California Importing More Foreign Oil… Because Climate Change!

Guest “Too fracking funny!” by David Middleton

CAUSE AND EFFECT: FOREIGN OIL IMPORTS CONTINUE TO GROW AS CALIFORNIA DENIES NEW FRACKING PERMITS
BY William Allison Jul. 14, 2021

Citing the need to reduce greenhouse gas emissions, California officials denied 21 fracking permits this week. What they didn’t mention was that the permit denials are more likely to benefit foreign oil producers than the environment.

State Oil and Gas Supervisor Uduak-Joe Ntuk cited climate change as the reason to deny the permits, as California aims to ban fracking altogether by 2024 and stop all oil development by 2045. But not issuing permits to develop domestic energy won’t prevent Californians from using gasoline and other petroleum productions – it’s just ensuring that more of the energy they use will be produced overseas and arrive by tanker.

In fact, for the past 25 years the amount of oil supplied to California’s refineries has essentially held steady at around 660 million barrels per year, but the source of the supply has changed drastically. In 1995, nearly all of that oil came from within California’s borders and Alaska. Today, the majority of the oil comes from foreign imports as data from the state’s Energy Commission shows:

[…]

Energy In Depth
Energy In Depth

Energy In Depth is a publication IPAA (Independent Petroleum Association of America).

California oil regulators deny new fracking permits

By ASSOCIATED PRESS |
PUBLISHED: July 12, 2021

SACRAMENTO — California denied 21 oil drilling permits this week in the latest move toward ending fracking in a state that makes millions from the petroleum industry but is seeing widespread drought and more dangerous fire seasons linked to climate change.

State Oil and Gas Supervisor Uduak-Joe Ntuk sent letters Thursday to Aera Energy denying permits to drill using hydraulic fracturing in two Kern County oil fields to “protect “public health and safety and environmental quality, including (the) reduction and mitigation of greenhouse gas emissions.”

[…]

The Mercury News

So… Rather than actively developing California’s vast petroleum resources, they are just importing more oil from these fine people:

Energy In Depth

If California doesn’t want to produce its own oil… And they want to reduce GHG emissions, maybe they should just import oil from the Gulf of Mexico (if I have to tell you when I’m being sarcastic, it takes all the fun out of sarcasm)…

Wood Mackenzie

US Gulf of Mexico Deepwater oil production has a smaller “carbon footprint” per barrel of oil produced than all but one major oil producer/producing region. Of course, in its infinite stupidity, the Harris-Biden Dominion is trying to Californicate Gulf of Mexico production, in favor of more imported oil.

Could restricting oil production in the US Gulf of Mexico lead to carbon leakage?
Federal actions have put the comparative emissions performance of the prolific US Gulf of Mexico under the spotlight

By Mark Oberstoetter, Head of Americas (non-L48) Upstream Research, and Mfon Usoro, Senior Research Analyst, US Gulf of Mexico Upstream

12 April 2021

As one of the few major oil producing areas under federal purview, the Gulf of Mexico appears to be a focal point of President Biden’s efforts to deliver swiftly on campaign promises. But while leasing bans and increasing royalties signal fast action on the energy transition, federal actions have consequences – and they can be global.

An important and unintended consequence of enacting more restrictive policies such as a lease ban or increase in royalty rate in the Gulf of Mexico is that it could give rise to carbon leakage to countries that export crude to US. Carbon leakage occurs when the greenhouse gas emissions from industrial production are transferred outside a regulated region to another area with weaker emissions constraints in place.

Despite the growth in domestic production, the US still imports six million barrels per day (b/d) of crude oil from foreign countries. If production from the Gulf of Mexico drops, that figure is likely to increase substantially. Overall emissions will then depend on regulations and controls in the countries from which that oil is imported. In essence, climate change is a global issue and removing or handicapping a low emitter hurts the collective global average.

How emissions-intensive is the US Gulf of Mexico?

US Gulf of Mexico deepwater emissions are less intensive than all but one importer: Saudi Arabia. And more than half of the area’s 2021 production will come from a public corporation with an existing net-zero pledge.

[…]

Wood Mackenzie

It makes me wonder… Who do Harris-Biden hate more? The oil & gas industry? Or the American people?

The Insult of Favoring OPEC’s Leaders Over America’s Energy Workers
By Scott A. Angelle
July 26, 2021

As demand for oil continues to grow, gasoline prices are climbing across the country. Yet, the Biden Administration has asked OPEC – not domestic producers and USA energy workers – for help to supply the U.S. with more oil. Enticing countries with lower environmental standards is actually detrimental to the Administration’s stated policy goal of combating global climate change by reducing fossil fuel usage.

