Guest “I couldn’t make this sort of schist up if I was trying” by David Middleton
Shaheen, Warner: Oil Companies Need to Increase Production, They’re Sitting on Oil to Increase Price
By IAN HANCHETT 3 Mar 2022
On Thursday’s broadcast of MSNBC’s “Andrea Mitchell Reports,” Sens. Mark Warner (D-VA) and Jeanne Shaheen (D-NH) argued that oil companies are not producing as much as oil as they could to keep the price high and these companies need to increase production to help combat Russia’s energy wealth.After both Senators called for an embargo on Russian oil, Shaheen said, “I know there’s hardship on the American people and on everybody who is affected by these high gas prices, but the other thing we need to do is we need to call on our CEOs of the major oil companies to stop sitting on production and increase production. They’ve been sitting on the amount of production because they want to keep the price high. Well, the world needs them to respond now as well. They need to do this so that they can support the free world as we’re trying to fight this tyrant who is trying to put — capture the democracies of the world. And so, we need to all stand together here.”
[…}
Breitbart
Does this mean that these two Senators now support reopening leasing on federal lands and waters? How about opening up the Atlantic OCS? ANWR?
Do they really think we can just “dial up the volume” on oil wells? Competent operators produce oil wells at the rate that maximizes the volume of recoverable oil. We don’t dial the volume up and down in an effort to control uncontrollable oil prices. When prices rise, we have more cash flow to spend on additional drilling. This increases oil production, which eventually lowers prices. Production will increase in response to higher prices, but it’s not an instantaneous thing.
However, there are limitations to how much we can increase production without access to new areas for exploration and production. These two senators represent states which border the Atlantic OCS leasing area. This area has not been open for leasing and drilling since the early 1980’s. Forty six exploration wells were drilled from 1979-1984. These wells were drilled before modern 3d seismic surveys were available and constituted little more than stratigraphic test wells.
While the Western and Central Gulf of Mexico OCS areas are technically open, the Biden maladministration and a corrupt Democrat federal judge have unlawfully blocked new leasing since November 2020.
To his credit, Sen. Mark Warner (D-VA) did support opening the Atlantic OCS back in 2011.
On the other hand, in 2019, Sen. Jeanne Shaheen (D-NH) introduced a bill to ban all offshore drilling along the North Atlantic OCS.
Shaheen, Hassan & Coastal New England Senators Introduce Bipartisan Offshore Drilling Ban
MAY 03, 2019
Bill would protect ocean economy that generates $17 billion annually in the region(Washington, DC) – Yesterday, U.S. Senators Jeanne Shaheen (D-NH) and Maggie Hassan (D-NH) reintroduced legislation to bar oil and gas drilling off the New England shoreline with a bipartisan group of New England Senators led by Sheldon Whitehouse (D-RI). While the Trump administration has stalled on releasing the next draft of its 5-year offshore leasing plan, it has not fully abandoned efforts to open areas of the Atlantic continental shelf to offshore drilling. Oil and gas exploration in the Atlantic puts vital coastline at risk, threatening a central economic engine for New England.
[…]
Jeanne Shaheen US Senator for New Hampshire
Oil and Gas Potential of the US Atlantic OCS
The Bureau of Ocean Energy Management’s (BOEM) 2014 estimate of technically recoverable Atlantic OCS hydrocarbon potential to be 4.6 billion barrels of oil and 38 trillion cubic feet (TCF) of natural gas.
While much of this is rank frontier exploration, the northern boundary of the US Atlantic OCS is adjacent to Canada’s very active Scotia Basin.
Canadian oil companies currently produce 233,000 bbl/d from their offshore Atlantic areas…
ATLANTIC CANADA HAS A THRIVING OFFSHORE OIL AND NATURAL GAS INDUSTRY, WITH FOUR PRODUCING PROJECTS AND ONGOING EXPLORATION ACTIVITY IN THE AREA.
Atlantic Canada produces more than 233,000 barrels of oil per day, representing five per cent of Canada’s total crude oil production. To date, development of oil and natural gas production in Atlantic Canada has mainly occurred offshore Newfoundland and Labrador and Nova Scotia.
In addition to current projects, the Atlantic region has seen significant exploration activity in recent years. Exploration is key to the future of the offshore industry as it leads to new discoveries and potential developments.
The offshore industry has had a major impact on Atlantic Canada’s economy thanks to the royalties and taxes the industry pays to governments, and the creation of jobs and expenditures related to industry activity. Oil and natural gas companies in the region also contribute significantly to the communities where they are active.
CAPP
Instead of unleashing the US oil industry and reestablishing energy dominance, Democrats just badger oil companies and double down on stupid.
White House press secretary Jen Psaki said the U.S. needs to decrease its reliance on foreign oil by switching over to renewable energy, not increasing domestic production.
Fox News, February 27, 2022
Jen, maybe you should have checked with the Department of Energy…
A few days later, Jen proceeded to triple down on stupid…
Q We also know, you know, the President, as recently as yesterday, talked about increasing domestic manufacturing to bring down prices on inflated items like goods. So why not apply the same logic to energy and increase domestic production here?
MS. PSAKI: Well, there are 9,000 approved oil leases that the oil companies are not tapping into currently. So I would ask them that question.
Q Is there nothing that the administration can do to get those providers back to pre-pandemic levels?
MS. PSAKI: Do you think the oil companies don’t have enough money to drill on the places that have been pre-approved?
Q Just asking.
MS. PSAKI: I would — I would point that question to them. And we can talk about it more tomorrow when you learn more.
Q Do you think that opening the Keystone Pipeline and having more energy-friendly policies might do that?
MS. PSAKI: The Keystone Pipeline has never been operational. It would take years for that to have any impact. I know a number of members of Congress have suggested that, but that is a proposed solution that has no relationship or would have no impact on what the problem is we, here, all agree is an issue.
Q So during that — those years where it would, you know, take to bring down prices, as you’re saying, we should just continue to buy Russian oil?
