Good morning, here's what the Oilman has for you today:

• Activists Want U.S. To Stop LNG Production

• Canada Stabs Oil Industry with Emission Cap

• Upcoming Oil and Gas Events

• Tweet of the Day

Activists Want U.S. To Stop LNG Production

A group of 250 activist organizations has called on the Biden admin to kill LNG.

You’d think it’s a joke, but it isn’t.

The group, led by Friends of the Earth, is demanding a halt to new LNG permits.

Also, a suspension of financial support for the industry.

Activism gone haywire

The attack on gas has been ongoing for some time.

Those gas stove bans are part of it.

But now activists are taking aim at a major U.S. export commodity.

LNG demand is soaring, thanks to the EU, and U.S. producers are responding.

The country has just become the largest exporter of LNG in the world.

Unless, of course, the federal government sides with the activists.

It’s not exactly unheard of.

And there are tens of billions of dollars on the line.

LNG plants don’t come cheap.

Between activism and geopolitics

The Biden admin approved five new LNG plants last year.

Europe was gasping for gas, and Washington obliged.

Now, activists are demanding that it puts emissions over geopolitics.

Not to mention the survival of energy companies investing in new LNG capacity.

The dilemma for Biden ahead of the 2024 elections is green voters or European allies.

Talk about creating a problem where there was none.

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Canada Stabs Oil Industry with Emission Cap

The Trudeau government has long threatened to clip the wings of the country’s oil industry.

Now, it finally did it by drafting a cap-and-trade system for the industry’s emissions.

The emission cap-wearing activists are probably celebrating.

No cause for celebration

The plan is simple enough.

Beginning in 2030, the oil industry will have a ceiling for emissions.

The ceiling will be set at between 35% and 38% below 2019 emission levels.

From then onward, that ceiling will be lowered gradually until net zero is achieved in 2050.

If you visualize a moving ceiling that would eventually squash those on the floor below it, you’re not wrong.

That’s the idea: squeezing oil producers as much as possible in the name of emissions.

Alberta’s Premier did not mince her words about it.

“This announced de facto production cap on Alberta’s oil and gas sector amounts to an intentional attack by the federal government on the economy of Alberta and the financial well-being of millions of Albertans and Canadians.”

If you don’t go quietly, we’ll make you go

The cap indeed represents a forced cap on oil production.

There is simply no way to continue producing oil economically if you have to observe an emissions cap of almost 40% below 2019 levels.

Canadian oil producers are making a big deal of carbon capture, but let’s be honest.

It will simply add to their production cost bill and make their product more expensive.

The emissions cap is Trudeau’s way to squeeze the oil industry out of the economy.

It's probably to make way for all the solar and wind developers who can’t wait to cover Canada with panels and turbines.

It totally has the weather for both.

Upcoming Oil & Gas Events

• December 15: 23rd Annual KOGA Christmas Party, Bodley Bullock House, Lexington, KY

• January 16: TIPRO/IPAA Leaders in Industry Luncheon, Petroleum Club of Houston, Houston, TX

• January 17: IPAA Private Capital Conference, The Post Oak at Uptown Houston, Houston, TX

• January 17-18: GO-WV Winter Meeting, Marriott Town Center Hotel, Charleston, WV

• January 18: Kansas Oil and Gas Day Legislative Reception, Kansas State Capital, Topeka, KS

• January 23-25: POWERGEN International, Ernest N. Morial Convention Center, New Orleans

Around the Global Patch

🇨🇦 Canadian rig count update: surges to 190 active rigs.
🇨🇳 China debuts fourth-gen nuclear breakthrough.
🇺🇦 Ukraine power crisis: 500 settlements dark.

Tweet of the Day

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