Despite the self-sanctioning of many European buyers of Russian oil, Moscow continues to export its oil, and Europe continues to pay for and import Russian natural gas. While the U.S. banned imports of all Russian energy exports, including oil, liquefied natural gas (LNG), and coal, the European Union hasn’t had the luxury to do so, because it depends on Russian oil for around one-fourth of its supply and on Russian gas for some one-third of its gas consumption.
In warning Americans about the looming economic consequences ahead of the invasion of Ukraine by Russia, President Joe Biden said “my administration is using every tool at our disposal” to protect consumers and businesses from rising energy prices.
Reuters cited three unnamed sources and a document as saying the state-owned oil company PDVSA was in talks to buy several oil tankers after Washington earlier this month sent a high-level delegation to Caracas to discuss potential sanction relief.
Oil producers who felt like outcasts at the COP 26 climate conference last year are now being treated like superheroes because their supplies are in strong demand, UAE energy minister Suhail al-Mazrouei said on Monday at an industry event.
Oil supermajor Shell has announced the start of production at PowerNap, a subsea development in the U.S. Gulf of Mexico with an estimated peak production of 20,000 barrels of oil equivalent per day (boe/d).
The exclusive poll of Americans conducted by Maru Public Opinion for Postmedia found that 71 per cent of Americans think Biden should give an executive order to “green light the restart of the building of the Keystone XL pipeline that would transport oil from Canada’s oil sands region through the Midwest to refineries in Texas.”
Exxon Mobil Corp. is running a pilot program using excess natural gas that would otherwise be burned off from North Dakota oil wells to power cryptocurrency-mining operations and is considering doing the same at other sites around the globe, according to people familiar with the matter.
President Joe Biden may say he wants domestic oil producers to invest the money necessary to increase domestic oil production, but when it comes to actual government action, the Biden administration this week again made it more expensive to produce domestic energy.
A quick look at the numbers will show just how intertwined Europe and Russia are, and how the Russians have taken aim at the goose that lays the golden eggs. Here are the numbers, all rough and all changing fast.
Yesterday’s average price for regular gasoline in the state was $5.87 per gallon, the week ago average was $5.78 per gallon, and the month ago average was $4.77 per gallon, according to the AAA. The year ago average was shown to have come in at $3.88 per gallon.
Despite pledges from numerous international oil majors to leave Russia, this is easier said than done, and companies from the U.S. and the UK are still stuck with their Russian assets, Patrick Pouyanne, CEO at TotalEnergies, said on Wednesday.
It’s an open secret within energy circles that the eventual death of oil and thermal coal won’t come from environmentalists or even directly from renewable energy, but rather when big banks decide to stop financing it, rendering it ‘unbankable’. And the U.S. oil and gas sector came dangerously close to meeting that fate after Wall Street banks started disavowing oil and gas lending at the height of the ESG (environmental, social, and governance) craze.
West Texas Intermediate for April delivery rose $7.42 to settle at $112.12 a barrel in New York. The more active May contract rose $6.88 to settle at $109.97. Brent for May settlement increased $7.69 to settle at $115.62 a barrel.
Oil and gas giants such as BP, Equinor, Shell, and ExxonMobil opted to completely abandon their businesses in Russia while some companies like TotalEnergies just decided to stop further investment in the country as its current projects were deemed too valuable to abandon.
The poll showed that most Americans would now approve President Biden issuing an order to “green light the restart of the building of the Keystone XL pipeline that would transport oil from Canada’s oil sands region through the Midwest to refineries in Texas.”
In 2014 – the same year Russia annexed Crimea – then-North Atlantic Treaty Organization (NATO) Secretary-General Anders Fogh Rasmussen warned that Russia was covertly working to undermine European and U.S. fossil fuel production.
While drilling activity has picked up in the United States over the last few months, U.S. production—a corollary to drilling rigs but with months of lag—has not. U.S. weekly production of crude oil stayed the same for the fifth week in a row at 11.6 million bpd, according to the latest Energy Information Administration for the week ending March 4.
It’s still possible to buy Russian oil, but most in the market -- including banks, shipping firms and refiners -- are self-sanctioning. That’s expected to lead to the emergence of a two-tier structure, traders said.
The increase in LNG imports appears to be one of the quickest ways to reduce dependence on Russian natural gas. The plan to build import terminals suggests this plan is long-term. However, as an analysis from Energy Intelligence strongly suggests, the chances for success of this specific part of the REPowerEU plan are quite slim.
As Permian Basin producers coax oil and natural gas out of the Earth, they also face the challenge of managing the water that follows, as well as other impacts on the ground.