The threat of energy rationing continues across Europe even after European Union officials convened an emergency meeting last week to starve the looming winter energy crisis. European Union countries are increasingly dependent on US energy imports, although shale chiefs have warned that the ability to increase oil and gas supplies will be difficult.
“It’s not as if the United States can pump more. Our production is what it is,” said Will Vanloh, president of private equity group Quantum Energy Partners, one of the most prominent investors in shale oil. financial times.
“There is no bailout coming,” VanLoh has been added.
“Not on the oil side, not on the gas side.
Europe can thank the Democrats and the Biden administration for their fight against the crushing of the US energy industry that has led to massive divestitures across the sector, crippling oil production growth and refining capacityand pressure/shame on the world to withdraw any capital allocations to fossil fuels.
Ben Dale, chief executive of private equity group Kimmeridge Energy, said Wall Street shale investors would not be blessed with a big increase in production, preferring a low-production, high-profit model.
“Investors generally do not want shale companies to follow a growth model,” He said.
“Capital availability is very limited.”
US rig numbers are beginning to decline and production has steadily fallen below pre-pandemic levels…
On top of the Democrat-led obstruction of the US energy industry, EU leaders have been on a crazy mission about the ESG to decarbonize their power grids using renewable (now discovering – unreliable) energy and frantically recycling crude oil, coal and natural gas generators. before the cold season. Some European Union countries are even working to extend the life of nuclear power plants.
The problems don’t end there – in 80 days, or on December 5th, the European Union will embark on another suicidal mission to ban imports of seaborne Russian crude. Then on February 5, 2023, the ban on imports of Russian petroleum products began. These sanctions were imposed during the summer. However, pipeline imports of Russian crude oil and petroleum products will be exempted in some EU member states, such as Hungary, Slovakia and the Czech Republic.
Back in the US shale patch where Scott Sheffield, CEO of Pioneer Natural Resources, explained that the big increases in production don’t come online:
“We do not add [drilling] Rigs and I don’t see anyone else adding rigssaid Sheffield, who operates one of the largest oil producers in the United States Crude oil prices could rise above $120 a barrel This winter with diminishing supplies.
The inability of shale to rapidly increase crude oil production is not surprising, regarding Halliburton CEO Jeff Miller And the Darren Woods of Exxon Mobile Warnings during the summer that markets will remain tight for years due to lack of production growth.
A perfect storm of factors has plagued Europe: the inability of US shale oil to increase production (due to the Democrats’ war on oil), Russia’s cut in energy exports, the decarbonization of the grid, and the Russian oil embargo imposed by the European Union.
…and why did crude oil prices drop earlier this week? Well, maybe the Bloomberg report that Biden administration officials are planning Refilling the Strategic Petroleum Reserve when the price of crude oil drops by about $80 a barrel. also, SPR fee ends in OctoberThis means that the price of crude oil in the market will decrease and prices may rise. Even as demand in China slumps, cities are reopening after the Covid lockdowns, an indication that demand in Asia may soon rise.
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