OPEC keeps oil targets the same amid uncertainty on Russian sanctions

PO1 William "Chip" Nagel
..."Facing those uncertainties for the global oil market, OPEC oil ministers led by Saudi Arabia could leave production levels unchanged or cut output again to keep prices from declining further. Low prices mean less revenue for governments of producing nations.

Maintaining OPEC production targets makes sense because "right now I think they see the market as adequately priced, adequately supplied, and there's no reason to rock the boat," said Gary Peach, oil markets analyst with Energy Intelligence.

The G-7 price cap could prompt Russia to retaliate and take oil off the market. But the cap of $60 a barrel is near the current price of Russian oil, meaning Moscow could continue to sell while rejecting the cap in principle. Oil use also declines in the winter, in part because fewer people are driving.

"If Russia ends up taking off more oil than about a million barrels per day, then the world becomes short on oil, and there would need to be an offset somewhere, whether that's from OPEC or not," said Jacques Rousseau, managing director at Clearview Energy Partners. "That's going to be the key factor — is to figure out how much Russian oil is really leaving the market."

PO1 William "Chip" Nagel good day Brother William, always informational and of the most interesting. Thanks for sharing, have a blessed day!

1.) Oil Dependence and U.S. Foreign Policy

“The United States’ dependence on oil has long influenced its foreign policy. U.S. oil development spans three major periods: the rise of oil as a commodity, beginning in 1850; the post–World War II age of geopolitical competition; and the post–Cold War era of deregulation and diversification. Most recently, Russia’s war with Ukraine has aggravated geopolitical tensions and revived the debate about U.S. energy independence.”

SOURCE : https://www.cfr.org/timeline/oil-dependence-and-us-foreign-policy



2.) 5 Reasons Why the United States Can’t Drill Its Way to Energy Independence

ARTICLE
MAR 10, 2022

The solution to high energy prices is a swift and urgent transition to clean energy—not further reliance on dirty fuels controlled by dictators and profiteering oil corporations.

“Despite the oil and gas industry’s vigorous and incorrect public relations campaigns aimed at convincing people that their opportunism to drill more is a legitimate policy solution, the United States is already the world’s largest producer of oil and gas.

Domestic oil production is at 90 percent of America’s all-time, pre-pandemic high, and the United States is producing more than twice as many barrels of oil per day as it produced in 2008.

But energy independence won’t be found at the bottom of a well. We can never be energy independent while we rely on a fuel source that is both controlled by the global market and highly susceptible to international conflict and manipulation by autocratic regimes.”

* The oil and gas industry already has plenty of land and ocean ready to be used

* 9000 Approved permits to drill that are unused by the U.S. oil and gas industry

* Industry CEOs are profiting hand over fist while average families suffer

* The oil industry is sitting on 10 years’ worth of unused leases

* New oil projects won’t bring down prices or increase supply in the short term

** 23 million
Acres of lands and waters leased to industry but not being used for oil production

** 4+ The number of years, on average, it takes to begin producing oil and gas after leasing

** $75 billion Record profits posted by Shell, Chevron, BP, and ExxonMobil in 2021

SOURCE : https://www.americanprogress.org/article/5-reasons-why-the-united-states-cant-drill-its-way-to-energy-independence/



3.) Reducing America’s Dependence on Foreign Oil As a Strategy to Increase Economic Growth and Reduce Economic Vulnerability

AUGUST 29, 2013 AT 5:51 PM ET BY JASON FURMAN, GENE SPERLING

“Summary: President Obama's focus on increasing America’s energy independence is not just a critical national security strategy, it is also part of an economic plan to create jobs, expand growth and cut the trade deficit.”

SOURCE : https://obamawhitehouse.archives.gov/blog/2013/08/29/reducing-america-s-dependence-foreign-oil-strategy-increase-economic-growth-and-redu