MS. PSAKI: Well, again, Jacqui, I think you’re familiar with a number of steps we’ve taken: a historic release from the Strategic Petroleum Reserve.
Q But that didn’t bring down prices — last time or this time.
MS. PSAKI: Well, we can — well, let me finish. What we can do over time and what this is a rema- — reminder of, in the President’s view, is our need to reduce our reliance on oil.
The Europeans need to do that; we need to do that. If we do more to invest in clean energy, more to invest in other sources of energy, that’s exactly what we can do to prevent this from happening in the future.
We welcome any Republicans from joining us in that effort.
Go ahead.
Q As long as we’re buying Russian oil, though, aren’t we financing the war?
MS. PSAKI: Well, Jacqui, again, it’s only about 10 percent of what we’re importing. I’ve not made any announcement about any decision on that front, but our objective here and our focus is making sure that any step we take maximizes the impact on President Putin and minimizes it on the American people.
And anyone who’s calling for an end to the carveout should be clear that that would rise — raise prices.
Go ahead.
Press Briefing by Press Secretary Jen Psaki, March 3rd, 2022
Just substitute “Jan” for “Jane”…
Greens and other socialists forget all knowledge of economics. Intent is the only real thing to deal with, so if you want something, how to actually acheive it does not matter.
Recently posted elsewhere:
IF you had a patriot for a President, he would declare the Keystone XL pipeline a National Emergency Project, and order that it be built and operational in ~three months, and further order than any and all opponents would serve as backfill.
My friend Willis E correctly wrote:
“The math is quite simple. We import 595,000 barrels of oil per day from Russia. The Keystone XL pipeline would have given us 830,000 barrels per day. The virtue-signaling idiocy of the Democrats is hugely dangerous.”
Producing quantities of oil is a lot more complicated that just wanting to. Production from USA oily shales has major resource and economic limits.
The Alberta oil sands is one of the largest deposits of oil on the planet, right next door to the USA, expandable and sustainable. I used to Chair the Syncrude Mining and Technical Committees and sat on the Management Committee – the “God Squad”. I also initiated three of the four major changes that made the oil sands viable – there is only one other person who did more for North American energy security – the guy who invented fracking of oily shales (and he said it was an accident). My work was no accident.
The USA was an exporter of oil but also a huge importer from Canada – and still a net importer of ~1.5MMBbl/day in 2020. Look up BP Statistical Review of World Energy 2021.
My friends in private energy capital told me they lost billions investing in shale oil due to “over-promise and under-deliver”. In addition to poor shale field performance, these losses were greatly exacerbated by over-production and resulting low prices. This shale oil production is a treadmill, characterized by very steep decline curves, so oil production fell sharply when drilling and fracking slowed/stopped.
______________________
Delaying and cancelling the Keystone XL oil pipeline was always a bad idea. After Russia’s invasion of Ukraine, sensible US lawmakers are demanding a do-over.
To grow oilsands production, we must bring back the income tax and royalty changes that I initiated – 100% CCA rate and 25% DNP Royalty with a 1% gross minimum until payout. The federal Libs and NDP (the treasonous Left) killed the tax and Premier Ed Stelmach (idiot Conservative) ruined the royalty. The Stelmach sliding scale Royalty (increasing Royalty % with increased oil price) sterilized oil sands growth due to inflation. Destructive moves all around.
It is impossible to believe that rational politicians could be this wrong for this long. The Left are traitors, deliberately sabotaging North American energy production based on the fraud of CO2-driven catastrophic warming. Atmospheric CO2 is still increasing, in a cooling world.
_______________________
Excerpt from a recent letter to Canadian and USA politicians and (mostly bought) media:
As you may know, I am primarily responsible for three of the four major initiatives that turned-around the Alberta oilsands industry. These initiatives were new Income Tax and Crown Royalty terms, and increased production at Syncrude that reduced operating costs from $18 to $12 per barrel. The fourth major contribution was SAGD technology, initiated by others.
I incorporated these initiatives into a Strategic Plan for Syncrude that was adopted and made Canada the 4th largest oil producer in the world. Canada became the largest foreign energy supplier to the USA and the strongest economy in the G8 countries. Investments in the oilsands exceeded $250 billion and over 500,000 jobs were created across Canada. The successful careers of Stephen Harper, Ralph Klein (both Conservative), Mark Carney (extreme Left) and many others were enabled through my efforts.
Since I moved away from the Canadian petroleum industry in 1996, little of substance has been accomplished that the above four achievements did not create. Much-needed oil pipelines were blocked by green extremists and even Stephen Harper and colleagues sleep-walked through this decade+ debacle, riding on the success of the past achievements of others but doing little to add value during their years In power.
If our politicians had been competent, they would have forced through the Energy East pipeline, another oil pipeline to the West Coast, and pipelines such as Keystone XL to move our oil to Houston. Instead they were repeatedly gamed for over a decades by anti-pipeline activists. These are monumental failures by politicians and industry that are now being swept under the rug. They should have done much better and Canada and the USA would be much more secure and prosperous. Only minimal competence was needed, but that was absent.
Eliminating fossil fuels is a feature of the Globalist plans.
“Eliminating fossil fuels is a feature of the Globalist plans.”
Correct, but here is the Big Picture, pre-Covid – straight out of the World Economic Forum’s playbook, as adopted by woke leftists Trudeau, Freeland and half the Canadian Cabinet – traitors all.
Same as the Biden Dems in the USA, BloJo in Britain, Macron in France, and a host of other traitors all over the developed world.
THE LIBERALS’ COVERT GREEN PLAN FOR CANADA – POVERTY AND DICTATORSHIP October 1, 2019
https://wattsupwiththat.com/2019/10/01/the-liberals-covert-green-plan-for-canada-poverty-and-dictatorship/
[excerpt]
The implication was that the group had concluded that the present economic model was flawed and had to be replaced. “Unregulated consumerism was unsustainable and people would have to learn to make do with less. The government would have to have more control over people to enforce their austerity and the wealth of developed nations would have to be redistributed to help undeveloped nations.”
