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

• Tweet of the Day

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.

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.

Today's Edition is Brought to You By Wicked Energy.

Are you tired of feeling disconnected from the pulse of the energy industry? Want to stay ahead of the game and be in the know of the latest developments and trends shaping the industry?

Look no further than the Wicked Energy with JG podcast.

Each episode is like a VIP pass to an exclusive industry event featuring in-depth interviews with experts who are shaping the future of energy. Forget the "us vs. them" narrative; join Wicked Energy's journey as JG strives to unite the industry and bridge the gap to create more abundant, reliable, and affordable energy for all. Don't just take our word for it; tune in and see for yourself.

Join the conversation at Apple Podcasts, Spotify, or YouTube.

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.

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. 

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 👇👇