News Pulse

Rare Petro is committed to keeping the pulse on the latest news surrounding our industries. Whether it’s the monthly basin breakdown or the weekly periodical series, Rare Petro is sure to keep you informed.

Energy Sector Tax Credits

Energy Sector Tax Credits

President Joe Biden’s recently unveiled a tax plan to accompany his $2 trillion infrastructure proposal that takes direct aim at fossil fuel subsidies in favor of clean energy incentives. The “Made in America Tax Plan” is set to raise the corporate income tax rate from 21% to 28% and replace fossil fuel subsidies with clean energy incentives. The plan outlines several clean energy tax credits, including a 10-year extension of wind, solar, and battery tax credits, but does not specify which fossil fuel subsidies could face the chopping block.

Is Another Price War On The Horizon?

Is Another Price War On The Horizon?

A price war may be looming in the global oil market as rising output from OPEC+ and the Middle East boosts the competitiveness of the region’s shipments, potentially forcing other suppliers to discount their barrels. The warning signs can be seen in the widening of a key price spread that’s used by traders to determine the affordability of cargoes from the Middle East against Brent-linked barrels. Right now, the gap is close to the widest it has been in more than 16 months, and that doesn’t bode well for oil that’s priced against Brent.

Post-COVID Global Oil Demand Update – Vaccinations and the Summer Travel Bug

Post-COVID Global Oil Demand Update – Vaccinations and the Summer Travel Bug

Hopes were high as the world entered a new year that 2021 was going to be the year that things went back to “normal,” but the first few months made those hopes seem like a far fetched idea. Improved economic activity and global mobility in the first quarter of 2021 was stalled by slow vaccine rollouts around the world and a stubborn third wave of lockdowns imposed throughout Europe. Luckily the second quarter has seen an explosion in global crude oil demand as vaccination campaigns have picked up the pace and travelers worldwide seem to have caught the summer travel bug. While the timeline to pre-crisis demand has been delayed, people around the world will still need plastics for their daily activities, roads and vehicles to travel from place to place, goods and services created and shipped with hydrocarbons, and other consumables derived from crude oil which will continue to boost demand through 2021.

The Battle Rages On

The Battle Rages On

The oil and gas industry has been at odds with Joe Biden and his Administration since his first policies hampered their development goals. Things got bad this past week when it was revealed Biden’s $2 trillion infrastructure and tax plan proposes to eliminate tax preferences and implicit subsidies for fossil fuels that would boost government receipts by more than $35 billion over the next decade. But things got worse when the financial times reported that methane emissions from the sector have already surpassed pre-pandemic levels while production itself is still roughly 2 million bpd shy of those pre-crisis levels. While this is certainly not the direction the fossil fuel industry wants to be headed, the battle goes on.

The Folly of Corn

The Folly of Corn

With fuel demand returning as individuals emerge from lockdowns to enjoy the fresh spring air and a new national focus on the climate crisis, the folly of corn-based ethanol gasoline must be addressed. Historically, scientists viewed biofuels as inherently carbon-neutral but new studies performed over the past decade suggest that once all the emissions associated with growing feedstock crops and manufacturing biofuel are factored in, biofuels actually increase carbon dioxide emissions rather than reduce them. While renewable fuels are important to America’s clean energy future, growing corn for fuel instead of food never has been an environmental or economic solution.

Saudi To The Rescue

Saudi To The Rescue

Following hectic trade movements on Thursday, oil prices settled with gains of more than 3% for the day after OPEC+ signaled with its latest oil production decision that it believes in the global oil demand recovery through the summer. According to sources, OPEC+ is considering increasing output by 350,000 barrels per day in May, 350,000 bpd in June and 400,000 bpd in July while Saudi Arabia is preparing to support extending cuts into June and is also ready to prolong its own voluntary cuts to boost prices amid a new wave of coronavirus lockdowns.

Bringing The Law

Bringing The Law

Like many of their fossil fuel producing counterparts, the Bakken states of North and South Dakota are fighting new federal regulations from the Biden Administration threatening fossil fuel development. As President Biden attempts to lead the country towards a carbon-neutral future, leaders in the Dakota’s are rallying support in their attempt to lead the states towards sustained revenue and prosperity through the development of the area’s natural fossil fuel resources. State leaders have realized that halting new oil and gas leasing on federal lands as well as the revoked permit for the Keystone XL Pipeline project will slash investment, cut jobs, drop wages, and pummel tax revenues throughout the region. As their fight continues, they are working to evaluate the impact of the climate related executive orders and enact legislation for the state to decide how their state’s resources should be developed.

