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"And this is perhaps the most dangerous kind of government there can be."

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"...consciously filtering the more unpalatable aspects of reality out and focusing on a version of reality it wants to see."

Asking for blood from a stone

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2 hr ago
 
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“When the White House started calling around in a panic, they thought shale oil production could grow sharply in the near term — like in a matter of months or quarters. They were shocked to learn that that’s like asking for blood from a stone. It’s almost impossible.”

The above are comments by Rapidan Energy’s head Bob McNally, made to the Financial Times following President Biden’s apparently frantic attempt to get U.S. oil companies to pump more. And they are the kind of comments that can give you a headache.

There are degrees of ignorance, and different kinds of ignorance as well. The most benign, so to speak, is age-related ignorance. The younger you are, the more ignorant because you simply haven’t had time to learn as much as someone twice your age.

The most malign kind of ignorance, and the one that tends to manifest itself at the highest degree as well is the deliberate, obstinate refusal to learn something. It is the direct refusal to acknowledge that something even exists. And it is the sort of ignorance that is being demonstrated by both the Biden administration and their European Union friends.

President Biden’s “rallying cry”, as described by the FT, to the oil industry is one example of the above, shall we say, condition. It interestingly coincided with the U.S. president berating Exxon for posting huge profits, accusing the company — and the whole industry — of taking advantage of the oil supply shortage.

"Exxon made more money than God this year," Biden apparently said, as quoted by Reuters, and expressed his dissatisfaction with the fact both the supermajor and its fellow industry players were using this money to buy back shares instead of drill more wells.

In case Biden’s approach to the oil industry sounds contradictory to anyone it’s because it is. But it is more than just contradictory, as Rapidan Energy’s McNally noted: it is dangerously ignorant. Why dangerously? Because some kinds and degrees of ignorance can hurt you, for instance, by losing you political power.

"Why aren't they drilling? Because they make more money not producing more oil," President Biden also said during a recent speech. "Exxon, start investing and start paying your taxes."

The president was probably shocked to learn that no company, even Exxon, can flip the investment switch in a day and that wells don’t drill themselves at the flick of a president’s finger. What may have come as even more of a shock would be the fact that, for now, the White House, unlike the Kremlin, cannot tell the country’s biggest oil companies what to do.

But focusing exclusively on the U.S. president is unfair and cruel. So let’s turn to Biden’s energy wingwoman, Jennifer Granholm, who, in her own words, drives on sunshine.

In an interview with ABC earlier this year, the U.S. Energy Secretary said she drives a Chevy Bolt, which she charges from solar panels installed on her garage. Apparently, at least according to her comments, Chevy Bolts and solar panels just spring into existence without the need of energy input, most of its from fossil fuels.

The interview was released in March. Also in March, Secretary Granholm addressed the U.S. oil industry with the words that “we are on a war footing,” adding “That means you producing more right now, where and if you can”.

If anyone feels confused, you’re not alone. First, the top energy official of the United States praises the technological advancements that have allowed her to charge her electric car with energy from the sun in the comfort of her own home and espouses the job-creating advantages of the energy transition, and only a few days later calls for more oil production.

A month later, Granholm actually said U.S. oil production was already rising and would make up in full for the 1 million bpd in lost Russian supply in April. Indeed, per the EIA’s latest weekly petroleum status report, the four-week average to June 3 was 11.9 million barrels daily. That was up from 10.95 million a year earlier. But it was unchanged from six weeks earlier.

The status quo is unlikely to change in any meaningful way six weeks from now, too, judging by the signals the industry is sending. It’s not about returning cash to shareholders only, by the way, which is another thing those in Washington have chosen not to hear. The industry is complaining of shortages, of supply chain snags, and, perhaps shockingly for those urging it on to drill, rising production costs.

Yet let’s assume all these problems were solved, never mind how. Let’s assume oil companies could update their budgets in the blink of an eye. Let’s assume the only thing holding them back from drilling was their own unwillingness to drill and let’s also assume the White House could force them to reconsider this unwillingness.

According to what I’ve heard from industry insiders, it takes several months to put a shale oil well into operation. This website agrees, putting the average at three to five months from start to finish, based, however, on the above assumptions.

Now let’s forget about the assumptions and come back to reality, where drillers are dealing with a shortage of everything and, according to some reports, they are running out of sweet spots, meaning cheap-to-drill sites.

Yet some in the industry are now facing additional federal taxes of 21%, courtesy of a senior Senate Democrat. The drive to punish oil companies for making money from the current market imbalance produced its latest idea earlier this week, when the chair of the Senate Finance Committee, Ron Wyden, proposed a 21% surtax on oil companies that report a profit margin of over 10%.

This surtax, if approved, would bring the tax burden for these companies to a total 42% and, I’m sure, would incentivise them to spend more on additional production because it makes flawless sense.

