Is this the real life?

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DAILY ENERGY NEWS | 02/07/2023

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Is this just fantasy?

Las Vegas Review-Journal (2/6/23) editorial: "California has mandated that by 2035 all new vehicle sales must be plug-ins. A handful of blue states have fallen in line and copied the Golden State’s edict. Nevada regulators have floated the same proposal, and more than a few Democrats in the Legislature would eagerly leap on the bandwagon. But the idea that this can be accomplished without massive disruption is a progressive fantasy masquerading as serious policy. Last week, the Institute for Energy Research released a detailed analysis of California’s plan. The authors note that the EV directive is piled high on a foundation of dubious assumptions, most of which have little chance of becoming true. State regulators and Gov. Gavin Newsom claim 'the state will have enough electricity supply to support an all-electric vehicle fleet of 12.5 million cars by' 2035, they write. 'That surprises many since the state currently cannot even get through the summer/fall season without having to worry about rolling blackouts because of inadequate supplies.' The state’s conclusions, IER reports, depend on speculation that is unlikely to materialize."

"Energy is a big factor in fulfilling the aspirations of Indians. From industries to offices, factories to homes, India’s energy demand continues to rise."

– Narendra Modi,
Prime Minister of India

The real story here is that BP’s Board of Directors has been mugged by reality. Billions in profits help with that mugging.

Bloomberg (2/7/23) reports: "BP Plc said it will cut oil and gas output more slowly this decade after the supply disruption caused by Russia’s invasion of Ukraine boosted prices and delivered record profits. While the British company said it was doubling down on the transition to cleaner energy with an additional $8 billion of spending to 2030, it will ramp up investments into fossil fuels by the same amount. By the start of the next decade, the company will have higher emissions than previously promised, with oil and gas output down by 25% compared to 2019, compared with its old target for a drop of as much as 40%. The strategic shift reflects the new reality since President Vladimir Putin’s military attack on Ukraine, and his use of energy supplies as a weapon against Europe. After years of criticism for their role in causing climate change, oil and gas companies now face calls from governments around the world to boost production. 'We’re going to invest more into today’s energy system,' BP Chief Executive Officer Bernard Looney said in an interview on Tuesday. 'And that, of course, is a hydrocarbon system.' BP isn’t alone in adjusting its long-term strategy. Last week, Shell Plc, which also has a goal to reach net-zero emissions by 2050, said it would expand its natural gas business while holding investment steady this year in its renewables unit."

You'll drive nothing and you'll like it.

Energy is the lifeblood of society. Pricing wide swaths of society out of reliable sources of energy isn't going to do great things for America's social fabric.

Real Clear Energy (2/6/23) op-ed: "Due to an unwelcome rise in energy prices this winter season, the average U.S. household expenditures are expected to increase by 28% for natural gas, 27% for heating oil, 10% for electricity and 5% for propane. The U.S. Energy Information Administration’s Winter Fuels Outlook and non-profit data center USA Facts both project the second largest year-over-year increase per household energy costs in the last eight years, making it harder or next to impossible for families to make ends meet. All this leads to a widening of energy poverty in America. This is an emergency we must address immediately. Energy poverty occurs when individuals and families are unable to afford basic heating electricity and gas needs. High costs and the lack of energy services negatively impact a household's well-being and limit economic opportunities. Vulnerable populations such as low-income, minority, rural, elderly, and native American communities are often disproportionately affected by energy poverty. These inflationary pressures and the terrible consequences aren’t the result of a free market at work, but overzealous policy pushed by Democrats in Washington and radical left energy policy. Tragically, the pause on new oil and gas leases on Federal land along with an aggressive green agenda by the Biden Administration has many Americans experiencing energy poverty for the first time. Eliminating energy poverty is a goal we all are interested in achieving, however in working towards that goal, we need to be mindful of how energy policies will impact the vulnerable communities we are trying to protect. The attack on the oil and gas industry is being done under the guise of environmental justice, the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income. On the surface environmental justice sounds great, however it has been weaponized against the fossil fuel industry at the expense of the same vulnerable communities “environmental justice” claims to protect."

Energy Markets

WTI Crude Oil: ↑ $75.14
Natural Gas: ↑ $2.54
Gasoline: ↓ $3.45

Diesel: ↓ $4.61
Heating Oil: ↑ $282.88
Brent Crude Oil: ↑ $81.90
US Rig Count: ↓ 824

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