Global ambitions to tackle climate change are being under discussion by rising concerns about energy security. This is according to a new report by RBC. This is why oil and natural gas are going to be used for quite a while.

The Russian invasion of Ukraine has sent energy prices soaring. In effect, there are supply concerns for many commodities such as oil, natural gas and coal. Today, many countries grapple with energy security and affordability issues. On the other hand, there is less emphasis on climate change.

The report say countries like Canada now have to figure out how to produce more oil and gas. In the short term, the country is all the while trying to meet climate goals.

“Oil and gas will likely remain critical and contentious energy sources for longer than some think,” the report notes.

In the last few months, there has been a renewed push by countries like Canada and the United States for more oil and natural gas production. At the same time, some countries in Europe are investing in liquefied natural gas terminals to import more natural gas and also looking at coal and oil-fired electricity to reduce reliance on Russian gas.

Global demand for oil keeps rising and is expected to increase for several more years, according to the International Energy Agency.

The RBC report highlights how many governments around the world are also offering subsidies to offset high gasoline and power prices, including “usual climate leaders” such as Germany, California, and British Columbia.

OKLAHOMA CITY – The price for gasoline is up nationwide as American consumers feel the squeeze from global sanctions against Russia. Basically, oil and gas production is affected.

Last month, Oklahoma Gov. Kevin Stitt wrote a letter to President Joe Biden days after Russia invaded Ukraine, urging the administration to embrace domestic oil and gas production and halt the importation of Russian energy products. The first-term Republican demanded that Biden relies on energy-producing states like Oklahoma to step up domestic production, a call echoed by other state leaders like Sen. Jim Inhofe.

“Every administration since 1973, Republican and Democrat, prioritized American energy independence – until yours,” Stitt wrote. “The recent events in Ukraine are yet another example of why we should be selling energy. Mainly to our friends and avoid buying it from our enemies.”

The U.S. is not a major buyer of Russian oil, nor does it import any gas from the country. Still, in early March, the U.S. banned the import of Russian oil, liquefied natural gas and coal, citing the nation’s “strong domestic energy infrastructure” as a reason why the country could take the step to reduce its dependence on Russian energy.

Click here to read the full article

Source: PBS

If you have further questions about the topic, feel free to contact us here.

Gas prices are finally dropping back to Earth.

The price of a gallon of regular gas averaged an all-time high of $4.33 in the U.S. Prices had risen a staggering 22% between February 21 and March 14. This is the largest jump ever recorded in a three-week span.

Now, the market is swinging the other way. On Monday a gallon of gas cost $4.11 on average across the entire country. Experts expect prices to keep on dropping in the days ahead.

“Gas prices have continued to move in the right direction — down — saving Americans approximately $100 million every day compared to when prices peaked about a month ago,” Patrick De Haan, head of petroleum analysis at GasBuddy.

De Haan added that “more good news is on the horizon: The national average this week will likely fall back under the critical $4 per gallon mark.”

Prices have already fallen below that threshold in 28 states. The lowest prices in the country can be found in Missouri and Oklahoma, where one gallon of regular gas costs an average of $3.67.

To help lower prices for consumers, a handful of states including Maryland and Georgia have paused their gas taxes. Some lawmakers have floated sending cash to Americans to offset high prices — like stimulus checks for gas. Last week, the Biden Administration announced that it would release up to 180 million barrels of oil from the United States’ strategic reserve in order to bring down prices.

Click here to read the full article 

Source: Money.com

If you have further questions about the topic of gas prices dropping, feel free to contact us here.

Triple-digit oil prices in the U.S. continued for the second month in a row. This is leading to increased operations and land deals in the nation’s most active oilfields in southeast New Mexico and West Texas. So what’s the current strategy in place to lower gas prices?

The Permian Basin saw rising fossil fuel activity throughout 2022 amid increased demand as COVID-19 subsided.

The invasion of Ukraine created further supply strains as it led to international condemnation of Russian leader Vladimir Putin and the removal of his country – the world’s second-highest oil producer – from the global market.

That supply disruption sent gas prices at the pump to $4 or more throughout New Mexico and the U.S. in the weeks since.

Some of the world’s largest oil and gas companies recently announced plans to increase their output from the Permian. This is with Chevron being the latest in announcing via an April 1 news release that it would increase its production in the region by 10 percent, amounting to about 1 million barrels a day by 2025.

That would be about a fifth of the about 5 million barrels a day produced in the Permian in 2021. Besides , this is per data from the U.S. Energy Information Administration.

Click here to read the full article 

Source: Carlsbad Current-Argus

If you have further questions about the topic lower gas prices, feel free to contact us here.

The number of active oil wells in Colorado has nearly doubled in the last year. Is it a sign that high prices are bringing the industry back to life? What’s next with the Colorado oil production?

Production in Colorado had fallen 11 percent in 2021, continuing a slide that began as the COVID-19 pandemic dramatically reduced demand. New regulations made drilling more costly and investors started requiring more caution from producers.

Companies in Colorado pumped 152 million barrels of oil last year. This is according to the latest data from the Colorado Oil and Gas Conservation Commission. That’s the lowest production since 2017, and more than 20 percent off record numbers in 2019.

But this year, the war in Ukraine has disrupted energy markets and demand is rising as the pandemic eases, sending prices over $100 a barrel in recent weeks, well beyond what’s needed to profitably drill wells in Colorado. The number of drill rigs opening new wells in Colorado jumped from eight in March 2021 to 14 at the end of this month, according to Baker Hughes. That indicates more oil production is on the way.

Click here to read the full article

Source: CPR News

If you have further questions about the topic related to Colorado oil production, feel free to contact us here.