Broiling the golden goose

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DAILY ENERGY NEWS | 05/19/2023

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Much like Senator White('s only)house, many blue states make their money from oil & gas while deriding the producers who fund their agendas.

Fox News (5/16/23) reports: "The U.S. oil and natural gas industry contributes $1.8 trillion annually to the U.S. economy while supporting nearly 11 million jobs, according to an industry analysis published Tuesday morning. The report — commissioned by the American Petroleum Institute (API) and prepared by PricewaterhouseCoopers using 2021 data — showed the oil and gas industry has a massive economic impact, both directly and indirectly by impacting sectors throughout the energy supply chain, across all 50 states. Overall, the industry's nearly $2 trillion impact on U.S. gross domestic product accounts for 7.6% of the national total. 'Natural gas and oil delivers growing economic contributions to America that were nearly equivalent to Canada’s annual GDP last year.' API President and CEO Mike Sommers said in a statement Tuesday. 'From Pennsylvania to California, America’s natural gas and oil workforce is the backbone of communities, supporting nearly 11 million careers throughout the energy supply chain.' 'America’s economic outlook is brighter when we are leading the world in energy production and this analysis serves as a reminder that we need policies and regulations that encourage investment and enable development,' Sommers continued."

"We all hope for a cleaner energy future. But that will take time and thoughtful planning. It will take bipartisan support, not radical proposals. Whatever lofty goals the EPA has, they won’t keep us warm at night when the heat goes off."

– William S. Scherman,
The Wall Street Journal

Wishful thinking, or forced reckoning?

Spectator (5/19/23) column: "The contrast couldn’t be greater. In Britain a wealthy cabinet minister goes on television to boast of how he is installing a heat pump in his home – something his government is proposing to force on millions of British homeowners over the next few years in spite of them costing many thousands of pounds more than a gas or oil boiler. Meanwhile, in France, the President makes a speech calling for a ‘regulatory pause’ on green issues in order to push for the ‘re-industrialisation’ of his country. So far, Britain and the EU have moved more or less in tandem on climate change – which is not all that surprising given that until three years ago Britain was a member of the EU and therefore within its regulatory orbit. Both are committed – at least in theory – to a legally binding target of achieving net zero by 2050; Germany and Sweden have taken it further and have a 2045 target. Yet over the past few months Britain and the EU have started to diverge – and in the opposite direction to that which had been feared by many Remainers. While the UK government has declined to weaken its net-zero commitment in the face of a cost-of-living crisis, in the EU the green tide is showing signs of receding."

FERC has more issues than a magazine stand, but there are other agencies just as big of a threat to America's gird.

Substack (5/13/23) article: "On May 4, members of the Federal Energy Regulatory Commission delivered stark warnings to the members of the Senate Energy and Natural Resources Committee. The agency’s acting chairman, Willie Phillips, told the senators, 'We face unprecedented challenges to the reliability of our nation’s electric system.' FERC Commissioner Mark Christie echoed Phillips’ warning, saying the U.S. electric grid is 'heading for a very catastrophic situation in terms of reliability.' His colleague, Commissioner James Danly, averred that there is a 'looming reliability crisis in our electricity markets.' The commissioners pointed to several factors for the reliability crisis, including numerous coal plants that are being retired prematurely, insufficient pipeline capacity to assure natural gas can be delivered to power plants, insufficient high-voltage transmission capacity, and distortions in the electricity market caused by massive federal subsidies for weather-dependent renewables. On the last point, Danly told the senators, 'FERC has allowed the markets to fall prey to the price distorting and warping effects of subsidies and public policies that have driven the advancement of large quantities of intermittent renewable resources onto the electric system.' In his written testimony, Danly went further, saying 'Most of these market-distorting forces originate with subsidies -- both state and federal -- and from public policies that are otherwise designed to promote the deployment of non-dispatchable wind and solar assets or to drive fossil-fuel generators out of business as quickly as possible.' Thus, at the same time FERC commissioners are warning of catastrophic failures on the U.S. electric grid, the EPA under President Joe Biden wants to implement rules that could -- repeat, could -- force the closure of 90 percent of the hydrocarbon-fueled power plants in the country."

Oh look. People still use oil. 😲

International Energy Forum (5/18/23) reports: "Global oil demand rose by 3.0 mb/d month-on-month in March to the highest level ever recorded by JODI-reporting countries, driven by growth in China and the US. China's total product demand increased by 1.6 mb/d month-on-month to 16.79 mb/d – the third-highest level ever reported for the country in JODI. Global crude oil production fell by 0.5 mb/d in March driven by lower production in the US, China, Angola, Canada, and the UK. Global inventories of refined products fell by 39.6 mb in March while crude inventories declined by 0.7 mb. Total crude and product inventories remain 336 mb below the five-year average. Notably, this month's update did not include March data for Russia, but February oil data for the country was included for the first time. Russian crude production rose by 133 kb/d in February and stood 116 kb/d below year-ago levels."

If you oppose a carbon tax, take a stand and contact us.

Tom Pyle, American Energy Alliance

Myron Ebell, Competitive Enterprise Institute

Phil Kerpen, American Commitment

Andrew Quinlan, Center for Freedom and Prosperity

Grover Norquist, Americans for Tax Reform

George Landrith, Frontiers of Freedom

Thomas A. Schatz, Citizens Against Government Waste

Richard Manning, Americans for Limited Government

Adam Brandon, FreedomWorks

Craig Richardson, E&E Legal

Benjamin Zycher, American Enterprise Institute
Jason Hayes, Mackinac Center
David Williams, Taxpayers Protection Alliance
Paul Gessing, Rio Grande Foundation
Seton Motley, Less Government
Annette Thompson Meeks, Freedom Foundation of Minnesota
Isaac Orr, Center of the American Experiment
David T. Stevenson & Clint Laird, Caesar Rodney Institute
John Droz, Alliance for Wise Energy Decisions
Jim Karahalios, Axe the Carbon Tax
Mark Mathis, Clear Energy Alliance
Jack Ekstrom, PolicyWorks America

Energy Markets

WTI Crude Oil: ↓ $71.65
Natural Gas: ↑ $2.66
Gasoline: ↑ $3.54

Diesel: ↓ $4.00
Heating Oil: ↓ $238.54
Brent Crude Oil: ↓ $75.78
US Rig Count: ↓ 748

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