Top News
Cobalt key to electric vehicles but automakers hushed on risks
Automakers spending fortunes on a bet that electric vehicles are the industry's future are virtually silent on the mining risks tied to cobalt, a key metal for the batteries on which their plans depend.
Steel tariffs may disrupt future US crude, LNG exports
If trade balance is the goal of U.S. President Donald Trump's tariffs and quotas on imported products, crude oil and LNG exports could help him make the equation work, a panel of experts said at an energy conference in Washington, D.C.
US coal's appeal for federal support is getting little help outside DC
U.S. coal interests are driving federal discussion on energy policy, but the industry still faces a lot of skepticism about its push for government intervention to keep older power plants from retirement.
Devon Energy to sell ownership stake in EnLink Midstream for $3.13B
Devon Energy Corp. agreed to sell its ownership stakes in EnLink Midstream Partners LP, EnLink Midstream LLC and Enlink Midstream Manager LLC to an affiliate of the fund manager Global Infrastructure Partners for approximately $3.13 billion.
Quoted
"There will be no electric vehicle industry without [Democratic Republic of the Congo] cobalt. It's really the new blood diamond. If investors start talking with their feet, these companies will start to take action," said Simon Moores, managing director of Benchmark Mineral Intelligence, an independent research firm.
Power
* Twelve months after President Donald Trump pledged to withdraw the U.S. from the Paris Agreement on climate change, the nation remains a party to the accord even as the administration works domestically to roll back many of its environmental rules.
* Eversource Energy has again criticized the recent amendments to the merger agreement between Connecticut Water Service Inc. and SJW Group, saying Eversource will not participate in what it called a "severely limited go-shop process."
* The federal policy coordinator of the U.S.'s largest regional grid operator asserted that moves by the Trump administration to support struggling coal-fired and nuclear power plants worsens a "headache" over accommodating public policies and state-mandated energy subsidies in competitive markets.
* The Alberta Utilities Commission will begin a 3-day hearing process today for EDP Renewables North America LLC' plans to build the 300-MW Sharphills wind farm in Alberta, the Medicine Hat News of Alberta, reported. The project is estimated to cost about C$500 million.
* U.S. Rep. Evan Jenkins, R-W.Va., is calling on electric utilities in the state to lower their rates and pass along savings from the federal tax reform to consumers. "Utility companies in all but two states — West Virginia and Tennessee — have already announced rate relief savings to their consumers. It's time West Virginia utilities to do the same," Jenkins wrote in a letter to the Public Service Commission of West Virginia.
Natural gas
* Key parts of an Obama administration rule limiting methane emissions will remain on hold after a federal appeals court rejected attempts to put the rule back in effect.
* Energy Transfer Partners LP priced an offering of $3.0 billion of senior notes to repay three series of notes due in June and July, as well as outstanding borrowings under its revolving credit facility.
* China is Appalachia's newest competitor in the quest to convince petrochemical firms to build more ethane crackers there, a U.S. petrochemical executive said at a conference on June 5.
* Missouri Gov. Mike Parson signaled support for a general election ballot proposal that calls for a phased-in 10-cent increase in the state's fuel tax to help upgrade transportation infrastructure, the St. Louis (Mo.) Post-Dispatch reported.
* The Indigenous Advisory and Monitoring Committee is calling on Canada's federal government to allow it to become co-manager of the Trans Mountain pipeline expansion, instead of an adviser, The Canadian Press reported.
Oil
* First-round bids for BHP Billiton Group's U.S. shale business from oil majors, including BP PLC and Chevron Corp., valued the unit at between US$7 billion and US$9 billion, Bloomberg News reported.
* Transparency campaign groups are voicing concerns over U.S. oil companies' refusal to release tax payments, saying the refusal undermines efforts to fight corruption in natural resources industries, the Financial Times reported. The companies include Exxon Mobil Corp. and Chevron Corp.
* Canada's federal government may dip its toe into the U.S. pipeline business because of its planned purchase of the Trans Mountain pipeline network from Kinder Morgan Inc., which includes a 69-mile conduit linking the line with refineries in Washington state.
* Exxon Mobil has increased its stake in Brazil's Carcara oil field to more than 2.1 million net acres after closing the purchase of half of Equinor's interest in the BM-S-8 block offshore Brazil. Production from the field is expected to start in 2023 or 2024.
* Spot prices for Canada's benchmark bitumen blend surged June 4 amid reports that Enbridge Inc. has scrapped a plan to limit over-ordering of pipeline space by producers.
Coal
* In a bid to keep the company "viable," Cloud Peak Energy Inc. announced that it will close its Gillette, Wyo., office and move operations to Cordero Rojo but underscored that the plan does not currently include layoffs.
* East Kentucky Power Cooperative Inc. will buy 93,000 tons of 11,500 Btu/lb coal for the 1,371-MW H.L. Spurlock plant from July through December, according to S&P Global Platts.
* A West Virginia coal company owned by the family of Republican Gov. Jim Justice requested the dismissal of a lawsuit that claims it issued bounced paychecks to its mine workers.
ChartWatch

Over-the-counter prices for carbon dioxide allowances under the Regional Greenhouse Gas Initiative slipped in value to kick off June.
New from RRA
* Early summer heat waves in Texas are fanning expectations for high demand this summer, which, when coupled with recent resource retirements, appear likely to result in tight reserve margins and high power prices.
* Rig levels in the Permian basin took a slight breather last week, as Baker-Hughes data indicated a one-rig decrease to 476 active rigs for the week ended June 1. Despite the slight retraction, the active rig count has grown by close to 20% this year; and over the last two years, rigs deployed in the Permian have increased nearly 3.5-fold, roughly 250%, from 137 rigs at the end of May 2016.
The day ahead
* Early morning futures indicators pointed to a mixed opening for the U.S. equity markets. To view more SNL equity market indexes, click here. To view more SNL Energy commodities prices, click here.

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