International [Oil & Gas News v2] Freezing Weather Is Knocking Out Millions of Barrels of U.S Oil Output

[Arkain2K]

Oil Tumbles to Erase 2022 Gains on Easing Demand for Fuels
Julia Fanzeres and Devika Krishna Kumar | Wed, December 7, 2022

(Bloomberg) -- It doesn’t take much to get oil prices moving lower these days, thanks to shrinking liquidity that’s sapped the life out of the market.

Both benchmarks have now erased all their gains for 2022. Prices on Wednesday headed for a fourth straight loss, with West Texas Intermediate trading near $72 a barrel and Brent dropping to the lowest in about a year. The market took another turn lower on signs of easing constraints for US fuel supplies and as risk-off sentiment gained momentum.

“There is literally no risk appetite to buy the dip in crude right now,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “This is just snowballing into outsize moves.”

With many traders poised to close out big positions as 2022 wraps up, Babin said that the the big question now is: Can anything “step in front of crude into last trading days of the year” to stem the losses?

Crude has so far stumbled into the final month of the year, with the US benchmark heading for the first back-to-back quarterly drop since mid-2019 as central banks tighten monetary policy. Concerns about the global growth outlook, alongside a soft physical market and falling liquidity have weighed on prices. Then on Wednesday, the Energy Information Administration reported that distillate and gasoline inventories had climbed, indicating weaker demand.

The market’s latest leg down came at a complex moment, with traders assessing the fall-out from Group of Seven curbs on Russian oil, including a price cap that’s meant to punish Moscow for the war in Ukraine.

WTI crude should see some support at the $70 level, which is where the US might start considering refilling strategic reserves, said Ed Moya, senior market analyst at Oanda Corp.

https://finance.yahoo.com/news/oil-steadies-three-day-drop-000505275.html

 

[Arkain2K]

Putin calls oil price cap 'stupid,' and says Russia is considering slashing oil production in response
By Jennifer Sor | December 9, 2022

Russia will consider slashing its oil output in retaliation to the G7 and European Union's price cap, according to President Vladimir Putin.

"We will think, maybe even about the possible, if necessary … reduction in production," he said at a press event on Friday.

Putin added that Russia's finances wouldn't be hit by the new measures and the West's implementation of a price cap was "stupid," Reuters reported. He also warned energy prices would "skyrocket" for any countries that participated in the price cap.

The defiant remarks come after Russia's central bank warned that the price cap and latest round of sanctions were "economic shocks" to the nation.

On Monday, the EU's embargo on seaborne Russian oil imports took effect, along with a $60-a-barrel price cap on Moscow's crude that is meant to prevent a supply shock and limit Putin's energy revenue.

Companies that abide by the price cap will be able to use European shipping and insurance services to send oil to Asia, where some countries have been snapping up Russian oil at hefty discounts since the invasion of Ukraine.

But Russia reducing its oil production could rock energy markets, experts have warned, worsening the supply shortage and hiking crude prices even higher. That scenario could cause oil prices to surge as high as $380 a barrel, JPMorgan previously predicted, though Russia is also reportedly considering a price floor.

Meanwhile, there have already been shipping disruptions as a result of the EU sanctions. Oil tankers have piled up off the coast of Turkey as ships were asked for proof of insurance coverage.

https://finance.yahoo.com/news/putin-calls-oil-price-cap-155056671.html

 

[Arkain2K]

China calls for oil to be traded with yuan at Gulf summit in Saudi Arabia
China's Xi looks to devalue dollar in push for Arab oil pushes in yuan



Chinese President Xi Jinping on Friday called on leaders from the top oil producing nations to conduct oil sales by using the Chinese yuan as he looks to bolster his country’s currency.

The move echoes steps Beijing took earlier this year with Russia and is an attempt to not only help push the yuan as a top international currency but aims to weaken the U.S. dollar – currently valued at $.14 per 1 Chinese yuan.

Xi addressed Gulf leaders in Saudi Arabia where Crown Prince Mohammed bin Salman hosted two events with Beijing to demonstrate Riyadh’s burgeoning relationship with China amid strained relations with the U.S. over human rights issues, energy and its relationship with Russia.

Reports first surfaced in March 2022 that suggested Saudi Arabia was advancing years-long negotiations with China that could see a shift in the oil trade off of the U.S. dollar.

