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"Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav

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...The picture does not look bright for U.S. energy security. In fact, one might argue that the Biden administration’s actions so far this year have compromised this security and continue to compromise it... ...SPR depletion, an escalating diplomatic rift with its third-biggest oil supplier, and local production growth challenges: the picture doesn’t look well...  ...

https://oilprice.com/Energy/Energy-General/Biden-Is-Running-US-Energy-Security-Into-The-Ground.html

Biden Is Running U.S. Energy Security Into The Ground

By Irina Slav - Oct 19, 2022, 8:00 PM CDT

The White House divulged late on Tuesday its plan to release 15 million barrels of crude oil from the strategic petroleum reserve to be delivered in December, as the last tranche of the emergency 180 million barrel release that the Biden Administration announced in March.

Also this week, President Biden said there would be “consequences” for Saudi Arabia’s decision as a member of OPEC+ to reduce its oil production in response to market conditions, which is OPEC+’s official motive for the move.

One of the possible “consequences” would be further limits to arms sales to the Kingdom, as suggested by Democratic legislators. Another, per an NBC report from Tuesday, is to discourage U.S. companies from expanding their business ties with Saudi Arabia.

Meanwhile, U.S. oil production continues its slow growth, not least because of the various challenges that drillers are experiencing, including the all-pervading effects of inflation, a labor and equipment shortage, and continuing supply chain problems.

The picture does not look bright for U.S. energy security. In fact, one might argue that the Biden administration’s actions so far this year have compromised this security and continue to compromise it.

The unprecedented release from the strategic petroleum reserve has brought the United States’ emergency supply of crude oil to the lowest level since 1985, at less than 445 million barrels, from 612 million barrels before the release program began.

This is not particularly good news for a country that consumes almost 20 million barrels of oil daily. The reason it is not good news is that 445 million barrels of oil mean the U.S. only has enough in its strategic reserve for about 22 days in case of an actual emergency. Many analysts – and some legislators – have called on the White House to stop using the SPR for purposes it was not meant to be used for. Yet, with midterms around the corner, it would be hard for any administration to ignore fuel prices and the fact that after a substantial decline during the summer—thanks in no small part to the SPR release—they are climbing again.

Related: Biden Plans To Refill The SPR When Oil Prices Fall Below $72

Some have argued that the SPR is obsolete because the U.S. is the biggest oil producer in the world and a net exporter. But as Robert Rapier pointed out in this Forbes article, in addition to all this, the U.S. is also one of the biggest importers of crude. Any disruption in imports would have a devastating effect on U.S. oil prices if it weren’t for the cushion that the SPR provides by simply existing.

Speaking of imports, Saudi Arabia is one of the top suppliers of the U.S. with crude oil. Oddly enough, as of last year, it was the fourth-largest U.S. oil supplier after Canada, Mexico, and Russia. Now that Russian oil has been banned, the Saudis have moved to third place, with the latest EIA data showing daily imports of some 541,000 barrels.

After the ban on Russian oil—and refined products—fuel prices in the U.S. spiked, and it took months, luck, and more than 100 million barrels of SPR oil to bring them down. If the diplomatic escalation with the Saudis continues, exports of oil from the Kingdom might end up affected at the worst possible time for the Biden administration.

The latest signals from both sides are not exactly promising. Biden has taken to the SPR again, Senators are calling for punishment for the Saudis, and a Saudi prince and distant relative of the de facto ruler of the Kingdom, Crown Prince Mohammed, has just threatened Washington with a jihad.

Now more information about the roots of the rift is emerging, too, and the outlook becomes even more discouraging. CNBC reported this week that the White House had asked the Saudis to delay its decision to reduce production by a month. The information comes from an official statement by the Saudis defending the decision to cut output.

Claims of coercion among other OPEC+ made by Pentagon Press Secretary John Kirby have not helped clear the air between Washington and Riyadh. Soon after the claims were made, a number of OPEC members rushed to declare the OPEC+ decision was unanimous, and nobody was coerced.

SPR depletion, an escalating diplomatic rift with its third-biggest oil supplier, and local production growth challenges: the picture doesn’t look well. At the same time, White House Press Secretary Karine Jean Pierre said at yesterday’s media briefing that U.S. oil production is on track to hit a record high this year, so maybe not all is bleak.

What’s actually bleak is the absence of many options on Biden’s table for dealing with gasoline prices. U.S. refineries need imported oil to operate. Attempts at supply diversification by softening relations with Venezuela have so far failed. The Iran deal seems to have stalled again. And Canada and Mexico can’t export enough, judging by the latest U.S. oil import numbers.

