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DAILY ENERGY NEWS | 09/24/2024

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The Biden-Harris LNG freeze is great, as long as you're a foreign energy magnate.

Oil Price (9/23/24) reports: "Canada and Mexico are rushing to fill the natural gas vacuum left by the United States’ ongoing moratorium on new liquefied natural gas (LNG) export permits introduced by the Biden Administration in January of this year. The country’s neighbors to the north and south are speeding up their own export capacities to the tune of tens of billions of dollars to capitalize on the newfound market opportunity to provide natural gas to Asian buyers as the world’s biggest LNG exporter takes a break. On January 26th, President Biden announced that it would pause approvals of new licenses to export LNG so that the U.S. Department of Energy could take time to review and assess whether the nation’s considerable LNG exports are 'undermining domestic energy security, raising consumer costs and damaging the environment.' Canada, for its part, wasted no time at all rushing to fill the sizeable gap left by the United States. According to figures from Rystad Energy AS, Mexico and Canada have around US$63 billion of capital investment lined up to supercharge their respective LNG export capacities. '(Customers) want alternative suppliers,' Kenny Stein, vice president of policy at the Institute for Energy Research, recently told the Financial Times. 'They are happy to have more supply on the market from non-U.S. suppliers.'"

"By misunderstanding humanity’s role in the natural environment and the essential nature of free market systems, degrowthers also recommend policy solutions that would do far more harm than the problem they claim to solve."

– Craig Orji,
Mackinac Center for Public Policy

Blue states are in a race to find the worst ways to needlessly inconvenience their residents.

National Review (9/23/24) column: "For the last two years, New Jersey has had the dubious honor of being home to the dumbest new policy fad in America. It has spent that time clinging to a progressive reform so rigid, imperious, and counterproductive that you’d think no state would be pig-headed enough to pursue it. But apparently, California just couldn’t abide this challenge to its primacy as the most witless state in the union. 'California is banning all plastic shopping bags at grocery store checkouts under legislation that [Governor] Gavin Newsom signed on Sunday,' Axios reported. Newsom’s signature 'honors the intent of a ban on single-use bags' the state passed into law ten years ago, but that included what one bag-banning lawmaker denounced as a 'loophole' that 'allowed stores to provide consumers with thicker plastic bags at checkout.' If New Jersey’s experience is any indication, Californians can look forward to a costly new inconvenience that doesn’t provide the environmental benefits it promises...But that isn’t the only pricy imposition on New Jerseyans who prepare and consume food. Alternative shopping-bag sales skyrocketed in the state, as one might expect. 'An in-depth cost analysis found a typical store can profit $200,000 per store location from alternative bag sales,' the Institute for Energy Research revealed. 'For one major retailer, it amounted to an estimated $42 million in profit across all its bag sales in New Jersey.' It’s not that New Jersey residents were rigorous in their observation of the ban but that they are so often compelled to buy ever more shopping bags as a result of their own failure to keep a ready supply of totes with them at all times."

Respectfully, Mr. President, she did say frack, routinely telling voters she would ban the practice.

BP: Back to Petroleum

Reuters (9/16/24) reports: "BP plans to sell its U.S. onshore wind energy business, it announced on Monday, saying the assets were not aligned with its growth plans. BP said it will launch the sale process shortly for the wind assets, bp Wind Energy, which has interests in 10 operating onshore wind energy assets across seven U.S. states. 'We believe the business is likely to be of greater value for another owner,' William Lin, BP's executive vice president for gas and low carbon energy said in a statement. Several offshore wind companies have cancelled or sought to renegotiate power contracts for planned U.S. projects in the past year, citing soaring materials costs, high interest rates, and supply chain disruptions. bp Wind Energy's assets, which have net total generating capacity of 1.3 gigawatts, are not aligned with BP's plans for growth in Lightsource bp, the London-listed company said...The move also comes as BP's new CEO Murray Auchincloss has imposed a hiring freeze and paused new offshore wind projects as he places a renewed emphasis on oil and gas amid investor discontent over its energy transition strategy, sources at the company told Reuters in June. It marks a stark reversal from the direction the CEO's predecessor Bernard Looney took to rapidly move away from fossil fuels. This has weighed on BP's shares as returns from renewables shrank, while profits from oil and gas soared in the wake of the COVID-19 pandemic and Russia's invasion of Ukraine."

Energy Markets

WTI Crude Oil: ↑ $71.59
Natural Gas: ↑ $2.61
Gasoline: ↑ $3.21

Diesel: ↑ $3.58
Heating Oil: ↑ $217.39
Brent Crude Oil: ↑ $75.09
US Rig Count: ↓ 619

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