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

• Big Oil Wants Higher Prices… for Wind

• Canada Cuts Emissions While Boosting Oil Gas Production

• Upcoming Oil and Gas Events

• Tweet of the Day

Big Oil Wants Higher Prices… for Wind

Two Big Oil majors, BP and Equinor, have asked a New York regulator for higher prices for three joint offshore wind projects.

Because it has become too expensive to make a profit.

It was supposed to be cheap, but…

BP and Equinor won the rights to build three wind farms offshore New York a few years ago.

They won because they offered the lowest price for the electricity to be generated there.

But things have changed.

Costs have changed, that is, and not for the better.

So now BP and Equinor are asking New York to commit to paying 54% higher prices for the electricity from the three farms.

Otherwise, they probably won’t get built.

The two cited "rampant inflation, global supply chain disruptions and soaring interest rates associated with the COVID-19 pandemic, the Russia-Ukraine conflict and the increasing pace of the energy transition.”

Same tune, different singers

What the two Big Oil majors are doing is exactly the same that Orsted, the wind turbine major, did earlier with the UK.

And what Swedish utility and wind developer Vattenfall also did in the UK.

They both asked for higher prices. Otherwise, projects would be scrapped.

Vattenfall even went and scrapped one, saying it was no longer viable because of higher costs.

Orsted, meanwhile, saw its share take a dive after it said it could suffer impairments of $2.3 billion from its U.S. business.

Because costs.

It's funny how everyone thought wind would be different from everything else.

It's funny how they thought prices would never go up.

Who’s laughing now?

Today’s Edition Is Brought To You By ROX Exploration

Invest in the future of energy with ROX Exploration – a family-owned, independent company dedicated to exploring, developing, and producing oil and natural gas assets. ROX's team of experts drills and operates properties throughout Oklahoma.

If you're an accredited investor looking to diversify into direct oil & gas working interest offerings, then connect with ROX Exploration today.

Canada Cuts Emissions While Boosting Oil Gas Production

Canadian oil and gas producers have done something outrageous.

They have proven that you could increase oil and gas production while cutting emissions.

Doing the unthinkable

The oil and gas industry has been turned into a scapegoat for emissions.

Yet Canadian producers have somehow managed to increase their gas output by 35% in the decade to 2021.

And reduce emissions of CO2 and methane by 22% and 38%, respectively.

Oil production outside the oil sands fell by 9% in that decade.

Yet oil sands production grew… as did emissions, until last year.

Last year, oil sands producers booked higher output but unchanged emission levels from 2021.

In fact, emissions from the oil sands industry have declined by 23% since 2009.

Maybe we don’t need to “keep it in the ground”, after all?

It’s a matter of survival

Canada has some of the toughest emission regulations, and these are only getting tougher.

So, the industry has been proactive in improving its chances of long-term survival.

It has proven that it is possible to have more oil and gas and lower emissions.

Which will no doubt earn it the summary dismissal of the green crowd.

But if they keep it up, and they have every reason to, Canadian oil and gas producers will prosper.

Because “clean” oil and gas may well become very attractive for the climate-conscious energy buyer.

Maybe what the industry is doing now will finally help Canada become an international player in oil and gas.

Upcoming Oil & Gas Events

• September 7: Petroleum Alliance of Oklahoma Dove Hunt, Devol, OK

• September 11-14: American School of Gas Measurement Technology, Marriott Houston Westchase, Houston, TX

• September 14: KOGA Fall Meeting, CountryMark Pavillion, MT Vernon, IN

• September 14: PIOGA’s Birds & BBQ Clay shoot, West Penn Sportsmen’s Club, Murrysville, PA

Around the Global Patch

🇦🇫 Water concerns in Afghanistan and Central Asia.
🇬🇧 New UK sec of state for energy security and net zero.
🌏 Central Asia, a potential climate flashpoint?

Tweet of the Day

Thanks for reading today's Oil Patch!

Stay oily, my friend.

Two quick requests before you go:

• If you found this useful, forward this email to a friend to spread the word. 👇

• Take 1 second to answer the poll below, and please tell us what you think 👇👇