🛢️ New Refinery in Cushing, OK???

Plus There Ain't No "Green" Workers

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

  • “Green” Skills Shortage Rears Its Ugly Head

  • U.S. Could Get First New Refinery in Half a Century

  • Tweet of the Day

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“Green” Skills Shortage Rears Its Ugly Head

There’s a skill shortage looming over the energy transition that can derail it, at least in Europe.

Data shows that jobs in the “low-carbon” sector are neither as plentiful nor as well paid as they need to be.

Can’t have wind and solar if there’s no one to install them

Both the U.S. and Europe have big plans for low-carbon energy. But they seem to have missed the important part: a skilled workforce.

There are not enough people with the right skills.

Worse, there are not enough people being trained in the right skills.

Why?

Because—wait for it—the much-hyped green jobs don’t pay well enough.

From the FT:

“In the US, meanwhile, an engineer working in the oil sector earns far more than in a similar engineering job elsewhere. A low carbon engineer does not command a similar wage premium.”

Awkward.

There were never going to be millions of “green” jobs

Earlier this year, a Scottish daily reported only a tenth of the offshore wind jobs promised 10 years ago by politicians had materialized.

Just 3,100 out of a promised 28,000.

And that’s because wind and solar simply do not need the number of full-time employees that oil and gas do.

“Green” employment is booming in... consultancy, analytics, and management.

Biden’s IRA includes subsidies for training “green” technicians and paying them well, but...

“they will also need to put more thought into mapping out career paths in sectors that are likely to see “an intense period of installation,” after which work will dial down to ongoing maintenance.”

Anyone up for an intense period of employment followed by a longer period of unemployment?

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U.S Could Get First New Refinery in Half a Century

Amid the Biden administration’s push for an energy transition, the U.S. could see its first new refinery in the last 50 years as demand for fuels remains strong.

Per the company leading the Oklahoma project, the new refinery would help keep prices at the pump under control.

Too much oil, not enough refineries

Over the past decade, several refineries have closed in the U.S. or been converted to biofuel production.

This fact came to light during the last gas price surge, and it was brought to light by the oil industry.

The industry was striking back at the federal government for insisting on companies pumping more oil…

With nowhere to process it.

The Cushing project, led by privately held Southern Rock Energy Partners, could help with that.

If it gets allowed to, proceed.

A refinery in the midst of a war on fossil fuels?

“There still is a demand for fossil fuels for transportation,” says Southern Rock’s boss, a 30-year oil industry vet.

Sure, there is, and the federal government is trying to kill it with EVs.

The attempt has so far failed miserably, but it’s never too late to ban gasoline cars.

It’s also never too late to not grant the company all the necessary permits it needs to start construction.

Also, investors are unsure about oil investments these days, and Southern Rock has yet to line up all the funding it would need.

Refineries are massive projects. They’re expensive.

It’s not by chance that none has been built in 50 years.

The problem now is the same as with power plants: old ones are getting shut down faster than replacements are built.

Which means we’re probably stuck with higher prices.

Around the Global Patch

🇹🇷 Turkey's optimism soars with recent oil and gas discoveries.
🇨🇳 Kazakhstan and China explore oil pipeline expansion talks.
🇷🇺 Dip in Russia's seaborne oil exports: persistence of high volumes.

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