The hard reality is not that difficult to grasp. You cannot drill a well if you do not have the equipment you need to drill it with or the people to drill it. You can’t frac a well if you don’t have the frac sand you need to frac a well. And with people like the secretary-general of the UN calling oil and gas investment “delusional” you’d probably think twice about such investments. These facts are really extremely simple.

It is precisely this simplicity of an unpleasant situation that leads me to believe that the U.S. administration, exactly like its European friends, and like Antonio Guterres et al, is consciously filtering the more unpalatable aspects of reality out and focusing on a version of reality it wants to see. And this is perhaps the most dangerous kind of government there can be.

Image credit: Yep, another of Ken Mull’s magnificent Texas landscapes.

https://irinaslav.substack.com/p/asking-for-blood-from-a-stone?utm_source=%2Fprofile%2F31253959-irina-slav&utm_medium=reader2&s=r

https://irinaslav.substack.com/

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We live in the most interesting times yet to befall the world. How it will all end is hard to say now but it will not go according to plan. You can also find me on Twitter: @slavenergy and Telegram: https://t.me/irinaslavonenergy

 

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"...consciously filtering the more unpalatable aspects of reality out and focusing on a version of reality it wants to see."

https://www.zerohedge.com/commodities/biden-sends-threat-letters-big-oil-help-alleve-putin-price-hike-or-face-our-tools

Biden Sends Threat-Letters To Big Oil: Help Ease "Putin Price Hike" Or Face Our Tools

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by Tyler Durden
Wednesday, Jun 15, 2022 - 07:30 AM

President Biden intensified attacks against the nation's largest oil companies, writing an "angry" letter to the heads of ExxonMobil, Chevron, BP America, Shell USA, Phillips 66, Marathon, and Valero to boost US refinery output, according to Axios

"I understand that many factors contributed to the business decisions to reduce refinery capacity, which occurred before I took office," Biden writes in hopes that everyone is an idiot and incapable of grasping how how green policies have crippled the US energy sector, adding, "at a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable."

"My administration is prepared to use all reasonable and appropriate federal government tools and emergency authorities to increase refinery capacity and output in the near term, and to ensure that every region of this country is appropriately supplied," the president escalated for dramatic effect.

[IMAGES]

Biden, always happy to blame other but never himself, ended the letter by also scapegoating Putin - not just energy companies - for "driving up costs for consumers." 

"Vladimir Putin's Price Hike and are driving up costs for consumers. I appreciate your immediate attention to this issue and your efforts to mitigate the economic challenges that Viadimir Putin's actions have created for American families."

In effect, Biden is blaming energy companies for his own failures as a president, and not only that - he is also going to beg and grovel in Saudi Arabia while bashing his own domestic producers.

The letter comes a week after the national average for regular gasoline at the pump hit a record high of $5 a gallon. Soaring energy prices have helped drive an unexpected hot consumer price inflation print last week shows peak inflation has yet to be achieved, causing discontent among the vast majority of Americans as the president's polling data sinks to a new low. 

Declining US refinery capacity has nothing to do with Putin's actions in Ukraine, but instead, Democrats and Wall Street, who've been on a crusade over the last several years, pushing for a transition to a low-carbon economy that disincentivized oil companies from reinvesting and expanding refinery capacity. Instead, oil companies were forced to slash capacity by upwards of 1 million barrels from April 2020 to 17.95 million bpd as of June.

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Putin has been a frequent strawman abused by what may be the worst administration since Carter, for its failed green transition of the economy and skyrocketing fuel prices.

Of course, no matter how many angry letters the president sends, or what emergency moves he takes like releasing millions of barrels in SPR reserves into the market to prevent a decimation for the Democrats, the bottleneck in refinery capacity cannot be quickly resolved. The lack of understanding of the refinery bottleneck shows just how unseasoned the administration is at tackling the core of the problem months ago. 

Americans should blame the fuel crisis on the administration, the Democrats, and Wall Street's hypocritical ESG movement that has crippled refinery capacity for years, if not forever, just as we warned exactly one year ago in "Will ESG Trigger Energy Hyperinflation". 

Meanwhile, Mike Wirth, the CEO of oil giant Chevron, recently told Bloomberg TV that America's refining capacity is structurally short, and no new refineries will ever be built in the US again.

Wirth explains his reason: "You're looking at committing capital ten years out, that will need decades to offer a return for shareholders, in a policy environment where governments around the world are saying, 'We don't want these products to be used in the future.'" 

Here's a good reminder of who to blame for the refining bottlenecks in the US that predates "Vladimir Putin's Price Hike."

Biden also asked big oil for an "explanation" for falling refining capacity. He may as well have addressed the letter to his own White House.

