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

• Tanker Firm Busted for Russian Price Cap Breach

• Canada Doesn’t Know What Works on Emissions

• Tweet of the Day

Tanker Firm Busted for Russian Price Cap Breach

A tanker company that ships Russian oil abroad has been stripped of its protection and indemnity insurance coverage for breaching the $60 price cap on Russian crude.

The cover was provided by the American Club, which confirmed the cancellation to Bloomberg.

Those sanctions have some teeth

The idea of the price cap was to keep Russian oil flowing overseas while limiting state revenues from it to curb Moscow’s military ambitions in Ukraine.

The enforcement tool of the cap is the insurance industry, and it is an unwilling tool.

Insurers began complaining about how difficult enforcement would be before the negotiations were even wrapped up.

But they got no say in the matter.

When G7 tells you “Go enforce” – you go and enforce.

That tanker owner’s insurance cancellation is perhaps the first public example of this enforcement action.

There is always a way around sanctions

Unfortunately for enforcers, there are ways around the sanctions and the price cap.

And Russia is utilizing them all.

There’s the ship-to-ship transfer option, made popular by Iran.

There’s the Russian insurance coverage because, shockingly, Russia has an insurance industry, too.

As do China and India, Russia’s biggest clients.

And there’s the so-called shadow fleet that popped up out of nowhere to move the oil that Western tanker owners – and their Western insurers – shunned.

The insurance cancellation of Gatik Ship Management may impress some tanker owners and make them more careful.

Then again, it won’t impress all of them.

It might just make them shun Western insurance instead.

Today's Edition is Brought to You By Energy Builders Podcast

Are you ready to dive into the exciting world of oil and gas? Look no further than Energy Builders, your go-to podcast for all things black gold.

Get an inside look at the entrepreneurs making waves in the industry and learn from the drillers and deal-makers who know how to make a profit in the field. Don't miss out on this action-packed listening experience – tune in to Energy Builders now and discover the secrets of success in the oil and gas business.

Listen on Apple Podcasts, Spotify, and more.

Canada Doesn’t Know What Works on Emissions

Canada is an ambitious country when it comes to emission mitigation.

And that’s put mildly.

The same Canada appears to have no idea which of its own policies for emission reduction are working.

Get audited, get exposed

Canada is not tracking the impact of its federal climate policies on emissions, an audit by the Commissioner of the Environment and Sustainable Development has revealed.

And the commissioner is not happy about it.

"When I look at all of the...reports that have flagged these grave concerns over the years, it's clear that we have repeatedly been ringing the alarm bells. Now, these bells are almost deafening," Commissioner Jerry DeMarco said.

He may be unhappy, but he sure has a flair for drama.

Only the situation is more on the comedy side.

Translated, DeMarco’s saying that Canada’s federal government is making emission-cutting pledges but has no idea how to fulfill those pledges. 

Why? Because it doesn’t know what works and what doesn’t work.

And the reason it doesn’t know is that it’s not tracking progress on existing policies.

How’s that for a new reality show on Comedy Central?

You think it’s just Canada worth making fun of? Think again.

While Canada was getting exposed for its failure to track the success of its climate policies, New Jersey canceled its EV incentive program.

Because it ran out of money.

The policymakers were apparently unable to predict that when offered a steep rebate on an EV purchase, people will rush to buy them.

Seriously, how hard is it to predict that?

And if Canada wants to know what progress it is making on emissions, it should ask its oil industry.

The industry knows very well what it’s doing for emissions and how it’s working.

Because it’s been given no choice but to excel at that by the same inept bureaucrats that can’t track their own policies’ results.

Around the Global Patch

🇸🇦 Putin and Saudi Crown Prince clash over OPEC+ oil output deal.
🇸🇩 Sudan's ticking time bomb: civil war imminent as tensions escalate.
🇹🇷 Turkish election bombshell: Erdogan's bold move to win votes.

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 👇👇

s