Clueless

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DAILY ENERGY NEWS | 11/03/2022

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They don't have a single staffer in the White House who has the faintest idea of what it takes to keep the lights on and wheels spinning.

Daily Caller (11/3/22) reports: "The Biden administration has implemented policies that have hurt diesel production and caused stockpiles to hit their lowest levels since 2008, experts told the DCNF. The U.S. is facing a diesel shortage which is causing the Biden administration to consider taking action to shore up supplies as fuel refiners struggle to produce enough fuel to meet heavy demand. Diesel supplies have become dangerously low due to recent refinery closures that have been exacerbated by the Biden administration’s regulations as well as increased fuel demand following the coronavirus pandemic, experts told the DCNF....The coronavirus pandemic, which shut down economic activity, has also contributed to diesel shortages, according to Patrick De Haan head of petroleum analysis at GasBuddy. Diesel demand recovered much faster than refiners anticipated, meaning that production has to catch up to meet demand, Institute For Energy Research Senior Vice President Dan Kish told the DCNF. The U.S. has lost more than one million barrels per day of refining capacity since 2020, according to the Energy Information Administration. 'At the moment refining capacity cannot meet demand, even when we have enough oil,' Kish said. White House National Economic Council Director Brian Deese said on Oct. 19 that the administration is 'very concerned' about diesel shortages, particularly in the northeast of the country, and indicated that the White House may limit or ban exports of refined petroleum products. The American Petroleum Institute and the American Fuel and Petrochemical Manufacturers, two industry groups, sent a letter to Energy Secretary Jennifer Granholm on Oct. 4 claiming that an export ban would exacerbate shortages."

"Biden accusing companies of not investing enough 'windfall profits' is yet another denial tactic. For 15+ years anti-oil politicians have done everything they can to make new oil production unprofitable—discouraging investment. Taxing profits more discourages investments more."

– Alex Epstein, EnergyTalkingPoints.com

A preview of what Biden's FERC has in store for the rest of the country.

Ho t Air (11/1/22) reports: "Texas has a natural gas problem. That may come as a surprise since we’re talking about one of the most plentiful energy-producing regions in the country, if not the world. But the problem in Texas isn’t that they’re running out of natural gas. They’ve got enough of that to last well into the next century. What they don’t have is enough volume in the available pipelines to get all of that gas to where it needs to be, particularly the supplies coming from the western Permian Basin. In fact, the production of natural gas has been so plentiful that they can barely sell it off at a profit. The Institute for Energy Research released a new report this week suggesting that if pipeline capacity isn’t improved with more pipelines being approved across a wider region, they will not be able to meet the anticipated levels of demand this winter...As the IER report reminds us, Joe Biden came into office on a promise to “end fossil fuels.” He pushed the Federal Energy Regulatory Commission (FERC) to make changes to the permitting and approval process for new pipeline construction. The end result was 'increasing delays and costs on natural gas projects.' The latest FERC proposal has undergone many revisions and challenges, both from the industry and even from Congress. But the end result is the same. Any new or proposed natural gas infrastructure is going to cost a lot more to bring online and the environmental regulatory hoops companies will have to jump through are discouraging the industry from moving forward."

It doesn't matter how many times they are proven wrong the climate cultists just can't help themselves from predicting gloom and doom.

A good rule of thumb is whatever the left says their stated policy goal is (i.e. lower energy prices) assume they are working non-stop to achieve the opposite.

Wall Street Journal (11/2/22) editorial: "President Biden has the worst energy policy since Jimmy Carter, so it was probably inevitable that he would disinter one of Mr. Carter’s worst ideas—a “windfall profits” tax on oil companies. Doesn’t he know that when you tax something, you get less of it? Sorry, rhetorical question. “Their profits are a windfall of war—the windfall from the brutal conflict that’s ravaging Ukraine and hurting tens of millions of people around the globe,” Mr. Biden said Monday of oil companies reporting strong earnings this year. The reality is that their profits owe more to his Administration’s war on fossil fuels than Vladimir Putin’s Ukraine invasion. Oil prices surged at the start of the war amid uncertainty about the impact of Western sanctions on Russian supply. But prices have moderated as China and India have continued to buy Russian crude at a discount, while markets have downgraded global economic forecasts amid central-bank tightening and Chinese lockdowns. But gasoline prices remain relatively elevated because production, especially in the U.S., isn’t keeping up with demand. Recent refinery shutdowns in the U.S. and Europe have created a supply bottleneck, boosting refiners’ normally narrow margins. It’s no small irony that government policies and investor pressure to reduce production have inflated Big Oil’s profits. Yet even as his Administration dawdles on issuing federal leases and permits, Mr. Biden is threatening to tax windfall profits if companies don’t raise production pronto. He didn’t say how he defines 'windfall,' but he did say he believes companies are entitled to a 'fair return' on innovation and hard work. Fair is in the eye of progressive beholders."

Energy Markets

WTI Crude Oil: ↓ $88.10
Natural Gas: ↓ $6.10
Gasoline: ↑ $3.77

Diesel: ↓ $5.30
Heating Oil: ↓ $371.58
Brent Crude Oil: ↓ $94.68
US Rig Count: ↓ 871

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