International [Oil & Gas News] America Achieved Energy Independence As The World's Top Oil Producer (2018-2019)

U.S. shale has a message for the Biden administration: Ask us to increase oil production, not OPEC
By Holly Ellyatt | NOV 16 2021

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The chief executive of U.S. oil company Occidental Petroleum said that it would have been preferable if the Biden administration had asked shale producers closer to home to increase production and crude supplies, rather than the OPEC alliance that's led by Saudi Arabia.

Asked whether President Joe Biden and his team were getting it wrong by asking OPEC to pump more when there are shale oil producers at home, CEO Vicki Hollub said that "if I were gonna make a call, it wouldn't be long distance, it would be a local call."

"And I think that we could do it cheaply in the United States, as other countries can do," she told CNBC's Hadley Gamble at the Adipec energy industry forum in Abu Dhabi on Monday.

"I think first you, you stay home, you ask your friends, and you ask your neighbors to do it. And then if we can't do it, you call some other countries," she said.

Hollub's comments come after a period of dramatic energy price rises in recent months that led to the White House calling on OPEC and its oil-producing allies, a group known as OPEC+, to boost production in an effort to combat climbing gasoline prices.

The move came amid heightened worries that rising inflation could derail the economic recovery from Covid-19.

The White House said that the oil producing group's July agreement to boost production by 400,000 barrels per day on a monthly basis beginning in August and stretching into 2022 is "simply not enough" during a "critical moment in the global recovery."

U.S. Energy Secretary Jennifer Granholm repeated those words to CNBC earlier this month, saying that oil-producing nations needed to increase supply "at this moment so that people will not be hurt during the winter months."

It was also put to Granholm that domestic oil production in the U.S. had abated over the last couple of years, even prior to the Covid pandemic, due to a lack of investment incentives.

"I don't know why at $80 a barrel those incentives are not there," she said.

"During Covid, it was down — they backed off because demand was not there because people were staying home, we know that. Now that things are back up, the production should be meeting that [demand], there has been rigs that have been added but not fully," she added.

U.S. supply bouncing back
There are signs that the U.S. might not need to look further than home for a boost to oil supplies with production in the U.S. already recovering after demand was hit during the pandemic.

The International Energy Agency said Tuesday that soaring oil prices, which have hit their highest price in seven years of over $80 a barrel amid rampant demand, could soon turn lower as the U.S. led a rebound in supply.

The IEA revised its global oil supply forecast by 330,000 barrels per day higher for the fourth quarter to reach 99.2 million barrels per day by year-end. That's up 6.4 million barrels per day year-on-year.

The U.S. is forecast to account for 60% of non-OPEC+ supply gains next year, now forecast at 1.9 million barrels per day, although the country is not expected to return to pre-Covid levels until the end of 2022.

The comments from Occidental's Hollub come just days after the conclusion of the COP26 climate change summit where almost 200 countries signed up to pledges (with various timeframes) to cut methane emissions, end deforestation, curb the use of fossil fuels and their subsidies, offer more financial to poorer countries and "phase down" the use of coal.

Hollub said that the U.S. shale industry had to show the Biden administration that it was part of the energy transition.

"We can do what others can't do. And we have to convert ourselves. I think that we have to get a little bit ahead of policy otherwise we're never going to achieve our goals," she said.

"And some companies are going to do renewables and sort of diminishing their oil production a bit but picking up and doing wind and solar, which is absolutely needed. Our company, on the other hand, is doing more around what our expertise is: For 40 years, we've been managing CO2 for enhanced oil recovery. And so we're building our energy transition strategy on that and the infrastructure that we have in the Permian [Basin], which includes plants and pipelines that will support this strategy that we have. The Biden administration supports that," she said.

That strategy, she added, "is going to enable the administration ultimately to not have to worry about where we get oil, who we ask to increase oil — as long as we can make our oil, lower emission and lower carbon through these other techniques, then it's not going to matter."

https://www.cnbc.com/amp/2021/11/16...k-us-to-increase-oil-production-not-opec.html
 
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OPEC member calls for calm after U.S. pressure to pump more oil
By Abigail Ng | NOV 17 2021



The United Arab Emirates' energy minister on Wednesday defended OPEC and its allies' decision to not increase oil supply to the market, despite U.S. pressure to pump more.

"I would encourage people to calm, trust us," Suhail al-Mazrouei told CNBC's Hadley Gamble from the Adipec energy forum in Abu Dhabi.

Al-Mazrouei said he has received calls from different countries' ministers asking him to take action, but added that OPEC intends to "follow the facts."

He pointed to EIA predictions that suggest an oil surplus in the first quarter of next year.

"In 2022, we expect that growth in production from OPEC+, U.S. tight oil, and other non-OPEC countries will outpace slowing growth in global oil consumption and contribute to Brent prices declining from current levels to an annual average of $72/b," the EIA's November report said.

"It's going to soften in the first quarter, and we will start to see build up in the inventories in 2022," said al-Mazrouei on Wednesday.

"That's what the experts said, and we agree with them, in OPEC," he said.

If the current plan by OPEC+ to increase production by 400,000 barrels per day each month will already lead to a surplus, the alliance should not change that plan and increase production even further, he added.

Not everyone agrees, however.

Helima Croft of RBC Capital Markets said that, in practice, OPEC+ is not increasing production as planned because "a number of countries are unable to reach their targets, in part because of lack of investment."

"The question is, are we going to still be short barrels when it comes to the first quarter, if it's a cold winter especially, and there's greater demand for oil because of switching needs," Croft, who is managing director and global head of commodity strategy, told CNBC on Tuesday.