The move would likely be a significant hit to the dollar and Western markets.

Prince Mohammed reportedly championed a "historic new phase of relations with China" at the start of the summit Friday with leaders from other the Gulf, Levant and Africa.

Saudi Arabia is already China’s top crude oil supplier with Russia coming in second, though Xi pledged to purchase more oil and gas from Gulf nations Friday.

"China will continue to import a large amount of crude oil from the GCC [Gulf Cooperation Council] countries, expand imports of liquefied natural gas, strengthen the engineering services in oil and gas upstream development and the cooperation in storage, transportation and refining," Xi said.

The Chinese president also said that China would expand its ties with Saudi Arabia and other regional states without interfering in their domestic policies – a position Beijing has long criticized Washington over.

Xi’s proposition could prove appealing for nation leaders like the Crown Prince who has shared a rocky relationship with the U.S. for years, though particularly under the Biden administration.

https://www.foxbusiness.com/energy/china-calls-oil-trade-yuan-gulf-summit-in-saudi-arabia.amp

 

[MicroBrew]

China calls for oil to be traded with yuan at Gulf summit in Saudi Arabia
China's Xi looks to devalue dollar in push for Arab oil pushes in yuan



Chinese President Xi Jinping on Friday called on leaders from the top oil producing nations to conduct oil sales by using the Chinese yuan as he looks to bolster his country’s currency.

The move echoes steps Beijing took earlier this year with Russia and is an attempt to not only help push the yuan as a top international currency but aims to weaken the U.S. dollar – currently valued at $.14 per 1 Chinese yuan.

Xi addressed Gulf leaders in Saudi Arabia where Crown Prince Mohammed bin Salman hosted two events with Beijing to demonstrate Riyadh’s burgeoning relationship with China amid strained relations with the U.S. over human rights issues, energy and its relationship with Russia.

Reports first surfaced in March 2022 that suggested Saudi Arabia was advancing years-long negotiations with China that could see a shift in the oil trade off of the U.S. dollar.

The move would likely be a significant hit to the dollar and Western markets.

Prince Mohammed reportedly championed a "historic new phase of relations with China" at the start of the summit Friday with leaders from other the Gulf, Levant and Africa.

Saudi Arabia is already China’s top crude oil supplier with Russia coming in second, though Xi pledged to purchase more oil and gas from Gulf nations Friday.

"China will continue to import a large amount of crude oil from the GCC [Gulf Cooperation Council] countries, expand imports of liquefied natural gas, strengthen the engineering services in oil and gas upstream development and the cooperation in storage, transportation and refining," Xi said.

The Chinese president also said that China would expand its ties with Saudi Arabia and other regional states without interfering in their domestic policies – a position Beijing has long criticized Washington over.

Xi’s proposition could prove appealing for nation leaders like the Crown Prince who has shared a rocky relationship with the U.S. for years, though particularly under the Biden administration.

https://www.foxbusiness.com/energy/china-calls-oil-trade-yuan-gulf-summit-in-saudi-arabia.amp

Let em do it. The Yuan is not the strong currency the dollar is, and China doesn't have the sort of influence, tech and soft power of the US / West.

Biden should tell the Saudis we are pulling our troops , stopping weapon sales and all military support. The US doesn't seem to want to use its leverage against the Saudis.

 

[Yehudim]

China calls for oil to be traded with yuan at Gulf summit in Saudi Arabia
China's Xi looks to devalue dollar in push for Arab oil pushes in yuan



Chinese President Xi Jinping on Friday called on leaders from the top oil producing nations to conduct oil sales by using the Chinese yuan as he looks to bolster his country’s currency.

The move echoes steps Beijing took earlier this year with Russia and is an attempt to not only help push the yuan as a top international currency but aims to weaken the U.S. dollar – currently valued at $.14 per 1 Chinese yuan.

Xi addressed Gulf leaders in Saudi Arabia where Crown Prince Mohammed bin Salman hosted two events with Beijing to demonstrate Riyadh’s burgeoning relationship with China amid strained relations with the U.S. over human rights issues, energy and its relationship with Russia.

Reports first surfaced in March 2022 that suggested Saudi Arabia was advancing years-long negotiations with China that could see a shift in the oil trade off of the U.S. dollar.

The move would likely be a significant hit to the dollar and Western markets.