Arterial Traffic Jam

Arterial Traffic Jam

On Tuesday, a gargantuan 400-metre cargo ship named the Ever Given ran aground in the Suez Canal, blocking maritime traffic from entering or exiting the crucial shipping highway due to strong winds from a sandstorm that restricted visibility. The canal is the carotid artery of the global shipping system with around 12% of worldwide shipping traffic flowing through its narrow waters, including roughly 5% of globally traded crude oil. With 237 vessels waiting in the area on Friday – 107 at Port Suez in the Red Sea, 41 at the canal’s midway point in the Great Bitter Lake, and 89 at Port Said in the Mediterranean – the blockage is costing an estimated $9.6 Billion in goods each day.

Energy Producers Ramp Up ESG Initiatives

Energy Producers Ramp Up ESG Initiatives

As the world continues to battle climate change, energy companies have begun to release environmental, social, and corporate governance (ESG) policies and implement carbon capture, utilization, and storage (CCUS) techniques in order to lower their carbon footprint. While renewables, nuclear, and energy efficiency will all be critical tools in the armory for lasting change, the fact remains: fossil fuels are not going anywhere soon. This means the world must find effective new ways to manage emissions in order to balance increased regulatory oversight with the globe’s growing energy demand. Major oil and gas companies have taken various routes to accomplish this goal, and time will tell which of the initiatives provide best results.

Marcellus Shale News Pulse March 2021

Marcellus Shale News Pulse March 2021

The Marcellus Shale| March 2021 Field Overview The Marcellus Shale is the largest gas play onshore in the US. Located in the Northeast, it supplies the high demand markets along the East Coast. Most of the basin’s gas is produced through unconventional methods, while...

DJ/Niobrara News Pulse March 2021

DJ/Niobrara News Pulse March 2021

The DJ/Niobrara Basin| March 2021 Field Overview Located mainly in the Northeast of Colorado, the Denver-Julesburg Basin consists of five main oil-producing formations: Niobrara sections A-C, Codell, and Greenhorn. These five plays produce over 90% of Colorado's...

Eagle Ford News Pulse March 2021

Eagle Ford News Pulse March 2021

Eagle Ford Basin | March 2021 Field Overview A heavy shale play, the Eagle Ford basin is located east of the Permian, stretching from Dallas to San Antonio. Primarily a gas field with smaller oil plays, it boasts proven reserves of 3.37 billion bbl of oil and 2.5 TCF...

Categories

Energy Sector Tax Credits

Energy Sector Tax Credits

President Joe Biden’s recently unveiled a tax plan to accompany his $2 trillion infrastructure proposal that takes direct aim at fossil fuel subsidies in favor of clean energy incentives. The “Made in America Tax Plan” is set to raise the corporate income tax rate from 21% to 28% and replace fossil fuel subsidies with clean energy incentives. The plan outlines several clean energy tax credits, including a 10-year extension of wind, solar, and battery tax credits, but does not specify which fossil fuel subsidies could face the chopping block.

read more
Is Another Price War On The Horizon?

Is Another Price War On The Horizon?

A price war may be looming in the global oil market as rising output from OPEC+ and the Middle East boosts the competitiveness of the region’s shipments, potentially forcing other suppliers to discount their barrels. The warning signs can be seen in the widening of a key price spread that’s used by traders to determine the affordability of cargoes from the Middle East against Brent-linked barrels. Right now, the gap is close to the widest it has been in more than 16 months, and that doesn’t bode well for oil that’s priced against Brent.

read more
Post-COVID Global Oil Demand Update – Vaccinations and the Summer Travel Bug

Post-COVID Global Oil Demand Update – Vaccinations and the Summer Travel Bug

Hopes were high as the world entered a new year that 2021 was going to be the year that things went back to “normal,” but the first few months made those hopes seem like a far fetched idea. Improved economic activity and global mobility in the first quarter of 2021 was stalled by slow vaccine rollouts around the world and a stubborn third wave of lockdowns imposed throughout Europe. Luckily the second quarter has seen an explosion in global crude oil demand as vaccination campaigns have picked up the pace and travelers worldwide seem to have caught the summer travel bug. While the timeline to pre-crisis demand has been delayed, people around the world will still need plastics for their daily activities, roads and vehicles to travel from place to place, goods and services created and shipped with hydrocarbons, and other consumables derived from crude oil which will continue to boost demand through 2021.

