Javier Blas Profile picture
Dec 12 10 tweets 3 min read
I have written only one story about fusion energy. For my university's newspaper 25 years ago. Thankfully, it isn't online.

Since then, I'm skeptical of surprisingly well-timed announcements by budget-starved laboratories about breakthroughs for technologies decades away |🧵1/10
But first, the FT story (confirmed now by others, including Bloomberg) about the US Lawrence Livermore National Laboratory near San Francisco set to announce that a fusion experiment released more energy than the lasers used in the experiment emitted 2/10 ft.com/content/4b6f0f…
There's a caveat to the story. The same laboratory announced a slightly different breakthrough nearly a decade ago (by Nature), announcing it achieved a net energy output vs the energy **absorbed** by the fuel. The new breakthrough is superior | 3/10 nature.com/articles/natur…
If confirmed, the breakthrough is quite important, putting the world into the realms of "fusion ignition", and perhaps in the future into a sustained and controlled fusion reaction. Sustained is a key word there. The current experiment lasted a fraction of a second | 4/10
There a few extra caveats. What net energy means? The lasers used by the Lawrence Livermore laboratory are extremely inefficient, so although the experiment produced net energy compared to what the laser delivered, the lasers consumed a LOT more before to charge | 5/10
The experiment released 2.5 megajoules vs 2.1 MJ of laser energy. But due to inefficiencies, the lasers consume ~330 MJ to charge, with the energy stored in 3,840 high-voltage capacitors for 60 seconds before being released in a 400-microsecond burst lasers.llnl.gov/about/how-nif-… 6/10
Even by those caveats, the experiment is a massive scientific breakthrough -- but don't think you are about to enjoy free and clean energy tomorrow. Or next year. Or in 20 years or, perhaps, even 50 years. Commerciality is far, far away. If ever. Many obstacles remain 7/10
One example, the current lasers used in the experiment can fire, at best, only **once a day**. For commerciality, they will need to fire several times **per second**. That's a sign of the many and further breakthroughs they are needed to secure clean and free energy | 8/10
Should we spend some billions in fusion research when fision energy is readably? Yes, we should, but we should too keep building fision nuclear power plants. Science is about discovery: let scientists experiment -- and wait. Many scientific breakthroughs came as a surprise | 9/10
But from all what we know today, we still need to wait more time for a fusion energy-version of the famous line:

"The Italian navigator has just landed in the New World"

end 10/10

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More from @JavierBlas

Dec 9
For oil, what's more important in the Saudi-Chinese read-outs of President Xi's visit to the kingdom is what is **not** in them.

What's missing? The long rumored pricing of oil in yuan.

China read-out: english.news.cn/20221209/fad4b…
Saudi read-out: spa.gov.sa/viewfullstory.…
#OOTT 🧵 1/7
Saudi Arabia has priced its oil in US dollars since 1974 and channeled the surpluses into the US Treasury market (aka, the petro-dollar recycling).

For a history of oil and the petro-dollar, read this good paper from the Journal of Energy History: energyhistory.eu/en/special-iss… 2/7
Historically, Riyadh has been reluctant to even consider shifting oil pricing away from the dollar.

In 2007, for example, a top Saudi official said the dollar could "collapse" if OPEC just talked about it. ft.com/content/33a4f7… (@Ed_Crooks surely remembers this one) 3/7
Read 7 tweets
Dec 2
OPEC+ appears ready to become a "spectator" of the market (as one delegate put it to me) as the G7 oil price cap talks continue. As things stand, it's likely to keep its output unchanged when it meets virtually Dec 4, although a small cut isn't completely ruled out | #OOTT 1/4
OPEC+ remains concerned about the impact of a slowing global economy and China's covid-zero policy on global oil demand growth. So the cartel retains a decidedly output "cut" bias, and the group can call for an emergency meeting if needed at any point | #OOTT 2/4
But for now OPEC+ ministers take comfort that beyond a very shallow contango at the prompt, Brent remains backwardated further out. Oil demand growth is OK-ish and the SPR sales are winding down. Brent crude isn't too far from the $90-$100 range preferred by Riyadh | #OOTT 3/4
Read 4 tweets
Nov 26
OIL MARKET: Washington eases its oil sanctions on Venezuela, allowing Chevron (for the next 6 months) to pump crude in the Latin American nation and export it into the United States. A major shift in the White House policy | #OOTT #Venezuela $CVX 🇻🇪 ⛽️ 🇺🇸
The easing of the oil sanctions come as the Venezuelan government and the democratic opposition re-started talks, brokered by Norway and Mexico. The talks between the two sides are the first direct contact in a year | #OOTT
A bit of extra context: before the sanctions were imposed, the joint-ventures between Chevron and PdVSA, the Venezuelan state-owned oil company, pumped about 200,000 b/d. So that's probably as much extra crude as we can expect -- and that will require time, money and expertise
Read 4 tweets
Nov 20
FULL DOCUMENT: The #COP27 political-policy text (aka, “cover”) is full of diplomatic language gymnastics. Note, for example, the reference to “low-emission” energy to mean gas and nuclear (and probably carbon-captured oil). Full comuniqué is here: unfccc.int/sites/default/… 1/4🧵
A couple of additional points: no advance from COP26 on coal: the COP27 document simply reiterates the Glasgow wording: coal remains a phase down, not a phase-out (and, in reality, coal demand is going up, on track for a record high both in 2022-23, surpassing the 2013 peak) 2/4
#COP27 doesn’t move the needle on fossil fuels either, simply copy-and-pasting COP26 language on the need to phase-out “inefficient fossil fuel subsidies” (but, in reality, subsidies are up!!).

Early attempts to call for a phase down of fossil fuel *consumption* were killed 3/4
Read 4 tweets
Nov 5
When @jfarchy and I wrote in 'The World for Sale' the story of how Marc Rich inserted himself in the 1980s into a gov-to-gov oil deal between Iran and Burundi, we thought we were telling a commodity deal from a long gone buccaneering era (see below a fragment from the book) | 1/5
To trade oil with Iran and Burundi, Rich created a mysterious outfit called the Compagnie Burundaise de Commerce, (or Cobuco for short), directed by an enterprising employee who went by the pseudonym Monsieur Ndolo | 2/5
It turns out that the heirs of Rich (today's Glencore) were doing the same 40 years later: insert themselves into a similar gov-to-gov oil deal (paying bribes included). The only thing that changed was the countries: this time it was Nigeria and Malawi; the rest was similar | 3/5
Read 5 tweets
Oct 27
The annual @IEA's World Energy Outlook is out.

It present 3 *scenarios* for energy supply and demand to 2050. In all, it sees fossil fuel consumption will hit a peak in a few years, but the trajectory after that is very different in each scenario | 1/4
iea.blob.core.windows.net/assets/7e42db9…
The report says that "the proximate cause of the crisis was Russia’s invasion of Ukraine". But it adds that "pressure on markets was visible before February 2022". Per the IEA: "The key underlying imbalance, which had been some years in the making, relates to
investment" 2/4
The IEA says investment in green energy isn't growing fast enough, and has only seen a notable acceleration over the last couple of years. Meanwhile, investment in fossil fuel has dropped over the last few years while oil, gas, and coal demand has kept growing 3/4
Read 4 tweets

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