19 thoughts on “Unfair!

  1. Profit motive says:

    In just the past three months: ExxonMobil pulled in nearly $20 billion in profit. Chevron took in more than $11 billion, Shell $9.5 billion, BP over eight billion. And, today, the world’s largest oil company, Saudi Aramco, reported making $42 billion this quarter. (PBS November 1, 2022)

  2. Wheeler-dealer says:

    “Why Is Diesel Being Exported During A Shortage?” (Forbes)
    “The short and simple answer is that companies are doing it because they can, and because they are making more money doing this than selling it in the U.S. Consumers may complain, but ultimately these companies are trying to make as much money as they can, and that means selling products to the highest bidders.”
    https://www.forbes.com/sites/rrapier/2022/11/04/why-is-diesel-being-exported-during-a-shortage/?sh=7ff2bca41eae

    “U.S. energy executives told Jennifer Granholm that shuttered crude oil refineries won’t restart, Valero’s Chief Executive Joe Gorder said on Tuesday.
    The comments were made to the U.S. Energy Secretary at a recent White House meeting with energy executives, Reuters reported on Tuesday.
    Shuttered refineries unlikely to start back up are the latest nail in the U.S. refinery coffin. In June, Chevron CEO Mike Wirth posited that there would never be another new refinery built in the United States.” https://oilprice.com/Latest-Energy-News/World-News/Energy-Execs-Tell-Granholm-Shuttered-US-Oil-Refineries-Wont-Restart.html

    Members of the G7 have agreed to set a fixed price for Russian oil exports as a cap rather than a price set as a discount to a benchmark, Reuters has reported, citing an unnamed source familiar with the discussions.
    The price itself has yet to be determined, the source said, adding that, according to the G7, “This will increase market stability and simplify compliance to minimize the burden on market participants.” https://oilprice.com/Latest-Energy-News/World-News/The-G7-Will-Set-A-Fixed-Price-On-Russian-Oil.html

  3. John D. says:

    (Bloomberg) –Treasury Secretary Janet Yellen said it’s “very likely” that European sanctions will force Russia to offer some of its crude oil exports at a price set by the US and its allies, if Moscow wishes to prevent a shut-in of some supplies.
    “They’re going to be looking for buyers, and we think they’re going to have a hard time selling all of it,” Yellen said Saturday in an interview with Bloomberg News. “Our estimation is there would be some shut-in on Dec. 5 unless they’re willing to accept a price at or below the cap for buyers around the world.”
    On Dec. 5 the European Union will impose a ban on seaborne imports of Russian crude. On the same day, the EU and UK will prohibit their companies from providing shipping, trade finance and insurance for tankers carrying Russian oil unless the shipments are priced below a cap. The cap level – which has not yet been agreed – will be set by a coalition that includes Group of Seven governments and the EU.
    Several large oil importers, including China and India, have said they will continue to purchase Russian oil, and with fewer buyers on the market, they’re expected to see bigger discounts. Together with Moscow, they should be able to arrange the shipping and financial services necessary to deliver substantial amounts of Russian oil. Russia is currently exporting about 3.6 million barrels a day by sea.
    But if that shipping and insurance capacity is exhausted, those same buyers will have to secure deals at the capped price in order to access European services and arrange for delivery of additional supplies.
    Russian officials including President Vladimir Putin have said Moscow would refuse to sell oil to any countries participating in the price cap. They haven’t said whether they would refuse any sales at that price to buyers outside the cap coalition who have no other way of securing delivery. https://gcaptain.com/russia-faces-oil-shut-in-or-price-cap-amid-sanctions/

  4. Invisible Hand says:

    “Oil Prices Continue To Slide After US Midterm Elections” (Bloomberg) https://gcaptain.com/oil-prices-continue-to-slide-after-us-midterm-elections/
    “Oil dropped the most in a week since April as the full weight of languishing Chinese demand and more economic tightening radically shifted the market’s sentiment.
    West Texas Intermediate fell 1.9% to settle just over $80 a barrel. US futures fell 10% this week, the most since Biden ordered a historic discharge of crude from the Strategic Reserves in April. Swelling Covid cases in China and aggressive monetary tightening by central banks have combined to erase all the gains earned last month when OPEC and its partners slashed production by 2 million barrels a day.
    Pullbacks were evident along most of the oil-trading complex. On Friday, the US prompt-spread flipped into contango, a structure that signals oversupply, for the first time since last year. Meanwhile, a deteriorating market for physical barrels has also weighed on prices as demand for winter-delivery cargoes has weakened.
    The collapsing gauges of market health sent bulls running for the exits. Hedge funds slashed bullish bets for Brent crude the most in four months. Money managers’ net-long positions on the international benchmark fell around 30,000 contracts, according to data from the U.S. Commodity Futures Trading Commission released Friday.”