These are not new ideas. For decades, intellectuals and politicians have argued that our consumer society, based on individual market demand, is a flawed system that generates waste, excess and environmental degradation.
The insider’s assessment also reflects the current underlying motivation behind the rise of climate change as the defining issue of our time. The words reflect the motives of environmentalists and climate activists who are using the climate “emergency” as a front for larger political and ideological ambitions. What they are pursuing as an economic revolution ushered in through the back door. They are yelling fire and then using the resultant fear to impose a new economic and political order.
(This is a massive comment that most readers will not read through suggest you post a smaller versions MOD)
Biden also proposed 30,000 offshore wind turbines on the East Coast, Gulf Coast and West Coast. by 2030, which is not possible.
BIDEN 30,000 MW OFFSHORE WIND SYSTEMS BY 2030; AN EXPENSIVE FANTASY
https://www.windtaskforce.org/profiles/blogs/biden-30-000-mw-of-offshore-wind-systems-by-2030-a-total-fantasy
The Biden administration announced on October 13, 2021, it will subsidize the development of up to seven offshore wind systems (never call them farms) on the US East and West coasts, and in the Gulf of Mexico; a total of about 30,000 MW of offshore wind by 2030.
Biden’s offshore wind systems would have an adverse, long-term impact on US electricity wholesale prices, and the prices of all other goods and services, because their expensive electricity would permeate into all economic activities.
The wind turbines would be at least 800-ft-tall, which would need to be located at least 30 miles from shores, to ensure minimal disturbance from night-time strobe lights.
Any commercial fishing areas would be significantly impacted by below-water infrastructures and cables. The low-frequency noise (less than 20 cycles per second, aka infrasound) of the wind turbines would adversely affect marine life, and productivity of fishing areas.
Production: Annual production would be about 30,000 x 8766 h/y x 0.45, capacity factor = 118,341,000 MWh, or 118.3 TWh of variable, intermittent, wind/weather/season-dependent electricity.
The additional wind production would be about 100 x 118.3/4000 = 2.96% of the annual electricity loaded onto US grids.
That US load would increase, due to tens of millions of future electric vehicles and heat pumps.
This would require a large capacity of combined-cycle, gas-turbine plants, CCGTs, to cost-effectively:
1) Counteract the wind output variations, MW, aka grid balancing
2) Fill-in wind production shortfalls, MWh, during any wind lulls
Such lulls occur at random throughout the year, and may last 5 to 7 days in the New England area.
Agreed Willem. But I have a simpler solution – see below.
I published in 2002 that there was no real CAGW crisis, and grid-connected green energy (wind and solar power) was not green and produced little useful (dispatchable) energy. In 20 years, nothing has changed. It was always a scam – wolves stampeding the sheep for political and financial gain..
My simpler solution, published in 2018:
https://wattsupwiththat.com/2018/11/16/stacking-concrete-blocks-is-a-surprisingly-efficient-way-to-store-energy/#comment-2520849
Here’s an even better solution:
1. Build your wind power system.
2. Build your back-up system consisting of 100% equivalent capacity in gas turbine generators.
3. Using high explosives, blow your wind power system all to hell.
4. Run your back-up gas turbine generators 24/7.
5. To save even more money, skip steps 1 and 3.
What a mouthful! We need to reduce our dependence on oil and instead use more expensive, intermittent energy to drive energy costs down.
Why are democrats devoid of logic? That is the question that needs to be asked.
Jen is a prime example of Leftists getting themselves wrapped around their ideological axle when trying to discuss energy issues; the contradictions just roll on.
I emailed both of them to ask if this means they have changed their stance on new domestic production and offshore drilling leases
https://www.senate.gov/senators/senators-contact.htm
Doonman: “Why are democrats devoid of logic? That is the question that needs to be asked.”
Answer: Because if they made an honest attempt at a logical case for their position, not even the local stray cats would vote for them, let alone their core constituency of dead voters.
It’s all about ‘feelz’. That way, you can feel one way in the morning and feel the opposite in the afternoon and any nonsensical, illogical position is all good, because feelz, dammit!
“Logic? Logic? We doan need no steenkin’ logic.”
Capisce?
It’s left brain vs right brain. Their left brain is inoperable!
It is a damnation of the school system and the lack of science requirements. It will end up eating our lunch as Asia becomes the innovators and producers of new technological advances.
“Doonman: “Why are democrats devoid of logic? That is the question that needs to be asked.”
Answer: Because if they made an honest attempt at a logical case for their position, not even the local stray cats would vote for them, let alone their core constituency of dead voters.”
That says it all.
Doonman, the Democrats are either devoid of logic or they intentionally helped drive the price of crude up almost 3 times the prior administrations level. Wonder where all of that extra profit goes? Putin/Russia? They will try to blame Trump for this. Wait for it.
They are not all devoid of logic.
Nancy is almost the first in on banning Russian Oil.
Nancy’s friends and family will make more short term money as a result of higher prices.
Some are devoid of logic. Some of them are devoid of morals.
They aren’t devoid of logic. They are devoid of common life experience. My guess is that few of the Democrats in Congress has ever suffered through a week of no electricity. They probably have all lived where backup generators (run by hired workers) have been available. Most of the Democrats in Congress are part of the privileged elite in the US. I can’t think of a better reason to have term limits for all of them!
Typical bureaucratic magic wand waving. “I say it and it shall be done”.
Yet when ROOTS Psaki, and every other Democrat shill says “It won’t help now”, none of these ridiculous so called journalists ask, “So when is this renewable energy going to be on line to provide the “energy” we need NOW?”
It always amazes me that even reporters from so called “conservative” networks let them off the hook like that, EVERY TIME!
The slippery slope that we seem to be on leads to Venezuela.
Could any one person be dumber?
Jen (roots) Psnarki is not dumb, she just gets paid to act that way.
