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- 🛢️ Big Oil Moves Out
🛢️ Big Oil Moves Out
Independents Fill the Vacuum

Good morning; here's what the Oilman has for you today:
Big Oil Moves Out, Independents Fill the Vacuum
G7 Admits We Still Need Gas
Tweet of the Day

Big Oil Moves Out, Independents Fill the Vacuum
The supermajors have been pulling out of oil and gas projects considered high-risk because of emission costs.
Smaller, privately owned companies have been quietly moving in.
Move over, Big Oil!
The huge public companies that we know and love as Big Oil have been getting heat from their shareholders about things like costs and emissions.
Especially emissions because, of course, they’re the most important thing (Please note the Oilman’s sarcasm here).
So they have been dumping assets they—or their shareholders—see as too risky to keep while focusing on their best projects.
That has opened up opportunities for smaller, privately-held companies that don’t have shareholders with green opinions of their own.
Private-firm ownership of oil and gas projects from Africa to South America and Asia is on a steady rise.
And the trend’s going to continue.
Where there’s demand, supply will follow
So, investors have pressured Big Oil into cutting its emissions by quitting high-emission projects.
But that hasn’t cut global emissions from oil and gas.
Why? Because the world needs oil and gas, and if Big Oil won’t produce it, Small Oil will.
You’d think it shouldn’t be so hard to grasp this, wouldn’t you?
Yet, activist investors continue pressing Big Oil to cut more and more…
And give more Small Oil firms the chance to make big bucks on more oil and gas production.
It’s almost a win-win.
Definitely a win for consumers.
Not so much for emission activists, but you can’t make everyone happy.

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G7 Admits We Still Need Gas
The G7 nations served a nasty blow to climate activists this last weekend, admitting gas investments were necessary.
The goal of the investments: phasing-out Russian supply of the same thing.
You can only dance around facts so much
What the G7 leaders are saying is that their economies need LNG to replace Russian pipeline gas for Europe.
In other, simpler words, G7 nations still need gas as much as before despite their energy transition plans.
How totally shocking and unexpected.
Also funny because they hedged by calling these investments “temporary.”
The fact is there is no adequate replacement for natural gas as fuel for electricity generation.
Everyone knows it, including G7 leaders.
It just took a while to admit it when wind and solar somehow failed to produce energy 24/7 all year round.
They are coming after consumption
The world’s wealthiest economies still need a lot of gas. That’s settled.
And that’s where the good news ends.
Because now they’re coming after our consumption of energy.
Cutting off Russian gas from the European mix creates a gap that can’t easily be filled.
It would be hard to fill even if U.S. producers drill to the max, which they are not doing.
So, it’s time to cut demand.
That’s alright, though, because it’s in line with Paris Agreement targets.
Can you feel those emissions just draining away as we all start using less energy?

Around the Global Patch
🇦🇺 Trans-Pacific clean energy partnership: US-Australia accord.
🇨🇳 The Middle East: key player in US-China conflict.
🇷🇺 Russia's gas delivery surge: 1.44 Bcf/day via Ukraine.

Tweet of the Day
Wide open spaces #oilfield
— Andy (@andy_oilman)
9:05 PM • May 22, 2023

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