Prince Mohammed reportedly championed a "historic new phase of relations with China" at the start of the summit Friday with leaders from other the Gulf, Levant and Africa.

Saudi Arabia is already China’s top crude oil supplier with Russia coming in second, though Xi pledged to purchase more oil and gas from Gulf nations Friday.

"China will continue to import a large amount of crude oil from the GCC [Gulf Cooperation Council] countries, expand imports of liquefied natural gas, strengthen the engineering services in oil and gas upstream development and the cooperation in storage, transportation and refining," Xi said.

The Chinese president also said that China would expand its ties with Saudi Arabia and other regional states without interfering in their domestic policies – a position Beijing has long criticized Washington over.

Xi’s proposition could prove appealing for nation leaders like the Crown Prince who has shared a rocky relationship with the U.S. for years, though particularly under the Biden administration.

https://www.foxbusiness.com/energy/china-calls-oil-trade-yuan-gulf-summit-in-saudi-arabia.amp

What leverage does China have now with a declining economy and becoming an international pariah? This has been talked about for years but now China is on the decline

 

[Arkain2K]

Let em do it. The Yuan is not the strong currency the dollar is, and China doesn't have the sort of influence, tech and soft power of the US / West.

Biden should tell the Saudis we are pulling our troops , stopping weapon sales and all military support. The US doesn't seem to want to use its leverage against the Saudis.

The Saudis knows very well that the Petrol Dollar is the only thing that keeps us tethered to them.

Without that, they are as useful to us as their Iranian nemesis.

What leverage does China have now with a declining economy and becoming an international pariah? This has been talked about for years but now China is on the decline

Nothing. They're just a very good customer without anyone back at home criticizing their supplier's human-rights issues, and so China and Saudi Arabia will get along splendidly at the business table.

We're not going to see the Saudis swapping U.S tanks and jet fighters for inferior Chinese copies anytime soon though, and Defense is still the most effective tool that we can squeeze their heads if they get out of line. That and any whiff of improved U.S-Iran relations.

 

[Substance Abuse]

what an angry weirdo.

im not derailing shit you’re just looking for reasons to report me like a snitch

Can I report you like a snitch?

 

[SandisLL]

We had hired in russian media in march when Emperor had promised to put west on knees at any price should be paid to achieve this and create Empire that should Be.


We don't see this today....

Empire 7 months in row can't take small town Bakhmut....
This reality.

 

[jefferz]

Federal data: Kansas oil spill biggest in Keystone history

A ruptured pipe dumped enough oil this week into a northeastern Kansas creek to nearly fill an Olympic-sized swimming pool, becoming the largest onshore crude pipeline spill in nine years and surpassing all the previous ones on the same pipeline system combined, according to federal data.

The Keystone pipeline spill in a creek running through rural pastureland in Washington County, Kansas, about 150 miles (240 kilometers) northwest of Kansas City, also was the biggest in the system’s history, according to U.S. Department of Transportation data. The operator, Canada-based TC Energy, said the pipeline that runs from Canada to Oklahoma lost about 14,000 barrels, or 588,000 gallons.
A ruptured pipe dumped enough oil this week into a northeastern Kansas creek to nearly fill an Olympic-sized swimming pool, becoming the largest onshore crude pipeline spill in nine years and surpassing all the previous ones on the same pipeline system combined, according to federal data.

The Keystone pipeline spill in a creek running through rural pastureland in Washington County, Kansas, about 150 miles (240 kilometers) northwest of Kansas City, also was the biggest in the system’s history, according to U.S. Department of Transportation data. The operator, Canada-based TC Energy, said the pipeline that runs from Canada to Oklahoma lost about 14,000 barrels, or 588,000 gallons.

The Keystone pipeline’s previous largest spill came in 2017, when more than 6,500 barrels spilled near Amherst, South Dakota, according to a U.S. Government Accountability Office report released last year. The second largest, 4,515 barrels, was in 2019 near Edinburg, North Dakota.

 

[Arkain2K]

Shale R&D cuts cast shadow on future of US oil production
By Liz Hampton | May 25, 2023

Shale technology advances that propelled the U.S. to the top global oil producer spot with world-beating growth rates are falling fewer and farther between as drilling budgets shrink and with them, the research and development that might deliver the next great leap.

Inventions, such as directional drilling and hydraulic fracking, spurred U.S. oil production to the world's highest in 2018, and boosted its shale production to over 8 million barrels per day last year, from 2.6 million bpd a decade earlier.

