Far Side: link here.
WTI: $111.80.
Active rigs: 39 or thereabouts and Lynn Helms says the rig count in the Bakken isn't going to improve all that much over the next two years.
No wells coming off confidential list today.
RBN Energy: can the Biden administration, E&Ps, and refiners see eye-to-ey on anything? Or is it even possible for the current administration to "roll back" the keystoning of America? In a word, no.
In the next few days, U.S. Energy Secretary Jennifer Granholm will hold an emergency meeting with leading energy executives to discuss steps E&Ps and refiners could take to increase crude oil production, refinery capacity and the production of gasoline, diesel and jet fuel, all with the aim of reducing prices.
The prelude to the get-together was less than ideal, though. In a June 14, 2022, letter to the top brass of four integrated oil and gas giants and three large refiners, President Biden criticized them for “historically high refinery profit margins” and for shutting down refining capacity before and then during the pandemic.
In addition to rejoinders from the companies, the American Petroleum Institute (API) and the American Fuel & Petrochemical Manufacturers (AFPM) defended their actions, discussed the complexity of refined products markets, and asserted that the Biden administration’s statements and policies have actually discouraged investment in refining and oil and gas production. Is there a middle ground here? In today’s RBN blog, we look at the high-level correspondence and discuss how at least some compromises might be possible.
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Fire Drill
Yes, the sailors are practicing "fire drills" in the video below.
An instructor or crew member yells "fire on board" and to put the fire out, the crew "capsizes" the boat, turns it on its side until the sail hits the water. Once the fire is out, the boat is "righted."
A poor outcome is "turtling" the boat which happens when the boat turns completely over.
Sophia says they "turtled" their boat only once, and successfully capsized it several times.
Most interesting: this was their first day on the water. Sophia's boat had a crew of four and no instructor on board.
I asked how they knew how to steer to get back to shore at the end of the day. I asked if Sophia was able to steer well. Her reply:
If there are no other boats on the water I can steer very well, but if there are other boats, I run into them. I'm really a horrible steerer.
The good news: her brand-new best friend, Alyssa, also an 8-year-old is an Olympic-qualified sailor. At least that's what Sophia told me. We'll sort that out later. LOL.
The energy industry involves long term investment and does not turn on a dime. JenniG rolled into office and came out with a bunch of anti-oil policies. Even if she reverses herself now, nobody trusts her. Not in the long term. So she eat those midterm losses. I hope someone grinds them in her face.
ReplyDeleteAgree completely; thank you. Gives me an idea for a stand-alone commentary sometime, perhaps later today?
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