BIDEN'S LETTER IN ARTICLE

 

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Biden Threatens Oil Firms: Increase Gasoline Production, Lower Prices

By Tsvetana Paraskova - Jun 15, 2022, 9:45 AM CDT

Faced with record-high prices at the pump, U.S. President Joe Biden escalated the rhetoric against oil companies on Wednesday, telling them in a letter to produce more gasoline and lower gasoline bills for American consumers.

“At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable,” President Biden wrote in a letter to companies including ExxonMobil, Valero Energy, and Marathon Petroleum, seen by Reuters.

“The lack of refining capacity - and resulting unprecedented refinery profit margins - are blunting the impact of the historic actions my Administration has taken to address Vladimir Putin's Price Hike and are driving up costs for consumers,” the President wrote.

President Biden also warned the companies that “My administration is prepared to use all reasonable and appropriate federal government tools and emergency authorities to increase refinery capacity and output in the near term, and to ensure that every region of this country is appropriately supplied.” 

Gasoline prices hit $5 per gallon last week, the highest ever, and averaged $5.014/gallon on June 15, compared to the $5.016 all-time high record set just yesterday.

As gasoline prices rise and inflation hit a four-decade high, President Biden is scrambling for solutions to lower the price at the pump ahead of the mid-term elections in November. So the rhetoric against oil companies is intensifying. At the end of last week, President Biden called out Exxon and other oil companies for making excessive profits, saying that “Exxon made more money than God this year.”

Rallying oil prices, recovering demand post-COVID, and constrained refining capacity are the key reasons for record-high gasoline prices in the U.S. and many other countries.

Crude oil prices are the single biggest factor determining U.S. gasoline prices, accounting for over 53 percent of the average retail price per gallon. Moreover, in the U.S., some 1 million bpd of refinery capacity has been shut permanently since the start of the pandemic, as refiners have opted to either close money-losing facilities or convert some of them into biofuel production sites. In the United States, operable refinery capacity was at just over 18 million bpd in 2021, the lowest since 2015, per EIA data. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

https://oilprice.com/Latest-Energy-News/World-News/Biden-Threatens-Oil-Firms-Increase-Gasoline-Production-Lower-Prices.html

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https://www.zerohedge.com/energy/big-oil-responds-bidens-threats-heres-10-things-you-can-do-ease-gas-prices

'Big Oil' Responds To Biden's Threats: Here's 10 Things You Can Do To Ease Gas Prices

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by Tyler Durden
Wednesday, Jun 15, 2022 - 12:20 PM

Following President Biden's letter to many 'Big Oil' executives, threatening them with forced production quotas, windfall taxes, and/or price-caps (because all those things have proved so successful in past crises... not), the American Petroleum Institute - which represents 'Big Oil' - sent a letter to the president offering some advice.

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The letter begins by acknowledging President Biden's efforts to address Russia's actions and then focuses on how we got here:

"Unfortunately, Russia’s actions and the instability it created has contributed to an already forming global energy crisis. Several factors have led to a significant and sustained supply and demand imbalance in global oil markets. Demand for energy, specifically crude oil, has surged as global economies have rebounded from the early part of the COVID-19 pandemic. In part, supplies have not kept pace due to global underinvestment in recent years driven by geopolitical and market forces, public policies, and investor sentiment.

This combination of factors and events leaves us in the situation we face today. Namely, the most consequential energy crisis since the 1970s."

Then, The API lays out ten steps that President Biden can take to ease the bottlenecks and lower gas prices for the 'average joe'...

1. Lift Development Restrictions on Federal Lands and Waters

The Department of the Interior (DOI) should swiftly issue a 5-year program for the Outer Continental Shelf and hold mandated quarterly onshore lease sales with equitable terms. DOI should reinstate canceled sales and valid leases on federal lands and waters.

2. Designate Critical Energy Infrastructure Projects

Congress should authorize critical energy infrastructure projects to support the production, processing, and delivery of energy. These projects would be of such concern to the national interest that they would be entitled to undergo a streamlined review and permitting process not to exceed one year.

3. Fix the NEPA Permitting Process

Your administration should revise the National Environmental Policy Act (NEPA) process by establishing agency uniformity in reviews, limiting reviews to two years, and reducing bureaucratic burdens placed on project proponents in terms of size and scope of application submissions.

4. Accelerate LNG Exports and Approve Pending LNG Applications

Congress should amend the Natural Gas Act to streamline the Department of Energy (DOE) to a single approval process for all U.S. liquefied natural gas (LNG) projects. DOE should approve pending LNG applications to enable the U.S. to deliver reliable energy to our allies abroad.

5. Unlock Investment and Access to Capital

The Securities and Exchange Commission should reconsider its overly burdensome and ineffective climate disclosure proposal and your administration should ensure open capital markets where access is based upon individual company merit free from artificial constraints based on government-preferred investment allocations.