The SPR release cannot continue indefinitely. In fact, the reserve will soon enough need to start being replenished, but the White House said it will wait until prices fall to between $67 and $72 per barrel. This may take a while given the upcoming EU embargo on Russian oil that comes into effect on December 5 and will apparently affect non-EU importers of the commodity, too.

In short, the Biden administration is not in a good place when it comes to ensuring the energy security of the country. And whether or not U.S. oil production will reach a record or grow moderately as industry executives expect will be more or less irrelevant in the current supply security context. After all, OPEC could always cut more output and earn more from higher prices.

By Irina Slav for Oilprice.com

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https://oilprice.com/Latest-Energy-News/World-News/A-Diesel-Shortage-Is-Spreading-Across-The-US.html

A Diesel Shortage Is Spreading Across The U.S.

By Charles Kennedy - Oct 26, 2022, 2:00 AM CDT  {Read Article]

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 

https://oilprice.com/Latest-Energy-News/World-News/Energy-Execs-Tell-Granholm-Shuttered-US-Oil-Refineries-Wont-Restart.html

Energy Execs Tell Granholm Shuttered U.S. Oil Refineries Won’t Restart

By Julianne Geiger - Oct 25, 2022, 1:30 PM CDT

U.S. energy executives told Jennifer Granholm that shuttered crude oil refineries won’t restart, Valero’s Chief Executive Joe Gorder said on Tuesday.

The comments were made to the U.S. Energy Secretary at a recent White House meeting with energy executives, Reuters reported on Tuesday.

“The one interesting thing that came out of it, too, was there was consideration for the ability to restart refining capacity that had been shut down, and  I think the general sentiment was that wasn’t going to happen,” Gorder said.

Limited U.S. refinery capacity—and perhaps more critically, refinery capacity in specific U.S. geographic areas, known as PADDs—has spared worry in the United States over high gasoline prices and energy security.

US refinery run rates were north of 90% for much of the summer, according to the EIA’s Weekly Petroleum Status Report.

Shuttered refineries unlikely to start back up are the latest nail in the U.S. refinery coffin. In June, Chevron CEO Mike Wirth posited that there would never be another new refinery built in the United States.

“Building a refinery is a multi-billion dollar investment. It may take a decade. We haven’t had a refinery built in the United States since the 1970s. My personal view is that there will never be another refinery built in the United States,” Wirth said at the time.

Oil and gas companies would have to weigh the benefits of committing capital ten years out that will need decades to offer a return to shareholders “in a policy environment where governments around the world are saying ‘we don’t want these products to be used in the future,’” Wirth added.

Refinery utilization in the United States for the week ending October 14 was 89.5% of their operable capacity, the most recent EIA data shows.

By Julianne Geiger for Oilprice.com

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https://www.zerohedge.com/political/top-dems-urge-biden-nationalize-oil-gas-industry

Top Dems Urge Biden To Nationalize Oil & Gas Industry

Tyler Durden's Photo
by Tyler Durden
Friday, Oct 28, 2022 - 09:25 AM

Authored by Michael Shellenberger via Substack,

Calls for Biden to socialize industry have moved quickly from fringe to mainstream...

download%20%2812%29_9.jpg?itok=s_NGwf0W

The energy crisis is worsening. The U.S. has fewer than 30 days of diesel and other distillate fuels, the lowest level since 1945. Supplies are so low that there will be shortages and price spikes within six months unless the U.S. enters recession, experts warn. In response, the Biden administration is releasing more oil from the Strategic Petroleum Reserve. But the reserves are of crude oil, not refined oil products such as diesel. And the releases are stifling investment in future oil production. “People are depleting their emergency stocks,” warned Saudi Arabia’s energy minister earlier this week. “Losing emergency stocks may become painful in the months to come.”

In response, influential Democrats, including a leading U.S. Senate candidate, a former Department of Energy official, and an influential energy expert, are urging the U.S. government to socialize America’s oil and gas firms.

At a Houston conference last week, Jason Bordoff, Dean of Columbia University’s Climate School, called for the “nationalization” of oil and gas companies. “Government must take an active role in owning assets that will become stranded,” he said, “and plan to strand those assets.” By “strand” Bordoff meant “make financially worthless.” Bordoff made the point at least twice during the confrerence. Bordoff’s call shocked many in the audience. “Jason is smart, well-informed, and well-connected to the Biden Administration,” said someone who was at the conference, “so these comments are scary.”

