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šŸ›¢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 UKā€™s 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€¦

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 ā€œthe extent of each companyā€™s polluting activities,ā€ per Bloomberg.

Whatever that means.

An unrelenting squeeze

So, it is exactly like Big Tobacco and the ā€œSmoking 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.

Hereā€™s 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.

Todayā€™s 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.

Thatā€™s according to analysts including S&P Globalā€™s 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 hasnā€™t.

Because a lot of shale drillers have shareholders and shareholders want money, not barrels.

Theyā€™re also running out of inventory, some say, or at least low-cost inventory.

A new normal?

The EIA this week predicted that U.S. oil output will grow by 720,000 bpd this year.

Thatā€™s up from an earlier growth estimate of 640,000 bpd.

Yet itā€™s 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 donā€™t forget to keep your shareholders happy.

Yergin is calling it ā€œthe new social contractā€. It sounds like itā€™s here to stay.

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