6. Dismantle Supply Chain Bottlenecks

You should rescind steel tariffs that remain on imports from U.S. allies as steel is a critical component of energy production, transportation, and refining. Your administration should accelerate efforts to relieve port congestion so that equipment necessary for energy development can be delivered and installed.

7. Advance Lower Carbon Energy Tax Provisions

Congress should expand and extend Section 45Q tax credits for carbon capture, utilization, and storage development and create a new tax credit for hydrogen produced from all sources.

8. Protect Competition in the Use of Refining Technologies

Your administration should ensure that future federal agency rulemakings continue to allow U.S. refineries to use the existing critical process technologies to produce the fuels needed for global energy markets.

9. End Permitting Obstruction on Natural Gas Projects

The Federal Energy Regulatory Commission should cease efforts to overstep its permitting authority under the Natural Gas Act and should adhere to traditional considerations of public needs as well as focus on direct impacts arising from the construction and operation of natural gas projects.

10. Advance the Energy Workforce of the Future

Congress and your administration should support the training and education of a diverse workforce through increased funding of work-based learning and advancement of STEM programs to nurture the skills necessary to construct and operate oil, natural gas, and other energy infrastructure.

The question is - will the Biden administration do any of them?

*  *  *

Read the full letter below:  https://www.zerohedge.com/energy/big-oil-responds-bidens-threats-heres-10-things-you-can-do-ease-gas-prices

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Irina Slav featured on ZERO HEDGE

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"...in what could be seen as a big win for realism."
 

Anti-Oil Lobby Faces Reality Check As Global Demand Is Set To Break Records

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by Tyler Durden
Thursday, Jun 16, 2022 - 11:05 AM

Authored by Irina Slav via OilPrice.com,

  • UN Secretary General: investing in fossil fuels is delusional.

  • Anti-oil narrative clashes with reality of increasing demand.

  • IEA has changed its narrative and is now calling for more production

Last year, the International Energy Agency made headlines by calling for an end to new oil and gas exploration by the end of the year.

This week, the secretary-general of the United Nations, Antonio Guterres, said that investing in new oil and gas production was “delusional”, calling on “all financial actors to abandon fossil fuel finance” and focus on renewables instead.

But the UN’s most senior official did not stop there.

Guterres then went on to say that “The only true path to energy security, stable power prices, prosperity and a livable planet lies in abandoning polluting fossil fuels — especially coal — and accelerating the renewables-based energy transition.”

This is a sentiment shared by the head of the IEA, too, on numerous occasions. Like Guterres, the IEA’s Fatih Birol is a staunch supporter of the energy transition, which he sees as the only way forward.

Unlike Guterres, Birol seems willing to allow for the fact that we still need oil, and lots of it.

Last month, Birol warned of even higher oil prices during the summer because of strong demand, expressing hope that several large oil producers would increase their output this year.

“I very much hope that the increase coming from [the] United States, from Brazil, Canada this year, [will] be accompanied by the increase coming from the key producers in Middle East and elsewhere,” Birol told CNBC in an interview on the sidelines of the Davos gathering.

“Otherwise, we have only one hope that we don’t have big trouble in the oil markets in summer, which is hoping … that the Chinese demand remains very weak.”

In other words, the IEA’s head, unlike the head of the UN, acknowledged the fact that the world is consuming ever-growing volumes of oil, and the fact that these volumes cannot come from wind parks and solar farms in what could be seen as a big win for realism.

Guterres, meanwhile, is not only calling for the end of oil but is also telling university graduates to avoid getting a job in the oil and gas industry, calling these companies “climate wreckers” and warning that “accountability is coming for those who liquidate our future.”

Meanwhile, a barrel of Brent crude is trading above $121, West Texas Intermediate is trading for over $119 per barrel, and OPEC just reported that its output last month had declined. Libya is on its last oil legs, producing about a tenth of what it was producing at the start of the year.

U.S. shale companies have flatly refused to upend their plans following calls from President Biden—another energy transition devotee—to pump more, Saudi Arabia appears reluctant to tap its spare oil capacity, and Russia is redirecting oil flows under sanctions, although few believe it would be able to place all barrels that currently go to Europe elsewhere, predicting a substantial loss of output.

The oil market imbalance, then, may be about to deepen further, making oil even more expensive, highlighting its vital importance for every economy in the world, including Mr. Guterres’ very own Portugal, a leader in renewable energy and a country dependent on oil imports because it ended its own oil and gas production as part of its transition.

Speaking of renewables, the UN’s secretary-general is not the only one eager to see a lot more money being poured into wind and solar. The European Commission’s leadership is likewise eager for this. It has even suggested cutting red tape for new wind and solar projects in order to speed up the buildup in renewable energy capacity.

Taking care of the demand side, the European Parliament recently voted in favor of a ban on internal combustion engine car sales, to enter into effect in 2035. This means that EVs must go from 0.5 percent of all cars in the European Union to 100 percent in eight years. Nobody is calling this delusional.