2022-10-28_06-38-47.jpg?itok=4mTguNRx

Democratic U.S. Senate Candidate from Wisconsin Tom Nelson (left) and energy expert Jason Bordoff (right) are urging the Biden administration to nationalize U.S. oil and gas companies.

The calls come on the heels of two other Democrat-led efforts to expand U.S. government control over oil and gas production.

One is a piece of legislation called “NOPEC,” which passed the Senate Judiciary Committee in May.

The bill would change U.S. antitrust law to revoke a policy of sovereign immunity, which protects OPEC+ members from lawsuits. If NOPEC became law, the U.S. attorney general could sue Saudi Arabia and other OPEC members in court. The result could be a disruption of global supplies of oil and other commodities if nations retaliated against the U.S.

The other is an effort led by Treasury Secretary Janet Yellen to cap the price of Russian oil sold on global markets, which I and many other experts have warned since June is unworkable, because China and India have said they would circumvent it, and could backfire, resulting in far higher oil prices.

Last week, analysts with Rapidan Energy told the same Houston conference that the December 5 implementation of the Russian price cap could reduce global supplies of oil by 1.5 million barrels per day. Such an amount would create an oil price shock.

Earlier this month, Bordoff told the World Economic Forum, which has called for a “Great Reset” to quickly move from fossil fuels to renewables, that climate change required a “massive transition” that is “going to be messy, it’s going to be disruptive.”

Said Bordoff, “I think part of the broader macro environment that's happening now is one of more disruptive change because of climate impacts, but also more disruptive change because of geopolitics coming out of the pandemic, coming out of this conflict, completely rethinking what the World Economic Forum is all about.”

Bordoff then sounded an even darker note...

*  *  *

Subscribe to Michael Shellenberger to read the rest...

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On 10/26/2022 at 1:11 AM, Tom Nolan said:

https://oilprice.com/Latest-Energy-News/World-News/A-Diesel-Shortage-Is-Spreading-Across-The-US.html

A Diesel Shortage Is Spreading Across The U.S.

By Charles Kennedy - Oct 26, 2022, 2:00 AM CDT  {Read Article]

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 

https://oilprice.com/Latest-Energy-News/World-News/Energy-Execs-Tell-Granholm-Shuttered-US-Oil-Refineries-Wont-Restart.html

Energy Execs Tell Granholm Shuttered U.S. Oil Refineries Won’t Restart

By Julianne Geiger - Oct 25, 2022, 1:30 PM CDT

U.S. energy executives told Jennifer Granholm that shuttered crude oil refineries won’t restart, Valero’s Chief Executive Joe Gorder said on Tuesday.

The comments were made to the U.S. Energy Secretary at a recent White House meeting with energy executives, Reuters reported on Tuesday.

“The one interesting thing that came out of it, too, was there was consideration for the ability to restart refining capacity that had been shut down, and  I think the general sentiment was that wasn’t going to happen,” Gorder said.

Limited U.S. refinery capacity—and perhaps more critically, refinery capacity in specific U.S. geographic areas, known as PADDs—has spared worry in the United States over high gasoline prices and energy security.

US refinery run rates were north of 90% for much of the summer, according to the EIA’s Weekly Petroleum Status Report.

Shuttered refineries unlikely to start back up are the latest nail in the U.S. refinery coffin. In June, Chevron CEO Mike Wirth posited that there would never be another new refinery built in the United States.

“Building a refinery is a multi-billion dollar investment. It may take a decade. We haven’t had a refinery built in the United States since the 1970s. My personal view is that there will never be another refinery built in the United States,” Wirth said at the time.

Oil and gas companies would have to weigh the benefits of committing capital ten years out that will need decades to offer a return to shareholders “in a policy environment where governments around the world are saying ‘we don’t want these products to be used in the future,’” Wirth added.

Refinery utilization in the United States for the week ending October 14 was 89.5% of their operable capacity, the most recent EIA data shows.

By Julianne Geiger for Oilprice.com

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It doesn't cost billions to restart old refineries. What a piece of crap these guys are. This is why we need to run them out of business.

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(edited)

https://oilprice.com/Energy/Crude-Oil/How-OPEC-Outplayed-Biden.html

How OPEC Outplayed Biden

By Robert Rapier - Nov 01, 2022, 5:00 PM CDT

  • Although the SPR has been used infrequently for “emergencies”, it has been used frequently by politicians seeking to influence gasoline prices in election years.
  • President Biden’s attempt to bring down gasoline prices with the largest SPR release in history has backfired.
  • Saudi Arabia took advantage of Biden’s political vulnerability to capitalize on higher oil prices.

