expressing concerns that the aid is excessive and will lead to an increase in US borrowing and the risk of denting the US economy which is already struggling due to inflation and recession.

Former US President, Donald Trump, has also criticized the bill.

Read more at: US Sen Paul Ukraine Military Aid Bill

Canada, as with other countries, is struggling to balance short-term oil and gas needs versus the long-term aspiration to go green and reduce pollution. Then there is also the tussle for power between the state/federal versus regional governments. 

Bill C-69, passed by the Trudeau government in 2019, gave Ottawa the power to consider the effect of resource projects on environmental and social issues — including climate change. 

At the time, the oil and gas sector — worth billions to the economies of Alberta and Canada — said the legislation would hamstring the industry. The legislation, along with the companion Bill C-48 — which formalized a tanker ban off the northwestern British Columbia coast — spawned protests across the West, including a protest convoy that drove from Red Deer, Alta., to Ottawa. 

Dubbed the “no more pipelines law” by Kenney’s United Conservatives, the Alberta government went to court in September 2019, seeking to have the legislation — officially the Impact Assessment Act — declared unconstitutional in what’s known as a reference case. On Tuesday, the court did so, declaring the legislation “a classic example of legislative creep” as the federal government used the cover of environmentalism to expand its powers. While it noted that climate change constitutes an “existential threat,” the bill was itself a threat to Canadian federalism and the division of powers. 

There has been rising protest amidst rising oil and gas prices, to surpass environmental concerns, and explore and produce more oil and gas. According to an expert, there is 170 billion barrels of oil stuck in the ground in Alberta. 

This bill could now be challenged in the supreme court, and hence has some more distance to go.

Read more at: CP Newsalert Alberta Appeal Court Says Federal Environmental Impact Law Not OK

Crude Oil increased to a 7-week high of 111.47 USD/Bbl, extending gains from the prior week, amid lingering concerns about an impending European embargo on Russian oil, with Kyiv reportedly once again urging the EU to impose oil sanctions against Moscow. Meantime, in its monthly report, OPEC said it expects global demand to slow to 1.9 million barrels per day in Q2. 

Meanwhile, Saudi Arabia and Kuwait have dropped their official crude oil selling prices (OSPs) for Asia and Europe and kept the US OSP unchanged. The Saudis dropped their Asian OSP by $4/barrel. 

Reuters has said that, in China, Shanghai will gradually begin reopening businesses from Monday after weeks of strict COVID-19 lockdown. Meanwhile, a local government media outlet reported that Shanghai's subway operator began testing trains on its vast network in preparation for reopening. 

Read more at: tradingeconomics.com

US natural gas futures trimmed earlier gains to trade around $7.6 per million British thermal units, pausing a 3-day rally, as traders continued to monitor the outlook for US LNG exports amid tight domestic inventories. 

The Kremlin sanctioned Gazprom Germania, a former Gazprom subsidiary now in control of German regulators, and the Polish grid operator which controls transits of natural gas between Belarus and Germany through the Yamal-Europe pipeline. Additionally, Ukraine has shut down one of its two entry points, further pushing the EU to rely more on US LNG cargoes for its supplies. 

Domestically, EIA data showed utilities injected a smaller-than-estimated 76 bcf into storage in the week ending May 6th, below the 5-year average build of 82 bcf, but production is expected to increase after the maintenance season ends. For the week, the contract is on track to shed more than 4%. 

Read more at: https://tradingeconomics.com/commodity/natural-gas

Just as the aviation industry hits its stride, another crisis threatens the bottom line: fuel prices. Jet fuel prices have risen by over 100% compared to last year due to the war in Ukraine, causing airlines to warn of lower profitability and higher ticket prices. 

This is going to have both short and long-term impacts. Fuel costs are up 140% year-on-year in North America and 126% in Europe, with this figure only climbing every month. Airline companies will not be able to pass on the rising fuel costs to passengers forever. 

In a previous edition, we pointed out that Nigeria has grounded all domestic travel. 

Read more at: How Rising Jet Fuel Prices Will Hurt Airlines and Travelers

Related posts: 

Asian LNG prices Asian LNG prices inched down last week despite some spot procurement activities by utilities and traders from Japan, Korea, and India to replenish stocks. 

The average LNG price in north-east Asia was at $23.35 mmBtu, around $0.55 lower than the previous week 

Read more at: thepeninsulaqatar.com

UAE’s former President Sheikh Khalifa bin Zayed Al Nahyan died aged 73 on 13th May. He is being succeeded by his half-brother Sheikh Mohamed bin Zayed Al Nahyan who has also been the architect of UAE's energy transition and diversification of income away from oil. This might pave the way for accelerated energy investments into nuclear and renewable energy.