Both U.S. crude and Brent crude futures have risen more than 60% so far this year after demand increased when pandemic restrictions were loosened.

The U.S. blames high energy prices on OPEC+'s reluctance to ramp up production further. Energy Secretary Jennifer Granholm has called on OPEC+ to increase crude supplies and U.S. President Joe Biden has also criticized the oil alliance for not producing more barrels.

"The idea that Russia and Saudi Arabia and other major producers are not going to pump more oil so people can have gasoline to get to and from work, for example, is not right," Biden said on Oct. 31.

https://www.cnbc.com/amp/2021/11/17...-calm-after-us-pressure-to-pump-more-oil.html
 
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U.S. marshals other nations, challenges OPEC+ with release of oil reserves
By Timothy Gardner | November 24, 2021



(Reuters) - The administration of U.S. President Joe Biden announced on Tuesday it will release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to cool prices after OPEC+ producers repeatedly ignored calls for more crude.

Biden, facing low approval ratings and accelerating inflation ahead of next year's congressional elections, has grown frustrated at repeatedly asking the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to pump more oil without any response.

"I told you before that we're going to take action on these problems. That's exactly what we're doing," Biden said in remarks broadcast from the White House.

"It will take time, but before long you should see the price of gas drop where you fill up your tank, and in the longer-term we will reduce our reliance on oil as we shift to clean energy," he said.

Crude oil prices recently touched seven-year highs, and consumers are feeling the pain. Retail gasoline prices are up more than 60% in the last year, the fastest rate of increase since 2000, largely because people have returned to the roads as pandemic-induced restrictions have eased.

Under the plan, the United States will release 50 million barrels, the equivalent of about two and a half days of U.S. demand. India, meanwhile, said it would release 5 million barrels, while Britain said it would allow the voluntary release of 1.5 million barrels of oil from privately held reserves.

Japan will release "a few hundred thousand kilolitres" of oil from its national reserve, but the timing of the sale has not been decided, industry minister Koichi Hagiuda told reporters on Wednesday. read more

Earlier the Nikkei newspaper reported that Japan will release about 4.2 million barrels of oil (666,666 kilolitres) or about 1 or 2 days' worth of its demand. A Japanese refining source said it has already bought oil for processing in February 2022. read more

Seoul has said it would decide after discussions with the United States and other allies, but did not provide any details. read more

China, the world's largest crude importer, remains non-committal, though it has taken steps this year to cool price rises of other commodities in its domestic market. Beijing will release crude oil from its reserves according to its needs, a foreign ministry spokesman said on Wednesday. read more

"As a result, the Biden administration will have to turn to China again. This is a direction that benefits everyone, but China clearly has the upper hand," the state-backed Global Times said in an editorial. read more

Brent crude rose for a second day on Wednesdayto $82.70 a barrel by 0908 GMT, after falling more than 10% for several days on concerns of more supplies from SPR releases. Goldman Sachs said the volume announced was "a drop in the ocean".

It was the first time that the United States had coordinated such a move with some of the world's largest Asian oil consumers, officials said.

OPEC+, which includes Saudi Arabia and other U.S. allies in the Gulf, as well as Russia, has rebuffed requests so far to pump more. It meets again on Dec. 2 to discuss policy but has so far shown no indication it will change tack.

The group has been struggling to meet existing targets under its agreement to gradually increase production by 400,000 barrels per day (bpd) each month - a pace Washington sees as too slow - and it remains worried that a resurgence of coronavirus cases could again drive down demand. read more

Recent high oil prices have been caused by a sharp rebound in global demand, which cratered early in the pandemic in 2021, and analysts have said that releasing reserves may not be enough to curb further rises.

"It's not large enough to bring down prices in a meaningful way and may even backfire if it prompts OPEC+ to slow the pace at which it is raising output," said Caroline Bain, chief commodities economist at Capital Economics Ltd.

The administration has also pointed to a notable gap between the price of unfinished gasoline futures and the retail cost of gasoline, which has widened to about $1.14 a gallon from roughly 78 cents in mid-October. The White House urged the Federal Trade Commission to investigate the issue last week.

Biden's political opponents have seized on the announcement to criticize his administration's efforts to decarbonize the U.S. economy and discourage new fossil fuel development on federal lands.

"Tapping the Strategic Petroleum Reserve will not fix the problem," said Senator John Barrasso, the ranking Republican on the Senate energy committee.

The release from the U.S. Strategic Petroleum Reserve would be a combination of a loan and a sale to companies, U.S. officials said. The 32 million-barrel loan will take place over the next several months, while the administration would accelerate a sale of 18 million barrels already approved by Congress to raise funds for the budget.

WARNING TO OPEC

The effort by Washington to team up with major Asian economies to lower energy prices acts as a warning to OPEC and other big producers that they need to address concerns about high crude prices, up more than 50% so far this year.

"It sends a signal to OPEC+ that the consuming nations are not going to get pushed around any more by them," said John Kilduff, partner at Again Capital LLC in New York. "OPEC+ has been stingy with their output for months now."

Suhail Al-Mazrouei, energy minister of the United Arab Emirates, one of OPEC's biggest producers, said before details of the release of U.S. reserves were announced that he saw "no logic" in lifting UAE supply for global markets.

An OPEC+ source said releasing reserves would complicate its calculations, as it monitors markets on a monthly basis. However, they and several analysts said the release was not as big as the headline figure suggested. They said Britain and India were releasing modest amounts and the United States had already announced some releases, and so the additional quantity was less than expected.