  5. Will C. says:

    The oil markets have been seesawing in a spectacular fashion this week. Still trying to overcome the pain of so many financials quitting the game last week, a WSJ report that argued OPEC+ was looking to increase its production target by 500,000 b/d come January 2023 has sent prices dovetailing, only to be halted by Saud Arabia, the UAE and Kuwait all denying the rumors and insisting that if anything, OPEC+ would be cutting further.

  6. Mike says:

    (11/28/22): US oil prices are at their lowest level in nearly a year. Gas is down 6% in a month https://www.cnn.com/2022/11/28/energy/us-oil-prices-china-protests/index.html
    US oil prices have fallen to their lowest level since December 2021 on fears that protests in China against Covid-19 lockdowns will dent demand.
    West Texas Intermediate crude oil futures, the North American benchmark, slid 3.2% on Monday to trade close to $74 a barrel, a level last reached in late December. Futures for Brent crude, the global benchmark, also dropped 3.3% to trade close to $81 a barrel. That’s its lowest level since January.
    Global oil prices have fallen about 35% since June as strict coronavirus restrictions in China have kept demand weak, and as some of the world’s major economies have signaled they are heading toward a recession.

  7. Update says:

    (Bloomberg) –Chevron Corp. sold a cargo of Venezuelan oil to another US refiner in the first such transaction since sanctions against the Latin American nation were eased less than two months ago.
    Phillips 66 bought half-a-million barrels of a type of sludgy oil known as Hamaca from Chevron, according to a person with knowledge of the situation who asked not to be identified. The crude will be processed at the refiner’s Sweeny, Texas, complex about 65 miles (105 kilometers) south of Houston, the person said.
    Chevron is expanding Venezuelan crude sales beyond its own refining network just weeks after US sanctions relief allowed the oil giant to return key managers to the country and resume drilling. The transactions appear to advance President Joe Biden’s dual objectives of re-engagement with the Nicolas Maduro regime and increasing crude supplies available to American fuel makers. https://gcaptain.com/chevron-expands-venezuelan-crude-sales-to-other-oil-refiners/

  8. Crude says:

    Exxon Pours Billions Into Joint Venture With China National Offshore Oil Corporation https://gcaptain.com/exxon-pours-billions-into-joint-venture-with-china-national-offshore-oil-corporation/
    The consortium aims to pump 1.2 million barrels of oil and gas per day by 2027 from all the developments, according to Hess, nearly triple last year’s peak output.
    Guyana has emerged as the world’s fastest-growing oil region since Exxon made its first offshore discovery in 2015. The consortium has found about 11 billion barrels of oil and gas. Guyana estimates its fields could hold 25 billion barrels and aims to produce 1.64 million bpd by the end of the decade.

    “Researchers have exposed galling new details about how ExxonMobil, one of the world’s biggest oil and gas companies, predicted the disastrous effects of climate change driven by the consumption of fossil fuels more than 40 years ago, even as the company’s leadership publicly denied its own internal data, reports a new study.” https://www.vice.com/en/article/y3p7wk/exxonmobil-accurately-predicted-todays-global-warming-decades-ago-study-finds

  9. Drill baby says:

    “Oil Prices Set To Climb On Rumors That The Fed Will Stop Hiking Interest Rates” https://oilprice.com/Energy/Energy-General/Oil-Prices-Set-To-Climb-On-Rumors-That-The-Fed-Will-Stop-Hiking-Interest-Rates.html
    💰Traders believe the Federal Reserve could finally stop hiking interest rates this March as indicators suggest inflation is finally coming under control.
    💰Oil prices climbed on Friday on positive economic data coming out of the U.S., and expectations are the hike this week will be lower than previous ones.
    💰Other bullish factors for oil prices include rising Chinese demand and growing geopolitical risks in the Middle East following reports of drone attacks in Iran.

