Energy In-depth: Solar power to add most generating capacity to U.S. energy grid in 2016

Editor’s note: Each Friday, Talk Business & Politics provides “Energy In-depth,” a round-up of energy and regulatory news.
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SOLAR POWER TO ADD MOST GENERATING CAPACITY TO U.S. ENERGY GRID IN 2016
Electric generating facilities expect to add more than 26 gigawatts (GW) of utility-scale generating capacity to the power grid during 2016. Most of these additions come from three resources: solar (9.5 GW), natural gas (8.0 GW), and wind (6.8 GW), which together make up 93% of total additions, according to the U.S. Energy Information Administration (EIA). This level of additions is substantially higher than the 3.1 GW of solar added in 2015 and would be more than the total solar installations for the past three years combined (9.4 GW during 2013-15).

Most capacity additions over the past 20 years have been natural gas-fired units. About 8 GW is expected to be added this year, slightly above the 7.8 GW average annual additions over the previous five years.

EXXON MOBIL CUTS CAPITAL SPENDING BY 25% IN 2016 TO $23 BILLION
Exxon Mobil Corp. on Wednesday said in anticipates capital spending of $23 billion in 2016, down 25% from 2015. The Irving, Texas-based oil giant said it will maintain its financial performance through the difficult commodity price environment by focusing on fundamentals, selectively investing in its business operations and paying a reliable and growing dividend to shareholders.

ExxonMobil’s XTO Energy, the second-largest leaseholder in the Fayetteville Shale, has halted all drilling activity in the Arkansas shale play. The U.S. oil conglomerate is on track to start up 10 new upstream projects in 2016 and 2017, adding 450,000 oil-equivalent barrels per day of working-interest production capacity, officials said.

NORTH AMERICAN UNCONVENTIONAL NATURAL GAS BASE CONTINUES TO EXPAND, DESPITE CURRENT PRICE
North America’s natural gas resource base is more abundant and lower cost than ever, according to a new assessment by global energy consulting firm IHS. The study, “Shale Gas Reloaded: The Evolving View of North American Natural Gas Resources and Costs,” concludes that approximately 1,400 trillion cubic feet (Tcf) of natural gas in the U.S. Lower 48 and Canada is recoverable at a current break-even Henry Hub price of $4 per million British thermal units (MMBtu).

These quantities point to long-term low-cost energy supplies capable of meeting demand projections for at least the next 30 to 40 years. The new study findings update a similar 2010 IHS Energy study and examine 38 major oil and gas plays in North America and Canada.