At the WU Congress 2022, his Excellency Suhail Mohamed Al Mazrouei, minister of energy, stated that investing in green hydrogen and blue hydrogen is targeted while starting work on 5.6 GW nuclear to cover a 25% reduction of CO2 by 21 million tons per year. 

Read more at: Aljazeera.com

Shallow heavy oil deposits in SW Missouri are estimated at two billion barrels of recoverable oil 

A top US energy official said that the Russia-Ukraine war will diversify global oil and gas supply chains, benefiting Africa. 

Read more at:

Africa: US Interested in Africa Mining Investments, Says American Official

Asia's appetite for US crude posted positive growth in the first quarter despite lucrative Russian offers, but North American supplies could face more competition in the second quarter as refiners will continue picking up barrels from the non-OPEC supplier until they remain outside sanctions and are available at substantial discounts. 

But analysts added even if Russian crude inflows to Asia pick up substantially in Q2, it won't alter trade flows dramatically since the share of Russian crude in some Asian countries is traditionally small. For example, it was less than 1% of India's total crude imports in 2021. 

According to the latest data from the US Census Bureau, total US crude oil exports rose year on year by 544,000 b/d years on year to 3.3 million b/d in Q1. Asia accounted for 46% of those exports, with volumes rising from 90,000 b/d year on year to 1.5 million b/d in that period. 

Among other Asian buyers, China's crude imports from the US fell 30.3% year on

year to 3.33 million mt in Q1, according to data from the General Administration of Customs. Imports from Russia also fell 10.8% to 19.05 million mt in Q1 of this year, compared with Q1 of 2021. 

However, South Korea will likely continue to heavily favor US crude over Q2 and Q3 as the world's fourth biggest crude importer finds WTI Midland and Eagle Ford crude the best alternatives to replace light sweet Far East Russian grades including Sokol, Sakhalin Blend and ESPO. 

Saudi Aramco just overtook Apple Inc. as the world's most valuable company, stoked by a surge in oil prices that is buoying the crude producer while adding to an inflation surge throttling demand for technology stocks. 

At a broader level: 

1990 - 2000: Tech Stocks 

2000 - 2008: Energy Stocks 

2008 - 2020: Tech Stocks 

2020 - 2030: ?????? 

Have the Technology Stocks done their course and now it is time for Energy stocks to take over the roost? 

And if it is indeed the energy decade, will it be everything oil & gas? Or will it be only traditional oil & gas? Or only natural gas? 

And what about nuclear and uranium? 

Or will it be the decade for only renewables, hydrogen? 

Alternatively, is the recent uptick in Tech and downtick in Energy a sign of an emerging reversal of fortune? 

Will Technology stocks make a comeback in the next few weeks? Does it even need to be Tech vs. Energy? Can the two co-exist happily ever after?

VVC expanded its natural gas production capabilities with the installation of seven miles of new pipeline, which will transport gas produced from its wells to the Tumbleweed Midstream Ladder Creek Pipeline. 

Exxon's Asia Pacific unit will purchase 1 mmtpa of LNG from Venture Global's Plaquemines LNG facility, which is now under construction along with its planned Calcasieu Pass 2 facility both located in Louisiana. 

Canada has four major oil export pipelines to the US: the Trans Mountain Pipeline, Enbridge Mainline, Keystone Pipeline, and Express Pipeline. 

The Trans Mountain pipeline expansion project has secured up to $10 billion in private-sector financing, but it comes with a loan guarantee provided by the Canadian government. 

Trans Mountain Expansion is ~55% construction complete as of May 5, 2022. The construction completion target is Q3/23. Expansion increases capacity from 300,000 b/d to 890,000 b/d & direct access to Asian markets. 

Oman has a burgeoning number of green hydrogen projects and has now announced a new state-owned company, Hydrogen Development Oman (HDO), to manage its overall green hydrogen portfolio. 

Read more at: 

https://www.argusmedia.com/en/news/2330176-oman-to-establish-new-hydrogen entity 

Airgas will trial two heavy-duty hydrogen fuel cell trucks on various cylinder delivery routes in the Los Angeles, California area under a newly inked deal with Hyzon Motors. 

Germany's LNG Terminals to morph Into green hydrogen hubs. 

Fortescue Future is planning to carry out a feasibility study on converting the former Centralia coal mine in the US WA state into a hydrogen production facility powered by electricity from renewable sources. 

The rising oil and gas prices have led to a boom in fracking. Drilling has picked up substantially since the Russian invasion, adding 64 rigs within that time frame. 

New research documents for the first time the pollution of public water supplies caused by shale gas development, commonly known as fracking, and its negative impact of infant health. These findings call for closer environmental regulation of the industry, as levels of chemicals found in drinking water often fall below regulatory thresholds. 

Read more at: 

Study links fracking, drinking water pollution, and infant health