Good morning, this is the Oil Patch. We're your daily upload of all things oil and gas.

Here's what the Oilman has for you today:

• United States Urges Worldwide Increase Of Crude Oil Production

• Russian Price Cap: US Claims Success, Kremlin Rejects

• Oil Baron's 65,000-Acre Ranch

• Tweet of the Day

United States Urges Worldwide Increase Of Crude Oil Production

During CERAWeek, a State Department official urged worldwide producers to increase crude oil production to meet the rising demand caused by the global economy's recovery.

Remember OPEC’s Production Cut? Russia’s War? Biden’s SPR Releases?

Last year, OPEC+ started cutting production by around 1 million bpd.

Oil prices have fallen from their peak after Russia's invasion of Ukraine, but prices remain higher than before the pandemic.

To counter the price rally, the Biden administration released close to 200 million barrels from the strategic petroleum reserve, causing a spike in retail fuel prices.

Now experts worry about the sufficiency of spare oil production capacity to meet increasing demand.

Mixed Signals from the Biden Administration

The Biden administration refuses to approve new oil and gas leases and permits.

Why?

In February, Louisiana federal Judge James Cain ruled that raising the actual cost of climate change would raise energy costs and harm state revenues from energy production.

The delay has prompted uncertainty and delays in at least four federal agencies, including plans to restrict methane emissions from natural gas drilling and a grant program for transit projects.

The Biden admin should clear these delays.

Petroleum Reserve at a 40-Year Low

US energy executives and OPEC delegates are worried about the sufficiency of spare oil production capacity to meet increasing demand. Some analysts forecast a global oil market deficit in the second half of the year.

To maintain spare production capacity and meet demand, the United States must stop begging OPEC+ to increase crude oil production and unleash domestic producers to do what they do: drill, complete, and produce.

Russian Price Cap: US Claims Success, Kremlin Rejects

On Tuesday, the Kremlin dismissed the Western price cap on Russian oil exports. The cap was introduced by Washington and its EU allies to reduce Moscow's revenues in the hopes of hurting Russian war efforts in Ukraine.

US officials are claiming the price cap is working.

Russia has refused to recognize the cap.

New Customer for Russian Crude: India

Russia and India are establishing a long-term relationship based on cheap oil prices, according to Kpler analyst Viktor Katona.

Despite China being the biggest importer of Russian crude, Moscow sees the importance of keeping ties with India, which has become an increasingly important market for Russia after Western sanctions were imposed following the Ukraine conflict.

India bought record amounts of crude from Russia at discounted prices last year and is also gradually purchasing new energy products like diesel.

Are the western caps working or not?

The G7 and allies' price caps on Russian oil are working well, according to US Energy Envoy Amos Hochstein. The price caps aim to prevent a significant disruption of supplies from Russia while reducing Moscow's income from crude and fuel exports.

However, according to Katona, "Europe was buying this. Now India is buying this."

The issue of the Western price cap on Russian oil exports will likely remain a key point of contention. The Kremlin's rejection of the cap highlights the challenges that Western countries face in trying to reduce Moscow's influence in the global oil market. While US officials may claim that the cap is working, the effectiveness of the cap remains to be seen in the long run.

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.

Oil Baron's 65,000-Acre Ranch

The 64,672-acre Mesa Vista Ranch has finally been sold after more than five years on the market.

T. Boone Pickens purchased the first 2,900 acres in 1971 and gradually expanded the property over the years.

The ranch, located northeast of Amarillo, now includes multiple homes, hunting facilities, and sports amenities.

How did a petroleum geologist build a ranch like this?

T. Boone Pickens was a geologist-turned-entrepreneur who made his fortune in the oil and gas industry through his company, Mesa Petroleum.

Pickens is best known for his corporate raids, attempting to buy Gulf Oil, Phillips Petroleum (who he once worked for), and Unocal in the 1980s.

Ultimately, Mesa went into bankruptcy, was bought by private equity, and was renamed Pioneer Natural Resources.

The Mesa Vista Ranch even has an airport

Not many can boast of their own private airport. What other ammenities does the Picken’s Ranch feature?

• a 25,000-square-foot lodge

• an 11,500-square-foot lake house

• a 6,000-square-foot family home

• a two-story gatehouse

• 10,000 square feet of porches and patios.

The grounds also include a tennis court, golf course, chapel, and an 11,000-square-foot kennel for hunting dogs.

Originally listed for $250 million in 2017, the property's price dropped to $170 million in February 2022.

The new owner remains undisclosed, but the Oilman is hoping they’re a reader of the OilPatch and invites him over. 🤞

Around the Digital Patch

🤦‍♂️ Oil is up, oil is down.❌ How do you say, "No Power," en Francaise?🇨🇳 US solar is totally reliant on Chinese imports.

Tweet of the Day

Thanks for reading today's Oil Patch!

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 👇👇