In December 1975, when memories of gas lines were fresh on the minds of Americans as a result of the 1973 OPEC oil embargo, Congress established the Strategic Petroleum Reserve (SPR). The law was designed “to reduce the impact of severe energy supply interruptions” such as that caused by the embargo. This crude oil is stored in underground salt caverns at four major oil storage facilities in the Gulf Coast region of the United States. There are two sites in Texas and two sites in Louisiana.

Is the SPR Obsolete?

There was once a period during which the U.S. was heavily dependent upon OPEC for oil imports. Just a few years ago, OPEC was responsible for about 40% of the oil we imported. Today that has declined to about 10% as a result of the resurgence of U.S. oil production.

The U.S. was a total petroleum net exporter in 2020 and 2021. We still import about 8.5 million barrels per day (BPD) of crude oil. However, we export a bit more than that in petroleum and finished products.

Why, then, does the SPR still matter? Does the SPR still make sense given the turnaround in U.S. oil production? We can certainly argue that with the growth of U.S. oil production over the past 15 years, the SPR has become less important than it was when it was originally established.

But selling off the oil in the SPR is a risk. According to the Department of Energy’s website on the SPR:

“SPR oil is sold competitively when the President finds, pursuant to the conditions set forth in the Energy Policy and Conservation Act (EPCA), that a sale is required. Such conditions have only existed three times, most recently in June 2011 when the President directed a sale of 30 million barrels of crude oil to offset disruptions in supply due to unrest in Libya. During this severe energy supply interruption, the United States acted in coordination with its partners in the International Energy Agency (IEA). IEA countries released altogether a total of 60 million barrels of petroleum.”

The Politics of the SPR

Although the SPR has been used infrequently for “emergencies”, it has been used frequently by politicians seeking to influence gasoline prices in election years. There is a long history of this. Arguably, this was the primary reason that earlier this year President Biden announced the largest SPR release in history.

Since the beginning of the year, nearly 40% of the SPR has been sold off. It is at its lowest level since 1984. This has undoubtedly helped drive down oil prices, but this situation is unsustainable. We now have significantly less oil in reserve should a true emergency occur. A significant supply disruption in the Middle East, Venezuela, or Nigeria could quickly remind us of the SPR’s importance.

But why should any of this matter if we are essentially self-sufficient in our oil production? For the same reason, the loss of Russian imports earlier in the year helped drive gasoline prices much higher. The oil we import is a good match for U.S. refineries, and often the oil we export is not. So, a substantial loss of oil imports — and an inability to make up for that loss with the SPR — could cause significant disruptions that lead to price spikes in both oil and gasoline prices.

Related: Colombia’s Oil Industry In Jeopardy As Cocaine Production Soars To New Record

Saudi Arabia certainly recognizes this vulnerability, and they have used it against us. Over the past six months, the U.S. has drawn down the SPR by close to 1 million BPD. But at its most recent meeting, OPEC — led by Saudi Arabia — announced plans to reduce oil production by 2 million BPD from November levels.

The SPR as Insurance

I have compared the SPR to an insurance policy on your home. The odds that your home will be destroyed are small. But, if it does happen you will be very glad you had that homeowner’s policy.

Now consider that you greatly reduced your insurance coverage, AND someone had an incentive to somehow profit from that. You have placed yourself in an extremely vulnerable position.

That’s where we are now. We are more at the mercy of OPEC than we have been in a few years. I don’t think there’s any question that Saudi Arabia, in particular, would rather deal with Republicans (especially with Donald Trump).

So, in effect they are killing two birds with one stone. By restricting production, they are potentially hurting the Biden Administration by driving up oil prices. Second, the drawdowns from the SPR have cost them money, and this will be a way for them to profit from our vulnerability.

By Robert Rapier

More Top Reads From Oilprice.com:

Edited by Tom Nolan
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Well yes he is, that said in a week he is going to have his BALLS CLIPPED ! 
 

Besides going to be the stupidest LAME DUCK, quite of few of his executive orders will be scrapped.
 

DemocRATS will find themselves in front of many House and Senate Committees and held accountable for the TWO YEARS of complete stupidity.

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I find it disturbing how easily we can be manipulated by the Saudi's.