Output gains, however, have dwindled as tight-fisted producers spend only enough to maintain output amid rising costs, while favoring giving cash to shareholders as dividends and stock buybacks.

The lack of investment has oil growth slowing as some of the most productive areas tap out. The best shale sites have been drilled and executives and analysts worry there is not enough high-quality inventory to last another decade.

Oil service firms, also paying down debt and shareholders, are shifting investments to less-polluting electric drilling rigs and fracking equipment, and technology like carbon-sequestration. That leaves less money for developing the tricks that could turn secondary properties into big producers.

"The technology interests are in new frontiers of geothermal and hydrogen, and biofuels," said Daniel Yergin, a Pulitzer Prize-winning oil historian and vice chairperson of S&P Global (SPGI.N). "I don’t see any other transformative technology at this time that is really going to change the global market."

Producers are turning to acquisitions to expand future production. On Monday, Chevron Corp (CVX.N) agreed to pay $7.6 billion in stock and acquired debt for smaller rival PDC Energy Inc (PDCE.O), a move that will add 10% to its oil and gas reserves. Chevron slashed its R&D to $268 million last year from $435 million in 2020.

WITHER R&D SPENDING?

SLB (SLB.N), the world's largest oilfield services firm and historically a major innovator, spent an average of 3% of revenues on research and engineering in the 10 years to 2017, according to a Reuters analysis of its financial filings. That spending topped out at 3.6% of revenue in 2016.

Since then, SLB's R&D spending dropped to an average of 2.3% of revenues with some of that funneled into a New Energies group that focuses on developing lower-carbon forms of energy for its oil clients.

"Who spends on the effort to make a tier 2 oil property into a tier 1?" asks Arjun Murti, a partner at energy consultancy Veriten and a former Goldman Sachs analyst. His answer: "No one."

SLB did not provide a comment on its research and development spending.

Richard Spears, who sits on the boards of several oilfield services firms, said most are allocating their limited cash to make their tools more rugged, funding international growth, or paying down debt.

"This is not technology development," he said. "Buyers are valuing tomorrow's technology at zero or even at a negative because full commercial development takes capital … and the return of that capital is in doubt," Spears added.

The lack of new technology is apparent in production forecasts. The Permian - the largest U.S. shale basin and oilfield - will expand output by 400,000 bpd this year, as new-well productivity ebbs, estimates energy technology firm Enervus. That compares to an increase of about 1.1 million bpd in 2018.

"That combination of horizontal drilling plus fracking and completions that took shale to global prominence was unique. Outside of digital tools, there may never be another industry advancement like that in our lifetime," said David Forsberg, founder of energy venture fund Ascent Energy Ventures.

The absence of new breakthroughs has companies looking to old tricks to squeeze more oil out of their properties.

Pioneer Natural Resources Co (PXD.N) , once the fastest growing shale oil producer, is testing out enhanced oil recovery - a technique that has been around for decades - that pumps water or gas into a well to push out more oil.

Scott Sheffield, Pioneer Natural's CEO, views it as a way of addressing the oil that is often left behind. With companies getting only about 6% of oil out of the ground in the Permian, squeezing out more will prolong the shale field.

"There are always little things, whether it is re-fracs or enhanced oil recovery on shale wells," said Dane Gregoris, managing director for Enverus. "But that is not going to give you growth. It's not scalable enough to reverse the growth declines that the U.S. will begin to experience."

https://www.reuters.com/markets/com...t-shadow-future-us-oil-production-2023-05-25/

 

[Arkain2K]

OPEC Would Welcome Iran’s Return To The International Oil Market Once U.S Sanctions Are Lifted
By Charles Kennedy - May 30, 2023

OPEC will welcome the return of Iran to the international oil market once the U.S. lifts sanctions from Tehran, the secretary general of the cartel said.

"We believe that Iran is a responsible player amongst its family members, the countries in the OPEC group. I’m sure there will be good work together, in synchronization, to ensure that the market will remain balanced as OPEC has continued to do over the past many years," Haitham Al Ghais said during a visit to Tehran, as quoted by local media.

The Trump administration reimposed U.S. sanctions on Iran in a bid to put an end to its nuclear program back in 2016. The sanctions have specifically targeted, among other things, Iran’s oil and gas industry.