The United States historically has worked on coordinated stocks releases with the Paris-based International Energy Agency (IEA), a bloc of 30 industrialised energy consuming nations.

Japan and South Korea are IEA members. China and India are only associate members.

https://www.reuters.com/markets/com...oil-release-bid-fight-high-prices-2021-11-23/
 
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Arkain what is your take on this? Obviously a lot of this is the same reason other prices have increased, but what extent do you blame Biden policy on oil specifically?

I haven’t followed closely enough but I’ve read some stuff on here that suggested that at least early on Biden was quietly allowing for a lot of oil exploration and exploitation while doing the symbolic stuff like cancelling Keystone XL to appease his supporters
 

What is weird is that the Biden administration has t even talked to domestic producers at all. The rig count should be 500 and they should be asking them how to get it that high and how to help. Instead we get cackling and trying to talk to opec.

Arkain what is your take on this? Obviously a lot of this is the same reason other prices have increased, but what extent do you blame Biden policy on oil specifically?

I haven’t followed closely enough but I’ve read some stuff on here that suggested that at least early on Biden was quietly allowing for a lot of oil exploration and exploitation while doing the symbolic stuff like cancelling Keystone XL to appease his supporters

Jan 2021: New drill leases on federal land and water suspended.
www.cnbc.com/amp/2021/01/27/biden-suspends-oil-and-gas-drilling-in-series-of.html

June 2021: Federal court says leases must continue.
www.nytimes.com/2021/06/15/climate/biden-drilling-federal-land.html

August 2021: Drill leases resumes.
https://www.reuters.com/business/en...-resume-oil-gas-drilling-auctions-2021-08-31/

Biden believes it's 100% other people's fault for the current crisis: Russia, OPEC, and now the U.S oil companies are blamed for colluding between themselves, without any evidence:
https://amp.usatoday.com/amp/8649244002

Analysts believe it's a simple case of demand outstrips supply, as the world recovers from the pandemic, compounded by natural disasters that slashed some production, with some political uncertainties sprinkled in:
https://www.cbsnews.com/amp/news/gas-prices-high-profiteers-biden/

In the end, we have a perfect storm of:

- A bunch of supply setbacks from multiple fronts that contributed to this shortage, right when the immunized world reopen again for business.

- Domestic oil companies do not want to invest more capital to increase output beyond their production schedule to make up for that shortfall and risks their shareholders' anger again if that results in another glut, or worse: their project being impeded or cancelled again by an antagonistic government hostile to the energy sector.

- Biden doesn't even want to engage in a discussion with the domestic oil producers and lend his support, much less making an official request for an increase in output or offering any assurances that could increase production, because that would tarnish his environmental street cred.

And that's how we have $5 gasoline, when it should be no more than $3.

Biden's climate conundrum

Still, in theory, Biden could hold talks with oil CEOs and urge them to turn on the taps to ease the pain on American drivers.

And they could then ask him to slash red tape and ease off environmental regulations.

But that's not really an option for Biden, who ran on the most aggressive climate agenda in US presidential history.

Climate scientists and even the International Energy Agency have said oil companies need to stop drilling now to reduce greenhouse gas emissions warming the planet.

Like all presidents, Biden wants to keep energy prices affordable and prevent prices at the pump from hitting levels that slow the economy.

And yet he can't tell Big Oil to drill-baby-drill and still credibly argue his administration is doing its part to save the planet.

Therein lies the inherent tension facing Biden right now. His climate ambitions are colliding head-on with economic reality.

https://amp.cnn.com/cnn/2021/11/10/energy/oil-gas-prices-joe-biden/index.html
 
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Biden calls for higher fees for oil, gas leasing on federal land, stops short of ban
By AP | November 26, 2021

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The Biden administration on Friday recommended an overhaul of the nation's oil and gas leasing program to limit areas available for energy development and raise costs for oil and gas companies to drill on public land and water.

The long-awaited report by the Interior Department stops short of recommending an end to oil and gas leasing on public lands, as many environmental groups have urged. But officials said the report would lead to a more responsible leasing process that provides a better return to U.S. taxpayers.

"Our nation faces a profound climate crisis that is impacting every American,″ Interior Secretary Deb Haaland said in a statement, adding that the new report's recommendations will mitigate worsening climate change impacts "while staying steadfast in the pursuit of environmental justice.″

The report completes a review ordered in January by President Joe Biden, who directed a pause in federal oil and gas lease sales in his first days in office, citing worries about climate change.

The moratorium drew sharp criticism from congressional Republicans and the oil industry, even as many environmentalists and Democrats said Biden should make the leasing pause permanent.


The new report seeks a middle ground that would continue the multibillion-dollar leasing program while reforming it to end what many officials consider overly favorable terms for the industry.

The report recommends hiking federal royalty rates for oil and gas drilling, which have not been raised for 100 years. The federal rate of 12.5% that developers must pay to drill on public lands is significantly lower than many states and private landowners charge for drilling leases on state or private lands.

The report also said the government should consider raising bond payments that energy companies must set aside for future cleanup before they drill new wells. Bond rates have not been increased in decades, the report said.

The Bureau of Land Management, an Interior Department agency, should focus leasing offers on areas that have moderate to high potential for oil and gas resources and are close to existing oil and gas infrastructure, the report said.

The White House declined to comment Friday, referring questions to Interior.

