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

• Europe Shoots Itself in Another Leg with Methane Rules

• OPEC+ Prepares To Cut Deeper

• Upcoming Oil and Gas Events

• Tweet of the Day

Europe Shoots Itself in Another Leg with Methane Rules

The EU seems to have a lot of legs that it’s shooting itself in.

The latest shot is a methane limit deal for energy imports.

And who’s the EU’s biggest supplier of the most methane-heavy energy commodity?

Yep. That would be the U.S.

Virtue-signaling gone mad

Last week, the EU agreed to impose methane limits on oil and gas imports starting from 2030.

The reason, of course, is the EU’s mad dash for a low-carbon economy.

That would be the same dash that’s already caused slumping GDP rates and spiking energy bills.

But the EU is not quitting.

Come 2030, any importer of oil or gas with a methane footprint exceeding the limits will be penalized.

In other words, if you don’t pay higher prices for “cleaner” oil and LNG, you’ll pay higher prices for “dirty” oil and LNG.

It’s a win-win… for tax collectors and activists.

For consumers and producers, not so much.

How to kill gas demand. And the economy.

The U.S. is the largest LNG exporter to the EU.

LNG, that is, natural gas, is mostly methane.

This leaks during production, transportation, and liquefaction.

Meaning producers would need to invest heavily in reducing these leaks.

As if LNG production wasn’t expensive enough already.

And that means EU importers would need to pay more.

Which in turn means end consumers would pay more, too.

That’s not how you make an economy grow.

For that, you need cheap energy.

You’d think all those people in Brussels would know that by now, right?

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OPEC+ Prepares To Cut Deeper

OPEC+ is considering additional production cuts amid lower prices.

The cartel is meeting next weekend to discuss the issue.

And oil prices are already up.

The battle between producers and traders

OPEC+ has this year demonstrated very clearly it would do whatever it takes to boost prices.

Traders have sabotaged its efforts for much of the year, so the cartel is doubling down.

It’s a risky move.

A deeper cut might lead traders to believe OPEC+ doesn’t trust demand very much.

Which is ironic since OPEC recently spoke quite confidently about oil demand.

But no cuts might pressure prices further, and most in OPEC+ wouldn’t like that.

It’s tough to be an oil cartel.

With expectations of an additional cut, OPEC+ basically has to make it.

Because traders expect it.

Total market control

Analysts have warned that OPEC and its partners led by Russia are playing a dangerous game.

But it’s the only game they’ve got, and they’re playing it well.

When you account for two-thirds of the global oil supply, it’s not hard to play the supply control game well.

But it remains dangerous: at some point, higher prices might no longer offset the effect of lower volumes.

And the worst bit: once you start playing the game, you can’t just quit.

With great oil production capacity comes great responsibility.

Upcoming Oil & Gas Events

• November 28: TIPRO/IPAA Leaders in Industry Luncheon, Petroleum Club of Houston, Houston, TX

• November 28: NDPC Christmas Gala, Lumen Vitae University Center, Bismarck, N.D.

• November 28-29: UTA Oil and Gas Conference, Hilton Americas, Houston, TX

• November 29: DUG Appalachia Conference & Exhibition, David L. Lawrence Convention Center, Pittsburgh, PA

• November 30: IPAA Texas Hold’Em Tournament, The Post Oak Hotel, Houston, TX

Around the Global Patch

🇻🇪 Venezuela greenlights shell-trinidad offshore gas venture.
🇮🇷 Houthi ship seizure sparks oil market instability.
🇷🇺 Sanction speculation surfaces as oil prices soften in Russia and Iran.

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