Talking about the costs of the transition to renewables is also something that is not being talked about much, although news about metals and minerals prices is making it to the public. Despite this news, neither Guterres, the Biden administration, nor the EU administration seems willing or able to make the connection with their renewable energy plans, which are about to become even more expensive than they were. Meanwhile, the price of oil keeps rising.

Denying a certain reality because it is too far from your preferred reality is perhaps a form of self-preservation. This form of self-preservation, however, cannot go on forever because sooner or later, actual reality asserts itself, often painfully.

Calling oil and gas investment “delusional” might sit well with climate activists in June but come winter, when these activists, just like everyone else, will have to pay for heating, things might look differently, especially in Europe, as less sunlight reaches the surface in the northern hemisphere and wind speeds decline as they tend to do during the winter.

th?id=OIP.onVPev7Yp7ZnMVoRXdPzyAHaEo%26p

 

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From the Irina Slav article above

Calling oil and gas investment “delusional” might sit well with climate activists in June but come winter, when these activists, just like everyone else, will have to pay for heating, things might look differently, especially in Europe, as less sunlight reaches the surface in the northern hemisphere and wind speeds decline as they tend to do during the winter.

th?id=OIP.onVPev7Yp7ZnMVoRXdPzyAHaEo%26p

~~~~~~~~~~~~~~~~~~~

EXCERPT from https://www.zerohedge.com/commodities/european-natgas-soars-70-week-amid-freeport-explosion-and-russian-cuts

Between Russian supply cuts and Western sanctions on Russia preventing key equipment from being installed on Nord Stream, total cuts through the pipeline have been about 60% to 65 million cubic meters a day. Factor in the prospect of LNG import disruptions from US' Freeport, and the supply outlook in the EU becomes more bearish as gas demand for cooling soars with summer just days away, which means delays in filling inventories could be lead to a harsh European winter. 

"Gas prices will continue in the winter to be very high," Marco Alvera, former chief executive officer of Italian network operator Snam SpA said at a conference on Thursday.

"Winter gas prices will be high, winter power prices will be high."

BCS Global Markets NatGas senior analyst Ron Smith said further disruptions to LNG flows to Europe, such as another Freeport incident, could send EU NatGas prices up "another 50%." 

European NatGas Soars 70% In Week Amid Freeport Delays And Russian Cuts  https://www.zerohedge.com/commodities/european-natgas-soars-70-week-amid-freeport-explosion-and-russian-cuts

 

 

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IEA Sees Oil Demand At Record High In 2023

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by Tyler Durden
Thursday, Jun 16, 2022 - 06:20 AM

By Tsvetana Paraskova of OilPrice.com

Oil demand growth is set to accelerate next year, with global demand averaging a record 101.6 million barrels per day (bpd) and exceeding pre-COVID levels, the International Energy Agency (IEA) said on Wednesday in its first outlook for 2023.  

“While higher prices and a weaker economic outlook are moderating consumption increases, a resurgent China will drive gains next year, with growth accelerating from 1.8 mb/d in 2022 to 2.2 mb/d in 2023,” the IEA said in its closely-watched Oil Market Report for June published today.... [Article continues]

 

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(edited)

Technocratic Authoritarians do not think straight, nor can they look at the root causes of the problems which they have created. --Tom Nolan

https://oilprice.com/Energy/Energy-General/Biden-Could-Invoke-Defense-Production-Act-To-Raise-Gasoline-Production.html

Biden Could Invoke Defense Production Act To Raise Gasoline Production

By Tsvetana Paraskova - Jun 16, 2022, 11:00 AM CDT

  • Biden may use the Cold-War era Defense Production Act To stimulate gasoline production.
  • National average gasoline prices hit $5 per gallon last week.
  • The Biden Administration sent a letter to U.S. oil firms, urging them to step up production.

U.S. President Joe Biden is open to using all reasonable tools the federal government has to boost fuel production and lower gasoline prices for Americans, including emergency Cold-War era acts such as the Defense Production Act, White House Press Secretary Karine Jean-Pierre said during a briefing.

President Biden “is open to all reasonable uses of the federal government’s tools to increase output and lower costs at the pump, including emergency authorities like the Defense Production Act,” Jean-Pierre said on Wednesday, on the day on which the President sent a letter to oil companies telling them to increase gasoline production.

“So, we know where to put the blame: on the war. But oil companies, they have — oil refineries, they have a responsibility too. What they have been doing is taking advantage of the war,” Jean-Pierre told reporters.

“But what we’re trying to do — by putting out the letter, we’re saying, “Hey, we need you to act. It is time to act.” We want to have a conversation,” she added.

In a letter to oil companies on Wednesday, President Biden wrote that “At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable.”  

Commenting on the letter, the White House press secretary said that “President Biden is putting a spotlight on this and calling on oil refiners to invest those records — those record profits to increase capacity so cost at the pump could come down.”