The federal leasing program has drawn renewed focus in recent weeks as gasoline prices have skyrocketed and Republicans complained that Biden policies, including the leasing moratorium, rejection of the Keystone XL oil pipeline and a ban on oil leasing in Alaska's Arctic National Wildlife Refuge, contributed to the price spike.

50 million barrels of oil released from America's strategic reserve, aiming to bring down gas prices amid concerns about inflation. Gasoline prices are at about $3.40 a gallon, more than 50% higher than a year ago, according to the American Automobile Association. Oil prices dropped about 13% Friday as a new coronavirus variant first detected in South Africa appeared to be spreading across the globe.

The Biden administration conducted a lease sale on federal oil and gas reserves in the Gulf of Mexico last week, after attorneys general from Republican-led states successfully sued in federal court to lift the suspension on federal oil and gas sales that Biden imposed when he took office.

Energy companies including Shell, BP, Chevron and ExxonMobil offered a combined $192 million for offshore drilling rights in the Gulf, highlighting the hurdles Biden faces to reach climate goals dependent on deep cuts in fossil fuel emissions.

The leases will take years to develop, meaning oil companies could keep producing crude long past 2030, when Biden has set a goal to lower greenhouse gas emissions by at least 50%, compared with 2005 levels. Scientists say the world needs to be well on the way to that goal over the next decade to avoid catastrophic climate change.

Yet even as Biden has tried to cajole other world leaders into strengthening efforts against global warming, including at this month's U.N. climate talks in Scotland, he's had difficulty gaining ground on climate issues at home.

The administration has proposed another round of oil and gas sales early next year in Wyoming, Colorado, Montana and other states. Interior Department officials proceeded despite concluding that burning the fuels could lead to billions of dollars in potential future climate damages.

Emissions from burning and extracting fossil fuels from public lands and waters account for about a quarter of U.S. carbon dioxide emissions, according to the U.S. Geological Survey.

Environmentalists hailed the report's recommendation to raise royalty rates, but some groups said the report falls short of action needed to address the climate crisis.

"Today's report is a complete failure of the climate leadership that our world desperately needs,'' said Taylor McKinnon of the Center for Biological Diversity, an environmental group.

The report "presumes more fossil fuel leasing that our climate can't afford" and abandons Biden's campaign promise to stop new oil and gas leasing on public lands, McKinnon said.

The American Petroleum Institute, the top lobbying group for the oil industry, said Interior was proposing to "increase costs on American energy development with no clear roadmap for the future of federal leasing."

Other groups were more upbeat.

"This report makes an incredibly compelling case both economically and ecologically for bringing the federal oil and gas leasing program into the 21st century," said Collin O'Mara, president and CEO of the National Wildlife Federation. "Enacting these overdue reforms will ensure taxpayers, communities and wildlife are no longer harmed by below-market rates, insufficient protections and poor planning.''

The wildlife federation and other groups urged the Senate to include reforms to the oil and gas program in Biden's sweeping social and environmental policy bill. Many reforms, including a royalty rate increase and bans on drilling in the Arctic refuge and along the Atlantic and Pacific Coasts, were included in a House version of the bill approved last week.

Jennifer Rokala, executive director of the left-leaning Center for Western Priorities, said the report "provides a critical roadmap to ensure drilling decisions on public lands take into account (climate) impacts on our land, water and wildlife, while ensuring a fair return for taxpayers.''

Republicans said the report was a continuation of what they call Biden's war on domestic energy production.

While the report hides behind language of "necessary reforms'' and royalty rate adjustments, "we know the real story,'' said Arkansas Rep. Bruce Westerman, the top Republican on the House Natural Resources Committee.

The Biden administration "will bog small energy companies down in years of regulatory gridlock, place millions of acres of resources-rich land under lock and key (and) ignore local input,'' Westerman said. "Ultimately, the American consumer will pay the price. Look no further than the skyrocketing prices you are already paying at the gas pump.''
https://www.npr.org/2021/11/26/1059...-gas-leasing-on-federal-land-stops-short-of-b
 
Hmm...it almost sounds like Warren doesn't understand how the economy works.

U.S. Senator Warren lashes out at energy companies over natural gas prices
By Kanishka Singh | Nov 23, 2021

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(Reuters) - U.S. Senator Elizabeth Warren on Tuesday called on energy companies to explain "their decisions to export record amounts of natural gas while imposing massive price increases" on consumers, accusing them of "corporate greed" while Americans struggle to pay their bills.

Warren sent letters to 11 energy companies, including Exxon Mobil (XOM.N), ConocoPhillips (COP.N) and Occidental Petroleum (OXY.N).

"The cause of rapidly rising energy prices for consumers and manufacturers is clear: some of the nation's largest and most profitable oil and gas companies are putting their massive profits, share prices and dividends for investors, and millions of dollars in CEO pay and bonuses ahead of the needs of American consumers and the nation’s recovery from the pandemic," Warren wrote in letters sent to the companies and posted on her website.

Warren said she was concerned about "the extent to which these price increases are being driven by energy companies’ corporate greed and profiteering."

She called on the companies to detail, for the past 10 years, their natural gas exports, percentage of total natural gas production exported, average profit margin for exported natural gas, average profit margin for domestic sales of natural gas, and the amount invested in clean, renewable energy. Warren asked for replies by Dec. 7.

Letters were also sent to EQT (EQT.N) , Coterra , BP (BP.L) , Antero Resources (AR.N) , Chesapeake Energy Corp (CHK.O) , Ascent Resources, Southwestern Energy Co (SWN.N) and Range Resources Corp (RRC.N) .

