President Joe Biden’s $737 billion Inflation Reduction Act (IRA) aims to address a cornucopia of American ills. Arguably its most important aspect is how it jump-starts the country’s fight against climate change. Have you heard about the strongest climate bill that’s coming?

It attacks the country’s carbon emissions from both ends — consumption, and production — with one primary tool: money. A lot of money: $369 billion, to be exact, much of that devoted to helping people. Companies and government agencies buy more things that create less carbon pollution. That has many activists hailing the bill as a historic step forward in climate action. However, not everyone is sold on the strategy.

“All of these environmental organizations are singing its praise. ‘The strongest climate bill ever passed!.’” says Sharon Wilson, a senior field advocate at Earthworks in Texas. “It is also the sh****st climate bill ever passed. Because it is the only climate bill that’s ever passed.”

There is only one climate punishment in the IRA: a new Methane Emissions Reduction Program (MERP) that levies a methane tax on oil and gas producers who exceed strict limits on how much they can emit the potent greenhouse gas. But the program may have the ironic consequence of increasing oil and gas production — and methane emissions — in New Mexico.

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Source: Source NM

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After a counter-seasonal drop in July, global oil demand rebounded in August by 2 million barrels per day (BPD) to reach 99 percent of pre-Covid levels, data from the Joint Organizations Data Initiative (JODI) showed on Monday.

Oil demand growth in August was driven by higher consumption in the United States, China, Japan, Saudi Arabia, and Indonesia, the Riyadh-based International Energy Forum (IEF) said, citing the latest JODI data.

Of note in August was also a 500,000 BPD increase in global crude oil output, with Saudi Arabia’s production rising above 11 million BPD – only the third time the Kingdom has reported output of over 11 million BPD, according to the JODI database which compiles self-reported figures from countries.

In the United States, crude oil production rose by 290,000 bpd in August and is up by 813,000 bpd from year-ago levels, the data showed. Product demand rose by 1.46 million bpd in August, and U.S. crude oil closing stocks dropped by 22.7 million barrels to their second-lowest level recorded in JODI.

The August rebound in global demand follows an estimated 1.1 million bpd drop in July, which was an unusual slump for this time of the year.

Demand for August may have rebounded, but the oil market and oil analysts say that the ongoing economic slowdown and looming recessions could limit demand growth in the near term.

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Source: Oil Price

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Oil and gas operations in the Permian Basin – shared by southeast New Mexico and West Texas – boomed in recent years with wells sprouting up around the state line between the two states.

Wells even crossed state lines, being drilled horizontally from origin points in either New Mexico or Texas and stretching up to 10 miles across the border.

They are ensuring such wells follow the regulations of both states. New Mexico’s Oil Conservation Division (OCD) and the Texas Railroad Commission (RRC) signed an agreement. They will regulate interstate oil and gas facilities in tandem.

A memorandum of understanding (MOA) was signed by the two regulators last month. This is to require they both get adequate reporting and compliance from oil and gas operators that cross the state’s border.

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Source: Carlsbad Current-Argus

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The American Petroleum Institute (API) reported a surprise draw this week for crude oil of 1.770 million barrels. On the other hand, analysts predicted oil prices rise of 333,000 barrels. U.S. crude inventories have grown by roughly 21 million barrels so far this year, according to API data, while the U.S. Strategic Petroleum Reserves fell by nearly eight times that figure.

The draw comes even as the Department of Energy released 6.2 million barrels from the Strategic Petroleum Reserves in the week ending September 30 that left the SPR with 416.4 million barrels.

WTI rose on Tuesday prior to the data release. At 2:28 p.m. ET, WTI was trading up $3.15 (+3.77%) on the day at $86.78 per barrel—up nearly $9 per barrel on the week (after a $7 per barrel slide in the week prior). Brent crude was trading up $3.13 (+3.52%) on the day at $91.99—a more than $6 increase on the week that more than erased the previous week’s $5 decrease. Crude oil prices continued to rise throughout the afternoon, with a flurry of OPEC+ chatter detailing just how much crude oil production the group could decide to cut for December. The most recent report figure suggests the group could be contemplating a cut up to 2 million bpd.

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Source: Oil Price

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Oil prices jump rose on Wednesday for a second day, rebounding from recent losses as the U.S. dollar eased off recent gains and U.S. fuel inventory figures showed larger-than-expected drawdowns and a rebound in consumer demand.

Brent crude futures settled up $3.05, or 3.5%, at $89.32 per barrel. U.S. West Texas Intermediate (WTI) crude futures ended up $3.65, or 4.7%, to $82.15 a barrel.

Analysts said oil prices, down more than 22% during the third quarter, may be bottoming out as Chinese demand shows signs of rebounding and the U.S. sales of strategic reserves come to a close.

“I do think we are bottoming, but it is going to continue to be exceptionally volatile and continue to be keeping easy speculative money away from this market,” said Rebecca Babin, senior energy trader at CIBC Private Wealth US.

U.S. inventory figures showed consumer demand rebounded, though refining product supplied remained 3% lower over the last four weeks than the year-ago period.

U.S. crude stocks fell by 215,000 barrels in the most recent week, while gasoline inventories declined by 2.4 million barrels and distillate inventories by 2.9 million barrels, as refining activity declined following several outages.

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Source: Reuters

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