Managing the Conflict Between “Going Green” and Preventing Disastrous Energy Shortages – Drill, Maybe, Drill
February 23, 2023 Article by Jeffrey PricePolitical polarization which seems to be wafting across many industries has certainly not spared the oil & gas sector. Too often, we have heard rank-and-file oil executives rant about the Biden Administration and its onerous policies “harming” the domestic oil & gas industry. Let’s do a quick fact-check! It turns out that the Biden Administration has issued the same number of drilling permits (to date) as did the Trump Administration as reported in this article in The Economist recently. Surprised? The article goes on to point out that leasing is down, but as best as any educated observer can see, the industry has plenty of drill sites to develop for the intermediate future. Directing ire at the Democratic administration over leasing has little or nothing to do with today’s urgent challenges. Another key takeaway from this fact-check is that characterization of Biden as being in the back pocket of left-wing Democrats (or “socialists”) couldn’t be more inaccurate.
We at First Keystone support responsible energy development coming from many different sectors. Most importantly, our own contribution is to build high-quality warehouses for lease in Pecos, Texas, so that our world-class service companies can support the best oil & gas companies in the world right here in the Permian Basin.
In fact, mainstream Democrats understand that fossil fuels are a necessary component of a comprehensive – and rational – energy policy. Biden, who is doing a superlative job of leading democracies to stand up to autocracies, knows that plentiful oil & gas is a strategic weapon. He is not wandering into any blind-alley of “renewables”.
The opinions expressed above reflect only those of the author and do not represent those of the First Keystone Pecos Industrial Park organization. First Keystone welcomes responsible fact-based discourses on these topics.
Increasing Government Activism in the Oil & Gas Sector
February 5, 2023 Article by Jeffrey PriceNeedless to say, the established global patterns in energy production, transport, refining, and consumption were severely disrupted at the outbreak of the Ukrainian war one year ago. As that war has played out, course corrections of increasing severity due to embargos, sanctions, sabotage, and bottlenecks have emerged. Thus, traditional customers for Russian oil and gas have had to look for new sources or alternative ways to accomplish their requirements. Through all this, new consumers are emerging for Russian oil & gas. Ditto American NG! All in all, patterns are changing radically.
An article from the January 12th Wall Street Journal entitled “Why Governments Are Pushing Deeper Into Energy Markets” (https://www.wsj.com/articles/energy-markets-governments-security-11673450650?st=isopbo266urv4h9&reflink=desktopwebshare_permalink) is a good read if you care to get down into the weeds of public policy as it pertains to energy – which has expanded as a result of this war.
The war has prompted many governments, including the U.S., to become much more pro-active in domestic and international markets. For example, the United States has chosen to draw down its Strategic Petroleum Reserve (SPR) by 180 million barrels – that’s a big number to replace! That draw-down had the effect of softening upward pricing pressures which naturally helped to dampen the severity of inflationary spikes that peaked in 3Q22. We at First Keystone remain focused on delivering high-quality industrial buildings for sale in Pecos, Texas in order to enable the American oil & gas industry to solidify its strategic position as THE worldwide leader in energy.
Thinking ahead, will the U.S. government really lower the barriers to permitting much-needed NG pipelines? Expediting construction of pipeline infrastructure would be a huge factor in weaning Europe off of Russian gas. An “all-hands-on-deck” approach to the Ukraine War calls for this! Other governments are also expanding their energy activism. For example, Germany outright nationalized several gigantic natural gas distribution companies! The Netherlands is giving consideration to reinvigorating its famous Gronigen natural gas field which has been virtually shut down over concerns of seismic activity. These forces will undoubtedly impact where oil & gas prices will be trending this year and probably next. Often, the best intentions can result in unexpected consequences as was proven in the 1970s. The quasi-embargo placed on the Russian crude oil is certainly among the most audacious moves. In contrast, check out our recent blog posts on the reticence of many U.S.-based oil & gas companies to support the war effort.
The opinions expressed above reflect only those of the author and do not represent those of the First Keystone Pecos Industrial Park organization. First Keystone welcomes responsible fact-based discourses on these topics.