  10. Heads up says:

    New York and much of the East Coast are at risk of a gasoline shortage this summer as the European Union’s ban of Russian fuel threatens to choke off the backup supplies the US relies on during peak driving season.
    Seasonal gasoline stockpiles already are at the lowest in about a decade, and heavy winter maintenance at refineries may further trim inventories. The EU ban on Russian oil-product imports starting Feb. 5 will strain the region’s feedstock supplies, limiting how much gasoline the bloc can make for itself or the US East Coast, which increasingly relies on transatlantic imports in the summer.
    The price spike that would accompany such supply shocks threatens to burden consumers still stinging from last summer’s $5-a-gallon gas. Resurgent pump prices also would pose challenges for President Joe Biden, who has made a priority of capping fuel costs and uses prices as a cudgel against political rivals.
    To prevent New York and the rest of the East Coast from running out of fuel, suppliers will need to get creative. Although the US is a net exporter of gasoline, most of the excess is in the Gulf Coast, and transportation to the East Coast is constrained by insufficient pipeline capacity and the expense of waterborne shipping.
    Suppliers could move fuel from the Gulf Coast into storage and blending facilities in the Caribbean, such as in the Bahamas, and then export from there to the East Coast, according to Energy Aspects, a London-based consultancy. The US also may draw more supply from Asia and the Middle East, but the lengthy journey and high shipping costs mean that option isn’t likely to provide quick or significant relief at the pump. https://gcaptain.com/new-york-gasoline-shortage-brews-amid-fallout-from-eus-russia-ban/

  11. 7 sisters says:

    OPEC does not control price of oil, says cartel chief https://www.aljazeera.com/economy/2023/1/31/opec-does-not-control-the-price-opec-president
    OPEC president talks to Al Jazeera about output cuts, price volatility, and Russia’s war in Ukraine and its effect on oil prices.
    Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, will meet virtually on February 1. The meeting comes as the price of oil has rallied towards $90 a barrel.

  12. Top Gear says:

    “Outrage as US government advances $8bn Alaska oil drilling plan
    Interior department report recommends scaled-back version of ConocoPhillips’ Willow project despite Biden campaign pledge” https://www.theguardian.com/us-news/2023/feb/01/alaska-oil-drilling-biden-conocophillips-willow-project
    “An environmental assessment released by the interior department on Wednesday recommends a scaled-back version of the project ConocoPhillips originally proposed, and would produce about 600m barrels of oil over 30 years, with a peak of 180,000 barrels of crude oil a day.”

    The oldest known use of the proverb you can’t have your cake and eat it too was in a letter from Thomas, Duke of Norfolk to Thomas Cromwell in 1538. In British English, the last word is often omitted from the proverb, as in you can’t have your cake and eat it.

  13. Patty Cake says:

    India is playing an increasingly important role in global oil markets, buying more and more cheap Russian oil and refining it into fuel for Europe and the US.
    Yet New Delhi has faced little public blowback because it’s meeting the West’s twin goals of crimping Moscow’s energy revenue while preventing an oil supply shock. And as Europe ramps us sanctions, India is only going to become more central to a global oil map that’s been redrawn by Vladimir Putin’s year-long war in Ukraine.
    “US treasury officials have two main goals: keep the market well supplied, and deprive Russia of oil revenue,” said Ben Cahill, a senior fellow with the Center for Strategic and International Studies, a Washington think tank. “They are aware that Indian and Chinese refiners can earn bigger margins by buying discounted Russian crude and exporting products at market prices. They’re fine with that.” (Bloomberg) https://www.tbsnews.net/bloomberg-special/oils-new-map-how-india-turns-russia-crude-wests-fuel-580430

  14. Euroweenie says:

    “Diesel prices fall in Europe despite ban on Russian fuel” https://www.cnn.com/2023/02/06/energy/europe-russian-diesel-ban/index.html
    “Although the EU cut off its biggest supplier, diesel futures prices in the bloc fell 1.6% on Monday, amounting to a 20% loss over the past two weeks as demand in the region has waned, and efforts by countries to stockpile ahead of the ban have started to pay off.
    The price drop will be met with relief by millions of the continent’s truckers, drivers and businesses that rely on diesel. About 96% of trucks, 91% of vans and 42% of passenger cars in the European Union run on the fuel, according to the European Automobile Manufacturers’ Association.”

  15. Drill Baby says:

    Energy giant BP has reported record annual profits as it scaled back plans to reduce the amount of oil and gas it produces by 2030.
    The company’s profits more than doubled to $27.7bn (£23bn) in 2022, as energy prices soared after Russia invaded Ukraine.
    Other energy firms have seen similar rises, with Shell reporting record earnings of nearly $40bn last week.
    It has led to calls for energy firms to pay more tax as people’s bills soar.
    BP boss Bernard Looney said the British company was “helping provide the energy the world needs” while investing the transition to green energy.
    But it came as the firm scaled back plans to cut carbon emissions by reducing its oil and gas output. https://www.bbc.com/news/business-64544110

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