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

• Nightmare on Green Street: World’s Oil Reserves On the Rise

• Alaska: From Oil Heavyweight To Carbon Sink Hopeful

• Upcoming Oil and Gas Events

• Tweet of the Day

Nightmare on Green Street: World’s Oil Reserves On the Rise

While Just Stop Oil activists chant, “Keep it in the ground,” OPEC went and ruined their mood for the rest of the year.

In its latest Annual Statistical Bulletin, the cartel reported global oil reserves had increased last year to 1.564 trillion barrels.

Peak oil gets postponed again

You know how every few years, someone decides it’s time to scare people with peak oil?

And then someone else who actually knows how oil and gas works comes along and explains about technical recoverability and stuff like that.

That’s how global proven oil reserves rose by 17 billion barrels in 2022.

Of course, the activists will brush this off and double down on the “Keep it in the ground.”

But the rest of us who are aware of the importance of energy supply should celebrate the news.

It means that there’s still plenty of oil to go around, even at a consumption rate of 36.5 billion barrels annually.

Talk about a habit hard to kick

Every year, the world consumes 36.5 billion—that’s nine zeroes—barrels of crude oil.

The net-zero drive expects this to fall considerably over the next twenty years or so.

But the sheer scale of oil consumption clearly shows this would be impossible.

Without some really severe forced measures, that is.

Meanwhile, there are more than 1.5 trillion barrels around the world.

We don’t know how many of these make economic sense in the current environment, but they are there. Proven.

So, the question is what we prefer: have the energy now or give it up for… some Paris Agreement target that even climate experts say is unattainable.

Doesn’t sound like a very difficult choice, does it?

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Alaska: From Oil Heavyweight To Carbon Sink Hopeful

The once biggest oil-producing state in the U.S. has become the worst place for business in the country.

However, it hopes to reverse its fortunes by betting on carbon offsets as oil output declines.

Changing fortunes

Before the shale boom, Alaska was America’s biggest oil-producing location.

Lower-cost, faster-return shale changed that.

Natural depletion helped, too.

Eventually, Alaska’s oil production last year was roughly equal to that of Oklahoma.

Its economy was the bottom performer among the states shrinking by 2.4%.

Obviously, something needs to be done, and it extends beyond the Willow project.

Per Alaska’s governor, this something should be carbon offsets.

The state’s natural resources commissioner put things bluntly.

“Across America, and in the rest of the world, you see a number of companies that have set very aggressive net zero (emission) targets for themselves,” John Boyle told CNBC recently.

“Ultimately, in order for a lot of these companies to be able to hit the targets that they’ve set for themselves, they’re going to need to look for other options for offsets.”

An ironic tale of opportunities

Nobody can blame Alaska for being late for the decarbonization train.

It was very much on time to catch it.

How?

By selling carbon offsets, which are the modern-day version of Medieval indulgences.

You want to pollute? Here, buy this carbon offset and pollute away.

The moral and ethical aspects of the carbon offset industry may be murky but the lucrativeness is not.

So Alaska, with its vast untouched territories—yes, despite the oil industry—is a perfect candidate for a big carbon offset trader.

It might also help it clear up its oily reputation if it wants to.

Upcoming Oil & Gas Events

• July 19-20: 2023 Independent Petroleum Association of New Mexico Annual Meeting

• July 20: Bakken Classic Fishing Derby

• July 28: SOOGA Annual Industry Boat Ride, Valley Gem, Marietta, OH

Around the Global Patch

🇩🇪 Germany's offshore wind power triumph.
🌏 Asia's jet fuel rebound soars.
🇷🇺 Russia reduces oil export forecast.

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