Warren's broadside on the energy sector comes a day after she called on the Justice Department to open an investigation into the impact of price-fixing and consolidation in the poultry sector on consumers and farmers. read more

The United States said earlier on Tuesday it will release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to cool prices after OPEC+ producers repeatedly ignored calls for more crude. read more

https://www.reuters.com/business/en...tural-gas-prices-energy-companies-2021-11-23/
 
Explainer: What is happening with U.S. gasoline prices?
By Laura Sanicola | November 24, 2021



(Reuters) - The United States uses more gasoline than any other nation in the world, and lately Americans have grown concerned about the swift rise in costs at the pump.

The White House on Tuesday announced plans to release millions of barrels of oil from strategic reserves in coordination with other nations in hopes of lowering costs. read more

The average retail price of gasoline was most recently at $3.40 for a regular gallon, up from roughly $2.11 at this time a year ago. The swift increase - 61% over 12 months - has alarmed consumers.

A projected 48.3 million people are expected to hit the roads over Thanksgiving, according to the American Automobile Association, nearly 4 million more than last year, though still short of 2019 levels.

HAVE GASOLINE PRICES EVER BEEN THIS HIGH?

Yes. The cost of a gallon of regular gasoline hit $4.11 in July 2008. The current cost is still substantially lower than that, but a rise this swift is rare.

WHAT IS THE DIFFERENCE BETWEEN WHOLESALE FUTURES AND RETAIL GASOLINE PRICES?

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President Joe Biden, in his remarks on releasing oil from the strategic reserve, said prices should be about 25 cents lower than they are now.

He is referring to the current gap between unfinished gasoline futures known as RBOB, and retail prices, that has widened out as RBOB has fallen over the last several weeks while the retail cost has remained relatively steady.

In the last six weeks, that gap has widened from roughly 78 cents to about $1.14 a gallon, the highest since April 2020. That's notably wider than the five-year average of about 85 cents.

Wholesale prices often diverge from retail prices when the former drops sharply, as retailers generally respond to such changes on a lag. In March 2020, the gap widened to $1.64 a gallon as wholesale prices crashed as the coronavirus pandemic worsened while Saudi Arabia and Russia were flooding the market with barrels. It did not return to a more normal spread for two months.

In November 2018 the gap rose to $1.11, and took several months to decline.

WHAT GOES INTO THE PRICE OF GASOLINE?

There are several factors. Crude oil accounts for more than half of the cost, according to the U.S. Energy Department. That price is largely determined by supply and demand worldwide.

Consumers pay additional costs for blending ethanol and other additives, as well as for distribution and marketing. Those costs have risen significantly, according to Tom Kloza, global head of energy analysis at the Oil Price Information Service (OPIS).

“Gasoline you get at the pump is really containing eight or nine different elements, all of which have increased in cost in recent months,” said Kloza.

Roughly 17% of the cost comes from taxes. The federal gasoline tax is 18 cents, while the average taxes and fees per state is 30 cents, though this varies (see GRAPHIC).

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HOW DOES RELEASING CRUDE RESERVES AFFECT FUEL PRICES?

The release from the U.S. Strategic Petroleum Reserve would be a combination of a loan and a sale to companies, U.S. officials said, for a total of 50 million barrels.

Oil prices have fallen for several days as the oil market expected news of a potential release. However, because it takes time for a strategic release to work its way into the refining process, drivers are not likely to see pump prices fall when they hit the road for the U.S. Thanksgiving holiday on Thursday.

“It is unlikely the price relief will be passed down to consumers in the near short-term, unless the Biden administration prioritizes the release of gasoline stocks,” said Louise Dickson, senior oil markets analyst at Rystad Energy.

WHAT ELSE CAN BE DONE TO LOWER PRICES AT THE PUMP?

In response to higher gasoline prices in his state, Florida Governor Ron DeSantis asked lawmakers on Monday to consider waiving the gasoline tax in the state, which is used to fund public transportation infrastructure. Florida's total state taxes and fees are nearly 35 cents, above the national average.

“Other Republican-leaning states may follow suit, especially if they argue the revenues will be made up from funding within the federal infrastructure bill,” Kloza said.

WHERE ARE GASOLINE PRICES HEADED AFTER THIS WEEK?

Gasoline prices are likely to decrease in the coming weeks, but a lot of that is due to lower demand for the fuel in the winter months, according to Kloza.

When demand for gasoline returns, U.S. consumers will likely return to the pumps but the capacity to refine the oil is diminished after a year in which even sizable refineries shuttered across the globe.

https://www.reuters.com/markets/commodities/what-is-happening-with-us-gasoline-prices-2021-11-24/
 
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Oil Prices Crash As Covid Does What Biden Couldn’t
By Tom Kool - Nov 26, 2021

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Renewed Covid fears have managed to do what Biden couldn't, sending oil prices crashing as a new wave of demand destruction looms.

Oil prices experienced one of their worst trading days in recent memory on Friday, plunging across the board by over 10% on fears that a new COVID-19 variant discovered in Southern Africa might dampen economic growth and trigger another demand slump. Following the spectacular failure of the SPR release, which instead of depressing prices ratcheted them up higher, renewed COVID-19 concerns have now brought about President Biden’s objective. OPEC+ might still have a say in this, with the group's December 02 meeting potentially resulting in a reduction in production targets for 2022.

https://oilprice.com/Energy/Energy-General/Oil-Prices-Crash-As-Covid-Does-What-Biden-Couldnt.html
 
Oil drops 13% in worst day of 2021, breaks below $70 as new Covid variant sparks global demand concerns
FRI, NOV 26 2021

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Oil posted its worst day of the year on Friday, tumbling to the lowest level in more than two months as the new Covid-19 strain sparked fears about a demand slowdown just as supply increases.