[…]

While we search to expand alternative energy sources to help energize our future, we do not need to count on foreign sources to fuel our energy transition. A balanced approach to fix rising energy prices should be directed inward rather than relying on countries which do not share values with the U.S.

Competitive USA offshore leasing needs to continue without delay to allow for a balanced energy transition for the U.S., one which provides for the environment, energy, and the economy. This leasing program has been in place since 1953. Previously implemented consecutively by 12 USA presidents: 5 democrats and 7 republicans, they all recognized the bipartisan value of affordable energy and American jobs.

The facts clearly show U.S. offshore oil and gas is a viable source of energy at lower emissions. Recent research regarding carbon emissions reveals that U.S. Gulf of Mexico production has approximately half the carbon intensity per barrel of other producing regions worldwide. When it comes to flared or vented methane, the U.S. offshore industry has consistently been one of the best performing provinces in the world with a ratio of less than 1.25% of flared or vented to produced gas.

[…]

Put simply, oil and gas produced from the U.S. Gulf of Mexico is better for the environment than oil and gas produced almost anywhere in the world.  USA energy workers are asking, “how can it be smart public policy to ask foreign countries to increase production of a commodity while the current USA policy seeks to curtail that same USA production, USA production that is often recognized as “climate advantaged?”

USA energy workers nor most Americans fail to see any logic in increasing foreign production rather than focusing on American jobs and American energy security.

[…]

Let us once again host competitive offshore lease sales, build better, improve the health of the planet, lower gasoline prices for our American families and recognize that USA Energy Workers Matter by focusing on the workers of Abbeville rather than Algeria; Lafayette, Larose, Lake Arthur, and Lubbock rather than Libya; Carencro, Cameron, Crowley, Cutoff, and Corpus Christi rather than the Congo; Vinton rather than Venezuela, and Kaplan rather than Kuwait. Additionally, the USA Energy Workers of Houston, Beaumont, Port Arthur, Lake Charles, Delcambre, New Iberia, Morgan City, Houma, the coastal parishes and coastal ports of Louisiana, and Pascagoula and Mobile are ready, willing, and able to help America increase climate-advantaged production and lower fuel cost for American families. Let’s give them a chance to put all hands on DECK rather than favoring OPEC.

Scott A. Angelle, the longest serving Director of the U.S. Bureau of Safety and Environmental Enforcement, also held positions in Louisiana as Lieutenant Governor, Secretary of LA Department of Natural Resources, Chairman of Louisiana Public Service Commission and Chairman of Louisiana Water Resources Commission.

Real Clear Energy

Well Joe… What is the “logic in increasing foreign production rather than focusing on American jobs and American energy security“?

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Tom Halla
July 28, 2021 6:14 pm

But,but, but actually producing fossil fuels domestically is like Satanism, and frackinqg is like a black mass! Or so say the greens, who are major contributors to the Democrats. Andrew Cuomo is even more beholden to the greens than California Democrats, which is a difficult thing to do.

Last edited 1 month ago by Tom Halla
Derg
Reply to  Tom Halla
July 28, 2021 9:20 pm

And Cuomo should be in jail for putting Covid patients in nursing homes. He is a human 💩 of the highest order.

MarkW
Reply to  Derg
July 29, 2021 12:24 pm

No Democrat needs to fear the long arm of the law, so long as there is a Democrat in the White House.

goracle
Reply to  Derg
July 30, 2021 4:47 am

yep… didnt US DOJ just stop an investigation into this? the whole this is rotten to the core.

TonyG
Reply to  goracle
July 30, 2021 7:58 am

Yes, they stopped that and a couple other investigations. FBI is continuing, but even if they find anything, nothing will happen since that same DOJ would be prosecuting.

dk_
July 28, 2021 6:24 pm

Didn’t Stanford actually stop selling oil from its oil and mineral deeded grant property about 3-4 years ago? The L.A. basin and California coast and central valleys are still the locations of some of the country’s largest gas and oil reserves.

Last edited 1 month ago by dk_
Scissor
Reply to  dk_
July 28, 2021 7:53 pm

The well at Beverly Hills High School was capped also. The seeps at the La Brea Tar Pits are still very active, however.