“He is signaling that he is prepared to use any emergency tools he has, but these companies have a responsibility to step up too. We are focused on getting to solutions,” Jean-Pierre said.

Rallying oil prices, recovering demand post-COVID, and constrained refining capacity are the key reasons for record-high gasoline prices in the U.S. and many other countries. In America, national average gasoline prices hit $5 per gallon last week, the highest ever, in a major blow to the Biden Administration and Democrats ahead of the mid-term elections in November.   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Edited by Tom Nolan
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The person or persons that wrote this article, sound like speculators hoping for a wealthy summer. They give nothing other then insults. Hoping any action will not have a negative effect on oil prices. When prices spiked in 2014 Obama opened up federal lands to drilling and prices collapsed. Seems logical it could happen again. But not with greed at an all time high.

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https://www.zerohedge.com/commodities/winter-coming-german-agency-head-warns-gas-shortages-bankruptcies-and-massive-price

German Official Warns Of Gas Shortages, Bankruptcies, Massive Price Hikes That Will Send "Shockwaves Throughout The Country"

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by Tyler Durden
Friday, Jun 17, 2022 - 01:00 AM

By John Cody of Remix News

A gas shortage and high prices will send “shockwaves through the country,” leading to landlords cutting the heat for tenants and widespread company bankruptcies, warned Klaus Müller, the head of Germany’s Federal Network Agency, which is the regulatory office for electricity, gas, telecommunications, postal services, and railway markets.

putin%20winter%20is%20coming.jpg?itok=BH

Müller paints a bleak picture about the crisis in an interview with German newspaper Rheinische Post, saying it will “send shockwaves throughout the country. Banks will ramp up their business with installment loans, and ailing companies will fall into insolvency.”

Müller’s office, which is a federal agency within the Federal Ministry for Economic Affairs and Climate Action, has a bird’s eye view of the economic situation in Germany and also special insight into how economic conditions will develop into the future.

Müller says he expects gas prices to continue to climb, resulting in increased inflation that goes far beyond energy. He also warns that there will be a dramatic lack of gas in the winter, which could lead to landlords turning down the heat to save on energy. In turn, Germans may have to grapple with colder apartments.

In a sign that the German government is operating under the assumption that a potential crisis could develop in winter, there are already talks about potentially lowering heating requirement for landlords.

“Tenancy law stipulates that the landlord must adjust the heating system during the heating period so that the minimum temperature falls between 20 and 22 degrees Celsius. The government could temporarily lower the heating requirements for landlords. We are discussing this with politicians,” Müller said.

The government has already pushed businesses and citizens to reduce their energy consumption, but that pressure may come in the form of new laws and regulations in the future, with Müller calling for more pressure to be applied to save gas. Although Germany has pushed for a general ban on Russian oil imports, the country is highly reliant on natural gas from Russia. If Russia were to cut gas in the critical winter months or even restrict supplies, it could lead to critical damage to the German economy, a scenario energy experts have already warned about.

Germans will not only be colder in their apartments, but companies will also face mass bankruptcies, said Müller.

However, he said government policies could help mitigate financial losses and preserve critical gas supplies. He said he wants to encourage companies to save gas with a bonus scheme.

“We want to establish mechanisms to reward companies that voluntarily give up gas quotas with a premium. It is always better when adjustments are made via prices rather than via direct state intervention.”

Müller is also pessimistic about price trends in Germany, and expects the situation to deteriorate.

“Gas prices for private households have already multiplied compared to the pre-war period. There can be a nasty surprise for tenants if high back payments are due,” he said, referring to the fact that many Germans get surprise bills at the end of a billing cycle if energy prices rise.

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More Technocracy...

https://oilprice.com/Energy/Energy-General/US-Mulls-Over-Fuel-Export-Limits.html

U.S. Mulls Over Fuel Export Limits

By Irina Slav - Jun 17, 2022, 8:45 AM CDT

  • White House is said to be considering limits on fuel exports.
  • Limiting fuel exports is a politically sensitive decision.
  • Fuel exports have been named as one of the factors contributing to higher retail fuel prices at home.

The White House is reportedly considering putting limits on fuel exports in a bid to contain prices at the pump, which have topped $5 per gallon nationally.

Per a Bloomberg report citing unnamed sources familiar with the discussion, the topic came to the fore in the last few days as President Biden accused the oil production and refining industry of taking advantage of the oil price rally to profit t the expense of consumers.

Last week, Biden accused oil producers in general and Exxon specifically of making more money than they have a right to make in the current situation.