The leg lower came amid a broad sell-off in the market with the Dow dropping more than 900 points. The World Health Organization warned Thursday of a new Covid variant detected in South Africa. It could be more resistant to vaccines thanks to its mutations, although the WHO said further investigation is needed.

U.S. oil settled 13.06%, or $10.24, lower at $68.15 per barrel, falling below the key $70 level. It was the contract's worst day since April 2020. WTI also closed below its 200-day moving average — a key technical indicator — for the first time since November 2020.

International benchmark Brent crude futures slid 11.55% to settle at $72.72 per barrel.

Both contracts registered their fifth straight week of losses for the longest weekly losing streak since March 2020.

A decrease in travel and potential new lockdowns, both of which could hit demand, come just as supply is about to increase.

"It appears that the discovery of a Covid-19 variant in southern Africa is spooking markets across the board. Germany is already limiting travel from several nations in the affected region," said John Kilduff, partner at Again Capital. "The last thing that the oil complex needs is another threat to the air travel recovery," he added.

On Tuesday the Biden Administration announced plans to release 50 million barrels of oil from the Strategic Petroleum Reserve. The move is part of a global effort by energy-consuming nations to calm 2021′s rapid rise in fuel prices. India, China, Japan, South Korea and the U.K. will also release some of their reserves.

"This [the sell-off] is attributable to concerns about a sizeable oversupply in early 2022 that is set to be brought about by the upcoming release of strategic oil reserves in the US and other major consumer countries, plus the ongoing steep rise in new coronavirus cases," noted analysts at Commerzbank. "Furthermore, an even more transmissible variant of the virus has been discovered in South Africa, prompting a noticeable increase in risk aversion on the financial markets today."

OPEC and its oil-producing allies are set to meet on Dec. 2 to discuss production policy for January and beyond. The group has slowly eased the historic output cuts it agreed to in April 2020 as the coronavirus sapped demand for petroleum products. Since August the group, known as OPEC+, has returned 400,000 barrels per day to the market each month.

The group has maintained its gradual taper despite calls from the White House and others to hike output as oil prices surged to multi-year highs. West Texas Intermediate crude futures hit a seven-year high in October, while Brent rose to a three-year high.

U.S. oil is now down more than $15 since its October high of $85.41.

"The coordinated SPR release is getting a second look, as well, especially with OPEC decrying it and asserting that the release will tip the global market back into surplus. The release is much more than just a drop in the bucket," added Kilduff.

Energy stocks followed oil lower on Friday, and the group was the worst-performing S&P 500 sector, falling more than 4%. Devon Energy, APA and Occidental were among the biggest losers.

https://www.cnbc.com/amp/2021/11/26...id-variant-sparks-global-demand-concerns.html
 
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Been looking for a chart like the first in that link for a while.

Seems to support my belief its international forces driving oil prices, not US presidents.

While market forces (especially unexpected events) quickly drives short-term fluctuations, U.S Presidents can definite set the board for long-term stability.

For example, Obama's energy policies was instrumental in the American shale revolution back in 2008, something that assures oil prices will never reach $150 per barrel again due to OPEC shenanigans.

https://www.forbes.com/sites/judecl...t-for-americas-shale-oil-and-natural-gas/amp/

Biden simply pretends shale doesn't exists even when he needed more oil, and we already felt the domestic production crunch, if one day we hypothetically have a U.S President who is actually hostile to fracking and try to ban it in the United States, OPEC would surely assume full control of their monopoly on oil prices again.
 
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While market forces (especially unexpected events) quickly drives short-term fluctuations, U.S Presidents can definite set the board for long-term stability.

For example, Obama's energy policies was instrumental in the American shale revolution back in 2008, something that assures oil prices will never reach $150 per barrel again due to OPEC shenanigans.

https://www.forbes.com/sites/judecl...t-for-americas-shale-oil-and-natural-gas/amp/

Biden simply pretends shale doesn't exists even when he needed more oil, and we already felt the domestic production crunch, if one day we hypothetically have a U.S President who is actually hostile to fracking and try to ban it in the United States, OPEC would surely assume full control of their monopoly on oil prices again.

So he somewhat controls world prices and therefore American prices?

Fair summary?
 
Silly Russia. If they try to flex their muscles, guess who will simply steps in next month to fill Europe's sky-rocketing demands?

Gazprom profits as Russia prospers from Europe’s gas crisis
By Jillian Ambrose | Dec 13, 2021



About 12.7bn cubic feet of gas flowed into Europe from Russia’s state-owned Gazprom last month. The world’s largest gas producer typically supplies more than a third of the needs of countries across the European Union, but in November flows dwindled to a six-year low.

Gas supplies from Russia have fallen well short of pre-pandemic levels for months. The volumes of Russian gas flowing into homes, businesses and storage facilities this year have been almost a quarter below those in 2019.

The slowdown has emerged against the backdrop of a global post-pandemic surge in gas demand that has triggered blackouts and record energy market prices across the globe. It also coincides with a surge in Russian aggression towards its neighbours in Ukraine and Moldova and deepening tensions with western powers over the Nord Stream 2 pipeline.

Meanwhile, as the global gas crisis has gripped European economies – forcing the shutdown of factories, the collapse of major energy suppliers and one of the fastest rises on record for home energy bills – Gazprom has enjoyed its highest ever profits.