Steve Case
July 28, 2021 6:28 pm

There is something to be said about buying all the foreign oil you can get so that as oil finally begins to run out the U.S. will still have a supply. However, it is very doubtful that is what our insane government has in mind.

If you apply the Duck Test, it really does look like the Biden administration and the Democrats want the country to fail.

MarkW
Reply to  Steve Case
July 28, 2021 6:36 pm

If we delay producing our own oil until the point where the rest of the world is running out, the odds are our descendants will have developed something even better than fossil fuels.

It is much better to use the oil to make our current generation richer, so that the current generation will have the funds to develop those new technologies.

AGW is Not Science
Reply to  MarkW
July 29, 2021 7:19 am

Not to mention we’ll probably have made ourselves poorer in the process, thus when we do get around to developing our own resources, they’ll just be sold to those who have built up their economies while we’ve been taking the wrecking ball to ours.

griff
Reply to  Steve Case
July 29, 2021 9:58 am

Advanced economies will have moved off oil by end of 2030s.

There’ll be plenty for backward USA.

MarkW
Reply to  griff
July 29, 2021 12:27 pm

Now that thar is funny, I don’t care who you are.

Everything will have switched over to unreliable energy in the next 8 1/2 years?
They would have to increase to production of wind mills and solar panels by two to three orders of magnitude in order to do that.
They would have to increase the production of electric cars by a similar amount.
They would have to increase the production of batteries by at least 3 to 4 orders of magnitude as well.

They would also have to make these increases today. Every day that passes means the level of increase necessary to make 2030 will increase, and dramatically so.

MAL
Reply to  MarkW
July 29, 2021 4:46 pm

He forgot the sarc tag, nobody could be that stupid.

MAL
Reply to  MAL
July 29, 2021 4:48 pm

I may have to reconsider my above statement. His past postings tend to lead me to believe said person might be that stupid.

Al Miller
July 28, 2021 6:30 pm

If the greens had anything more than hypocrisy and fake promises…well then they might have something.
“It makes me wonder… Who do Harris-Biden hate more? The oil & gas industry? Or the American people?”
The answer to the above quote is sadly obvious, and as a Canadian I can assure you our minority national government is also NOT acting in the interests of Canada or it’s citizens but rather is beholden to the Davos crowd.
Rather than wait until a viable alternative is there and letting the market act on the new alternative – which would naturally happen if it actually made sense – sadly our (haha) “leaders” are determined to destroy our nations.

As an aside, we are having a wonderful stretch of dry weather here on the west coast, but to listen to the news it is a terrible thing and full of (phony) crises. I get my reminder once week or so why I no longer pay any attention whatsoever to the so called media.

commieBob
July 28, 2021 6:57 pm

The first graph “Crude Oil Sources … ” shows a sharp downturn in the total amount of oil supplied to California refineries. Is it fair to assume that means a sharp downturn in the output of said refineries?

Hmmm, very interesting. I can’t easily find a graph that shows California’s total petroleum consumption year by year.

ResourceGuy
July 28, 2021 7:09 pm

Soon the refined oil products for California will also be imported from the growing refinery capacity in China. Gentrification also comes with total disconnect from extraction, processing, and fabrication. With EPA rules, only legacy sites are operating– the rest are overseas and there is no reversing that trend.

Scissor
Reply to  ResourceGuy
July 28, 2021 8:01 pm

EPA and CA agencies require fuel specs to be met regardless of their origin and China imports most of its oil, so Chinese refineries face some headwinds also.

n.n
Reply to  Scissor
July 28, 2021 9:10 pm

Tariffs. Presumably to compensate for the equitable benefit gained through environmental and labor arbitrage of out-sourcing, in-sourcing, and generally transnational and globalist policies.

DMacKenzie
Reply to  n.n
July 29, 2021 6:10 am

If you can make more revenue taxing foreign imports than what you make in taxes off your own….why bother ? Plus you get to keep your own reserves.

Travis
Reply to  DMacKenzie
July 29, 2021 8:07 am

import taxes are taxes on the consumer.

MarkW
Reply to  DMacKenzie
July 29, 2021 8:26 am

Buying from others ships money and jobs elsewhere.
The longer you keep your own in the ground, the greater the risk that technology will leave you behind.

MarkW
Reply to  ResourceGuy
July 29, 2021 8:24 am

Since greens won’t permit pipelines to be built. Those refined oil products will have to be shipped by trucks all over the state. Further increasing the amount of energy used to deliver the energy they claim they don’t want.

