Month: August 2020

Thanks Laura

Ahead of Hurricane Laura’s landfall, Gulf of Mexico Operators were forced to evacuate nearly 300 platforms and shut-in more than 84% of oil production and more than half of their natural gas production. In addition, after one of the strongest hurricanes in years made landfall near the heart of the U.S. refining industry, around 3 million barrels a day of U.S. refining capacity was closed or reduced. These facilities are built to withstand such events but a temporary shutdown is about how 2020 is going. So, thanks Laura.

Let the Good Times Roll! – Why Renewable Energy is a Major Source for Blackouts in California

California’s aggressive climate policies are the leading issue that led to millions of customers experiencing rolling blackouts in mid-August. The state was unable to maintain sufficient reliable power due to an over-reliance on a renewable grid incapable of providing enough electricity for demand at peak hours after the sun went down. Clearly California, much like the rest of the United States, is not ready to maintain its current goal of 33% renewable electricity by the end of 2020, let alone a total shift to renewable energy sources in the near future.

EUREKA!

In a relatively quiet week in the industry, a family owned oil and gas company made a major discovery in West Texas. While the 74.2 Million Barrel discovery would not seem like a big deal to some of the major oil and gas companies in the area, the exploration venture more resembles that of a development project for a small company that can hopefully bring back their workers lost during the downturn. It is the kind of bright news the world needs in times where there seems to be nothing but negativity all around.

Pipeline Protests: A Decry of Fossil Fuels, not a Voice for the Environment

Pipelines transporting crude oil, natural gas, and refined products have been a controversial topic for lawmakers, environmental groups, and energy producers throughout the last decade. Since pipelines are the cleanest and safest method of transporting hydrocarbons, the logic behind these protests remains lost on many individuals. But, what the general public must understand is that many protesters are not necessarily trying to shut down pipelines, they are trying to eliminate the use of fossil fuels and force an immediate shift to renewable energy.

Easing the Glut

After months of pain and suffering, an end seems to be in sight. After three straight weeks of U.S. crude inventory draws, an end to the supply problem seems to be inevitable. The demand picture remains shrouded with uncertainty, even as the number of new coronavirus cases in the United States is now falling, as experts predict a full recovery will not occur until 2022. Regardless, optimism has taken over and crude prices have continued their climb and rise to five-month highs.