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.”
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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”…
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?