New power generation: When TOTE Inc., a shipper that operates between the U.S. and the Caribbean, launched its latest container ship last month, the 760-foot craft carried a certain distinction: It’s only the second of the massive vessels worldwide fueled by liquefied natural gas. As Bloomberg reports, the first was launched four months earlier by the same company. TOTE is among a growing number of shipowners turning to natural gas at a time of record output, stringent emission rules and churning oil prices. About 70 vessels of all sizes worldwide of are now powered by LNG, up from 42 in just two years, according to DNV GL, which certifies ships for safety. By 2020, the number may pass 1,000. Read the full story.
On the way down: Sustained low oil prices are set to drive capital invested in oil and gas extraction significantly below the 10-year average level, according to a new government analysis. As FuelFix.com reports, drilling for oil requires a large amount of capital, meaning that reduced investment today can translate into less production in the future—although companies can improve results with more efficient drilling. The U.S. Energy Information Administration says in a report that annual investment averaged $122 billion from 2005 to 2014—a volatile period during which U.S. benchmark crude reached a record high price of $145.29 on July 3, 2008, only to fall precipitously as a global financial crisis took hold later that year, and then rise again during a technologically driven boom in production from U.S. shale formations. Read the full story.
Cause and effect: Mortgage rates retreated this week after the Federal Reserve’s decision not to raise its benchmark interest rate, according to data released today by Freddie Mac. As The Washington Post reports, the 30-year fixed-rate average sank to 3.86% with an average 0.7 point. Points are fees paid to a lender equal to 1% of the loan amount. It was 3.91% a week ago and 4.2% a year ago. The 30-year fixed rate has remained below 4% for more than two months. The 15-year fixed-rate average dropped to 3.08% with an average 0.6 point. It was 3.11% a week ago and 3.36% a year ago. Hybrid adjustable-rate mortgages also fell. Read the full story.