I hear rumors that Psaki is leaving the Biden administration and going to MSNBC to be a new talking head.
It is not a rumor.
Ooooo… that’s a toughie.
The US was energy independent.
Brandon took office and on day one via executive order wipes that out.
And Psicki claims higher gas and energy prices are Big Oil’s fault.
(I wonder if her husband would believe her in the morning if she said, “I was just working late at the office.”)
These are the same clowns who are supporting US – Russian oil imports, and have sided with (John Kerry?) on the ‘new’ imminent Iran nuclear deal, which I understand includes US importation of Iranian oil.
So….
The US and Europe are afraid of nuclear Russia and are unwilling to really stand up to Putin. That’s why they don’t want to establish a no-fly zone in Ukraine. Both N, Korea and Iran see this and it becomes an incentive for both of them to become global nuclear weapon nations. Biden and his cronies are just unable to see this. I don’t know why!
Being a ‘global nuclear weapon nation’ obviously has one advantage in that other nations that might be inclined to meddle in your affairs tend to largely leave you alone. While proliferation is fraught with considerable peril, it’s worth considering that some of the bad actors out there might have noticed that some of the countries that have no qualms about meddling in the affairs of their own citizens’, say, with respect to energy and climate change, often seem equally willing to meddle in the affairs of others.
The Iran deal also includes giving the Mad Mullahs billions of dollars.
This way, the Mad Mullahs can provide universal health care for all their citizens.
That is what they are going to spend all those billions of dollars on, isn’t it?
Joe Biden is the Worst President Evah!
He doesn’t have a clue about how to deal with murderous dictators. All he knows to do is to appease them in any way possible. He’s doing it with Putin, and with the Mad Mullahs.
Biden is an appeaser of dictators.
The Dictators understand this. That is why we are in the situation we are in now because the dictators feel emboldened and they are pushing their envelope as far as possible. No pushback? Then they keep on pushing their envelope. Why wouldn’t they? What’s to stop them?
So the specter of being without heating, cooking, and transportation fuel might be real! Why did it take a war to bring that thought home?
It goes something like this:
Because of their superior education, the left are able to hang on to their delusions with great tenacity. Only when faced with the hammer about to strike their hands do they begin to doubt.
In this case, it’s the hammer and the sickle. But, being a commie, you knew that. 😉
When you go to start a business, or run a race, you get hit with reality.
Since I am a lifelong Democrat, back to the 70s, I have been side by side with these people. They do have a sense of “superior education.” They enter Humanities / Liberal Arts programs, and get educated in some stuff, while being snarky and demeaning of those getting a Business or Engineering degree.
And, for the most part, they are from upper middle class families and so can go to college and grad school without working their way through college, or they borrow money.
Either way, again, they are kept from the real world.
Plus, they are encouraged to believe they are superior to others. Economic realities are ignored by inserting a mythology of Evil, Greedy Businessmen. We would / will all have plenty once we can wrest it from the hands of the powerful Greedy Businessmen who have been depriving us of all of this wealth.
Never mind that our universities, both public and private, are based on the creation of wealth by businesspeople.
Their unfounded thinking is similar to the people who are sure there is a lightbulb design that never burns out but GE bought the patent and hid it, or the people who know Cancer has been cured, but the drug companies won’t allow these treatments to cure cancer cases, so they can make money.
Except these Liberals have assumed their superiority over civics and have gotten themselves into positions of power.
Their thoughts are regularly inconsistent. On local discussion boards, I counter their flip, shallow beliefs with facts and reason, and they cannot follow an economic line of thinking in order to have a decent argument. rising housing prices, rising food prices, etc.
One of my Economics professors countered one of these mythological Economic ideas, about Bif Business rising prices without any feedbacks or consequences: he said “if they can raise prices at will, why haven’t they already done it?”
Liberals mostly cannot handle this type of exposure of their foolishness. THey have Detectors to detect when they are being left in the dust, intellectually, and this sets of an alarm, and one of two strategies are triggered:
Name-Calling
Change The Topic.
when you point this out, this next step is triggered:
Anger.
This proceeds to:
Running around in circles with so much nonsense you cannot respond (Whck-A-Mole) or they drop the entire discussion rather than noting that you might have a point, or thanks for the enlightening discussion.
i studied too much Natural Science, so this weird Liberal Logic could not embed well during college. I had 2 classes where we actually gathered data and had to write a paper, examining whether a hypothesis was supported by the data or not. -Proof is in the Pudding. Many here know this and operate in the real world this way.
With no sense in their minds, they have difficulty raising kids and managing the opportunity to use alcohol and drugs, and manage money.
Gotta say, everything you said makes plenty of sense, except for “Since I am a lifelong Democrat,”
Given the rest, I don’t understand that part.
The Australian government has so far resisted betting the woke whole hog on Net Zero. At least the LNP government want to keep supplying the coal and gas markets.
On a bright note for Australia, thermal coal broke through AUD600/tonne this week. Would be sad to see this fabulous boost to the current account take a hit from woke leaning politicians trying to ban coal exports.
I should add that it is an entertaining story. Normally it takes a couple of years for the gloss of a new administration to fade but Brandon has managed that in record time.
Yes, Biden has become the worst president evah! in the first year of his term. He didn’t need four years.
I don’t find it one bit “entertaining” watching my country being flushed down a toilet.
Our problems are nothing new. They tend to show up every 3 or 4 generations, when history is lost and people have had time to forget they even occurred.
You can either laugh at ’em or cry about it. If you chose the second path, i.e., crying, every time you think about it or some one brings it up in conversation you just get depressed and wander off in misery.
If you can laugh it becomes a challenge, something to be fixed. You can analyze it, discuss it, argue about it and look for possible solutions. Eventually, when it get bad enough, and the cause, the theories or ideas have become a religion to the elite, it usually only takes a little push before they, the elite, make blithering idiots out of themselves and the problems soon disappear.
“Do they really think we can just “dial up the volume” on oil wells?”
