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Liberty CEO on ESG & the Crushing of Human Flourishing
US IRA fuels fossil fuels and a Gulf disappointment

Good morning, this is the Oil Patch. We're the world's most interesting oil and gas news.
Here's what the Oilman has for you today:
Liberty CEO on ESG & the Crushing of Human Flourishing
US Inflation Reduction Act: Fueling the Oil Industry's Growth?
A Gulf Disappointment
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Liberty CEO on ESG & the Crushing of Human Flourishing
Chris Wright, CEO of Liberty Energy, debated Michael Hale of Blackrock's iShares on the plusses and minuses of ESG policies.
Wright began the debate by giving a brief history lesson.
The world has been transformed in just a few generations
Wright pointed out the percentage of people living on less than $2 a day went from 90% of the global population to 9%. How did this happen?
First: The rise of human liberty via bottom-up social organization
Second: The rise of coal, oil, and natural gas
The ESG movement is dominantly a movement against both of these phenomenon
Wright went on to say that, "For oil and gas, ESG is code for greenhouse gas emissions reporting. And I see my peers, writing their reports or giving their things saying things I know they don't believe."
Ultimately, in Wright's view, businesses have traditionally been a driving force for good. However, with increased reporting requirements from government agencies in the form of ESG, it is becoming more difficult to start and maintain a business.
There is no "climate crisis" and the purely political calls for immediate "energy transition" pose a serious threat to our power grid, our economy and the American way of life.
Liberty Energy ( $LBRT ) CEO Chris Wright explains:
— Consumers' Research (@ConsumersFirst)
6:49 PM • Feb 15, 2023
This has a negative effect on society, as it limits new companies, entrepreneurship, and competition.
Big companies may prefer more regulations, but this actually slows down progress in terms of environmental and quality of life improvements.
Watch the whole debate here.

US Inflation Reduction Act: Fueling the Oil Industry's Growth?
In January 2022, a legal ruling invalidated a $192MM oil and natural gas lease sale in the Gulf of Mexico due to future global warming emissions from burning fossil fuels.
The decision came amid the Biden administration's climate change concerns and restrictions on new offshore drilling opportunities.
However, the Inflation Reduction Act (IRA) has now opened new doors for the US oil and gas industry.
But wait, wasn't the IRA aimed at promoting clean energy?
You're right. The IRA is a new climate measure signed by President Joe Biden, which includes clean energy incentives to reduce overall emissions in the US.
It also mandates leasing vast areas of public lands and coastlines to wind and solar projects.
So why are the bill's critics claiming that it is holding renewables hostage to the oil and gas industry?
The IRA brings together renewable energy and fossil fuels...
...and makes it mandatory for the government to offer new oil and gas leases before allowing solar and wind on public lands.
Which could provide new drilling opportunities in the Gulf of Mexico and Alaska.
The law also permits more fossil fuels to be exported to growing foreign markets, which would be a major win for poor and minority communities in the Gulf.
With demand for oil and gas predicted to rise for the next 10–20 years, the potential leases could bring jobs and energy security to the Gulf.

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A Gulf Disappointment
BP, Chevron, and Talos Energy had high hopes for the Puma West-2 appraisal well, but their enthusiasm was short-lived. Although the well encountered hydrocarbons in multiple sands, it was not enough to move forward with the project.
BP, Chevron, and Talos Energy received disappointing results this week from its Puma West-2 appraisal well, Talos said. The Puma West-2 appraisal well was drilled to a depth of 25,995 feet followed by a sidetrack, which was drilled geologically down-dip …
— goldsheet (@goldsheet)
7:07 PM • Mar 1, 2023
Spudded in October of last year
The well was supposed to follow in the footsteps of the 2021 exploration discovery well on Green Canyon Block 821.
The drilling data will now be reviewed and analyzed to determine the best course of action, with the possibility of another well or sidetrack.
However, for now, the Puma West-2 wellbore was temporarily suspended with utility.
The U.S. Gulf of Mexico is still a prime basin for exploration
It is one of the most mature deepwater basins in the world and has significant room for expansion. McKinsey & Company reported that it contributes roughly 15% of all U.S. crude oil, with the potential to add up to another 2 million bpd by 2040.
BP, Chevron, and Talos Energy will have to regroup and reassess their strategy, but they are not alone in their pursuit of success in the Gulf of Mexico.
Despite this disappointing well, the competition for a piece of the Gulf's success will continue.

Around the Digital Patch
👷♂️ Baker Hughes contracted by Azule.💨 Greta Thunberg is against wind power, too.🚜 DOE to fund $315MM for Rural Renewables.

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