July 28, 2021 9:14 pm

Uduak-Joe Ntuk obviously believes in the tooth fairy, Santa Claus, and Voodoo magic if he thinks that Cal denying fracking permits is going to somehow alter global temperatures in 2080 and beyond.

John Hultquist
July 28, 2021 9:38 pm

Having once or twice visited CA cities I do understand the desire for cleaner air.
The current actions do nothing for that, nor will there be any lessening of the climate crisis.
The climate crisis is a political concoction not solvable in any rational or physical way.

Mike Lowe
Reply to  John Hultquist
July 29, 2021 2:21 am

What “climate crisis”? There isn’t one!

Chaswarnertoo
July 28, 2021 10:48 pm

La la land.

Charlie
July 29, 2021 3:37 am

Off topic but.. The constant refrain is that wind power is as cheap now as fossil fuels. Well, in UK land The Times reports

Offshore power ‘will fail without subsidies’

Most wind farms in Britain will not be economically viable when existing subsidies end and will close prematurely without further revenue support, new analysis suggests.

Offshore power ‘will fail without subsidies’ | Business | The Times

Everyone here is totally shocked by this news, I’m sure.

Reply to  Charlie
July 29, 2021 5:07 am

Wait for griff, he will tell you a truth 😀

AGW is Not Science
Reply to  Krishna Gans
July 29, 2021 7:27 am

An “alternate reality” truth, to be sure.

MarkW
Reply to  Krishna Gans
July 29, 2021 12:31 pm

Up above griff assures us that nobody in the “advanced” economies will be using fossil fuels for anything by 2030.

TonyG
Reply to  Krishna Gans
July 29, 2021 12:35 pm

It’s not Grauniad so it must be a lie, right?

griff
Reply to  Charlie
July 29, 2021 9:57 am

Could be a problem on very windy days because of too much power in early 2030s when subsidies end? seems a bit speculative. why would prices drop beyond profitability on good wind days? There’s a market for power not required on grid in green hydrogen, we have a large number of HVDC lines connecting us to the continent, we need more power for EVs…

MarkW
Reply to  griff
July 29, 2021 12:30 pm

It’s easy why prices would drop below profitability.
It’s because wind mills aren’t capable of producing enough power day in and day out to pay for themselves.
The only reason why they haven’t been shut down already is because of the many subsidies they receive.
No subsidies, no wind mills. Simple economics.

Bruce Cobb
July 29, 2021 6:07 am

It is almost as if Califoolya’s and the Biden administration’s anti-carbon energy policy is retarded.
Oh wait, it is.

Drake
Reply to  Bruce Cobb
July 29, 2021 8:41 am

Hey, Bruce, watch your language, only Democrats are allowed to use old, forbidden words like “retarded”.

https://www.msn.com/en-us/news/politics/schumer-refers-to-mentally-handicapped-children-as-retarded/ar-AAL2v2t

Olen
July 29, 2021 7:19 am

Look for greasy palms.

observa
July 29, 2021 7:21 am

Now why would solar and wind think a Retailer Reliability Obligation suddenly favours coal?
Green Energy: Renewables sector up in arms as ‘coal friendly’ market proposal heads to Governments (msn.com)
As if we didn’t know about level playing fields in markets and the economic vicissitudes of State sponsored dumping not to mention the fallacy of composition. It’s grid Regulators that get mugged by such reality first and foremost.

Drake
Reply to  observa
July 29, 2021 8:46 am

Nice link, thanks.

So Aus is looking to require continuity of supply, i.e. reliability? What a novel idea.

And the “majority” of “stakeholders” object? I am SOOO surprised.

TonyG
July 29, 2021 9:53 am

Just more evidence that it’s NOT actually about the environment. Never has been.

John
July 29, 2021 5:38 pm

I think you need to do a DNA check on Biden
I think he has more neanderthal genes than Homosapien
So does that qualify him to be classified as brain dead oxygen thief carbon dioxide producing organism

James F. Evans
July 30, 2021 12:55 pm

It’s regrettable, California has lots of oil & gas.

It’s an active geologic region with many faults, fissures & cracks with plenty of cap rock to boot.

Ronald Stein
August 2, 2021 7:26 am

California is NOT importing more oil due to climate change, but due to Democrats mission to stop all in-state drilling. Dah – to fill the void to meet the states demands for fuels and for products made from petroleum, imported crude oil from countries halfway around the world are needed to fill the void created by the Government.

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