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From A Refiner: It's An Emergency
Hess calls for global SRP release of 120 million bbls this month and another 120 million bbls next month, calling this an emergency. Link here. I'm sure the CEO is looking at a number of data points but his biggest concerns:
- global economy coming out of Covid-19 lock downs; global economy to surge;
- US driving season begins in two months;
- air travel will skyrocket this summer;
- Ukraine-Russia conflict will disrupt historic flow of crude oil and refined products;
- knows that OPEC spare capacity is a myth
It's very interesting. A single severe hurricane can create a temporary -- generally two weeks -- emergency. What we're likely to see this spring is something much worse than the worse hurricane on record and the situation won't end in two weeks.
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This Includes Refined Products
This is really amazing. Look at that plunge in 2020 and in the big scheme of things, US shale and refiners did not seem to cut back that much. If that's accurate, we're in for a debacle starting .. oh, about week 15. We're in Week 10, right now.
Meanwhile, Cushing storage. Somewhat irrelevant these days, but WTI is still priced off Cushing data. Link here.
I think we all knew this day would come. Ideally it would have been 20 years from now when mass transit, alt fuels and some tech was right around the corner and sure the biggest supply issue is russia but the global market seems more inefficient than ideal especially when regional gov't mandates restriction free trade. Am sure it is temporary and a good wake up for all sides to remove rose colored glasses and study solutions near and long term.
ReplyDeleteThat's interesting you would say that. I've finally figured out the "disconnect": President Biden going to Saudi Arabia and Venezuela to increase production of oil, while doing what he can to destroy the oil industry in the US.
Deletehttps://themilliondollarway.blogspot.com/2022/03/bidens-gordion-knot-solved-march-7-2022.html.
Deleteanxiously awaiting that answer. am sure twisted thinking...thanks
Deletesame thread as your opening tweet:
ReplyDeleteJavier Blas
@JavierBlas
·
10h
UPDATED: European natural gas prices zoom to a fresh all-time high, rising >75% today. Benchmark TTF is trading above €345 per MWh.
** That's equal to more than $100 per million Btu, or more than to $600 a barrel of oil equivalent ** (I promise you there are not typos there).
Thank you. I honestly don't think anyone -- from John Kerry, Joe Biden at the top -- to Joe Six-Pack at Target -- at the bottom -- is paying attention. This simply blows me away. I cannot get my hands / brain around this.
Deletehow do you heat your home if it's gonna run you $2000 a month? run your factory if the gas you use costs that much?
DeleteThat's interesting. I had the same thought. We lived in Europe (Germany, UK, and Turkey) for thirteen continuous years. We lived off-base in Germany so we had first-hand experience with very expensive heating oil. The Germans were incredibly amazing how they could get by with very little heat. It was quite amazing.
DeleteWe lived on-base while in England and Turkey so did not see energy use by the local population.
The Germans could get very serious about saving energy / money at home, but industry had no choice to spend whatever it took to keep the factories running.
As noted, I have no idea why Musk would build a battery factory in Germany and why Intel just announced their next chip factory would be build in Germany.