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18 hours ago, Tom Nolan said:

https://oilprice.com/Energy/Crude-Oil/How-OPEC-Outplayed-Biden.html

How OPEC Outplayed Biden

By Robert Rapier - Nov 01, 2022, 5:00 PM CDT

  • Although the SPR has been used infrequently for “emergencies”, it has been used frequently by politicians seeking to influence gasoline prices in election years.
  • President Biden’s attempt to bring down gasoline prices with the largest SPR release in history has backfired.
  • Saudi Arabia took advantage of Biden’s political vulnerability to capitalize on higher oil prices.

In December 1975, when memories of gas lines were fresh on the minds of Americans as a result of the 1973 OPEC oil embargo, Congress established the Strategic Petroleum Reserve (SPR). The law was designed “to reduce the impact of severe energy supply interruptions” such as that caused by the embargo. This crude oil is stored in underground salt caverns at four major oil storage facilities in the Gulf Coast region of the United States. There are two sites in Texas and two sites in Louisiana.

Is the SPR Obsolete?

There was once a period during which the U.S. was heavily dependent upon OPEC for oil imports. Just a few years ago, OPEC was responsible for about 40% of the oil we imported. Today that has declined to about 10% as a result of the resurgence of U.S. oil production.

The U.S. was a total petroleum net exporter in 2020 and 2021. We still import about 8.5 million barrels per day (BPD) of crude oil. However, we export a bit more than that in petroleum and finished products.

Why, then, does the SPR still matter? Does the SPR still make sense given the turnaround in U.S. oil production? We can certainly argue that with the growth of U.S. oil production over the past 15 years, the SPR has become less important than it was when it was originally established.

But selling off the oil in the SPR is a risk. According to the Department of Energy’s website on the SPR:

“SPR oil is sold competitively when the President finds, pursuant to the conditions set forth in the Energy Policy and Conservation Act (EPCA), that a sale is required. Such conditions have only existed three times, most recently in June 2011 when the President directed a sale of 30 million barrels of crude oil to offset disruptions in supply due to unrest in Libya. During this severe energy supply interruption, the United States acted in coordination with its partners in the International Energy Agency (IEA). IEA countries released altogether a total of 60 million barrels of petroleum.”

The Politics of the SPR

Although the SPR has been used infrequently for “emergencies”, it has been used frequently by politicians seeking to influence gasoline prices in election years. There is a long history of this. Arguably, this was the primary reason that earlier this year President Biden announced the largest SPR release in history.

Since the beginning of the year, nearly 40% of the SPR has been sold off. It is at its lowest level since 1984. This has undoubtedly helped drive down oil prices, but this situation is unsustainable. We now have significantly less oil in reserve should a true emergency occur. A significant supply disruption in the Middle East, Venezuela, or Nigeria could quickly remind us of the SPR’s importance.

But why should any of this matter if we are essentially self-sufficient in our oil production? For the same reason, the loss of Russian imports earlier in the year helped drive gasoline prices much higher. The oil we import is a good match for U.S. refineries, and often the oil we export is not. So, a substantial loss of oil imports — and an inability to make up for that loss with the SPR — could cause significant disruptions that lead to price spikes in both oil and gasoline prices.

Related: Colombia’s Oil Industry In Jeopardy As Cocaine Production Soars To New Record

Saudi Arabia certainly recognizes this vulnerability, and they have used it against us. Over the past six months, the U.S. has drawn down the SPR by close to 1 million BPD. But at its most recent meeting, OPEC — led by Saudi Arabia — announced plans to reduce oil production by 2 million BPD from November levels.

The SPR as Insurance

I have compared the SPR to an insurance policy on your home. The odds that your home will be destroyed are small. But, if it does happen you will be very glad you had that homeowner’s policy.

Now consider that you greatly reduced your insurance coverage, AND someone had an incentive to somehow profit from that. You have placed yourself in an extremely vulnerable position.

That’s where we are now. We are more at the mercy of OPEC than we have been in a few years. I don’t think there’s any question that Saudi Arabia, in particular, would rather deal with Republicans (especially with Donald Trump).

So, in effect they are killing two birds with one stone. By restricting production, they are potentially hurting the Biden Administration by driving up oil prices. Second, the drawdowns from the SPR have cost them money, and this will be a way for them to profit from our vulnerability.

By Robert Rapier

More Top Reads From Oilprice.com:

How many times have you posted that you do not vote in the US????

you sure seem upset with who is in charge.....yet you do not vote.....

