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

• House Republicans Push Back against Anti-Oil Agenda

• Oil Refining Moves East

• Tweet of the Day

House Republicans Push Back Against Anti-Oil Agenda

With a 225 to 204 vote, the House last week passed legislation drafted by the Republican majority aimed at boosting oil and gas production in the U.S.

While it has little chance of becoming law, the Lower Energy Costs Act gives GOP bargaining power in upcoming debt ceiling negotiations in Congress.

A question of priorities

Republicans have based their legislation on “lowering energy costs for families that have been out of control and putting in sound, responsible policies that actually allow us to produce energy in America,” per House Majority Leader Steve Scalise.

Stipulations include not just oil and gas production but mining, too. The aim is to streamline the permitting process for both fossil fuels and mining projects.

The mining part should be very much in tune with the administration’s transition agenda, which bets heavily on local sourcing of metals and minerals.

It’s exactly the same thing that Biden’s Democrats have been arguing for with their transition plans – local energy is secure energy. And it gives GOP greater bargaining power.

Classic “you scratch my back, I’ll scratch yours”

Republicans are in a position to make life very difficult for their fellow Congressmen during the upcoming debt ceiling discussions.

All they need to do is tie their support for a higher ceiling to the approval of their LECA.

It’s a strong hand, and they are no doubt going to use it. House Speaker Kevin McCarthy already said as much, mentioning changes in energy policy as a condition for GOP support for the ceiling.

Yet Senate Majority Leader Chuck Schumer has indicated the LECA bill has zero chance in the upper house.

Democrats are calling it “polluters over people.”

President Biden has declared he will veto it if it reaches his desk.

It’s not looking good for the debt ceiling, for sure.

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.

Oil Refining Moves East

Tanker orders are booming this year as Asia and the Middle East come to dominate the global refining industry.

Some 38 mid-range fuel carriers have been ordered since the start of the year, and they will be hauling gasoline, jet fuel, and diesel from China, India, and Saudi Arabia to Europe and the U.S.

Shutdowns and biofuels conversions boomerang

The last three years have seen refinery closures in both the United States and Europe, with some refiners converting facilities to produce biofuels as well.

Meanwhile, China, India, Saudi Arabia, and the UAE are building new refineries and expanding existing ones in anticipation of strong oil demand. They are doing the exact opposite of what their peers in Europe and the U.S. are doing.

It’s already apparent who’s being smarter: fuel exports from Asia and the Middle East to the West are on a strong rise and likely to remain so for the foreseeable future.

Once you shut down a refinery, you can’t just reopen it five years later.

What happened to energy independence?

It was here – where did it go?

The Biden administration and the EU are tirelessly promoting a transition to renewables as the ultimate solution to the energy dependency problem. Brilliant.

Meanwhile, shifts in fuel flows around the world are evidence that fossil fuels still very much rule the energy roost. And if you can’t buy your fuels locally, you’ll buy them from half the world away.

Dependence aside, there’s good business in that. The U.S. may have been taking in more fuels from Asia, but it has been exporting more of its own fuels to Europe, too.

Europeans still have deep pockets and not a lot of options.

Around the Global Patch

🇸🇦 OPEC+ announces more oil production cuts.
🇯🇵 Japan breaks with U.S. allies and buys Russian crude above price cap.
🇬🇭 Ghana wants to double oil production.

Tweet/Meme 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 👇👇