"Why aren't they drilling? Because they make more money not producing more oil," he said. "Exxon, start investing and start paying your taxes," he said during a speech.

Then this week, the President took aim at refiners, writing in a letter to several of the largest players in this field that "At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable." 

Biden added in that letter that "My administration is prepared to use all reasonable and appropriate federal government tools and emergency authorities to increase refinery capacity and output in the near term, and to ensure that every region of this country is appropriately supplied." 

Fuel exports have been named as one of the factors contributing to higher retail fuel prices at home as they have substantially increased to fill the gap opening up in Europe as it shuns Russian gasoline and diesel.

So far this year, U.S. gasoline and diesel exports have averaged 755,000 bpd, according to data from the Energy Information Administration, which was up 681,000 bpd over the first five months of 2021.

Curbing exports of fuels will almost undoubtedly reduce prices at home, but it is a politically sensitive decision that might sour relations with Europe. What's more, some analysts have pointed out that limiting fuel exports will not have a long-term effect on domestic fuel prices.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

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Technocracy across investments...

 

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The following is extremely insightful and emphatically relates to these Technocratic times of the "Climate Change narrative" and ESG, and how people become hypnotized by a societal narrative.  Miss it, and you will miss out.

Breaking Free From Mass Formation with Mattias Desmet

(just over one hour - VIDEO interview )

https://odysee.com/@corbettreport:0/desmet-massformation:f

mass-form-corb.jpg

https://www.corbettreport.com/desmet-massformation/

Podcast: Play in new window | Download | Embed

Mattias Desmet is a Professor of Clinical Psychology at Ghent University in Belgium. His theory of mass formation during the coronavirus crisis has become widely known and widely misunderstood since gaining mainstream attention. His new book, The Psychology of Totalitarianism, lays out what mass formation is, how it develops, how it leads to totalitarianism, and what we must do to change the conditions that makes these mass formation events possible.

Watch On ArchiveBitChute  / Odysee / Download the mp4

SHOW NOTES:
The Psychology of Totalitarianism by Mattias Desmet

PM launches Government’s first loneliness strategy

Surgeon general: Americans must address loneliness epidemic

How Long Is the Coast of Britain? (Mandelbrot)

The Origins of Totalitarianism by Hannah Arendt

The Crowd: A Study Of The Popular Mind by Gustav Le Bon

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"And this is perhaps the most dangerous kind of government there can be."

Tom Nolan Wednesday at 07:46 AM in Oil (General)

 

says the forum troll who does not vote........Tom have you ever voted in the US ???or are you just an overpaid troll that cannot vote in the US as you do not live in the US??????

 

When you complain and do not vote....you can only blame yourself if you do not like your government......

Yes Tom keep not voting....I always get a good chuckle laughing  at the ignorant ones who complain complain complain and who are too lazy to vote.

 

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This article was previously published by Der Postillonhttps://waterfordwhispersnews.com/2022/06/14/so-unlike-backstabbing-brits-to-be-duplicitous-underhanded-dishonest/  

https://www.sott.net/article/468856-ECB-asks-EU-citizens-to-add-a-zero-to-banknotes-by-hand-to-fight-inflation

Fight Inflation: ECB Asks EU Citizens To Add A Zero To Banknotes By Hand

ecb_inflation_e1655202338801.jpg

The European Central Bank is finally doing something to combat rampant inflation: ECB President Christine Lagarde today called on all residents of the European Monetary Union to add a zero to their banknotes with a permanent marker. The value of the currency will increase by 900 percent as a result of the immediate measure.

“In view of the historical fall in value for the euro area, a simple and easy remedy is needed that anyone can carry out quickly free of bureaucratic red tape,” said Lagarde, before demonstrating how a 5 euro note with just one additional hand-drawn zero could be converted into a 50 Euro note. “It’s that simple. Problem solved! Do the same at home and help us beat inflation.”

In the past, the European Central Bank has repeatedly come under criticism for sticking to its policy of printing money despite rising inflation....

Don't Panic! Lighten Up!

https://www.sott.net/category/15-Dont-Panic-Lighten-Up

  • Haha 1

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3 hours ago, Tom Nolan said:

This article was previously published by Der Postillonhttps://waterfordwhispersnews.com/2022/06/14/so-unlike-backstabbing-brits-to-be-duplicitous-underhanded-dishonest/  

https://www.sott.net/article/468856-ECB-asks-EU-citizens-to-add-a-zero-to-banknotes-by-hand-to-fight-inflation

Fight Inflation: ECB Asks EU Citizens To Add A Zero To Banknotes By Hand

ecb_inflation_e1655202338801.jpg

The European Central Bank is finally doing something to combat rampant inflation: ECB President Christine Lagarde today called on all residents of the European Monetary Union to add a zero to their banknotes with a permanent marker. The value of the currency will increase by 900 percent as a result of the immediate measure.