As a result of the U.S. punitive action, Iranian exports of oil and gas have become troubled although they never stopped completely as some U.S. legislators hoped they would because of the sanctions.

Since the sanctions were reimposed, Iran’s biggest oil buyer has been China, as well as some ally countries in the Middle East such as Syria.

In the past couple of years, there have been tentative attempts to get the United States and Iran to resolve their differences and have the sanctions lifted but talks have broken down repeatedly signaling some potentially unresolvable differences.

The strongest impetus for a resolution presented itself last year as oil and gas prices soared in the wake of Russia’s invasion of Ukraine but even that wasn’t enough to get the U.S. and Iran to agree on a scenario that would see the sanctions lifted.

Meanwhile, Iran and Saudi Arabia have been working to restore their diplomatic relations with the help of mediation from China. The two earlier this year agreed to reopen their respective embassies and forge closer economic ties.

https://oilprice.com/Latest-Energy-...s-Return-To-The-International-Oil-Market.html

 

[Arkain2K]

Saudi-Russia Tensions Growing Ahead Of Key OPEC+ Meeting
Riyadh has grown increasingly frustrated with Russia, which apparently hasn’t kept its end of the deal to cut outputs
By Tsvetana Paraskova - May 29, 2023

Days ahead of the key OPEC+ meeting on June 4, the leading producers in the group, Saudi Arabia and Russia, are at odds about output policy.

Riyadh has grown increasingly frustrated with Russia, which apparently hasn’t kept its end of the deal and isn’t reducing oil production as pledged, complicating the Saudi efforts to lift oil prices to at least the Kingdom’s oil price breakeven level of $81 per barrel.

So, officials from Saudi Arabia have expressed their frustration with Russia and have asked Russian officials that Moscow stick to its pledge to reduce oil production by 500,000 barrels per day (bpd) until the end of the year, sources with knowledge of the matter told The Wall Street Journal.

Russia insists that it is cutting output as planned, but analysts aren’t convinced, and since Moscow has ceased any official reporting about its production levels, the market looks at tanker-tracking data. And the data suggests that even if Russia is following through on its commitment to cut output, its oil supply to international markets is growing, especially in the key Asian markets long dominated by Saudi Arabia and other Middle Eastern producers—China and India.

With cheaper crude, Russia has been aggressively growing its market share in Asia’s top two importers and is now the number one supplier to both China—where it toppled Saudi Arabia from the top spot earlier this year—and India, where Russia is now selling more crude than Iraq and Saudi Arabia combined, per Vortexa data cited by the Journal.

The Saudi frustration makes sense since the Kingdom is not only losing market share in the most important oil-importing region, Asia, but its own 500,000 bpd cuts have failed to lift oil prices, which are now roughly at the level they were before the surprise OPEC+ cuts announced in early April.

For Russia, it makes sense to supply growing volumes to the two top importing countries in Asia, which also have the benefit (for Moscow) of welcoming tankers of the so-called “dark fleet” and not abiding by the G7 price cap on Russian crude of $60 per barrel.

Earlier this month, the International Energy Agency (IEA) said that Russia had failed so far to cut its oil production by 500,000 bpd, and it may even be looking to boost output to compensate for lost revenues.

Russia is also hinting that it would prefer its partners of the OPEC+ group to leave oil production unchanged, as Moscow is okay with the current oil prices and production quotas.

Last week, Russian President Vladimir Putin said that energy prices were approaching “economically justified” levels.

For Saudi Arabia, however, oil below $80 doesn’t appear to be “economically justified.” Hence, Riyadh’s frustration with Moscow regarding the next OPEC+ move.

Saudi Arabia needs oil prices at $80.90 per barrel to balance its budget this year, the International Monetary Fund (IMF) said earlier this month.

Early on Monday, Brent was trading at around $77 per barrel.

Economic advisers have privately told the Saudi rulers in recent months that the Kingdom would need high oil prices over the next five years if its ambitious development projects, including the futuristic NEOM project of $500 billion were to come to light, according to the Journal’s sources.

Last week, before Russia dropped hints that it would prefer OPEC+ to leave production levels as-is, Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, warned traders – again, against shorting oil futures.

Considering that OPEC+ wrong-footed short sellers when it announced the surprise production cut in April, last week’s comments from the most important oil official in the world’s top crude oil exporter shouldn’t be dismissed, analysts say.

