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

• Big Oil on the degrowth bandwagon

• OPEC Eyes Expansion

• Upcoming Oil and Gas Events

• Tweet of the Day

Big Oil Calls for Demand Reduction

Big Oil majors are calling on governments to take steps to reduce energy demand instead of targeting oil supply.

Cutting demand would be a more meaningful way of reducing emissions, they’ve argued.

Big Oil on the degrowth bandwagon

The calls, made this week at a meeting with OPEC in Austria, may seem incompatible with the industry’s goals.

Yet they would also paint the supermajors as responsible businesses.

If you think about it, it does make more sense to reduce demand before reducing supply.

But how does one reduce demand?

The opposite—which is what governments in the West have been urging—would create shortages, plain and simple.

Shell’s CEO called it "dangerous and irresponsible"

BP’s CEO said, "We must invest in the energy system of today as unpopular as it sounds... If we don't, we will have a mismatch of supply and demand."

Guess what happened?

Shell’s CEO was slammed for making “irresponsible” remarks by a UN climate change official.

I wonder when Big Oil will realize it can’t win with these people.

You can only deny reality until it hits you in the face

Everyone involved in the transition has been saying we need to stop pumping oil and gas.

No one has said what will happen with the world if we did stop pumping oil and gas.

Well, except for “climate denialists” like Roger Pielke here.

But oil demand is running at record highs, and even the IEA admits it.

So, how exactly do they think the urge to stop oil and gas production squares with the demand trend?

They don’t, that’s how.

So it seems Big Oil will continue pumping oil and gas and maybe trying to speak some sense to politicians.

And politicians will continue talking nonsense as we all watch demand grow and grow.

Basically, it’s business as usual but with extra frustration.

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OPEC Eyes Expansion

OPEC is looking for new members and will be happy to see oil producers from Asia and South America join the cartel.

The group currently produces about 40% of the world’s oil.

It also accounts for 60% of global oil exports.

Big Cartel Oil about to get bigger?

OPEC currently has 13 members. Most of these are in the Middle East and Africa.

But secretary-general Haithamal-Ghais says he’s looking at Azerbaijan, Ecuador (a former member), Brunei, and Mexico as future members.

There were also reports OPEC was courting Guyana, but Guyana wasn’t interested.

Mexico and Brazil have also politely declined invitations to join OPEC previously.

It seems OPEC really wants to grow, but there are few takers.

What’s with the growth ambitions?

OPEC has so far failed to expand in any meaningful way.

Yet is coordinating price policies with several other countries in the OPEC+ alliance.

Russia is the largest producer among them, but Azerbaijan and Kazakhstan are also sizeable oil exporters.

So far, OPEC+ has worked just fine for its purpose.

Why, then, would OPEC’s secretary-general look for more members?

Well, because the more production you account for as a group, the greater your clout.

Maybe if OPEC goes up to 50% of global supply and 70% of export, traders will take it seriously when it cuts production.

Ironically, it’s precisely the production cut part that’s stopping Guyana, Brazil, and Mexico from joining.

Upcoming Oil & Gas Events

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

• July 20: Bakken Classic Fishing Derby

Around the Global Patch

🇨🇦 Decline in Canadian energy exports: May's 7.3% decrease.
🇨🇳 China and America locked in a battle over a mysterious mineral.
🇸🇦 Saudi Arabia raises August oil prices to Asia after supply cuts.

Tweet of the Day

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