Essay by Eric Worrall
h/t Cautious Optimism; A few months ago Biden urged energy providers to increase exports to Europe, to support Europe’s efforts to resist Russian energy blackmail. Now Biden is complaining that US inventories are unusually low, and wants providers to focus on rebuilding domestic inventories.
Biden Administration Urges Fuel-Export Cuts to Restock Northeast
‘Emergency measures’ may be needed if refiners don’t act
Energy Department points to below-normal Northeast stocks
By Ari Natter
27 August 2022 at 00:35 GMT+10 Updated onThe Biden administration is warning refiners that it may take “emergency measures” to address fuel exports as stockpiles of gasoline and diesel fuel remain near historically low levels in the Northeast.
While East Coast gasoline and diesel inventories are well below normal, exports of US refined products are at an all-time high, the Energy Department wrote in a letter last week to refiners that included Exxon Mobil Corp., Valero Energy Corp., and Phillips 66.
“It is our hope that companies will proactively address this need,” Energy Secretary Jennifer Granholm wrote in the letter, which was also sent to BP America, Chevron Corp., Marathon Petroleum Corp. and Shell Plc. “If that is not the case, the administration will need to consider additional federal requirements or other emergency measures.”
Emergency actions can be avoided if the industry prioritizes “building inventories during this critical window,” Granholm said in the letter, which was obtained by Bloomberg.
The Biden administration is effectively asking refiners to prioritize American consumers over maximizing profits by supplying fuel-starved Europe, which is facing an unprecedented energy crunch after the invasion of Ukraine triggered US sanctions on Russian oil supply. While US retail gasoline prices have eased after hitting a record nationwide average above $5 a gallon in June, the White House remains under pressure to tackle inflation ahead of the midterm elections.
…
Read more: https://www.bloomberg.com/news/articles/2022-08-26/biden-administration-urges-fuel-export-cuts-to-restock-northeast
A few months ago, Biden urged exporters to make up the energy shortfall in Europe, caused by Russia’s geopolitical games and Europe’s green energy insanity.
Biden increases LNG exports as Europe faces energy crisis
By Sara Schonhardt, Scott Waldman | 03/25/2022 07:25 AM EDT
The White House announced this morning that the U.S. will rapidly increase exports of liquefied natural gas to Europe as Germany and other E.U. nations try to diminish their dependence on Russian fossil fuels.
The move will ramp up LNG shipments carried by seagoing tankers by 15 billion cubic meters this year, according to a fact sheet released by the White House. As a comparison, the United States sent 22 bcm of LNG to Europe last year, the highest ever traded between the two continents.
The announcement promises to raise concerns about the trajectory of global climate action. The construction of LNG terminals and other infrastructure could put the U.S. and other nations on a path toward using gas for years to come, even as those countries strive to phase out fossil fuels, advocates warn.
…
Read more: https://www.eenews.net/articles/biden-increases-lng-exports-as-europe-faces-energy-crisis/
Arguably exporters are only doing what Biden asked them to – but now Biden is complaining they have followed his instructions?
If only politicians and protestors hadn’t tried so hard to block attempts to build energy delivery infrastructure for the energy starved North East. Then the North East could have supported Ukraine and maintained sufficient inventory for their own needs.
At least North East states have enough solar panels to make up the energy shortfall through winter, right?
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“The Biden administration is warning refiners that it may take “emergency measures” to address fuel exports as stockpiles of gasoline and diesel fuel remain near historically low levels in the Northeast. “
Gasoline won’t help with home heating. Heating oil and diesel fuel are somewhat similar and can sometimes be substituted but they are priced differently. If one is in short supply the other could very well be as well.
It’s not surprising that the entire western world is seeing energy shortages. Our professional politicians are so ignorant of the real world that they can’t possibly make good decisions. Its why the liberal left is losing the working class and the minorities. I don’t see that changing any time soon.
Quote:”At least North East states have enough solar panels
Enough for what, only any good for virtue signalling in winter in that part of the world.
Surely Shirley declares:”Enough of this fripperry and flouting!”
Because, back in Ye Olde Englande: aka: Blighty
BBC Headline:”Solar panel sales boom as energy bills soar
Curiouser and curiser – where are all the solar panels coming from….
and I do trust they’re not manufactured by slaves inside coal-powered fabs & factories and then chugged around the globe in tubs pushed along by Bunker Fuel
Oh no no no, Greta might pick up and go to school if that happened.
(Poor gurl, I do hope she doesn’t, schools are now all full of PC BS & Wrong)
Not to be too pedantic, but the low stocks of diesel and gasoline don’t have anything to do with higher LNG exports. Not that it makes the Biden maladministration any less of a train wreck.
Biden is duller than a flat rock.