Well, if Hank “Guam might tip over” Johnson is any measure of congressional IQ, then yes, they probably do think that.
Islands tip and shake frequently in the Great State of Georgia.
See Okefenokee.
Are you agreeing with Hank Johnson???
In native American, Okefenokee means “Land of the Trembling Earth”.
That’s all well and good, but has nothing to do with the concept of Guam tipping over because there are too many people on one side.
It’s all to easy for trembling earth to capsize.
Failure to answer question noted.
Yes, floating mats of peat with trees growing on them and surrounded by water the color of tea.
I think it was you that turned me on to that guy’s stupidity. Voters may be just as stupid.
Maybe he was thinking of Guam Elephant Walks,
maybe stopped because of tipping?
“Well, if Hank “Guam might tip over” Johnson is any measure of congressional IQ, then yes, they probably do think that.”
That’s funny!
it reminds me of the CNN anchor, Don Lemon, who put forth the possiblity that a Black Hole might have swallowed up a missing airliner.
I’m trying to remember the anchorette who asked if increasing CO2 might cause more asteroids to hit the earth.
Must have been listening to Elon-
Elon Musk, head of world’s largest EV company, now says we need more oil and gas (msn.com)
“MS. PSAKI: The Keystone Pipeline has never been operational. It would take years for that to have any impact.”
It would have been operational by now, if you morons hadn’t blocked it at every opportunity, before outright banning it. Foresight is a thing, Ms Psaki.
Congress passed, with an ALMOST veto proof majority, a bill to force the licensing of Keystone XL when Obama was president, he vetoed it.
Kerry, as Secretary of State, used his authority, since it is an international pipeline to block it as long as he could, then Obama used his power to block it, then TRUMP! approved it, then an Obama appointed judge used every excuse in the book to block the license, starting with the act that requires policy changes to be processed by “procedure”, then when the “procedure” was followed, blocked the license again.
Wiki is not great, but look at the timeline for Keystone XL, and between Kerry, Obama, Obama’s judge and now Brandon, there is over 8 yeas of delay. The pipeline should be long completed.
I remember seeing this year that the company is suing for $15 billion, but I don’t think Wiki mentioned this most recent lawsuit.
And again, NONE of the so-called journalists, who SHOULD start pulling an Acosta, and line all this out in a speech before finally asking ROOTS, who was IN the Obama/Brandon administration, why she would dare to give us the excuse of ” no help now” when she is the minion of those who made sure it would be of “no help now”.
End Rant.
David, you made the point,
I think it needs to be stressed that over-pumping leads to undesirable effects on the reservoir and reduces what will be available in the future. The ignorant senators are basically calling for a short-term solution to a problem created by the administration, without concern for the impact on the future.
I’d have to write a whole post about that… Maybe I will… Along with addressing the nonsense about the 9,000 approved leases we allegedly aren’t tapping into.
What good is a lease when they won’t allow a permit?
We aren’t having trouble getting permits approved on existing leases… Yet.
I didn’t know that. Are the leases for unproductive areas, or was the price of crude just too low to support production?
While I am asking stupid questions, what are all the lawsuits by the Louisiana AG, etc. about then? Are they only about revoked leases?
The Federal waters of the Gulf of Mexico is subdivided into thousands of generally 5,000 acre square tracts. Companies bid on the open tracts in lease sales that are supposed to occur several times per year. The high bidder wins the lease, if their bid is accepted.
Traditionally shelf (shallow waters) had 5 year terms and deepwater leases had 10 year terms. If the leaseholder decides the prospects are good enough to drill, they file an exploration plan with BSEE. Once that is approved, they file for a permit to drill. If they make a discovery,they file a development plan and file for the permits necessary to install production facilities and bring the well on production. The Brandon maladministration has not blocked these sorts of permits… Yet.
If the leaseholder made an oil or gas discovery large enough to develop it, they would hold the lease as long as it was producing and pay royalties to the US government. Every one of the available leases in the Gulf of Mexico have been cycled through dozens of lease sales. Leases that have never been bid on are not geologically and/or economically prospective. While there are still many leases that are prospective, that number is shrinking.
That post would be enlightening, please do.
My engineering studies were more focused on electrical and electronic courses but I am aware of the physics correlation across mechanical and electrical/electronic fields. As an example, the equations to determine the characteristics of a spring/dampener system are the same as determining capacitor/coil characteristics in a tank circuit.
From what little I know about your field of expertise, I would guess that drilling into a resource shows you the pressure available to harvest. I assume that it would not be safe to harvest at maximum pressure and trying to push higher pressures is unsafe and counterproductive. Kind of like trying to constantly pull 15 amps from a 15 amp circuit. It’ll work for a while but is not sustainable.
Just a WAG. How close did I come?
Let’s say the reservoir pressure is 7,000 psi. The wellbore is like a straw from the surface (~15 psi) into that reservoir. From the moment you start flowing the well, the reservoir pressure starts dropping. The faster you flow the well, the faster the pressure drops. If you flow the well at too high of a rate, you will prematurely draw down the reservoir pressure and recover less hydrocarbons than if you had better managed the draw down.
How do you determine the drawdown rate?,
https://glossary.oilfield.slb.com/en/terms/p/pressure_drawdown
Thanks for the info. I look forward to your post on the problems associated with trying to draw out faster than the site conditions permit.
From your link, I would guess that each bore shows different compositions and if you get the wrong drawdown rate you would clog the hole you made and possibly have to start all over again.
Sounds like it takes a lot of experience and luck to get it just right.
Thanks again.
Is that you Griff?
Griff on Adderall… 🤪
What this site fails to see, and why you’re all irrelevant, is that you can’t stop oil coming out of the ground once it is drilled.
I could swear there were devices which looked a bit like a nodding donkey last time I visited an oilfield.
Clyde, after 45 years as a petroleum engineer doing everything from exploration economics to well abandonments I have seen quite a few CEOs in oil companies not understand that, so Psaki’s ignorance is not surprising. The scary thing is that these people really think the engineering bit with all its risks and unknowns is the easy bit while the politics is the hard bit.