Enjoy ....Sleepy Joe is in charge and  you do not even bother to vote.....

 

 

 

Enjoy

 

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On 10/20/2022 at 3:35 AM, Tom Nolan said:

...The picture does not look bright for U.S. energy security. In fact, one might argue that the Biden administration’s actions so far this year have compromised this security and continue to compromise it... ...SPR depletion, an escalating diplomatic rift with its third-biggest oil supplier, and local production growth challenges: the picture doesn’t look well...  ...

https://oilprice.com/Energy/Energy-General/Biden-Is-Running-US-Energy-Security-Into-The-Ground.html

Biden Is Running U.S. Energy Security Into The Ground

By Irina Slav - Oct 19, 2022, 8:00 PM CDT

The White House divulged late on Tuesday its plan to release 15 million barrels of crude oil from the strategic petroleum reserve to be delivered in December, as the last tranche of the emergency 180 million barrel release that the Biden Administration announced in March.

Also this week, President Biden said there would be “consequences” for Saudi Arabia’s decision as a member of OPEC+ to reduce its oil production in response to market conditions, which is OPEC+’s official motive for the move.

One of the possible “consequences” would be further limits to arms sales to the Kingdom, as suggested by Democratic legislators. Another, per an NBC report from Tuesday, is to discourage U.S. companies from expanding their business ties with Saudi Arabia.

Meanwhile, U.S. oil production continues its slow growth, not least because of the various challenges that drillers are experiencing, including the all-pervading effects of inflation, a labor and equipment shortage, and continuing supply chain problems.

The picture does not look bright for U.S. energy security. In fact, one might argue that the Biden administration’s actions so far this year have compromised this security and continue to compromise it.

The unprecedented release from the strategic petroleum reserve has brought the United States’ emergency supply of crude oil to the lowest level since 1985, at less than 445 million barrels, from 612 million barrels before the release program began.

This is not particularly good news for a country that consumes almost 20 million barrels of oil daily. The reason it is not good news is that 445 million barrels of oil mean the U.S. only has enough in its strategic reserve for about 22 days in case of an actual emergency. Many analysts – and some legislators – have called on the White House to stop using the SPR for purposes it was not meant to be used for. Yet, with midterms around the corner, it would be hard for any administration to ignore fuel prices and the fact that after a substantial decline during the summer—thanks in no small part to the SPR release—they are climbing again.

Related: Biden Plans To Refill The SPR When Oil Prices Fall Below $72

Some have argued that the SPR is obsolete because the U.S. is the biggest oil producer in the world and a net exporter. But as Robert Rapier pointed out in this Forbes article, in addition to all this, the U.S. is also one of the biggest importers of crude. Any disruption in imports would have a devastating effect on U.S. oil prices if it weren’t for the cushion that the SPR provides by simply existing.

Speaking of imports, Saudi Arabia is one of the top suppliers of the U.S. with crude oil. Oddly enough, as of last year, it was the fourth-largest U.S. oil supplier after Canada, Mexico, and Russia. Now that Russian oil has been banned, the Saudis have moved to third place, with the latest EIA data showing daily imports of some 541,000 barrels.

After the ban on Russian oil—and refined products—fuel prices in the U.S. spiked, and it took months, luck, and more than 100 million barrels of SPR oil to bring them down. If the diplomatic escalation with the Saudis continues, exports of oil from the Kingdom might end up affected at the worst possible time for the Biden administration.

The latest signals from both sides are not exactly promising. Biden has taken to the SPR again, Senators are calling for punishment for the Saudis, and a Saudi prince and distant relative of the de facto ruler of the Kingdom, Crown Prince Mohammed, has just threatened Washington with a jihad.

Now more information about the roots of the rift is emerging, too, and the outlook becomes even more discouraging. CNBC reported this week that the White House had asked the Saudis to delay its decision to reduce production by a month. The information comes from an official statement by the Saudis defending the decision to cut output.

Claims of coercion among other OPEC+ made by Pentagon Press Secretary John Kirby have not helped clear the air between Washington and Riyadh. Soon after the claims were made, a number of OPEC members rushed to declare the OPEC+ decision was unanimous, and nobody was coerced.

SPR depletion, an escalating diplomatic rift with its third-biggest oil supplier, and local production growth challenges: the picture doesn’t look well. At the same time, White House Press Secretary Karine Jean Pierre said at yesterday’s media briefing that U.S. oil production is on track to hit a record high this year, so maybe not all is bleak.

