Editors: Tom Whipple, Steve Andrews
Quote of the Week
“What is clear, is that the glib confidence the government has that shale production can easily be ramped higher is misplaced. A combination of natural limitations, logistics, inflation, and human impacts is taking its toll, and the effects will become more evident as the year goes on.”
David Messler for Oilprice.com
Graphic of the Week
Headlines for the week of May 2 – 8
The Global Energy SituationOil ends at near 3-week high as market supply worries resume
OPEC+ set to stick to modest oil output rises amid price rally
Russia
New EU sanctions to hit Russian oil, target more banks
Putin puts West on notice: Moscow can terminate exports and deals
Oil traders are already treating Russian crude like it’s banned
EU import ban could knock another 10% off Russia’s oil output
Europe
EU tweaks Russia oil sanctions plan in bid to win over reluctant states – sources
Germany to help eastern EU states without ports access LNG
EU rejects Russia’s ruble-for-gas scheme, warns of supply shock
Germany will have first LNG import capacity by year’s end
LNG ship arrivals to Europe rises over 20% on month in April
North America
Natural gas hits 13-year high price in the U.S. on growing supply jitters as demand soars
U.S. natural gas production growth wanes as need arises
U.S. fuel exports are draining domestic diesel and gasoline supplies
U.S. gasoline futures settle at $3.76, a record high ahead of summer (excl. taxes)
U.S. crude stocks build unexpectedly; fuels drawdown amid export surge –
The U.S. shale patch is facing a plethora of problems, esp. lack of financing
Chevron to ramp up production by 15% at biggest USA oil field
PG&E launches comprehensive study on hydrogen’s feasibility within gas pipelines
High electric bills get ready for another energy price spike: high electric bills
Electricity Shortage Warnings Grow Across U.S.
Shale producers face $42 billion in hedging losses
China
The U.S. relieved as China appears to heed warnings on Russia
Chinese tech giants quietly retreat from doing business with Russia
China’s oil giant says it’s not seeking discounted Russian fuel
Africa
Nigeria and Angola responsible for almost half of OPEC+ oil supply gap
Nigeria Is First Nation to Ground Flights as Fuel Costs Soar
Middle East
NOPEC: America’s Last Stand Against OPEC’s Drift To The Eas
The Global Economy
Decline in world conventional oil output and peak oil
Tight oil market myth becoming a reality
Agriculture
Facing a wheat crisis, countries race to remake an entire market on the fly
North Korea mobilizes office workers to fight drought amid food shortages
Extreme heatwaves seen putting pressure on India’s wheat output, export potential
Russia
Russia turns on spending taps to blunt economic impact of war and sanctions
Disconnecting Russia’s banks: Sberbank faces SWIFT removal
Russia can’t shake default risk after last-minute bond payment
U.S.
Record 4.5mn US workers quit jobs in March as the labor market tightens
U.S. productivity drops most since 1947, driving up labor costs
US stocks suffer the longest streak of weekly losses in over a decade
California says it needs more power to keep the lights on
China
China’s economy appears to be stalling, threatening to drag down global growth
Xi Jinping’s renewed commitment to zero-Covid rattles markets in China
India
Coronavirus pandemic far deadlier than the official count,
India asks coal plants to run flat out to ease the power crisis
India wants Russia to discount its oil to less than $70 a barrel
A 115-degree heatwave is making India’s power crisis worse
Global Warming
Deep under the Antarctic ice, scientists discover vast reservoir of ancient water
U.S.
Colorado River reservoirs are so low, the government is delaying releases
U.S. takes unprecedented steps to replenish Colorado River’s Lake Powel
Africa