Two charts that show the Brandon influence on world affairs:
https://tradingeconomics.com/united-states/current-account
https://tradingeconomics.com/russia/current-account
USA becoming increasingly dependent on the rest of the world while Russia literally powers on.
“Atlas Shrugged” – if you haven’t read it, pick it up. It is eerily prescient about our politics.
This ^
“Going Galt” became a thing way back in 2009 .. 😎
Have you noticed that her heroes in both Atlas Shrugged and The Fountainhead have the initials “HR?”
Energy, not when the wind blows within range, not when the sun shines, not backed by an environmentally hazardous pile, but on demand, organic, and biodegradable. A novel concept.
Because reservoir pressures don’t really matter do they……….
Or water cut… I guess I should cut them a little slack. Ignorance of reservoir engineering isn’t limited to Democrat political hacks
I think that politicians who aren’t personally polymaths, like you, have a responsibility to have expert advisors on staff, or on call, to vet their press releases and planned ‘sound bites.’ If they don’t, they run the risk of appearing ignorant — which they probably are.
Oh but they do have “expert” advisors. They have degrees in Women’s Studies, Diversity studies, LGBTQXYZ studies, etc., you know, what is important to them.
It used to be Underwater Basket Weaving. The titles are now more erudite, but no more useful.
Clyde,
You’re getting into the theory behind ‘Progressivism’, which is that people like us are too stupid to know what features we might want, say, on a new car. Instead, we are allowed to vote for a genius like Maxine Waters, who in turn will oversee a vast bureaucracy of ‘experts’ who, in exchange for a few trillion dollars per year, will take the heavy weight of decision making off our weary shoulders. Works for everything else, too! Energy, health care, you name it.
I guess this is what is meant by the command economy.
Let’s not forget that Sleepy Joe snored away like a homeless bum at COP26 because he and the Dems have guzzled the Global Warming koolaid. They own the Great Global Warming Hoax lock, stock, and barrel.
All the cancelling and moratoria on American oil production was motivated by their politically twisted shrieking paranoia at the pseudo-scientific specter of a fancied 2.0°C increased global ave temp — something that would be utterly beneficial in the unlikely event it happens over the next 100 years.
Fostering and milking CAGW paranoia led to the Green Screw Job and other Great Reset policies. It’s what the Dems do and who they are. Jamming a monkey wrench into US oil production gave Adolf Jr. Putin the wherewithal to extort the EU and pursue his blitzkrieg into the Ukraine.
Everybody knows that. It’s not a secret. This country and the entire world have been conned and set up by warmunists for exactly this global disaster.
Knock it off with the Adolf Putin garbage. If there is anybody who has his mind firmly grounded in reality (including energy reality) it is Vladimir Putin. He is shifting the geopolitical chessboard and waking the West up from its solipsistic self-destruction.
No, noone who initiates the murder of innocent men, women and children can be described as “grounded in reality”. Psychopaths can be intelligent. It doesn’t mean they are not murderous, barbaric psychos like Adolf Hitler. I think Putin is just like Adolf Hitler. Same mindset. Same total disregard for human life.
Adolf Putin, Adolf Putin, Adolf Putin. If there is anybody who has his mind firmly grounded in reality (and the history of World War II), it is those who call Putin Adolf, as he is repeating the history of it and the West is acting like Chamberlain.
To a point I agree. Where I differ is what has happened recently. Putin was fine until he swallowed his own Kool Ade and thought taking over Ukraine was going to be a walk-over. When the Ukrainians fought back, he seems to have lost it. It’s possible that he’s lost control of some of the units and is desperately trying to salvage something from the wreck.
Also, some reports show him not in the best of health, which might be a factor.
You wake the west by invading your neighbors and killing civilians?
What do you do for a follow up?
These two senators are at the very least disingenuous. If they were really serious they would be the loudest voices in the senate to push for increased production but instead think that blaming oil companies will cover for the incompetence and bungling of their party. They are like a child caught red handed with stolen goods who claims he was given these by his friend.
Even some adult thieves think that is a good excuse. That is why it is illegal to be in possession of stolen goods, even if you didn’t steal them.
AAA has a national gas price average, updated roughly midnight every day.
On Monday, the average was $3.61. On Tuesday, $3.65
The latest? $3.93 (3/5/2022). Basically double digit cent increases in gas prices every day for the last 3 days.
The US gasoline price record is $4.11 – from July 2008 (the year when oil prices peaked at $147). It seems very possible we will break that record next week.
Note that there has not been either a cutoff from Russia or an explicit oil sanction on Russia (cutoff by the US/EU of Russian oil) to my knowledge.
Wait until the refineries switch to the more expensive summer blends as we head into warmer weather.
And people start going on their summer vacations when school gets out, after having been, to a large extent, stuck at home for summers.
Ha! You should see the price on the pump when I finish putting 200 gal. of #2 Diesel in the big truck. It’s more than the property tax is on my Indiana home paid every 6 months and in fact more than ANY monthly bill I pay other than a mortgage I’m still paying off.
I’m guessing there will be a lot less of that.
If gas prices hit $5/gallon or more – it will be almost literally double that of pre-Biden. Costs are such that it is getting to be cheaper to fly than drive even for moderate distances.
Agreed – that’s why analysts were saying $5/gallon was coming, and this was before the $0.10/day increases in the last 4 days and over 10% increase in the last week.
Is that the inflation-adjusted price, or the 2008 price?
It is the 2008 price.
However, more and more analysts in the gasoline space are saying $5/gallon coming.
Given that gas prices have increased nearly $0.10 a day for the last 4 days – can’t say they’re going to be wrong…
One of the effects of this invasion is reckoned to be a shortage of grain
In my youth I grew up in an area renown for potato growing, each autumn my school friends earnt cash Tattie Howking (grouse and pheasant beating for me). So I knew sons and daughters of farmers and farm workers.
