Government and Taxes: Energy 150, Funny California oil importation policy

Thursday, July 29, 2021

Energy 150, Funny California oil importation policy

This is a funny situation, showing the irrationality of double talk by climate alarmism, hahaha. See these reports:

(1) California oil regulators deny new fracking permits
By ASSOCIATED PRESS | PUBLISHED: July 12, 2021 at 5:33 a.m. | UPDATED: July 12, 2021 at 5:36 a.m.
https://www.mercurynews.com/2021/07/12/california-oil-regulators-deny-new-fracking-permits/

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

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

Aera Energy, a joint venture Shell and ExxonMobil, called the permit denials “disappointing though not surprising.”

“This is the latest decision attacking the oil and gas industry that is based solely on politics rather than sound data or science,” Aera spokeswoman Cindy Pollard said Friday, adding that the company was evaluating its legal options.

(2) CAUSE AND EFFECT: FOREIGN OIL IMPORTS CONTINUE TO GROW AS CALIFORNIA DENIES NEW FRACKING PERMITS
BY William Allison Jul. 14, 2021
https://www.energyindepth.org/cause-and-effect-foreign-oil-imports-continue-to-grow-as-california-denies-new-fracking-permits/

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

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

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

(3) California Importing More Foreign Oil… Because Climate Change!
Guest “Too fracking funny!” by David Middleton July 29, 2021
https://wattsupwiththat.com/2021/07/28/california-importing-more-foreign-oil-because-climate-change/

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

Meanwhile, high US oil production under Trump has its own momentum, but potential increase is restricted by the Biden administration. See these reports:

(1) U.S. crude oil exports reached record levels in 2020 and remain high in 2021
JULY 20, 2021
https://www.eia.gov/todayinenergy/detail.php?id=48776

Despite volatility in global oil markets, U.S. crude oil exports reached a record high in 2020. So far this year (as of July 9, 2021), U.S. crude oil exports have averaged 3.00 million barrels per day (b/d). The most recent four-week rolling average of U.S. crude oil exports reached 3.51 million b/d, according to our Weekly Petroleum Status Report.

(2) The Insult of Favoring OPEC's Leaders Over America's Energy Workers
By Scott A. Angelle July 26, 2021
https://www.realclearenergy.org/articles/2021/07/26/the_insult_of_favoring_opecs_leaders_over_americas_energy_workers_787212.html

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

(3) Senators Accuse Interior Dept Of Deliberately Delaying Restart Of Oil Leasing
By Charles Kennedy - Jul 28, 2021, 9:30 AM CDT
https://oilprice.com/Latest-Energy-News/World-News/Senators-Accuse-Interior-Dept-Of-Deliberately-Delaying-Restart-Of-Oil-Leasing.html

Republican Senators have accused Interior Secretary Deb Haaland of defying a ruling by a federal judge to restart oil leases, issued in response to a temporary suspension—a pause, as it was termed—of these leases by President Biden earlier this year.

(4) Russia Was World’s Second-Largest Oil Producer In H1 2021
By Irina Slav - Jul 28, 2021, 10:30 AM CDT
https://oilprice.com/Latest-Energy-News/World-News/Russia-Was-Worlds-Second-Largest-Oil-Producer-In-H1-2021.html

The country produced an average of 10.18 million barrels daily between January and May, TASS reported, citing Rosstat data. This compared with 11.18 million bpd for the United States. Saudi Arabia remained third, producing consistently below 9 million barrels daily over March, April, and May.

Russia was one of the big winners from the latest OPEC+ deal adjustments, which allowed it to increase its oil production quite substantially without returning to pre-deal levels, however. Those were over 11 million bpd, last produced in late 2018, but since then, Russian oil companies have been restricted by the OPEC+ deal.

This is US weekly crude oil production.