“It may be that Saudi Arabia wants to keep traders on their toes but to make these comments and not follow through could be perceived as weak and see prices drift lower again,” Craig Erlam, senior market analyst at OANDA, said late last week.

“Unilateral action may not pack the same punch as a group cut, although you wouldn’t put it past them.”

https://oilprice.com/Energy/Crude-Oil/Saudi-Russia-Tensions-Growing-Ahead-Of-Key-OPEC-Meeting.html

 

[Arkain2K]

Asia's crude imports jump in May as China, India suck up Russian oil
By Clyde Russell | May 29, 2023

Asia's imports of crude oil are on track for a strong rebound in May as the region's two biggest buyers, China and India, suck up Russian cargoes.

A total of 27.73 million barrels per day (bpd) of crude is expected to be offloaded at ports in the top-consuming region in May, according to data compiled by Refinitiv Oil Research.

This is up 8.6% from the 26.39 million bpd in April and will be the strongest outcome so far in 2023.

The strength was concentrated in China, the world's biggest crude importer, which is expected to land 11.96 million bpd in May, up from April's relatively soft 10.96 million and just below the 34-month high of 12.37 million bpd in March.

The robust imports by China come as the traditional refinery maintenance period ends and refiners ramp up throughput to build stockpiles ahead of the peak summer demand season.

It's also worth noting that cargoes are arranged months ahead of physical delivery, so May's outcome is more a reflection of what refiners anticipated demand would be.

This means if there is any concern that the recent run of mixed economic data will cause fuel demand growth to be somewhat lower than expected, it will likely only show up in crude imports from June onwards.

In the meantime, Chinese refiners have been taking advantage of the discounts offered on Russian crude, which has been banned from Europe as part of Western efforts to punish Moscow for its invasion of Ukraine.

China's imports of both seaborne and pipeline crude from Russia are expected to reach 2.0 million bpd in May, according to Refinitiv, up from 1.74 million bpd in April.

This means Russia once again replaces Saudi Arabia as China's top supplier, with imports from the kingdom expected at 1.95 million bpd in May, down from April's 2.07 million.

Russia and Saudi Arabia have played tag with each as China's top supplier in the wake of the conflict in Ukraine as Chinese refiners turned to the steeply discounted Russian crude.

INDIA STRENGTH

Russian crude has also become the major player in India, with imports rising to 1.97 million bpd in May, up from 1.68 million bpd in April.

This gives Russia a 38.6% market share of India's total of 5.10 million bpd in May, which is also the second-highest monthly import volume on record behind April 2022.

India's switch to Russian crude is, similar to China, driven by its cheaper cost, with the South Asian country's traditional suppliers in the Middle East sacrificing market share.

India's imports from Saudi Arabia are expected at 570,000 bpd in May, down from 690,000 bpd in April and 850,000 bpd in March, while those from Iraq are likely to slip to 890,000 bpd in May from 900,000 bpd in April and 1.02 million bpd in March.

India's appetite for crude has been driven by stronger domestic fuel consumption and by rising exports of refined fuels such as diesel and gasoline.

However, some exports may be at risk in coming months as European buyers are said to be concerned about buying fuels from India that may have been refined from Russian crude, or partly from Russian oil.

This may lead to some slackening of demand for India's refined products, which in turn is likely to force another round of re-aligning product flows as the oil industry battles to continue to use Russian crude and products.

China's exports of refined fuels have also been strong, rising 44.3% in the first four months of the year from the same period in 2022.

However, these volumes are expected to drop in May as refiners exhaust export quotas and domestic demand recovers. Refinitiv expects diesel shipments to drop for a fifth straight month, plunging to under 200,000 tonnes, well below the 2.41 million tonnes in December.

However, China's gasoline exports are expected to rise slightly to between 900,000 to 1.2 million tonnes in May from 820,000 tonnes in April, as high refinery utilisation results in output of the light motor fuel exceeding the growth in domestic demand.

https://www.reuters.com/markets/com...india-suck-up-russian-oil-russell-2023-05-28/

 

[Arkain2K]

 

[Arkain2K]

The Biden Administration Cancels Seven Alaskan Oil And Gas Leases
By Charles Kennedy - Sep 07, 2023

The Biden administration has canceled seven oil and gas leases for the Alaska Arctic National Wildlife Refuge. The decision overturns ones made by the Trump administration, which awarded the leases.