Like all agricultural enterprises weather played abig part in success or failure.. From potatoes I make this layman’s judgement harvest shortage autumn 2022, shortage in supply spring 2023, increased planting spring 2023, price still high autumn 2023, increased planting winter wheat 2023 and spring 2024 surplus autumn 2024 price back to normal there after. Potatoes will take an extra year because there are no winter potatoes.
The UK has complicated the situation for itself by rewilding, reforesting large tracts of farm land and covering what’s left in solar panels
But if ethanol minimum requirements and subsidies are not reduced/eliminated, the acreage of land suitable for wheat currently planted in corn for ethanol won’t be planted in wheat as is should be when there may be a FOOD shortage.
Are maize and wheat interchangeable? Maize has much higher water requirements than wheat, so there are many areas where wheat grows well but maize can barely hang on. Conversely, many wheat varieties don’t handle large amounts of rain.
There are sure to be areas where both will grow and yield reasonably well, but what is the proportion of cropping area, and overall area? My limited knowledge of US, UK and European agriculture was that a high proportion of wheat went to stock feed.
Most wheat is used as human food, not livestock feed.
Thanks.
Do you have approximate proportions?
90%/10%? Most of the wheat used for animal feed has problems making unusable for human use. I doubt if that applies to a large percentage of the wheat harvest, otherwise the grain elevators would buy it in the first place!
Old Cocky,
I am not a farmer, or a Midwestern resident, BUT I have driven back and forth across the country 4 times in the last 3 1/2 years, and I see areas planted in wheat, soy beans and corn within just a few miles of each other while driving on the east/west interstates having driven on 40, 70 and 80 from as far south as Texas to across Nebraska, Iowa etc.
This is even the case farther east towards Ohio, etc. What I noticed when traveling east from Ohio to Pennsylvania to NY to Massachusetts the last couple of times is that the farther east you go the more you see corn primarily, just not the massive farms of the Plaines and much less irrigation equipment the farther east you go.
I also noticed the HUGH number of oil wells, sometimes different colors (companies) within less than 1/4 mile of each other, in Ohio, Pennsylvania, etc. Sometimes with nearby tanks which were usually located near RR tracks. The wells pumps were often in fenced enclosures less than 50 feet square with the fields planted right up to the fences. Most of the pumps that far east looked OLD but up to 60% were running slowly, but running, in some areas. Also in Colorado there were stretches of Interstate where there were collection points for gas and some oil well also. And there were small refineries along interstate, most of which had a couple of vehicles so apparently not operating, and a few with many cars and steam, etc. so probably running.
I am truly amazed with the vast NUMBER and varied location of oil and gas wells visible from interstate all over the country. BTW, I also saw equipment yards where old well pumps were collected , so to BigOilBob, someone has been removing pumps and plugging wells.
Also traveling from north to south this past summer from Massachusetts through Virginia close to the coast then more inland past Atlanta George then west through Mississippi, the fields were again, corn, wheat and soybeans, interspersed and together. Again much smaller sized farms, and often limited views because of the hilly topography around the interstate there.
I am also truly amazed at the vast areas of the country under tillage, and vast areas not under tillage that apparently could be returned to agriculture if necessary and profitable. Near my brothers place in VA I noted a farmers fields squeezed info every tillable acre along one side of the road while on the opposite side a large estate was used for horse pasture and a nice house. Other land close by was wood plots that had been clear cut apparently in preparation for tillage again since stumps were being removed. The trees downed, oak and other primarily hard woods were probably over 50 years old. Of course the whole area, less wetlands, was farmland during colonial times. Who knows how many times the property has cycled from farm to wood lot and back again.
Thank you. That covers a reasonable proportion of the farming areas.
These are the same a$$holes who have been screeching for years that they want to bankrupt the petroleum industry and jail everyone who ever worked in it.
Something about that headline: Why does it seem natural or expected that production is up to government or some element of it?
It’s not “natural” but that is the way it is and has been for as long as I believe anyone posting here has been on this earth.
With the midterms getting ever closer the leftists are throwing everything up on the wall to try and convince people that they are not the reason for inflation and high gas prices.
But we know the reality and this is it:
Where can I buy that?
And then there is the Biden Energy Secretary saying:
https://youtu.be/OhwgbkDkV-c
https://www.eia.gov/todayinenergy/detail.php?id=51318
https://www.eia.gov/petroleum/
Neither natural gas production table has anything to do with oil production or stocks.
The EIA table is for marketed natural gas production, which includes storage withdrawals. The RRC table is wellhead production.
Every day they play PR podium stupid another thousand Ukrainians are killed. There is a price in blood this time for political positioning around advocacy donor groups.
We already paid a heavy price to the first horseman of the Apocalypse due to their Malfeasance:
Dr. Andrew Hill, The Man Who Killed Millions? – The Last Refuge (theconservativetreehouse.com)
The problem is I think Joe Biden is a Human-caused Climate Change True Believer and as a result he thinks fossil fuels are the Devil Incarnate, and will resist opening up more fossil fuel production in the United States.
Let’s hope we can make some dramatic changes to the political landscape after the November elections. A good start would be to impeach Joe Biden for dereliction of duty, in a number of areas.
Unfortunately, Joe Biden is not the only problem, his whole radical Democrat Party is the problem. They are all divorced from reality in one way or another, and that’s not good for the rest of us.
I think the radical Democrats are going to get their comeupance this November.
They not only double-down on Stupid, but keep contradicting themselves. They Hate oil, but want more of it. So they can hate it more, I guess. Oh, and they Hate Big Oil, but want them to please please produce more oil instead of being such greedy bastids and sitting on it so the price goes up.
Shaheen was a successful 3-term governor of NH, but as Senator has passed her sell-by date, her position is up this year, and she faces a hefty challenge from Republicans.
Is it me or do we only have open the regions that are most likely to be hit be a stronger tropical storm /hurricane? I know the regions around Florida might have more storms, but my understanding is the western path hurricanes become stronger because of the warmer Gulf waters.
