People Love Their Gas Stoves

Good morning, this is the Oil Patch. We're the Dollar Shave Club of Oil and Gas – shave time, shave money.

Here's what the Oilman has for you today:

• Nordstream: Russia Confused by Sweden

• SPR: Biden Dumps, House Blocks

• Energy Prices & China Opening Back Up

• Gas Stoves Are Murderers

Russia Confused by Sweden

Looks like the Swedish government had a crystal ball 15 years ago, because their predictions about the vulnerability of the Nord Stream gas pipeline have come true. Back then, they warned that the pipeline was a sitting duck for sabotage and surveillance would be next to impossible.

“Despite its concrete coating, a pipeline is rather vulnerable, andone diver would be enough to set an explosive device.”

Fast forward to present day and the Swedish authorities leading the investigation have concluded that a state actor was probably behind it, but they have not speculated on who was behind it.

Meanwhile a Russian Foreign Ministry spokeswoman said the Swedish authorities' actions are "confusing" by not sharing and collaborating more with Russian investigators. She went on to suggest that “the Swedish authorities have something to hide”.

Here's the latest:

• The Swedish authorities have determined that the recent explosions were most likely the handiwork of some serious saboteurs.

• Evidence of explosive materials was discovered in the vicinity of the blasts.

• Russia is criticizing Sweden for not being more forthcoming with information about the investigation.

• Russia has pointed the finger at the UK Navy for their alleged role in the explosions.

Who knew that a single scuba enthusiast could cause such a big splash in the energy world?

Biden Dumps, House Blocks

Is the Strategic Petroleum Reserve:

• Half full?

• Half empty?

Depends on your perspective:

President Biden’s economic advisor Cecilia Rouse said the SPR is still at half of capacity. Sounds like Rouse is ready to move some barrels.

And it's not just Rouse. President Biden is considering breaking out the big guns (or should we say barrels?) by releasing more oil from the US Strategic Petroleum Reserves.

Is this good or bad? – you ask the Oilman.

Well, with the reserves currently at their lowest volume since 1983, war in Ukraine, and tensions with China...it doesn't seem like more SPR releases are a good idea.

Yesterday the Biden Department of Energy cancelled an attempt to replenish the SPR – it's half full, remember?

Some advocate for the administration to release SPR oil to minimize prices at the pump and costs of utilities. But let's not forget that OPEC+ instituted production cuts at the same time. This essentially cancelled out the Biden administration's SPR releases.

Some serious 4D chess there...

Meanwhile in the U.S. Congress, The US House of Representatives has passed a bill that bans the sale of crude oil from the nation's Strategic Petroleum Reserve to China.

What exactly happened?

• The bill passed 331 to 97, with 113 Democrats voting to ban crude SPR sales to China.

• The current process allows for crude oil sales from the nation’s SPR to companies who make the highest offer, which includes U.S. subsidiaries of foreign oil companies.

• The legislation was criticized for not outright banning all crude oil sales to China.

While this bill seems a step in the right direction, clearly there is still opportunity for the DOE to release more strategic oil as well as for China to buy through their U.S. subsidiaries.

Speaking of China

They're opening back up, and Morgan Stanley is feeling optimistic about the oil market in the second half of 2023.

Morgan Stanley sees a rebound in demand thanks to China throwing open its borders and other factors. Other factors like...ending draconian Zero-COVID policy for the world's second largest economy?

Morgan Stanley is predicting Brent prices to reach $110 a barrel by the end of the year.

But it's not all smooth sailing, as the G7 coalition plans to cap prices on Russian oil products and global manufacturing activity could pose a downside risk.

Barclays is warning that a slowdown in global manufacturing activity could throw a wrench in the wheel and bring prices well below their 2023 forecast of $98 a barrel Brent.

But hey, at least we're not talking 2020 prices? No negative price per barrel, right?

Right?

Thirty Cold Cases Solved: Gas Stoves Are Murderers

Uh, really? Yup.

Take a look:

Better get yourself a good lawyer, Gas Stove. The Gas Stove Unit is coming for ya.

But seriously, how did gas stoves become the center of the "culture wars"? Well, let the ol' Oilman tell ya:

"I've found that common sense ain't so common." - The Oilman

That's right, friend, if you thought the "energy transition" was just to switch energy sources – it's not. It's an anti-human, anti-flourishing agenda that wants to put an end to modern life and modern progress as we know it.

It's regress disguised as progress.

Since all the hooplah on social media, the Consumer Product Safety Committee is walking things back:

1. The Consumer Product Safety Committee has clarified that it is not planning to ban gas stoves. For now...

2. Republicans and the fossil fuel industry are fiercely resisting stricter environmental standards proposed by the Biden administration.

3. Some states have passed laws to prevent cities from prohibiting gas use in buildings, and the gas industry has paid Instagram influencers to promote the benefits of cooking with gas.

Republicans have argued that the commission is trying to snatch the stoves from the 40 million homes that rely on gas, even though any regulations would only affect new appliances and not existing ones.

Sen. Joe Manchin III of West Virginia tweeted Tuesday that “the federal government has no business telling American families how to cook their dinner.”

Manchin is right. Solid, reliable energy – and the tools and technology that relies on that energy – is the foundation of a flourishing, abundant civilization. Going after gas-powered appliances is yet another attack on human flourishing.

Meme of the Day

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