“In view of the historical fall in value for the euro area, a simple and easy remedy is needed that anyone can carry out quickly free of bureaucratic red tape,” said Lagarde, before demonstrating how a 5 euro note with just one additional hand-drawn zero could be converted into a 50 Euro note. “It’s that simple. Problem solved! Do the same at home and help us beat inflation.”

In the past, the European Central Bank has repeatedly come under criticism for sticking to its policy of printing money despite rising inflation....

Don't Panic! Lighten Up!

https://www.sott.net/category/15-Dont-Panic-Lighten-Up

In the 1920's Germany attempted to pay off its war indemnities by printing money.

Before long, you needed a wheel barrow full of cash to go shopping.

History is repeating itself.

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On 6/15/2022 at 10:48 AM, Tom Nolan said:

"...consciously filtering the more unpalatable aspects of reality out and focusing on a version of reality it wants to see."

https://www.zerohedge.com/commodities/biden-sends-threat-letters-big-oil-help-alleve-putin-price-hike-or-face-our-tools

Biden Sends Threat-Letters To Big Oil: Help Ease "Putin Price Hike" Or Face Our Tools

Tyler Durden's Photo
by Tyler Durden
Wednesday, Jun 15, 2022 - 07:30 AM

President Biden intensified attacks against the nation's largest oil companies, writing an "angry" letter to the heads of ExxonMobil, Chevron, BP America, Shell USA, Phillips 66, Marathon, and Valero to boost US refinery output, according to Axios

"I understand that many factors contributed to the business decisions to reduce refinery capacity, which occurred before I took office," Biden writes in hopes that everyone is an idiot and incapable of grasping how how green policies have crippled the US energy sector, adding, "at a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable."

"My administration is prepared to use all reasonable and appropriate federal government tools and emergency authorities to increase refinery capacity and output in the near term, and to ensure that every region of this country is appropriately supplied," the president escalated for dramatic effect.

[IMAGES]

Biden, always happy to blame other but never himself, ended the letter by also scapegoating Putin - not just energy companies - for "driving up costs for consumers." 

"Vladimir Putin's Price Hike and are driving up costs for consumers. I appreciate your immediate attention to this issue and your efforts to mitigate the economic challenges that Viadimir Putin's actions have created for American families."

In effect, Biden is blaming energy companies for his own failures as a president, and not only that - he is also going to beg and grovel in Saudi Arabia while bashing his own domestic producers.

The letter comes a week after the national average for regular gasoline at the pump hit a record high of $5 a gallon. Soaring energy prices have helped drive an unexpected hot consumer price inflation print last week shows peak inflation has yet to be achieved, causing discontent among the vast majority of Americans as the president's polling data sinks to a new low. 

Declining US refinery capacity has nothing to do with Putin's actions in Ukraine, but instead, Democrats and Wall Street, who've been on a crusade over the last several years, pushing for a transition to a low-carbon economy that disincentivized oil companies from reinvesting and expanding refinery capacity. Instead, oil companies were forced to slash capacity by upwards of 1 million barrels from April 2020 to 17.95 million bpd as of June.

Snag_488e9d9.png?itok=lM0vK4hT

Putin has been a frequent strawman abused by what may be the worst administration since Carter, for its failed green transition of the economy and skyrocketing fuel prices.

Of course, no matter how many angry letters the president sends, or what emergency moves he takes like releasing millions of barrels in SPR reserves into the market to prevent a decimation for the Democrats, the bottleneck in refinery capacity cannot be quickly resolved. The lack of understanding of the refinery bottleneck shows just how unseasoned the administration is at tackling the core of the problem months ago. 

Americans should blame the fuel crisis on the administration, the Democrats, and Wall Street's hypocritical ESG movement that has crippled refinery capacity for years, if not forever, just as we warned exactly one year ago in "Will ESG Trigger Energy Hyperinflation". 

Meanwhile, Mike Wirth, the CEO of oil giant Chevron, recently told Bloomberg TV that America's refining capacity is structurally short, and no new refineries will ever be built in the US again.

Wirth explains his reason: "You're looking at committing capital ten years out, that will need decades to offer a return for shareholders, in a policy environment where governments around the world are saying, 'We don't want these products to be used in the future.'" 

Here's a good reminder of who to blame for the refining bottlenecks in the US that predates "Vladimir Putin's Price Hike."

Biden also asked big oil for an "explanation" for falling refining capacity. He may as well have addressed the letter to his own White House.

BIDEN'S LETTER IN ARTICLE

 

Refinery capacity? There is a plethora of foreign owned refineries in the US. They refine all those imports from Canada, the Saudi  and Venezuela etc. that 6-8 million barrels a day that gets exported is all about foreign refineries. Tom and Tyler will dream up all kinds of stories but the EIA tells the real story if you can read a chart and are honest. 

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It is evident that some folks do not grasp MASS FORMATION.

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