We have to open the areas with the best oil & gas potential. As an industry, we already know how to deal with the weather.
Oil, gas, and coal companies, do not, and cannot, trust this administration. That, is the bottom line.
Right now, I feel like a passenger on a jet with a suicidal pilot.
Most are just sitting back complaining about how the pilot’s plan to fly through the mountain instead of over it is a bad idea and won’t work, but I’m preparing my parachute.
So Hillary, TRUMP! and a Boy scout were riding in a plane when the pilot comes out of the cabin and tells them, there is good news and bad news.
The good news is there are 3 parachutes.
The bad news is the plane is going to crash.
The pilot takes one parachute and jumps.
Now 3 people, and 2 parachutes.
Hillary screeches, “I am the worlds smartest woman and the world needs me”, grabs a parachute and jumps.
TRUMP!, being a traditional American MAN tells the Boy Scout to take the last parachute and jump.
The Boy Scout says, “But we both can jump”.
TRUMP! tells the boy that he does not think the parachute will not carry them both safely to the ground, so the boy should just take the last parachute and jump.
The Boy Scout finally says, “But we can both have parachutes, the world’s smartest woman jumped with my knapsack.”
This may be the quintessential example of passive aggressive psychopathology. While trying to regulate oil and gas producers into the dirt, blaming them for every stiff wind and strong rain, trying to cripple their funding and supporting endless litigation to put them out of business these morons have the idiotic obliviousness to demand they produce more and claim that the failure to do so is a nefarious plot on the part of producers to raise the price – a trend that is entirely due to progressive policies.
Are you trying to get into an oil and gas statistical contest with David Middleton?
I knew you were dumb, but I didn’t think you were this obtuse.
EIA…
https://www.eia.gov/todayinenergy/detail.php?id=35492
MARCH 26, 2018
EIA’s estimates for Texas crude oil production account for incomplete state data
Source: U.S. Energy Information Administration, Petroleum Supply Monthly, and the Texas Railroad Commission
Crude oil and lease condensate production data for Texas, published by EIA in its Petroleum Supply Monthly (PSM) and by the Texas Railroad Commission (TRRC), reflect differences in the treatment of incomplete and lagged data. Data published by state agencies are often incomplete when first published because of a combination of late reporting and processing delays.
TRRC’s most recent report (published March 2018, with estimates through December 2017) is consistent through January 2017 with production estimates in the PSM, but, after January, the two sources diverge. This divergence increases for more recent months: EIA’s most recent production estimates for Texas, published in the PSM on February 28, 2018, show Texas’s crude oil production reaching 3.93 million barrels per day (b/d) in December 2017. TRRC’s values show production at 2.99 million b/d in that same month.
EIA develops state-level production estimates for Texas based on its EIA-914 survey. The EIA-914 survey for oil production was established in 2015, in part to make up for the deficiencies of estimating based on initial state agency reports. EIA monthly oil production volumes are different from the Texas Railroad Commission volumes initially, but as time passes, these differences diminish as TRRC updates and revises its data. EIA’s methodology anticipates and accounts for these expected revisions.
Source: U.S. Energy Information Administration, Petroleum Supply Monthly, and the Texas Railroad Commission
Because EIA’s methodology anticipates revisions, PSM estimates are generally consistent across vintages of data releases, meaning they do not show large revisions as later reports are issued. By contrast, TRRC estimates are consistently revised upward as later reports are issued. The TRRC data are revised upwards over a period of one to two years.
Source: U.S. Energy Information Administration, Petroleum Supply Monthly, and the Texas Railroad Commission
From January 2012 through December 2015, the change in TRRC estimates for any single month has varied from 10% to 31% from month 1 to month 24, with a 12-month average increase of 21%. For the month of December 2017, the TRRC data are 24% below the current EIA estimate.
TRRC’s initial reports tend to be low relative to EIA’s PSM because some oil and natural gas operator reports are placed in a pending file while waiting for other state reporting requirements to be satisfied. Reports may be filed late or have other discrepancies to resolve. Once resolved—generally these resolutions take up to two years—these reports are ultimately included in TRRC’s published reports. On average, TRRC’s published reports are within 95% of their ultimate value after seven months.
Most likely, by late 2019, TRRC’s published production value for December 2017 will be about 3.93 million b/d, consistent with EIA’s most recent PSM estimates. As TRRC continues to revise its data over the next year, we expect the discrepancies observed for the months of 2017 to fall to negligible levels.
Texas is not the only state with incomplete initial monthly data. A full explanation of EIA’s approach for estimating crude oil production in Texas and other states is available in EIA’s methodology report for the PSM.
Principal contributors: Emily Geary, Jess Biercevicz
Tags: crude oil, liquid fuels, oil/petroleum, production/supply, states
I’ll mark my calendar to update the production and petroleum stocks data on September 5, 2022.
The green loonies keep kicking the oil companies in the guts and then wonder why the industry is a bit slower getting on its feet. Reining in all the Exxon knew fanatical AG’s would be a good start. Then pressuring these green banks to free up investment funds for oil and gas would be a second. The world needs to stop maligning oil companies for producing an essential product that we all use.
The east coast of the United States is very promising, there are a number of basins that have potential with thick sedimentary layers (reservoir) and sufficient cap-rock or hydrocarbon trapping rock formations.
Truth be told America, including Alaska, has numerous areas to be explored & drilled.
Striking when one realizes how ubiquitous hydrocarbons are in the Earth’s crust.
We’re not running out… we keep running into… oil, Texas tea, black gold.
But we do have to at least look for it.
Drill, baby drill.
According to what you told us a year ago, we should have been dead 6 months ago.
PS: Do you really believe that governments limiting production is proof that we are running out of oil?
As hard as it is to believe, representatives of the Brandon MalAdministration were reported to have crawled on hand and knee to Venezuela over the weekend to beg Maduro for petroleum.
I kid you not.
I wonder what Biden offered them in return for more oil? Sanction relief?