read more
The Battle Rages On

The Battle Rages On

The oil and gas industry has been at odds with Joe Biden and his Administration since his first policies hampered their development goals. Things got bad this past week when it was revealed Biden’s $2 trillion infrastructure and tax plan proposes to eliminate tax preferences and implicit subsidies for fossil fuels that would boost government receipts by more than $35 billion over the next decade. But things got worse when the financial times reported that methane emissions from the sector have already surpassed pre-pandemic levels while production itself is still roughly 2 million bpd shy of those pre-crisis levels. While this is certainly not the direction the fossil fuel industry wants to be headed, the battle goes on.

read more
The Folly of Corn

The Folly of Corn

With fuel demand returning as individuals emerge from lockdowns to enjoy the fresh spring air and a new national focus on the climate crisis, the folly of corn-based ethanol gasoline must be addressed. Historically, scientists viewed biofuels as inherently carbon-neutral but new studies performed over the past decade suggest that once all the emissions associated with growing feedstock crops and manufacturing biofuel are factored in, biofuels actually increase carbon dioxide emissions rather than reduce them. While renewable fuels are important to America’s clean energy future, growing corn for fuel instead of food never has been an environmental or economic solution.

read more
Saudi To The Rescue

Saudi To The Rescue

Following hectic trade movements on Thursday, oil prices settled with gains of more than 3% for the day after OPEC+ signaled with its latest oil production decision that it believes in the global oil demand recovery through the summer. According to sources, OPEC+ is considering increasing output by 350,000 barrels per day in May, 350,000 bpd in June and 400,000 bpd in July while Saudi Arabia is preparing to support extending cuts into June and is also ready to prolong its own voluntary cuts to boost prices amid a new wave of coronavirus lockdowns.

read more
Bringing The Law

Bringing The Law

Like many of their fossil fuel producing counterparts, the Bakken states of North and South Dakota are fighting new federal regulations from the Biden Administration threatening fossil fuel development. As President Biden attempts to lead the country towards a carbon-neutral future, leaders in the Dakota’s are rallying support in their attempt to lead the states towards sustained revenue and prosperity through the development of the area’s natural fossil fuel resources. State leaders have realized that halting new oil and gas leasing on federal lands as well as the revoked permit for the Keystone XL Pipeline project will slash investment, cut jobs, drop wages, and pummel tax revenues throughout the region. As their fight continues, they are working to evaluate the impact of the climate related executive orders and enact legislation for the state to decide how their state’s resources should be developed.

read more
Arterial Traffic Jam

Arterial Traffic Jam

On Tuesday, a gargantuan 400-metre cargo ship named the Ever Given ran aground in the Suez Canal, blocking maritime traffic from entering or exiting the crucial shipping highway due to strong winds from a sandstorm that restricted visibility. The canal is the carotid artery of the global shipping system with around 12% of worldwide shipping traffic flowing through its narrow waters, including roughly 5% of globally traded crude oil. With 237 vessels waiting in the area on Friday – 107 at Port Suez in the Red Sea, 41 at the canal’s midway point in the Great Bitter Lake, and 89 at Port Said in the Mediterranean – the blockage is costing an estimated $9.6 Billion in goods each day.

read more
Energy Producers Ramp Up ESG Initiatives

Energy Producers Ramp Up ESG Initiatives

As the world continues to battle climate change, energy companies have begun to release environmental, social, and corporate governance (ESG) policies and implement carbon capture, utilization, and storage (CCUS) techniques in order to lower their carbon footprint. While renewables, nuclear, and energy efficiency will all be critical tools in the armory for lasting change, the fact remains: fossil fuels are not going anywhere soon. This means the world must find effective new ways to manage emissions in order to balance increased regulatory oversight with the globe’s growing energy demand. Major oil and gas companies have taken various routes to accomplish this goal, and time will tell which of the initiatives provide best results.

read more
IEA dashes hopes of a new ‘super-cycle’ as premature

IEA dashes hopes of a new ‘super-cycle’ as premature

A report released this past week by the Climate Action Tracker suggests the United States needs to reduce its national emissions by at least 57-63% below 2005 levels by 2030 and provide support to other countries in order to be consistent with the Paris Agreement 1.5°C limit. The report further suggests that President Biden’s actions in the transportation and building sector need to be as stringent as his policies for decarbonizing the U.S. power sector by 2035 if the emissions targets are to be reached. Luckily, the report spells good news for Summit Carbon Solutions $2 billion pipeline project currently in development that will carry carbon dioxide captured from ethanol refineries scattered across the Midwest to a site in North Dakota where it will be pumped thousands of feet underground.

read more

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