It is high time that the U.S. forges a new energy policy based on facts and common sense, said Hydrocarbonprocessing.
Before Tuesday’s decision to halt the import of Russian oil and gas, the Biden Administration has put more sanctions on U.S. oil and gas than on Russian oil and gas. Public lands have been made off-limits for drilling.
The cancellation of the Keystone XL pipeline, and restrictions on other pipelines, have blocked the efficient U.S. distribution and export of energy. FERC approvals and EPA requirements have hampered the development of several gas export projects. Only the Russian assault on Ukraine has stopped Nord Stream 2, and that from Germany—not the U.S.
The U.S. has a significant amount of both crude oil and natural gas reserves in the form of unconventionals and conventionals. As of 2020, estimated, proven natural gas reserves in the U.S. are approximately 473.4 Tcf. Through the policies of the current administration, U.S. oil production has remained at levels roughly 2 MMbpd below pre-pandemic levels. Natural gas production has slipped, as well, due largely to a decrease in associated gas production and the restriction of new pipeline builds from the Marcellus shale basin.
Before the Russian invasion of Ukraine, Russia exported 7 MMbpd of oil and oil products, and accounted for 25% of Europe’s oil supply and 40% of its natural gas supply. The U.S. can take the place of much of the Russian supply to Europe, but the industry is being purposefully restricted for a policy based largely on energy poverty, that is, restricting the primary source of energy, oil and natural gas.
President Biden has made the claim repeatedly that his administration has not stood in the way of U.S. oil and gas production, distribution and refining. However, the actions of the Biden Administration drown out the words. It is time for the U.S. to change its energy policy not only for the sake of Americans, but for Europe as well.
As per MRC, U.S. President Joe Biden was expected to announce a ban on Russian oil and other energy imports on Tuesday in retaliation for the invasion of Ukraine. The White House said Biden was scheduled to announce actions at 10:45 a.m. (1545 GMT) on Tuesday against Russia over Ukraine, but did not specifically mention oil imports. Oil prices jumped on the news, with Benchmark Brent crude LCOc1 for May climbing by 5.4% to USD129.91 a bbl by 1345 GMT.
As per MRC, ExxonMobil said it will exit a major oil and gas project and cease investing in Russia, making it the latest western oil company to cut ties with the country following its invasion of Ukraine. The Texas-based energy supermajor said it was “discontinuing operations” at the Sakhalin-1 project in Russia’s far east, one of the largest foreign-operated oil and gasfields in the country. Exxon follows BP, Shell and Norway’s Equinor, which have said they will dump stakes in projects and sell out of Russian state-backed energy groups after Moscow was hit with a barrage of western sanctions.
mrchub.com