In a move that was certainly not welcomed by Republicans, the federal government also proposed strengthened protections for the National Petroleum Reserve in Alaska, limiting the acreage that could be used for oil and gas development, the AP has reported.

The decision should make environmentalists happy, although just a few months earlier the same government gave the go-ahead to a new oil project in Alaska.

The $8-billion oil project, led by ConocoPhillips, was awarded to the company by the Trump administration’s Bureau of Land Management in 2020.

The project could deliver 160,000 bpd of crude, the BLM said at the time, with reserves estimated at between 400 and 750 million barrels. The lifetime of the project was estimated at up to 30 years in 2019.

The Biden administration approved the highly controversial project in March this year sparking the outrage of environmentalists after pledging to clip the wings of the U.S. oil and gas industry.

The Conoco oil project’s approval was challenged in court by two environmentalist groups on the grounds that it would exacerbate climate change but a federal judge dismissed it, saying the plaintiffs had failed to prove that Willow would cause irreparable harm.

With its latest move for Alaska, however, the federal government might win back some favor with the environmentalist lobby.

“Alaska is home to many of America’s most breathtaking natural wonders and culturally significant areas. As the climate crisis warms the Arctic more than twice as fast as the rest of the world, we have a responsibility to protect this treasured region for all ages,” the U.S. President said in comments.

https://oilprice.com/Latest-Energy-...Cancels-Seven-Alaskan-Oil-And-Gas-Leases.html

 

[Strychnine]

Why don't we just go back to the law where any oil produced in the U.S. can't be exported/sold overseas?

"Taxpayers currently subsidize the oil industry by as much as $4.8 billion a year, with about half of that going to the big five oil companies—ExxonMobil, Shell, Chevron, BP, and ConocoPhillips—which get an average tax break of $3.34 on every barrel of domestic crude they produce."
How Big Oil clings to billions in government giveaways

www.motherjones.com/politics/2014/04/oil-subsidies-renewable-energy-ta

I mean, we pay $4.8 BILLION per year to oil companies in subsidies, so why can't we just keep what we pay for, here?

 

[Prefect]

Oil companies don't give a shit about Alaskan oil leases because it is too expensive to extract.

 

[lifelessheap]

I wish the US would take Saudi to task but the odds of that happening is very low. Trump said in 2016 he was going to get tought with the Saudis, but did the opposite once elected.

Trump made the US energy independent. That shits on Saudi.

 

[MicroBrew]

Trump made the US energy independent. That shits on Saudi.

The US was well on its way towards energy independence under Obama and Bush Jnr, in large part due to shale oil. The Saudis tried to destroy the US shale industry by crashing the price of crude.

However, if we consider the first definition, in 2019 the U.S. produced more energy than we consumed for the first time since at least the 1940s. It had been a steady march since 2005, when net U.S. energy imports hit a record high. But the shale boom unleashed huge amounts of domestic oil and gas, and by 2012 U.S. net imports had fallen to half the 2005 level.

By the time President Trump took office in 2017, U.S. net energy imports had fallen 75% from the 2005 level. In 2019, net energy imports turned negative, meaning the U.S. had become energy independent. So, while it is technically correct to say that the U.S. became energy independent while President Trump was in office, the reason was the shale boom that had begun in earnest in 2005.

https://www.forbes.com/sites/rrapie...hest-levels-in-over-70-years/?sh=69f06f0b977f

 

[lifelessheap]

The US was well on its way towards energy independence under Obama and Bush Jnr, in large part due to shale oil. The Saudis tried to destroy the US shale industry by crashing the price of crude.

However, if we consider the first definition, in 2019 the U.S. produced more energy than we consumed for the first time since at least the 1940s. It had been a steady march since 2005, when net U.S. energy imports hit a record high. But the shale boom unleashed huge amounts of domestic oil and gas, and by 2012 U.S. net imports had fallen to half the 2005 level.

By the time President Trump took office in 2017, U.S. net energy imports had fallen 75% from the 2005 level. In 2019, net energy imports turned negative, meaning the U.S. had become energy independent. So, while it is technically correct to say that the U.S. became energy independent while President Trump was in office, the reason was the shale boom that had begun in earnest in 2005.

https://www.forbes.com/sites/rrapie...hest-levels-in-over-70-years/?sh=69f06f0b977f

Neat. A Forbes article.