The company reported a record net income of 582bn rubles (£5.86bn) from July to September compared with a net loss a year ago, and the company expects “even more impressive results in the fourth quarter”.

Gazprom’s success at profiting from the global gas crisis has reignited accusations that the Kremlin is using Russia’s vast reserves as a political weapon against the west and its allies.

The Russian government has denied this. Gazprom has claimed to be meeting all long-term contracts with its European customers and explained the lower “spot” exports by saying Russia had low gas storage levels itself, and that colder temperatures have meant higher domestic demand. Few market experts are entirely convinced.

But Gazprom must weigh the benefits of allowing gas prices to remain at record highs versus long-term commercial and financial considerations, according to Carlos Torres Diaz, a director of gas research at consultancy Rystad Energy. If gas remains unaffordable, its customers could accelerate the move to green alternatives, or find other sources of gas.

Rystad estimates that if Russia lifted its volumes of gas exports by 20%, it could bring the market price of gas in western European markets down by 50%. Instead, Gazprom has found a careful balance “between selling as much gas as possible without raising the volumes in the market to the point that it lowers the market price”, Torres Diaz said.

Taking advantage of higher gas prices today could prove to be a double-edged sword for Gazprom in terms of its future earnings, he added.

“For years Europe has relied on gas as a relatively affordable energy source with lower emissions than coal. The prices this winter could encourage more countries to develop more renewable energy to protect themselves from future energy market spikes,” Torres Diaz said.

“Gazprom has always wanted to be seen to be a reliable energy partner for European buyers, and Europe remains their main market even as its exports to Asia increase. Gazprom is considering its future and exporting hydrogen to Europe too.”

The state-owned producer’s slowdown in European gas exports has coincided with diplomatic wrangling over the controversial Nord Stream 2 gas pipeline, through which it plans to ship gas directly to Germany, bypassing its neighbours in Ukraine where Russia has reportedly amassed an army of 100,000 along the border.

Ukraine has warned that the Nord Stream pipeline would reduce Gazprom’s reliance on its network of important gas transit pipelines, and could make it easier for Moscow to launch an invasion. On Sunday evening, as tensions flared on the Russia-Ukraine border, Germany warned that Nord Stream 2 would not go ahead “if there are further escalations”.

Gazprom also cut supplies to Moldova, another important gas transit country, by one-third in September after the end of a long-term contract, sparking a state of emergency in the country. Gazprom demanded more than double the previous payments to keep gas flowing as well an agreement to delay new EU rules that would create more competition in the market.

These moves, in part an “ad hoc response to each rising crisis”, form part of a strategy to safeguard Russia’s financial interests by circumventing the countries which pose geopolitical risks to its gas supply routes, said Emil Avdaliani, a professor at the European University in Tbilisi, Georgia.

“At the same time, every Russian move is part of a wider strategy to use energy as a tool to broaden its influence through Europe,” he said. “Moscow is essentially banking on the idea that these countries have no other alternatives.”

The move to clean energy sources is a threat to Russia’s last remaining political tool, which its leaders have failed to grapple with so far, according to Avdaliani.

“It has been fashionable since the end of the Soviet Union to view Russia as a major power player, but I see a gradual decline in its influence. Its sole tool of political influence to prevent the fleeing of eastern European countries to the west is energy – there are no other pulleys – and this is declining too,” he said.

It may come as cold comfort for this winter, but Russia’s gas dominance may soon be snuffed out.

https://www.theguardian.com/world/2...me-as-russia-prospers-from-europes-gas-crisis
 
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US becomes world’s top LNG exporter for first time ever
Output from American LNG facilities outpaced Qatar in December
By Stephen Stapczynski and Sergio Chapa | 4 Jan 2022​

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Natural gas production in the United States has surged by roughly 70 percent from 2010 and the nation is expected to have the world’s largest export capacity by the end of 2022

The U.S. became the world’s No. 1 exporter of liquefied natural gas for the first time ever last month, as deliveries surged to energy-starved Europe.

Output from American facilities edged above Qatar in December after a jump in exports from the Sabine Pass and Freeport facilities, according to ship-tracking data compiled by Bloomberg. Cheniere Energy Inc. said last month that a new production unit at its Sabine Pass plant in Louisiana produced its first cargo.

A shale gas revolution, coupled with billions of dollars of investments in liquefaction facilities, transformed the U.S. from a net LNG importer to a top exporter in less than a decade. Gas production has surged by roughly 70% from 2010 and the nation is expected to have the world’s largest export capacity by the end of 2022 once Venture Global LNG’s Calcasieu Pass terminal comes online.

But the U.S.’s position as top LNG shipper may be short-lived. Exports were just a hair above those from Qatar and Australia, and any production issues could affect the rankings. Looking further out, Qatar is planning a gargantuan export project that will come online in the late 2020s, which could cement the middle eastern nation as the top supplier of the fuel.

“Qatar and the U.S. will be vying for being the largest LNG producers in the world over the next decade,” said Muqsit Ashraf, senior managing director of Accenture’s global energy practice.

In the meantime, the jump in U.S. LNG exports will help ease a global supply crunch. Europe is facing a winter energy crisis as utilities grapple with seasonally low natural gas inventories. Overseas buyers purchased 13% of U.S. gas production in December, a seven-fold increase from five years earlier when most of the infrastructure required to ship the fuel out of the country didn’t yet exist.