What’s actually bleak is the absence of many options on Biden’s table for dealing with gasoline prices. U.S. refineries need imported oil to operate. Attempts at supply diversification by softening relations with Venezuela have so far failed. The Iran deal seems to have stalled again. And Canada and Mexico can’t export enough, judging by the latest U.S. oil import numbers.

The SPR release cannot continue indefinitely. In fact, the reserve will soon enough need to start being replenished, but the White House said it will wait until prices fall to between $67 and $72 per barrel. This may take a while given the upcoming EU embargo on Russian oil that comes into effect on December 5 and will apparently affect non-EU importers of the commodity, too.

In short, the Biden administration is not in a good place when it comes to ensuring the energy security of the country. And whether or not U.S. oil production will reach a record or grow moderately as industry executives expect will be more or less irrelevant in the current supply security context. After all, OPEC could always cut more output and earn more from higher prices.

By Irina Slav for Oilprice.com

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I do not take too much  stock in articles concerning US internal policies by outsiders. When you repost articles by outsiders you sure are not posting much

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Isn’t it funny that China waited until the final SPR release to reopen?

FguLdW2XgAImvhP.jpg

FguvBdCXwAE9Kv_.jpg

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1- In reaction to sanctions, Baker Hughes did NOT exit Russia. It halted "new investment."

2- Now the company did NOT exit: It sold its oilfield services business to the local management team.

3- How will BH transfer the money out of Russia?

They can take crude shipments (valued at or below the cap price of course !)

https://www.reuters.com/business/energy/putin-signs-decree-allowing-acquisition-baker-hughes-russian-assets-2022-11-04/

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Hopefully, come Tuesday we will handcuff this geriatric old ass sack!

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(edited)

Read carefully this paragragh

"Each load of seaborne Russian oil will only be subject to the price cap when it is first sold to a buyer on land, the U.S. and its allies have determined, meaning resales of the same oil won't have to fall under the cap"

https://www.wsj.com/articles/u-s-allies-set-parameters-for-price-cap-on-russian-oil-11667554203?mod=latest_headlines

Non-cap cap. Predictable, considering its creators

Edited by Tomasz
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4 hours ago, Tomasz said:

Read carefully this paragragh

"Each load of seaborne Russian oil will only be subject to the price cap when it is first sold to a buyer on land, the U.S. and its allies have determined, meaning resales of the same oil won't have to fall under the cap"

https://www.wsj.com/articles/u-s-allies-set-parameters-for-price-cap-on-russian-oil-11667554203?mod=latest_headlines

Non-cap cap. Predictable, considering its creators

Russian Oil Price Cap Will Not Apply To Resold Cargoes

Tyler Durden's Photo
by Tyler Durden
Saturday, Nov 05, 2022 - 09:30 AM

By Michael Kern of OilPrice.com

The United States and its Western allies have agreed that a cargo of Russian oil will only be subject to the price cap mechanism at the first sale of the oil to a buyer on land, sources familiar with the ongoing discussions told The Wall Street Journal on Friday.  [Article continues]

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Very unlikely that US imports can be 'disrupted', since it produces so much of it's own oil.  Sources of imports are located all over the world, not just in Russia or Opec.  Oil companies have one big problem that they cannot overcome, and it has NOTHING to do with government policies:   'Electric motors convert over 85 percent of electrical energy into mechanical energy, or motion, compared to less than 40 percent for a gas combustion engine.'   That's a fact of technology and will never change.  Along with potentially carbon neutral sources like renewable diesel, ethanol and advances in sourcing hydrogen, Big Oil is in a competition it can never win.   Everything about claims there is a 'war on fossil fuels' is complete nonsense.  Oil companies have had direct government subsidies going back decades, billions per year.  Renewables are getting subsidies too.  Because of their efficiency, newer sources of transportation energy will not need nearly as much in subsidies; they offer an improved cost of operation that petroleum will never be able to match.   No amount of political hyperventilation (and misrepresentation) in blogs will ever change this.  

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On 11/4/2022 at 7:53 PM, RichieRich216 said:

Hopefully, come Tuesday we will handcuff this geriatric old ass sack!

ha ha ha ....too late......Sleepy Joes Agenda has already been enacted...

