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DAILY ENERGY NEWS | 01/20/2022
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** President Biden keeps talking about tools, but there already is a proven way to deal with the rising cost of gasoline.
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Oil Price ([link removed]) (1/19/22) reports: "The Biden administration stands ready to deploy its tools to address the latest increase in oil prices, a spokeswoman for the National Security Council said this week. 'We continue to work with producer and consumer countries and these steps have had real effects on prices and ultimately tools continue to remain on the table for us to address prices,' Emily Horne said, as quoted by Reuters. 'We will continue to monitor prices in the context of global economic growth and engage our OPEC+ partners, as appropriate.' Horne also said. Last year, President Biden called on OPEC to increase production in response to rising crude prices, but the cartel declined. A harder stance followed, in which the White House said OPEC and Russia were contributing to higher bills for the American working class and again insisted that the extended oil cartel boost production by more
than its originally agreed 400,000 bpd monthly...The next tool the White House employed when all else failed was the decision to release up to 50 million barrels of crude from the strategic petroleum reserve—a move many analysts said would not have much of an impact on prices. Part of the amount has already been released."
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** "One of the countless ironies running through current climate policies is that that progress may be about to go into reverse, not because of climate change, but because of policies designed to combat it, and, more specifically, what looks more and more like a premature dash into wind energy. "
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– Andrew Stuttaford, National Review ([link removed])
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Doesn't matter which angle you come at it from, top-down management of America's power grid is a bad idea.
** Real Clear Energy ([link removed])
(1/17/22) op-ed: "Some in the electricity industry, some in Congress, and some former FERC commissioners believe that mandating participation in regional transmission organizations (RTOs) – either through FERC action or through legislation - is the right way to go. Before we head down that path, though, there are a few things to be considered. First, we’ve been trying to administratively design electricity markets for 30 years, and despite federal legislation requiring one, there has not yet been a comprehensive, independent study of the economic value of regional transmission organizations. We have no ability to say decisively and without reservation that the current administrative constructs provide greater consumer benefits than possible alternatives. That seems like important data to have before deciding on whether to make something mandatory."
Americans will pay the price for Biden's war on American energy, but Democrats will pay the price in November.
** Bloomberg ([link removed])
(1/19/22) op-ed: "Supply and demand fundamentals drive oil prices. Things like OPEC+ production plans and U.S. driving patterns matter the most — until they don’t. That’s when the wizardry of Wall Street takes over, giving prices a push up or down beyond what the physical fundamentals warrant. The oil market is on the cusp of one of those moments. For the last 18 months or so, bullish oil traders had been accumulating huge numbers of contracts that give them the right to buy crude at a particular price and time — call options, in the industry’s jargon. They’ve bought thousands of those contracts pegged to $100, $105, $110, $125 and even $150 a barrel. For many, they were akin to lottery tickets: a cheap way to bet on surging prices in the future...Despite the price surge, few are selling their call options just yet. Instead, many hedge funds and other large investors are patiently awaiting a much bigger prize: for oil prices to rise further so they can exercise their call options in
full and enjoy the right to buy crude below its market price."
This works well if you own several homes around the world and a private jet.
** ([link removed])
Build back better, but not anywhere near me, please. Good luck getting all that wind from where it (sometimes) blows to where the people live.
** Reuters ([link removed])
(1/18/22) reports: "A federal judge in Wisconsin has ruled that the planned construction of a segment of a $500 million power line that would cut through a wildlife refuge risks threatening various species meant to thrive in the protected area. The Friday ruling by U.S. District Judge William Conley in Madison represents a setback for the Cardinal-Hickory Creek Transmission Line Project, a planned 102-mile Iowa-to-Wisconsin power line that its joint developers, the American Transmission Co LLC, ITC Midwest LLC and Dairyland Power Cooperative, have been building in areas outside the refuge, which is located in both states, since last year. Conley also held that because the above-ground transmission line's route cuts through the middle of the Upper Mississippi River National Wildlife and Fish Refuge, it would scar its scenic qualities and wild character, contrary to its stated purpose and to the National Wildlife Refuge System Improvement Act, Conley said. The judge also concluded that the
federal agencies that measured the project's environmental impacts statement improperly 'whittle[d] away' alternatives less environmentally damaging than a power line."
Energy Markets
WTI Crude Oil: ↓ $86.71
Natural Gas: ↓ $3.89
Gasoline: ↑ $3.32
Diesel: ↑ $3.64
Heating Oil: ↓ $265.62
Brent Crude Oil: ↓ $88.09
** US Rig Count ([link removed])
: ↓ 696
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