Yet another example that this administration has absolutely no understanding of how the world works or what to do to solve problems. To paraphrase the Geico insurance commercials, this was “so simple, even a caveman could do it” … evidently the administration isn’t even at that level.
Paraphrasing, but remember Obama said about Slo Joe, “Don’t underestimate his ability to mess things up.” The one time Obama got something right.
Miracle of miracles, we still have one coal-powered plant here in NH called Merrimack Station. Oh, but it is only fired up when absolutely necessary because “carbon emissions”. I have this dream that the powers that be decide “hey, maybe we should crank that baby up, and keep her running 24/7 because energy crisis”.
Then I wake up and laugh and laugh.
Elections are coming this fall and Zombi Biden’s party is in hot water. They need votes bad so they have to keep the gas prices from rising any more. They are even stealing from the entire country to pay of student loads to buy votes. It’s sad that more than half the people in my country’s brains are white washed by MSM propaganda and can’s see through the BS.
Boy do I wish my whole G.D. Government died of Covid right now. We’d all be better off it they were all dead.
This collection of thoughts mixes two somewhat independent issues, (1) crude and refined petroleum and (2) gas as LNG.
U.S. Crude and refined domestic supplies and exports are just returning to pre-pandemic levels, but domestic production to supply the northeast may not be able to increase enough to meet demand. Over a 1/2 million barrels per day of refining production has been shuttered or idled and not replaced in the last 5 years. In that time period, the number of refineries has dropped from 141 operable refineries to just 125 operating plants. Those latter figures can be misleading, because the industry has been closing old, inefficient or poorly located plants for 40 years (about 300 in 1982) and more-than-replacing those with capacity expansion of existing plants (now only 125) for a net gain in throughput. As for fuel supply in the Northeast in particular, a 330,000 barrel per day Philadelphia plant dating back to the 1870s was permanently closed after a major fire and explosion in 2019 (see photo) and another 60,000 bpd was permanently closed in New Jersey, both of which would surely impact the Northeast market. The question is, in non-emergency times, does a president of the United States have the authority to force companies by executive order to shut down international contracts and divert products to domestic markets at reduced prices? Even if legal, diverting product delivery is not so simple as turning a valve.
As for LNG, that comes from natural gas production, the industry is being increasingly pressured by government, the financial system and environmentalists to curtail investment in exploration and production. Gas and LNG prices are as a result also increasing domestically due to these growing pressures as well as due to Bidenflation and Biden’s promised increased LNG sales to Europe.
We just had a two and a half year experiment on the subject of Presidential emergency powers, what constitutes and emergency (anything they say), and what can be done (anything they want). I don’t think that bodes well for the future.
Imma almost certain that Biden recently sold off part of the US’s strategic petroleum reserve to China.
But somehow Imma to suppose his warning about selling off resources should carry some weight?
Imma don’t believe him … Imma don’t trust him … Imma wants to see him thrown from office
I like Imma’s thinking!
“Freeze in the dark” is a wonderful educational tool. Highly recommended. Cure you of all Green energy bunc.
Is it too late to build a natural gas pipeline from Pennsylvania to New England?
Way too late. Need to start with the Environmental Impact Statement, then the permits, then the useless law suits, then actually start digging …
Kinder Morgan tried that and failed with the The Northeast Energy Direct project. They pulled the plug somewhere in western Mass. Not enough customers, plus stiff opposition from enviros and NIMBYs. Could it be revived? Who knows?
I assume you meant that in jest and forgot the “/sarc” tag.
See: Mountain Valley Pipeline
Not to worry.
The government “experts” who got us into this mess.
Will make it worse.
related story from local maine newspaper
https://www.bangordailynews.com/2022/08/28/business/northeast-fuel-inventories/
Too bad we can’t delay the midterms until, say, February when more people will see and feel the results of “Going Green”.
The forecasting and planning window of the average American politician extends only as far as the next election.
Besides all the solar panels, won’t there be enough on- and offshore wind farms to cover the rest of the shortfalls?
Short answer – No, not by a long shot. For a much longer discussion there are dozens and dozens of posts on this site that discuss intermittency and nameplate vs real outputs for wind over time.
Just remember Biden’s electoral promise to the little girl who was frightened by the fear mongering lies driving Climate Change anxieties.
“Listen to what I am saying, no more fossil fuel, period” he said.
He went on to say, I am shutting it down,
Well, as winter looms ever larger in our northern hemisphere, someone should ask Biden a simple question.
Is his urge for control of refineries and distribution of fossil fuels, just another step along his promised road to shutting down fossil fuel?
The more recent article refers to gasoline and diesel inventories. The earlier one refers to liquified natural gas. Are the two articles comparing the same thing?
just one more global fustercluck caused BY ussa
sigh
serves the eu right for being such fools
Just looking at the image of President Biden used here and everywhere, how could anyone expect confidence. (history not withstanding)
It’s amazing the problems caused by stupid.