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š¢ļø United Kingdom Bans Oil & Gas Ads
And Shale Industry Sticks to Discipline

Good morning, here's what the Oilman has for you today:
UK Takes to Banning Ads for Oil Companies
Shale Industry Sticks to Discipline
Tweet of the Day


UK Takes to Banning Ads for Oil Companies
The UKās ad regulator has banned several commercials produced for three oil companies
The watchdog claims the ads had not included admissions of pollution.
A page out of the Big Tobacco book
We all know how cigarette makers are obliged by law in many countries to include horrific images of sick people on the packaging of their products.
Well, it seems the UK ad watchdog wants to do the same with oil companiesā¦
A group of big oil and gas company advertisements have been banned for being misleading as part of the UKās crackdown on āgreenwashingā
ā Financial Times (@FinancialTimes)
12:00 PM ā¢ Jun 7, 2023
ā¦even with ads for green energy projects, which is what the Shell, Repsol, and Petronas commercials tried to advertise.
Apparently, the companies should have mentioned in their ads āthe extent of each companyās polluting activities,ā per Bloomberg.
Whatever that means.
An unrelenting squeeze
So, it is exactly like Big Tobacco and the āSmoking killsā warnings on cigarette packs.
Never mind the fact that while smoking does kill, those oil companiesā products have literally saved lives.
Because a huge portion of their raw material is turned into single-use plastics essential for modern healthcare.
Never mind the fact that without the oil industry our current living standards would be a fantasy.
Just look at Africa, which is the lowest emitter/polluter in the world.
Penalizing oil companies for advertising green energy projects is peak anti-oilism.
Hereās the message: nothing an oil company does can be good.
I bet even BAT and Philip Morris are in awe of this extent of demonization of a whole industry.

Todayās Edition Is Brought To You By Energy Builder Podcast

On the most recent episode our guest is Brett Chell. Brett is the Founder and CEO of Cold Bore Technology, producer of LayerZERO, a digital infrastructure provider for pads all over the US. They partner with and service a wide range of clients from most of the pressure pumpers in the US, to the operators that contract them, and every service company in between.
On this episode, Brett and Adam discuss:
His experience working on, running, and building drilling rigs
How he transitioned from the oilfield to capital formation
And how he used his experience to build a quarter-of-a-billion-dollar energy tech company
Listen on Apple Podcasts, Spotify, and more.

Shale Industry Sticks to Discipline
U.S. shale oil and gas producers are sticking to their returns-first policy despite the prospect of higher prices.
Thatās according to analysts including S&P Globalās Daniel Yergin.
Growth at all costs is dead
For years, shale producers were pumping as much as they could, sometimes just to see if they could.
Well, they could.
This led to one price war with OPEC and then a series of output cuts.
This should have enticed another growth spurt.
It hasnāt.
Because a lot of shale drillers have shareholders and shareholders want money, not barrels.
Theyāre also running out of inventory, some say, or at least low-cost inventory.
Consensus is building around declining shale productivity with @RystadEnergy showing sustained declines over past 18 months!
Along with heavy legacy shale declines, this double whammy is set to materially impact shale production in 2023. Pay attention when trends reverse. š¢š°
ā Shubham Garg (@WhiteTundraSG)
1:06 AM ā¢ Dec 12, 2022
A new normal?
The EIA this week predicted that U.S. oil output will grow by 720,000 bpd this year.
Thatās up from an earlier growth estimate of 640,000 bpd.
Yet itās much lower than annual growth spurts of 1 million+ bpd in the recent past.
Also, the EIA has been consistently over-optimistic about production for some reason.
That reason could be Americansā worry about prices at the pump.
Also the fact that producers have not exactly responded well to pleas and threats from the White House to pump more.
But the biggest reason is that those producers have remembered they have shareholders.
And to keep them, the companies must make them happy with dividends.
This is the new normal: a return to what you could say are traditional business values.
Keep the oil flowing but donāt forget to keep your shareholders happy.
Yergin is calling it āthe new social contractā. It sounds like itās here to stay.

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Tweet of the Day
More cuts coming
ā Nostra, House of Dumbass (@Nostre_damus)
7:32 PM ā¢ Jun 7, 2023

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