 

Did you miss??? It passed .........Enjoy

Unexpected deal would boost Biden pledge on climate change

By MATTHEW DALYJuly 28, 2022
 
 
Senate Majority Leader Chuck Schumer, D-N.Y., talks to reporters about the expansive agreement reached with Sen. Joe Manchin, D-W.Va., that they had sought for months on health care, energy and climate issues, and taxes on higher earners and corporations, at the Capitol in Washington, Thursday, July 28, 2022. (AP Photo/J. Scott Applewhite)

WASHINGTON (AP) — An unexpected deal reached by Senate Democrats would be the most ambitious action ever taken by the United States to address global warming and could help President Joe Biden come close to meeting his pledge to cut greenhouse gas emissions in half by 2030, experts said Thursday, as they sifted through a massive bill that revives action on climate change weeks after the legislation appeared dead.

The deal announced late Wednesday would spend nearly $370 billion over 10 years to boost electric vehicles, jump-start renewable energy such as solar and wind power and develop alternative energy sources like hydrogen. The deal stunned lawmakers and activists who had given up hope that legislation could be enacted after West Virginia Sen. Joe Manchin said he could not support the measure because of inflation concerns.

Clean energy tax credits and other provisions in the 725-page bill could “put the U.S. on track to reducing emissions by 31-44% below 2005 levels in 2030,″ according to an analysis released late Thursday by the Rhodium Group, an independent research firm.

Additional action by the Biden administration and Democratic-controlled states could “help close the rest of the gap to (Biden’s) target of a 50-52% cut in emissions by 2030,″ said Ben King, the group’s associate director.

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Again you’re STUPIDITY has no limits , The Executive Branch May sign an executive order but the Congress is the bank and tonight NOVEMBER 8th the DemoRATS will be a minority and besides putting Brain Dead Biden will have a solid wall of push back if not REMOVED from office !

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15 hours ago, RichieRich216 said:

Again you’re STUPIDITY has no limits , The Executive Branch May sign an executive order but the Congress is the bank and tonight NOVEMBER 8th the DemoRATS will be a minority and besides putting Brain Dead Biden will have a solid wall of push back if not REMOVED from office !

How's that bloodbath working out for ya?

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On 11/7/2022 at 12:22 AM, lexington green said:

 'Electric motors convert over 85 percent of electrical energy into mechanical energy, or motion, compared to less than 40 percent for a gas combustion engine.'   That's a fact of technology and will never change.

NIT: Should read: Inverter + electric motor + motor controller convert 80%(at best) as the electric motors convert over 90% as we are talking permanent magnet motors here and not induction, etc.  World record for PM motor and controller is over 98% last I checked for a load optimized controller(cars have varied load control so cannot possibly hit this without a multitude of motors and controllers and with only 4 wheels... Good luck.  95% is still considered tops for majority of load optimized controllers.  I believe Tesla stated 92% for their latest iteration which I believe to mean 92% for both motor and controller which aligns with what I typed above.  The charger, AC-->DC inverter is where a large loss happens dropping overall efficiency down to the ~80% efficient territory.  85%... Good luck, that is a goal for sure.  Not there yet, unless straight from a DC source.  In fact, most AC--DC home chargers are only about 75% efficient - transport of energy to your home losing ~2%-->5%.  So, 75% of 90% is ~60% efficient compared to an ICE of ~30% efficient - cost of energy to drill transport etc. 

Since vast majority of people who can afford to buy a new car live in cities, their drive distance is not all that great and do not need large range.  Range is nice, but not required if you have home charging.  If you rent, you are screwed until cars start holding enough power for ~500miles range so you do not have to wait an hour to "fill up" at a so called "super charger".  Yea yeaaa, if a miracle happens one does the 15 minute ~100 miles range fill up.  But, who the Hell wants to do that everyday or every other day?  NO ONE.  One charge a week or less is where the sweet spot will be for 100% market saturation. 

Of course none of this can happen currently as we need an gargantuan EXPLOSION of mining/refining capacity that DOES NOT EXIST.  Requires a LOT of time. 

Tried buying the Aptera vehicle, but their electric looks FAR superior.  Why did they not make it longer for more solar?  If ever gets in production, sign me up.

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5 hours ago, Itsover In2020 said:

How's that bloodbath working out for ya?

What blood bath, Republicans control the house therefore the check book! Either your not from America or you were smoking pot and missed your education!

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7 hours ago, TailingsPond said:

@Eyes Wide Open how would you like your crow served? 

The script has now been written. The drama will soon unfold.

 

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8 hours ago, Eyes Wide Open said:

The script has now been written. The drama will soon unfold.

 

The drama is unfolding.  Trump is having a hissy fit and slandering his own party.

Your commitment to failure is amusing.

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