In need of adult supervision

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DAILY ENERGY NEWS | 10/26/2022

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The madness will continue until the adults take the gavel.

The Federalist (10/26/22) column: "President Joe Biden tapped the nation’s emergency petroleum reserve once again last week after the Saudis refused to ramp up oil production as the economy copes with energy shortages. 'I have been doing everything in my power to reduce gas prices since Putin’s invasion of Ukraine caused these prices to spike and rattled international oil markets,” Biden said, referring to Russian President Vladimir Putin and the war in eastern Europe...As to how effective the president’s releases have been at suppressing gas prices, consumers faced record pain at the pump this summer when the nationwide average gallon of regular unleaded gasoline eclipsed $5. In other words, gas prices continued to reach new peaks despite millions of barrels of oil flowing onto the market. 'All it’s really doing is distorting the market and covering up the president seeking to limit and curtail the domestic production of oil in the United States,' Tom Pyle, president of the American Energy Alliance, told The Federalist. 'He is responding to the fact that he looks weak because he failed numerous times to work cooperatively with OPEC, Saudi Arabian in particular.' At the beginning of the month, the Organization of the Petroleum Exporting Countries (OPEC) announced deep production cuts of 2 million barrels per day beginning in November. Pyle prescribed a legislative fix to the issue as the administration empties the petroleum reserve to save face as the midterms draw near. 'Congress needs to step in and put binders on the administration and make it very specific about what types of uses the releases are for,' Pyle said."

“What’s rich is that Biden is talking out of both sides of his mouth. On the one hand, he pushes the green political agenda to ‘strengthen’ national security, while at the same time undermining military readiness by exhausting the strategic petroleum reserve. Biden must be held accountable.”

– Adam Brandon, FreedomWorks

What’s in the pipeline—greater demand for refined products.

MSN (10/25/22) reports: "San Antonio refiner Valero Energy Corp. said its profit soared as margins were lifted by demand for fuel and refined products that topped pre-pandemic levels.Third-quarter profit jumped 400 percent from the same period a year ago, Valero said Tuesday, beating Wall Street expectations. Revenue surged. 'Product demand across our system remains strong, with gasoline and diesel demand higher than pre-pandemic levels, and jet fuel demand steadily approaching 2019 levels,' Chairman and CEO Joe Gorder said. For the three months ended Sept. 30, Valero reported profit of $2.8 billion, or $7.19 per share, up from $545 million, or $1.33 per share, a year ago. Revenue was up 50 percent to $44.45 billion, also beating expectations. The record rise in fuel prices this year has widened Valero and other refiners’ profitability and fueled the highest inflation in four decades. While U.S. refining capacity has increased from earlier this year, it’s still nearly 1 million barrels per day less than before the pandemic, when demand dwindled and refiners closed plants. Amid a quick recovery of domestic demand and strong export demand since Russia’s invasion of Ukraine, refiners have been operating at record levels.."

"Soup-throwers to base: mission accomplished!"

Whoever is making the decisions on Biden's behalf is doing a great job of campaigning for Republicans this cycle.

Las Vegas Review-Journal (10/25/22) column "As the November election looms, Democrats are in desperation mode, particularly as inflation and high gasoline prices dog voters as they cast their ballots. The president’s response has been to deny reality. On Monday, the White House put out a release hailing a slight drop in prices at the pump over the past few weeks. 'Gas prices have declined by an average of $1.22 per gallon nationwide since their June peak,' the statement gushes, 'a decline of 24 percent over more than 18 weeks.' If you’ve been in an unconscious state for the past 21 months, those numbers might look persuasive. While it’s true that gasoline prices have receded back below $5 a gallon in many places — although not Nevada — they remain, on average, a whopping $1.35 more per gallon than when President Joe Biden took office. Yet nowhere is the president’s incoherence more in evidence than when it comes to energy prices. After entering office by promising to drive oil and gas producers out of business and beefing up the regulatory state in an effort to keep fossil fuels in the ground, Mr. Biden was shocked — shocked! — when gasoline prices rose. Now, while blaming evil Big Oil for price gouging, the president manipulates the market for political purposes by once again tapping the Strategic Petroleum Reserve to bring down prices before the election. Analysts at the Institute for Energy Research summed up the situation nicely: 'Biden has imposed constraints on domestic oil production while begging Saudi Arabia for increases in output. Since the latter did not work, Biden released oil from the SPR several times to avoid the political jam that his anti–oil-and-gas policies created, leaving the reserve’s inventory at a 40-year low. U.S. commercial oil in storage is now higher than oil stocks in SPR. While he is manipulating domestic gas and diesel prices by using the SPR, Biden wants to sue OPEC members for "price manipulation." This is after he restricted supplies by offering the fewest federal acres for oil and gas leasing since WWII.'"

Energy Markets

WTI Crude Oil: ↑ $86.69
Natural Gas: ↓ $5.46
Gasoline: ↓ $3.76

Diesel: ↓ $5.31
Heating Oil: ↑ $401.16
Brent Crude Oil: ↑ $94.68
US Rig Count: ↓ 865

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