U.S. LNG export terminals sent out a record 1,043 cargoes in 2021, with Asian nations making up nearly half of the destinations and Europe making up one-third, ship tracking data compiled by Bloomberg shows.

https://www.aljazeera.com/economy/2022/1/4/us-becomes-worlds-top-lng-exporter-for-first-time-ever
 
Gas gap in Europe drives U.S. LNG exports to record high
By Marcy De Luna and Nina Chestney | Jan 6, 2021

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HOUSTON/LONDON, Jan 6 (Reuters) - Sky-high European demand drove U.S. liquefied natural gas (LNG) exports to a record in December, Refinitiv data showed, with winter supply worries set to sustain orders for the fuel.

About half of the record U.S. LNG volumes shipped last month went to Europe, up from 37% earlier in 2021, data from Refinitiv and the U.S. Energy Information Administration showed.

The gains reflected soaring demand for the home heating and industrial fuel that pushed prices in Europe and Asia to record highs. The United States has ample and cheap supplies as its shale oil and gas boom in the last two decades led to domestic production that has exceeded U.S. demand by about 10%.

Vessel tracking data showed about 7.15 million tonnes of LNG were shipped last month on 106 vessels, up 16% compared to 6.14 million tonnes on 89 vessels the same month a year ago. That topped the previous record of 6.51 million tonnes set in May.

Dutch gas prices, the European benchmark, have cooled since late December removing their premium to Asia. On Wednesday, the Japan Korea Marker (JKM) price for Asia spot gas was $34.19 per million British thermal units, a premium of about $4 to Europe.

Two LNG cargoes originally destined for Europe have been re-routed this month, people familiar with the matter said, with one heading to Asia. That is a reversal to late last year when at least 10 cargoes heading for Asia were re-routed to Europe attracted by the price differential. read more

"LNG diversions from Asia are a useful stop-gap measure but are not a sustainable substitute for stable pipeline supplies," Wei Xiong, senior analyst at consultancy Rystad Energy, said.

LNG demand in Asia may jump in January, halting further diversions to Europe, she added.

"Prices are volatile right now," said Reid I'Anson, senior commodity analyst at data provider Kpler.

While LNG prices being higher in Asia than in Europe lowers the likelihood of a new record for U.S. exports to Europe, flows could shift again if temperatures tumble there, I'Anson said.

Ports in Britain, the Netherlands and Belgium have around 30 LNG tankers scheduled for delivery this month, with at least 13 arriving from the United States.

CHILLING

While the United States has plentiful natural gas, its processing and chilling capacity is limited. Gas flowing to U.S. LNG export plants in December hit a record 12.2 billion cubic feet per day, about the maximum processing capacity.

There were no LNG processing plants approved in the United States last year, while nearly a dozen plants proposed in past years are still awaiting financial commitments. read more

Spending on new LNG projects fell in recent years as trade tensions between the United States and China rose and more recently as gas prices fell during the COVID-19 pandemic.

https://www.reuters.com/markets/com...drives-us-lng-exports-record-high-2022-01-06/
 
Oil tops $105 after Russia attacks Ukraine
By Bozorgmehr Sharafedin

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LONDON, Feb 24 (Reuters) - Oil prices jumped on Thursday, with Brent rising above $105 a barrel for the first time since 2014, after Russia's attack on Ukraine exacerbated concerns about disruptions to global energy supply.

Russia launched an all-out invasion of Ukraine by land, air and sea in the biggest attack by one state against another in Europe since World War Two. read more

The United States and Europe have promised the toughest sanctions on Russia in response.

"If sanctions affect payment transactions, Russian banks and possibly also the insurance that covers Russian oil and gas deliveries, supply outages cannot be excluded," said Commerzbank analyst Carsten Fritsch.

At least three major buyers of Russian oil were unable to open letters of credit from Western banks to cover purchases on Thursday, sources told Reuters. read more

Brent crude was up $8.15, or 8.4%, at $104.99 a barrel as of 1221 GMT, having touched a high of $105.79. U.S. West Texas Intermediate (WTI) crude jumped $7.33, or 8%, to $99.43.

Brent and WTI hit their highest since August and July 2014 respectively.

"Russia is the third-largest oil producer and second-largest oil exporter. Given low inventories and dwindling spare capacity, the oil market cannot afford large supply disruptions," said UBS analyst Giovanni Staunovo.

"Supply concerns may also spur oil stockpiling activity, which supports prices."

Russia is also the largest provider of natural gas to Europe, providing about 35% of its supply.

UK Prime Minister Boris Johnson vowed Britain and its allies would unleash a massive package of economic sanctions on Russia and said the West must end its reliance on Russian oil and gas. read more

China warned on the impact of tensions on the stability of the energy market.

"All countries that are truly responsible should take responsible actions to jointly maintain global energy security," a Chinese foreign ministry spokesperson said.

Analysts believe that Brent is likely to remain above $100 a barrel until significant alternative supplies become available from OPEC, U.S. shale or Iran, for example.

The United States and Iran have been engaged in indirect nuclear talks in Vienna that could lead to the removal of sanctions on Iranian oil sales.

Iran's top security official Ali Shamkhani said on Twitter on Thursday that it is possible to achieve a good nuclear agreement with Western powers after significant progress in negotiations. read more

Analysts are warning of inflationary pressure on the global economy from $100 oil, especially for Asia, which imports most of its energy needs.

"Asia's Achilles heel remains its vast import needs for energy, with surging oil prices bound to take a hefty bite out of income and growth over the coming year," said HSBC economist Frederic Neumann.

https://www.reuters.com/business/en...ian-attack-ukraine-may-occur-soon-2022-02-24/
 
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